Anyone using time stop? Is it a common practice for intraday trading? What is the normal time stop for trading futures like Bund, DAX and FTSE? Any books or website about it?
============== Every disciplined day trader uses time stops; flat end of day, by definition. Many swing traders use a modified time stop, end of day entry or exit; thats one my main measures, plus open price. Also stops can be buy & sell, ; could change it but buy /sell more during eod more so than open. And while time stops can be nicely profitable; some of my stocks did & other did not give prior hints/warning in Oct 1987 huge % drop
I use a time stop in the 1 - 2 hour range for a system that trades the TY, ER2, JY and EC. This is in addition to a price stop and target. I added time stops about a year ago and it improved my performance significantly as I'm certain it keeps me more disciplined.
indeed... depending on trade type & size, the more leveraged the shorter the time stop, 1h max intraday, always 98% min. in cash at COB
That system either gives one or no signal a day on each of those products, hence the longer time stop.
hermittrader I use an egg timer on some trades. My thoughts usually might be : Well, i will take this trade but if it does not fly in 10 minutes i will pull it. The reasoning comes from the saying: A trade should start to show a profit asap. Trades are all ES on a 5 min chart.