money management w/e-mini day trading

Discussion in 'Risk Management' started by bgp, Jan 14, 2006.

  1. bgp


    i am trying to come up with a money management plan for intraday trading the e-mini. how do traders place their stops when they initially enter a trade . i do know that the e-mini are very choppy. is a 1:1 ratio uncommon or less. i am talking about short term charts.

    thank you,
  2. If you believe that you only need to still tack on MM. Stay out.
    A successful trading strategy CANNOT be split into a trick with some tacked on stop placement and other so called MM paraphenelia.
  3. K-Rock


    I personally don’t care about risk vs. reward ratios. If you’re right more often than not about price direction IMHO you have two options:

    1.) Look for ways to improve your entries and adjust accordingly; or
    2.) Reenter (average up or down) at a better price when price goes against you. However, at a certain point (pre-planned price level) you have to recognize when you’re wrong and reverse.
  4. bgp


    thank you k-rock
  5. bgp


    nononsense please explain what you mean. you see i have a strategy for buying and selling its the risk of the trade that i am trying to work on. i use a 2-and 5 min chart. the e-mini runs in such small spurts that it would be hard to usually pick up more than 1/2 to 1 1/2 points in a single move. how do traders handle the risk in that situation?

  6. Very simple.
    For many years I waded through all the popular literature, magazines and forums.
    This is indispensable. Not that it will teach you any tricks that work but it shows you that of what is available, nothing really works.
    If you are not yet convinced about this, keep on looking.

    Frankly, as I see it, you simply don't have a money making strategy the way you present things above. What's the difference with random entry? Here, you could also say that it usually would be hard to pick up more than x points. The proposition about the existence of any kind of position management technique to save your day cannot be disproved. If it would exist though, you can be sure the beholder ain't going to tell us.