Another fake member vying for our attention, surely no one serious about their trading would post such a pointless idea. Simulation or not. I refer to this post : https://www.elitetrader.com/et/threads/trading-mentor.313758/page-3#post-4525852 dratsum said The swamp's business model places a high value on maintaining as many members as possible. Even the most prolific trolls this site has ever seen are welcomed here. It irks me when I'm unable to ignore them.
Lawrence, I thought only small mom and pop retail traders (like me) do not use hard stops or profit targets. As a retail option trader, hard stops are a problem since the bid/ask are often wide so when hard stops/profit targets are triggered I will be selling at bid, a huge disadvantage. Do you professionals have any suggestions or advice for me?
What if a system shows no statistical value to use a stop gretaer than "x"? For example, a 9% stop has a positive expectancy and a 12% stop does not for a given system. It is surprising that price often does reverse after large negative excursioms and produce some of the largest wins but sometimes the stats indicate there is no value to allow a stop to exceed X %. Not my opinion ....it's what it is for the type of systems I test. Open minded here so is there a way around this? Martingale after 12% ?
While I'm not a pro trader I do trade ATM options directionally. But, it is all about how the underlying security is acting, the option is just the vehicle. Entry and exit points defined by the underlying. When I enter the trade I write down my mental stop for the underlying. If it is closing (I swing trade, mostly EOD) or looks that it will I exit the option. My 2 cents.
Thanks for sharing. Do you exit selling at market or use limit price? Just today, I exited a trade using limit (mid of bid/ask) and was able to get out saving me some $. On the other hand another trade I tried to exit today did not go through because I could not get my limit price. So I still own it. Someone once told me, so what if you ended up exit at bid? If you set a stop/target and it hits, get the hell out no matter what! Which is better? Regards,
that's why I said : The title " Trading with No stops and no targets" is not complete. Let me complete it. Trade with No stops and no targets so as to achieve suicidal situation.
Having options, never have stops based on the options because of what you said earlier as one can have strange wide spread to trigger stop, automation always based on underlying to when to exit options for targets/protective stops. Exits based on mid point and time, so long there, then little closer to bid/ask till filled, even if it gets worse and at bid/ask, tomorrow can gap and be much worse, never know.
If you are milking a cow you have to have a stop after the pull on each tit and between each pull or that cow may kick your fat or skinny $ss right out of the stall. Translation: intraday short term trading requires an abundance of stops to effectively milk the markets and not be blown right out of the play. Report card comes every day at closing. Unless you are handle123. I believe he trades stopless intraday???