RR strategy - what do you think?

Discussion in 'Trading' started by saxon22, Sep 26, 2007.

  1. Guys, since everybody is in a good mood this morning. I am having trouble with my stops. I generally place an order with a 2 point stop and 4 points gain. Once I am in, I try to take half the profit which is generally 5 cars at 2 points and the rest at 4. How can I improve on this strategy? Is it a good one?
  2. (1) The reward/risk ratio you've chosen of 2-to-1 is "arbitrary". It also doesn't allow for the possibility of having huge gainers. (2) If you're trading frquently, you're going to tend to trade at "breakeven" and then get eaten up by commissions, fees and slippage. (3) Consider expanding your time horizon if it seems you're working too hard and experiencing too much stress.
  3. What would you recommend?
  4. (1) Consider swingtrading instead of daytrading. (2) Keep the upside wide open by using stop-orders instead of limit-orders to take profits. (3) Focus on trending-markets that are making weekly & monthly extremes that are more likely to have follow-thru.
  5. Swing is not for me. I tried it and just could not hack it.
  6. The secret is in your runners try taking half off where you do then a quarter off then let the balance ride to take advantage of a bigger move which you tend to get in the ER2 NQ. A trailing stop is good BUT can stop you too quickly. An idea I use in Ninja for the runners in to let the profit run to say 2points then my training stop comes up the 5 ticks behind and moves tick for tick.
    Just a thought
  7. I like your system Bogan. My DOM is POS compared to NT which a I happen to like a lot. I especially am warm to the idea of that last 1/4 of a position to go on and catch the big wins. Will see if I can implement it. Thanks guys for the info.
  8. Its the ONLY thing that keeps me in the green. I am sure some of the other guys here may have better strats but that sort of works for me. If I loosened it up it may be better and that is something i am looking at