NexusFi: Find Your Edge


Home Menu

 





Question on stop Losses (scalping)


Discussion in Commodities

Updated
      Top Posters
    1. looks_one donovanshane with 6 posts (0 thanks)
    2. looks_two Itchymoku with 4 posts (2 thanks)
    3. looks_3 kevinkdog with 2 posts (1 thanks)
    4. looks_4 montanajtt with 1 posts (0 thanks)
      Best Posters
    1. looks_one UTA990 with 2 thanks per post
    2. looks_two EnsoTrader with 1 thanks per post
    3. looks_3 Itchymoku with 0.5 thanks per post
    4. looks_4 kevinkdog with 0.5 thanks per post
    1. trending_up 10,448 views
    2. thumb_up 6 thanks given
    3. group 6 followers
    1. forum 15 posts
    2. attach_file 1 attachments




Closed Thread
 
Search this Thread

Question on stop Losses (scalping)

  #1 (permalink)
 donovanshane 
Chattanooga, TN/USA
 
Posts: 26 since Jan 2013

I scalp the /es. When I say scalp I mean I buy a 2 lot, and look for a 1 tick move. This is $25 profit. I do this.....a lot during the day. 50+ trades. My winning trades hover between 75-80%. What I have noticed in my journal is if I could manage my stop losses better I would not be doing just good, but great (yeah, no brainier right?). Here's the issue. I do not have a set stop loss. Scalping is more of a feel for me. If I set my stop loss at 2 ticks, my winning % would be a lot lower. It routinely goes against me a tick or two, just to instantly recover and hit my 1 tick profit. I do not know if this is institutions, HFT's or just great freaking traders taking out peoples stops before it takes off. But either way a SET 2 tick stop loss would take a lot of my winners away. That being said,at least one time a day I have that trade that moves against me 2 ticks, I m watching it seeing if its going to go back up or if I need to get out there....when it tanks 2-5 more ticks on me and I have my biggest loss of the day. If I trade 50 times, my percentage is 40 winners and 10 loosers. All 1-2 ticks. But 90% of my losses come in 1 or 2 trades. Any thoughts....or just practice makes perfect? Thanks guys.


Can you help answer these questions
from other members on NexusFi?
Are there any eval firms that allow you to sink to your …
Traders Hideout
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Deepmoney LLM
Elite Quantitative GenAI/LLM
Better Renko Gaps
The Elite Circle
ZombieSqueeze
Platforms and Indicators
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
The Program
18 thanks
GFIs1 1 DAX trade per day journal
18 thanks
  #3 (permalink)
 
tturner86's Avatar
 tturner86 
Portland, Oregon
 
Experience: Intermediate
Platform: F-16CM-40
Trading: GBU-39
Posts: 6,191 since Sep 2013
Thanks Given: 10,459
Thanks Received: 12,695



donovanshane View Post
I scalp the /es. When I say scalp I mean I buy a 2 lot, and look for a 1 tick move. This is $25 profit. I do this.....a lot during the day. 50+ trades. My winning trades hover between 75-80%. What I have noticed in my journal is if I could manage my stop losses better I would not be doing just good, but great (yeah, no brainier right?). Here's the issue. I do not have a set stop loss. Scalping is more of a feel for me. If I set my stop loss at 2 ticks, my winning % would be a lot lower. It routinely goes against me a tick or two, just to instantly recover and hit my 1 tick profit. I do not know if this is institutions, HFT's or just great freaking traders taking out peoples stops before it takes off. But either way a SET 2 tick stop loss would take a lot of my winners away. That being said,at least one time a day I have that trade that moves against me 2 ticks, I m watching it seeing if its going to go back up or if I need to get out there....when it tanks 2-5 more ticks on me and I have my biggest loss of the day. If I trade 50 times, my percentage is 40 winners and 10 loosers. All 1-2 ticks. But 90% of my losses come in 1 or 2 trades. Any thoughts....or just practice makes perfect? Thanks guys.

Are you doing this live or in sim?

Visit my NexusFi Trade Journal
  #4 (permalink)
 donovanshane 
Chattanooga, TN/USA
 
Posts: 26 since Jan 2013

Live

  #5 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,645 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


donovanshane View Post
I scalp the /es. When I say scalp I mean I buy a 2 lot, and look for a 1 tick move. This is $25 profit. I do this.....a lot during the day. 50+ trades. My winning trades hover between 75-80%. What I have noticed in my journal is if I could manage my stop losses better I would not be doing just good, but great (yeah, no brainier right?). Here's the issue. I do not have a set stop loss. Scalping is more of a feel for me. If I set my stop loss at 2 ticks, my winning % would be a lot lower. It routinely goes against me a tick or two, just to instantly recover and hit my 1 tick profit. I do not know if this is institutions, HFT's or just great freaking traders taking out peoples stops before it takes off. But either way a SET 2 tick stop loss would take a lot of my winners away. That being said,at least one time a day I have that trade that moves against me 2 ticks, I m watching it seeing if its going to go back up or if I need to get out there....when it tanks 2-5 more ticks on me and I have my biggest loss of the day. If I trade 50 times, my percentage is 40 winners and 10 loosers. All 1-2 ticks. But 90% of my losses come in 1 or 2 trades. Any thoughts....or just practice makes perfect? Thanks guys.

If your average win is 1 tick, and your average loss is 2 ticks, with an 80% win rate, after commission I'm figuring you average $1 per contract per trade net. With a 2 lot, that is $100 per day. Am I close?

Or am I making some bad assumptions (like I assumed $4 RT commission, maybe you have an exchange seat and have lower commissions)??

Follow me on Twitter
  #6 (permalink)
 UTA990 
chicago
 
Experience: Advanced
Platform: sierra charts
Trading: es
Posts: 14 since Nov 2014
Thanks Given: 0
Thanks Received: 12

there is an old saying from the floor....you cant eat like a bird and poop like an elephant. so if you are taking 1-2 ticks out of the market you cant lose 5 ticks. make your stop 2-3 ticks when your "feel" is in sync with the market and try to hang on a little longer to winners to tip the math back in your favor. just my 2 cents

Thanked by:
  #7 (permalink)
 donovanshane 
Chattanooga, TN/USA
 
Posts: 26 since Jan 2013


kevinkdog View Post
If your average win is 1 tick, and your average loss is 2 ticks, with an 80% win rate, after commission I'm figuring you average $1 per contract per trade net. With a 2 lot, that is $100 per day. Am I close?

Or am I making some bad assumptions (like I assumed $4 RT commission, maybe you have an exchange seat and have lower commissions)??

A bit more. Per this thread, its not a set 2 tick loss. Its also not a set 1 tick win. Yes....most of my wins and losses are all 1 tick. But I do have the occasional 2 tick win/loss. I'm averaging $200-$250 per day gross. Commissions are pretty average at $3.50 per round trip. If I could stop my biggest loss of the day everyday, I would really be doing well. That is what I am trying to figure out.

  #8 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,645 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


donovanshane View Post
A bit more. Per this thread, its not a set 2 tick loss. Its also not a set 1 tick win. Yes....most of my wins and losses are all 1 tick. But I do have the occasional 2 tick win/loss. I'm averaging $200-$250 per day gross. Commissions are pretty average at $3.50 per round trip. If I could stop my biggest loss of the day everyday, I would really be doing well. That is what I am trying to figure out.

What about setting a worst case stop to be about 4 ticks?

Follow me on Twitter
Thanked by:
  #9 (permalink)
 Itchymoku 
Philadelphia
 
Experience: None
Platform: corded black telephone
Trading: ticker tape
Posts: 2,894 since Apr 2012
Thanks Given: 1,683
Thanks Received: 3,681


donovanshane View Post
A bit more. Per this thread, its not a set 2 tick loss. Its also not a set 1 tick win. Yes....most of my wins and losses are all 1 tick. But I do have the occasional 2 tick win/loss. I'm averaging $200-$250 per day gross. Commissions are pretty average at $3.50 per round trip. If I could stop my biggest loss of the day everyday, I would really be doing well. That is what I am trying to figure out.

You said 4.15 per round trip.

which is it?

wait aren't you the same guy who made this thread ?

Now you're live trading 50 times a day netting $200-$250?



Good luck, I hope you got my pm

R.I.P. Joseph Bach (Itchymoku), 1987-2018.
Please visit this thread for more information.
  #10 (permalink)
EnsoTrader
Durham, NC
 
Posts: 48 since Oct 2014
Thanks Given: 0
Thanks Received: 21


Sounds like you more data regarding MAE (Max adverse excursion).

You say 2 ticks against generally end up winners.
How many that hit 3 ticks turn and win? 4 ticks? etc.
Once you can chart out the win/loss rate based on ticks against, then you can determining a more appropriate hard stop level.

Thanked by:

Closed Thread



Last Updated on November 11, 2014


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts