Swing trading for 3-1p/l and 1-1 w/l

Discussion in 'Technical Analysis' started by beachallstar, Aug 11, 2010.

  1. Has anyone ever formulated an indicators typical win/loss ratio and basic market enviornments they work in?

    Im trying to piece together a system that I can use for swing trading so i can achieve a stronger profit/loss ratio,but is suitable for either a 100pip stop/300pip trailing stop or a 50pip stop/150 trailing stop.

    I would love to hear if anyone trades with a 3-1 p/l and a 1-1 w/l using pure technical signals.

    So far double tops/double bottoms and just trading with the trend have worked best for me,but trading with the trend has been more luck just because retracement can bounce me out so easy:)
     
  2. You confused me. Let us clarify that. Are you a swing trader who trades with the trend and uses trailing stops?
     
  3. Yea,pretty much:)

    I prefer short term 2-10 days rather than the traditional weeks-months of pure trend following,but the trend is simply the best core signal for me to trade with,as in "never trade against the trend"
     
  4. So you filter long/shorts according to some trend indicator you have and you trade one direction. If you are waiting for corrections though to swing trade you are probably missing most of the momentum action.
     
  5. :eek:
     
  6. bone

    bone

    Swing trading with tight stops is not practical these days. If you have a decent model, you pretty much have to use a stop/loss comparable to the profit target. Depending upon what you're doing, it might be entirely possible that your cumulative losses on tight stop triggers will be greater than the cumulative losses on the larger stop level.

    For higher frequency trading clients, they can get by with a stop that is smaller than the profit target. Swing holding periods subject you to greater volatility ranges, pure and simple.
     
  7. toc

    toc

    beachdude,

    why don't you hit your favorite beach and ask some seasoned swinger about this method..............:D :D :D :D :D :D :D :D

    :cool:
     
  8. You and I understand that. Some are still looking for swing systems with profit/stop > 2. They optimize something and then complain that the markets are rigged when they lose.
     
  9. So a 100 pip stop for a 300 pip target is just too tight?
     
  10. All relative. A 100 pip stop for a 300 pip target has higher probability to be taken before target is hit, in volatile markets, than a 100 pip stop and a 50 pip target.
     
    #10     Aug 12, 2010