stops: what to do with them?

Discussion in 'Trading' started by auspiv, Mar 30, 2009.

how do you handle your stops?

  1. move stop to b/e after 0-2 point profit

    0 vote(s)
    0.0%
  2. move stop to b/e after 2+ point profit

    2 vote(s)
    22.2%
  3. trail stop

    3 vote(s)
    33.3%
  4. don't touch stop/target after they're set

    1 vote(s)
    11.1%
  5. no stops

    3 vote(s)
    33.3%
  6. some combination (discuss below)

    0 vote(s)
    0.0%
  1. auspiv

    auspiv

    stops are an essential part of any trading strategy, but how exactly should they be handled?

    when i first started trading, i used trailing stops exclusively. i always wanted to "lock-in" that profit. it caused me to not be so profitable.

    then i switched to completely static stops and targets. profitability increased, but so did my stress levels.

    now i'm to a point where i move the stop to breakeven after (on es) 2 points profit, and trail one point behind when 2.5 points profit is hit. i'm thinking this strategy isn't the best, so now i'm back to a place where i need to re-evaluate my stop strategy.

    what i think i'll start doing is have the stop moved to b/e after about 1.5 point profit, unless the trade is right at a s/r level, at which point i'd let the stop hang until the price broke considerably. then i'll move the stops manually, either to a s/r level, or behind a big bid/offer.

    does anyone have any discussion to add to this?