Target of 10 points

[badtrader]

Let see what answers we get. Lets say you got a target of 10 points and with a stop of 10 points. Over time what will work best. based on 2 lots

10 point target...10 points stop,,, enter 2 lots
or
10 point target...10 points stop,,, enter 2 lots sell 1 lots after 5 points then move stop to even.
or
10 point target...10 points stop ,,, enter 1 lot then at 5 points profit buy 1 more lot. stop stays at you entry price

 

[JumpOff]

On your last item, you mean move the stop on your first lot to b.e.?
The second lot will have to move up enough to cover spread and commission first, yes?
JO

 

[SOCRATES]

Let see what answers we get. Lets say you got a target of 10 points and with a stop of 10 points. Over time what will work best. based on 2 lots

10 point target...10 points stop,,, enter 2 lots
or
10 point target...10 points stop,,, enter 2 lots sell 1 lots after 5 points then move stop to even.
or
10 point target...10 points stop ,,, enter 1 lot then at 5 points profit buy 1 more lot. move stop to even

I am sorry to have to tell you but your idea wil not work satisfactorily.

There is a glaring hole in it. Let us see who is the first to spot it....................

 

[badtrader]

On your last item, you mean move the stop on your first lot to b.e.?
The second lot will have to move up enough to cover spread and commission first, yes?
JO

sorry been drinking :cheesy: on the third set up, you would leave you stop at entry, once filled on the 2nd lot, you would take the loss. on 1 lot.



SOCRATES

I know of one successfull trader who works on a 1,to 3 ratio, he risk 3 s&p points to get 1
Not like the so called tex book who say risk 1 point for 3 points

 

[SOCRATES]

sorry been drinking :cheesy: on the third set up, you would leave you stop at entry, once filled on the 2nd lot, you would take the loss. on 1 lot.



SOCRATES

I know of one successfull trader who works on a 1,to 3 ratio, he risk 3 s&p points to get 1
Not like the so called tex book who say risk 1 point for 3 points

Yes, but he probably gets it right nearly all the time, that's the difference.

But there again if he gets it right nearly all the time one to three ratio is silly exposure for no reason. Think about it. Just think deeply about it.

 

[frugi]

I am sorry to have to tell you but your idea wil not work satisfactorily. There is a glaring hole in it. Let us see who is the first to spot it....................

1. Commission, unless you own a seat and 'do size'.
2. All 3 r/r rebalances offer a fairly meagre expectancy, unless the trader is an 80%+ hitter.
2a Preventing the trade from becoming more profitable than 10 pts. A runner would really help.
3. The lack of active management.
4. Applying fixed stops n targets without regard to market structure and developments.

 

[badtrader]

To make it work even better once the market moves a few points move stop to even. Most trader are around 85% correct on the entries in the first few mins.its they management that lets them down.

 

[Splitlink]

To make it work even better once the market moves a few points move stop to even. Most trader are around 85% correct on the entries in the first few mins.its they management that lets them down.

I don't like the idea of a 10 point target for a 10 point risk. I try to get my stops closer than that and with a trade I made on Thursday (DGE) I put no stop on until the next day, when I was in profit. I am convinced that close stops are the best but the problem in that the spreads can be very wide in the first hour of trading, that is why I decided not to put a stop on at first.

Risky? Probably, but London shares are less volatile than NY and I am cautious with trade size.

Getting the trade into profit is my main priority, and getting the price up above a reasonable stop loss, so that normal price fluctuations do not trigger it. There's nothing more frustrating having the stop triggered just when one is getting into profit. However, a ratio of 1:1 on opening is showing a confidence in being right that I wish I could be sure of- and I'm not.

Split

 

[badtrader]

Am I correct, most on here play the tex book 1,to 3 ratio game,?

 

[JumpOff]

Am I correct, most on here play the tex book 1,to 3 ratio game,?

Not sure what you are asking here, assume you mean a fixed stop loss and fixed target?

No -that doesn't work for me. I simply try to take what the market is able to give. My best trade yet? 20 times the amount I was willing to risk. There is no reason to close a trade that is running hard and gaining speed in your favor! The amount I am willing to risk may also change after I enter (always to a reduced position of risk). If price action indicates my reason for entry is no longer valid, I close, no matter what my current profit or loss is.

I'm still a greenhorn in this realm, but I've always thought that fixed stops and targets were hooey from the get-go.

JO

 

[badtrader]

jumpoff

That the correct answer

But if you was scalping for a few ticks the ratio does come in to play

 

[Splitlink]

Not sure what you are asking here, assume you mean a fixed stop loss and fixed target?

No -that doesn't work for me. I simply try to take what the market is able to give. My best trade yet? 20 times the amount I was willing to risk. There is no reason to close a trade that is running hard and gaining speed in your favor! The amount I am willing to risk may also change after I enter (always to a reduced position of risk). If price action indicates my reason for entry is no longer valid, I close, no matter what my current profit or loss is.

I'm still a greenhorn in this realm, but I've always thought that fixed stops and targets were hooey from the get-go.

JO

I think I would agree with that but I don't like stops too far away. Everything may go fine for a while but get a string of losses and it can be disheartening. A couple of weeks ago I shorted BP for a gain of 20 points. Last week I got HBOS for a gain of 26.8.(that gives you the reason about not closing a winning trade- it went higher during the day and is probably still a hold).Why risk deep stops and give it all back again? Right now I'm long on DGE and I have no stop on that. Monday will tell me whether that was a good decision or not, but I'm a spreadbetter and the spreads are very wide in the first hour and close stops are vulnerable . Sometimes, after hours,
with rolling bets, I remove the stop I have had on during the previous day and put it on, again, after 9 a.m.

Split

 

[SOCRATES]

The Hole has not been spotted yet. I will come back tomorrow and have another look.

 

[badtrader]

The Hole has not been spotted yet. I will come back tomorrow and have another look.

I know the hole.I am a student of psychologie on how traders act. Lets see if you know where the hole is SOCRATES

 

[SOCRATES]

I know the hole.I am a student of psychologie on how traders act. Lets see if you know where the hole is SOCRATES

So you are trying a cruel experiment at the expense of beginners, are you now ?

I know where the hole is, the question is whether you yourself do know or don't know.

It is blatantly obvious, "it is screaming at you", just like PodG says.

 

[badtrader]

So you are trying a cruel experiment at the expense of beginners, are you now ?

I know where the hole is, the question is whether you yourself do know or don't know.

It is blatantly obvious, "it is screaming at you", just like PodG says.

Im not trying to prove anybody wrong, Im just trying to prove something to myself.

 

[SOCRATES]

Im not trying to prove anybody wrong, Im just trying to prove something to myself.

Ah ! I understand now.....

I can see clearly what it is.

What you are really doing is putting your ego in front of your reason, just like a lot of obstinate people, until you are forced to do what is necessary.

Well, carry on then.

But the hole does not go away unless you give up your ego and deal with it by using your reason instead.

I am very interested to see how this develops from now on.

 

[badtrader]

Ah ! I understand now.....

I can see clearly what it is.

What you are really doing is putting your ego in front of your reason, just like a lot of obstinate people, until you are forced to do what is necessary.

Well, carry on then.

But the hole does not go away unless you give up your ego and deal with it by using your reason instead.

I am very interested to see how this develops from now on.

The less you know about a subject, the longer it takes you to explain it. Is this why you will not answer my question

 

[SOCRATES]

The less you know about a subject, the longer it takes you to explain it. Is this why you will not answer my question

No, that is not the reason.

The reason is that it is obvious.

And because it is obvious, I am trying to save you from embarrassment by making you look stupid.

 

[badtrader]

No, that is not the reason.

The reason is that it is obvious.

And because it is obvious, I am trying to save you from embarrassment by making you look stupid.

Some people play very, very well just so they won't get embarrassed.Is this what you are playing