YM traders...I've got a question for you

Discussion in 'Index Futures' started by bmills313, Apr 24, 2009.

  1. I've got my entries down and my strategy has been working wonderfully, but I notice in the big moves I'll capture just a bit before getting stopped out. I'm experimenting once I reach a certain price moving my stop to some function based on ATR.

    As it stands right now, my strategy is very quick and let's say a movement is 50 points. I'm probably capturing 20-25 points, max, and a lot of the time I hit my first stop/target which in most cases is probably like 8-9 points. My time in a trade rarely exceeds 3-4 minutes right now and some of these sustained rallies might go on for 20+ minutes. I'm always looking for ways to let those winners run and capture more of the potential profits and I feel like my initial stops work great but I need to work on the exit stops so I might grab 40-points of that movement instead of 25.

    Does anyone use stops based on ATR when trading these trends? I'm experimenting with it now and I'm wondering if a 2-ATR stop is too wide. It's worked amazing the last couple days with the big moves but I wonder how well it works on days with a little less ebb and flow to the market.

    Any thoughts or suggestions would be greatly appreciated!

  2. my stops/targets come from fibonacci lines. I have found using anything less than 15 ticks on the ym is disaster if you want to catch large moves.
  3. 2012


    oh you would like to know where my stop is wouldn't you :mad:

    just kiddin, I am not mad, I am happy you asked this question

    the answer is, it depends at what point do you consider trade to be a loser

    hopefully not at 80% loss :D
  4. Yeah, all my stops & targets come from fibs as well and I view the 50% line as the real turning point in a trade, good or bad.

    It seems that on the chart I'm using and the settings I like, 2-ATR turns out to be 16-24 ticks depending on time of day and volatility and I'm liking the results.

    Thanks for the advice!