time stop

Discussion in 'Strategy Development' started by hermit_trader, Feb 8, 2006.

  1. 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?
  2. ==============
    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
  3. 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.
  4. 2 hours? Too long for me!

    Anyone using time stops in minutes range?
  5. indeed... depending on trade type & size, the more leveraged the shorter the time stop, 1h max intraday, always 98% min. in cash at COB
  6. That system either gives one or no signal a day on each of those products, hence the longer time stop.
  7. yeah but for cooking only, sorry...
  8. 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.
  9. Yes. This is what I want to ask.

    If I only expect 2 or 3 ticks profits, is 10 minutes too long?