Target missed by one tick

Discussion in 'Trading' started by Visaria, May 1, 2014.

  1. cornix

    cornix

    IMO in that case it makes sense to just set an alert and close trade manually when it's "in the area" since few ticks don't matter much in longer-term moves.
     
    #21     May 1, 2014
  2. djmartin

    djmartin

    The solution is to do nothing, this is part of trading. It happens sometimes. If the target was part of your trading plan then you start moving targets and stops then your not excepting risk. Anything can happen in the markets.
     
    #22     May 2, 2014
    dartmus likes this.
  3. Jaydom

    Jaydom

    I know what you all mean. I hate when I am at my goal for the day, but the market won't give me that extra tick to fill my limit order! Sometimes it's like that. :confused:
     
    #23     May 2, 2014
  4. what.the

    what.the

    dont be a prick for a tick
     
    #24     May 2, 2014
  5. You can put your exit lower, put your exit in an area, use s/r....
    there will always be trades you miss by one tick.
    Test your system on a big serie of trades and find out which rule is optimal. And follow that rule. Missing a trade by following the rules is not so horrible. Making a win by not following the rules is worst, because if you optimized your rules you will miss a lot of profit in the long term by not following your rules.
     
    #25     May 2, 2014
  6. Have had the same problem myself. Once I get within a few ticks of my
    Profit target I move my stop order right up close to my profit order. Regardless if what your risk reward was when you started you have to consider how much profit your willing to give up for that extra tick.... In saying that, all comes back to your strategy. If your strategy has an edge and by you've stuck to your rules, then sometimes you just have to accept that sometimes sh!t happens.... Just my 2 cents though....
     
    #26     May 2, 2014
  7. It seems that your comment has 'scarred' local jokers.
    Though, I have to say, I can't see what's wrong with the advice. :p
     
    #27     May 2, 2014
  8. wrbtrader

    wrbtrader

    Did the trade come within 1 tick while watching it occur in real-time or did it come within 1 tick while away from the computer considering it was mentioned it was a position trade ?

    If the latter, not anything you can do and just be happy you're following the trading plan that enable you to get a profit out of the trade. Yet, if this is a consistent problem (profitable trades getting close to profit targets and then retracing), revise your profit target (exit strategy).

    Yet, if you were watching it in real-time when it came within 1 tick of the target...you need to improve your recognition of a trade position that won't reach its target prior to it hitting your profitable trail stop.
     
    #28     May 2, 2014
  9. This is what i have been doing and my overall (weekly + quarterly) PnL have looked way healthier. An improvement of 12-17%, which adds up over time.
     
    #29     May 2, 2014
  10. When trading, you aim to play optimally; mind, body and soul.

    A loss of income in this manner over a period of time can reinforce negative psychology. When this happens, you start second guessing your target price (and second guessing in this game mostly has negative results). This is not because you're not decently good at it, but more because your faith in your ability has diminished due to previous results.

    I have tried having defined targets and would stick to them and then I have tried to allow myself a little "dancing" space. If I get a $0.23 move and my target was $0.25, I'll take the $0.23 as opposed to having it trail back and take me out at $0.15. I just lost $0.08 for the sake of gaining $0.02! Statistically, that strategy is flawed.

    With trying both methods for extensive periods of time. The result in the post above shows that being a little flexible has a better outcome in the long run.

    The same principles have worked well with me on entries.
     
    #30     May 2, 2014