Hello, I'm kind of new in trading NQ live even if I have been observing it on different time charts for one year now. My first month of live trading was pretty bad and I have learned that trading without a plan is a mistake( i already knew it)...but I also think that the quickest way to understand price action is to learn the hard way trading with a live account (this is me...it might be different for other people). Anyway, I'm now trying to come up some strategies to back-test and I would like to have an opinion from some more experienced traders. Theoretically speaking, considering an ideal daily target of $400, do you think it would be better to attempt 4point with 5 contracts or 10 points with 2 contracts? Of course I think that it would be easier to get 4 points in a single trade while it might require few trades to get 10 points combined. I'm also aware of the risk to being stopped out with 5 contracts instead of 2. Of course the first step would be to define a strategy, back test it and then trading it on a demo account for a while, but I'm wondering if this strategy should be focused on a short target with more contracts or the opposite. I know that this is a dumb question so feel free to insult me if you like ...but an honest opinion would be really appreciated Don't be too harsh please Sorry if my written English is a little rough.
Be a big game hunter...aim and study and seize the daily few macro move(s)...instead of scalping for relatively small table scraps like a squirrel or other scavenger rodent or prairie dog or hyena in 2018.
Start with 1 contract, control your greed and see if you can get 4pts or 10pts, assuming SL of 4 or 10 before taking a SL loss, the issue is 4pts means tights SL but less movement so kinda tricky to say which is best. Can you not take more than 1 trade per day ?? cause some days will be negative 400, then +400 next day still gets you to 2 days with zero profit. Most of us take many smaller traders and try to get to our target or just be happy to be up on the day to be honest, most fail!!
Your question sounds stupid to me: it is obvious that making 2 points is easier then making for 4. trading 2 or 5 contracts makes no difference as both trades will be filled in no time. only your losses will be different because of the different size. it would be different if you would compare trading 2 contracts or 100 contracts, and even then... Trade 1 contract and try to make 2 points a day and move on from there.
You are absolutely right but I guess my point is that in order to reach 4 points, I would need (theoretically) to wait for very few high probability set ups while attempting 10 points per days would require more trades, and it would expose me to more potentially losses. Not sure this makes any sense.
What do you mean? attempt 10 points/2 contracts is more advisable? Or just try to get 2 point with 2 contracts and be happy with it?
You are asking the wrong questions. And you are hypothesizing with the wrong side of the equation. Plus, according to you, whats the point of trading at all when NQ does not have AT LEAST a 20 point linear range? Oh wait, I forgot... your system is one that enters/exits only at exact highs and/or lows... a 10 point or less linear range is all that is needed for your success. Cool.
Thanks for your replay. The biggest issue I have now is that the more I trade the biggest the losses. I'll try to better articulate. If I make 50 round trips/day, I would probably end the day with losses because it is very difficult for me to spot 50 good set ups per day. I feel more comfortable in waiting for few high probability opportunities.