Need advice

Discussion in 'Risk Management' started by rolextrader, Aug 1, 2009.

  1. I have a very successful system for many futures markets (Dax, Euro, Oil, Bonds, Bund). The system employs a 1:1 RR on 20 ticks. I have been trading this one contract.

    However, many of the trades have long runs and I am interested in learning a few trade management methods that would take advantage of these moves if I traded two contracts.

    Thank you in advance for your ideas.
  2. Basically you need another system that takes advantage of the longer runs by using a R:R > 1:1. Then you can trade the 2 systems simultaneously, entering with 2 contracts at the same time. That's really all it boils down to.
  3. vita


    You can enter market with 2 lots. Once market hits your profit target (i.e. 20), unwind one lot and move the Stop of the second lot to a break even point (or change it to a trailing stop) and let the profit run.
  4. The challenge is determining the method for the trailing stop or the trigger to exit the trade. Any thoughts?
  5. vita


    One choice would be to use your stop loss of 20 ticks to trail beyond breakeven. The better choice, IMO, would be to choose 2 ticks below/above the swing lows/highs of each retracement as the trend continues. You can check the latter by inspecting retracements with each up or down trend.
  6. Redneck



    And I’m suggesting this not knowing what “long runs” specifically means - but it should not matter

    Try using a % of a set ATR period

    such as: 150% of a 4 day ATR / 150% of a 5 Min (settings are only used as examples - not a suggestion of what to use)

    And entering a trailing stop that far away

    You'll have to do some testing to figure out if this would work, and the best settings

  7. RN, that is the path I am taking. Thanks.