Interesting. Three assumptions within two posts. What if Traders follow price waves and are not scalpers. And what if they adapt their strategy around a 3 tic stop. What if a 3 tic stop is the constant factor in their trading plan. regards f9
IMO, very tight stops will produce one of 2 outcomes... 1) Death by 1000 cuts. or 2) many TINY losses combined with perhaps many HOME RUNS. Home run meaning relative to then current market environment. In order for either outcome, one must consistently and with discipline, take all signals. Amazing...this aspect remains the same, irrespective of market conditions. And directly to B1S2... Please define "noise" within the current market. For a day-trader, allowing stops of 200 ES ticks, give or take, is not appropriate, prudent, or acceptable. The argument can also be made, in the current environment, such stops are not appropriate, prudent, or acceptable for any (shorter-term) trader. Perhaps a long-term INVESTOR. Osorico
What if wishes were horses? Price waves? Do you mean Elliot waves? Kondratieff waves? Fib levels? Back and fill? Movement around important S & R? The term 'price waves' has no specific meaning. It's a generic term that could mean different things to different traders. The fact that you're trying to use it as if it has a specific meaning like 'Open, high, low and close' do indicates that you're a believer as opposed to an objectivist. As I keep saying (it seems to be hard for you to catch this so I'll restate it, and I'll put in bold for you), I don't assume that all traders whose strat involves a 3 tick stop have had to change their approach in these markets. I do believe that some successful ES traders have adjusted their stops and their position sizing in order to adapt to current market conditions. There. Is that easier for you to understand?
You are a thinking man O. Just forget the rest of your post and focus upon this statement of yours. It will change your view of price behaviour. regards f9
Most of my trading(scalping) is in spot forex. 5-6 pip mentally held stops. The placing of the stops isnt hard if you know how to time your entries and exits with skillfull precision. Its all in the "timing" from my experience(over 3 yrs). I presently manage 8 accts for friends, and have no problem with consistent profitability. Some ppl know how to scalp..some ppl dont have a clue.... P.S. Those ppl who say you cant make money scalping ES are failures in their own right....
That is it Joe, Stop first plus or minus risk = entry Sometimes you are not filled but all of the time you control the tactics rather than have price drag you around by the nose. regards f9
those that say longer time frame positon trading is the only way to consistently have a chance of being profitable, they lack methodology skills. Like i said....some ppl get it...some ppl dont
As you know F9, YM is my instrument of choice. Most folks who have seen me trade think I use tight stops (most of the time). 15 YM ticks or less for a stop is my "preference". Volatility has made my preference somewhat less attainable, but it didn't eliminate it! To compensate, I reduce size. Fortunately, my methods of trade selection are not affected by volatility. The volatility (actually it is the ranges, which is not the same as the volatility) however causes the prudent (thinking) man to be firmly in control. Osorico