Stops Too Tight?

Discussion in 'Index Futures' started by profitseer, Aug 9, 2002.

  1. Tired of getting stopped out all the time? Thinking about widening your stops? Don't do it. Here's a simple solution.
    If you normally enter at the market with a 2 pt stop, this time enter at a limit 2 pts away. So then you will get filled where you usually get stopped out.
    You say, "But profitseer, then I will miss the market!"
    Don't give me that jazz. If you were hitting the market you wouldn't be complaining about being stopped out.
  2. ChrisM


    Sounds nice, the only problem is, this does not work. Entering 2 pts. limit gives You completely different trading scenario.
  3. Jordan


    I'll have to think about that one.

    I love the 3 step method on another thread profitseer, and no matter how many times I have explained it since, no one gets it. It's too simple.

    In that post, perhaps the 100% thing is confusing people. The 100% as I interpret it means 100% of the time you will not be in a losing trade longer than 10 minutes.

  4. Jordan


    One would definitely have to analyze that one I think profitseer.

    1) If I move the limit 2 points, how many trades that I entered previously would not have been entered?

    2) How does missing those trades effect my P/L?
  5. Jordan,

    You write "I love the 3 step method on another thread profitseer, and no matter how many times I have explained it since, no one gets it. It's too

    How about being a sport and saving me some search time? What thread are you referring to?

  6. Elysium


  7. To tell you the truth Jordan, I almost never use a limit entry. My thinking is, it is fairly easy to train an animal with moderate intelligence, like a dog, to do a trick. But I can't even make a primitive beast like the market sit on command, let alone go and fetch my limit and bring it back the other way.
    But I got a strong buy signal in a flat market. I noticed that prices were at the upper band on BB. It was 2 pts down to the EMA and 2 more points down to the lower band. Normally I would have just taken the buy at the market, but this time I put in a limit where my stop would have normally been.
    It worked. So based on my sampling size of one, it is 100% accurate. (Don't even ask me how you can get a strong buy in a flat market. I don't want to know, because my system is working and if there's a flaw in it I'll have to go back to the drawing board. And they don't pay me to draw.)
  8. Jordan


    :D :D :D Profitseer that is very funny.

    Huge sampling size. Tremendous power therefore. Wow, the number crunching must take forever even with a high-end computer. :)

    If the spread is a few cents or so and it is quiet, I'll getin either way, market or limit. But if the volatility is increasing, the reliabilty of level 2 is so poor that I will limit plus .02 on the bid to give the spec some room to work. I want in, but the price is a little flexible.

    Sounds like I'm searching the best airfare online.

  9. Jordan, Ever notice that no stop within smelling distance of the market is safe? But just try to buy the bid or sell the ask. You can be as close to the market as humanly possible and not get filled.
    Next time I can't get in at a limit, I'm just going to change that order to my stop, because I've already proven it is safe as milk.
  10. I don't know whether a brief thank-you is acceptable fare on this list, but until somebody tells me to cut it out I'll err on the side of courtesy and say "Thanks for the URL, Elysium."
    #10     Aug 12, 2002