Target Trader ( | Trading Reviews and Vendors - futures trading strategies, market news, trading charts and platforms

Trading Reviews and Vendors

Discuss and review vendors of commercial trading products, trading rooms and services, trading indicators or third-party paid add-ons


Target Trader (

  #12 (permalink)

Market Wizard
Berlin, Europe
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
Fat Tails's Avatar
Posts: 9,807 since Mar 2010
Thanks: 4,238 given, 26,454 received

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.

Reply With Quote
The following 2 users say Thank You to Fat Tails for this post: