Target Trader (www.proequitytrader.com) | Trading Reviews and Vendors


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Target Trader (www.proequitytrader.com)

  #12 (permalink)

Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,693 since Mar 2010
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TraderBee View Post
Hey! Yeah, I trade their system.
I was concerned about the 10 tick stop at the beginning and tested a 5 tick stop, which just didn't work (in my opinion). The TF is so volatile and needs a bit of room to do its thing. I didn't trade the ES for very long when I first began because it just moved too slow and I prefer to be done before the first report. But, 8 or 10 seems to be a good stop. I have been using a trailing stop on the TF and it is working awesome. Sometimes it will stop me at 3 ticks profit, other times I'll take 10+. My stop is set at 10 ticks and moves up to 1 when it hits 3 and trails 2 behind the profit. Honestly, I don't remember the last time I was chopped so the stop is not much of a concern to me. But, I also play super safe with my trailing stop and eliminate being chopped by having such a close trailer.
Wow, it is late! Hope that made sense. :-)

2 ticks profit -> $ 20.00 - $ 4.00 (commission) -> $ 16.00
10 ticks loss -> - $ 100.00 - $4.00 (commission) -> -104.00 $

How can this work? Only if the underlying probability distribution has a meagre tail, meaning that the 10 ticks event is rare compared to the lognormal distribution. I am afraid that empirical evidence is against this case, which has probably been invented by brokers to maximize the commissions.

Trading this system is emotionally satisfying, because you will get 5 or 6 wins for 1 loss, but you will pay for that fun.

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