Position Management Advice - futures io
futures io futures trading



Position Management Advice


Discussion in Emini and Emicro Index

Updated
    1. trending_up 596 views
    2. thumb_up 1 thanks given
    3. group 3 followers
    1. forum 3 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Position Management Advice

(login for full post details)
  #1 (permalink)
Coronel Vivida, Parana/Brazil
 
 
Posts: 3 since Jan 2021
Thanks: 0 given, 1 received

I'm looking for ideas on how to manage my positions for my trading plan for the mini Nasdaq (/MNQ).

My trading strategy yields the following results:

1/3 of all trades are big winners (50-100 points). 1/3 of all trades are small winners (20-50 points). 1/3 of all trades are losers (hit the stop loss at 10 points).

My stop loss of 10 points equates to $20 per contract. I'm considering taking up to 3 contracts per trade ($60 risk), although I'd be more comfortable with a $20 risk (1 contract). My account size is $2,000. However, I'm afraid I won't be able to maximize profit on big winners with only one contract, whereas if I traded 2 or 3 contracts, I could take profit on the first and second contracts and let the 3rd contract ride to capture the bigger moves which are relatively frequent.

If I only take 1 contract, I'd have to set my target at a distance far enough from entry to make good profit but close enough that I'm not forfeiting potential profits on smaller winners. A target at 2R or 3R would be consistent but would miss out on the really big winners but would hit more frequently than a larger target. Any advice on how to go about calculating this to make the most of the results my strategy yields?

If I take 2 contracts, I can take profit at perhaps 1R or 2R (10 or 20 points), and then let it ride with a 2nd higher target. Any advice on how to calculate this to make the most of the results my strategy yields?

If I take 3 contracts, I can take profit at two targets, perhaps 1R/2R and 3R/4R, and let the 3rd contract ride out for the 50+ point winners.

Sometimes a trade reaches +1R-3R, then reverses to just above the stop loss, then continues for an even bigger move. Because of this, I'm weary of moving my stop loss up to breakeven or higher after taking partial profits.

I would love to hear ideas from more experienced traders on how you personally might go about managing a position in this scenario. How would you manage your positions if you were me?

Reply With Quote

Journal Challenge February 2021 results (so far):
Competing for $1500 in prizes from Topstep
looks_oneSBtrader82 's Trading Journalby SBtrader82
(170 thanks from 31 posts)
looks_twoJust BEING a Trader: Letting Go!!by iqgod
(120 thanks from 33 posts)
looks_3Wisdom is Emptinessby Mtype
(68 thanks from 25 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(31 thanks from 17 posts)
looks_5Journal for peanuts1956by peanuts1956
(23 thanks from 13 posts)
 
 
(login for full post details)
  #2 (permalink)
Elite_Member
Wiltshire, United Kingdom
 
Experience: Beginner
Trading: US Equity Index Futures
 
matthew28's Avatar
 
Posts: 955 since Sep 2013
Thanks: 2,368 given, 1,717 received


Chence27 View Post
My trading strategy yields the following results:

1/3 of all trades are big winners (50-100 points). 1/3 of all trades are small winners (20-50 points). 1/3 of all trades are losers (hit the stop loss at 10 points).

I don't get your question. Either your trading strategy yields the stated results or it doesn't.
So one-third of your trades lose 10 points, and two-thirds make between 20 and 100 points. Even if you only made the minimum 20 points on each winning trade that means for every three trades on average you would be making 30 points profit but should be averaging much more

Why do you then go on to discuss whether you should scale out (and reduce profit), or whether to change your stop loss distance. This those stats I would start straight away and build up the account and rapidly increase size with the profit, all-in, all-out starting with one lot and very soon you would have scaled up and be making huge profits.
If you come up with a trading system that has great results like that you trade it exactly how you designed it, otherwise what was the point of testing something different from how you will trade.

Which leaves the question of where did your initial results come from: a decent back test with a large sample of trades from different market conditions, not over optimised, then forward tested in out of sample data; or a long period of REALISTIC real time sim trading with every trade logged; or just more of an aspiration.

Trading, ideally structured, is a vehicle for expanding consciousness, not damaging it. - Brett Steenbarger
Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to matthew28 for this post:
 
(login for full post details)
  #3 (permalink)
Coronel Vivida, Parana/Brazil
 
 
Posts: 3 since Jan 2021
Thanks: 0 given, 1 received



matthew28 View Post
I don't get your question. Either your trading strategy yields the stated results or it doesn't.
So one-third of your trades lose 10 points, and two-thirds make between 20 and 100 points. Even if you only made the minimum 20 points on each winning trade that means for every three trades on average you would be making 30 points profit but should be averaging much more

Why do you then go on to discuss whether you should scale out (and reduce profit), or whether to change your stop loss distance. This those stats I would start straight away and build up the account and rapidly increase size with the profit, all-in, all-out starting with one lot and very soon you would have scaled up and be making huge profits.
If you come up with a trading system that has great results like that you trade it exactly how you designed it, otherwise what was the point of testing something different from how you will trade.

Which leaves the question of where did your initial results come from: a decent back test with a large sample of trades from different market conditions, not over optimised, then forward tested in out of sample data; or a long period of REALISTIC real time sim trading with every trade logged; or just more of an aspiration.

My question is how can I best manage positions to get the most out of the system. If I go all in all out at 2R or 3R I'll be missing out on the 100 point moves, but if I scale out to catch the 100 point moves I'll be lowering profit on the smaller moves. I like the idea of taking partial profit at 1R because sometimes the signals only result in a move higher than 1R but less than 2R.

Reply With Quote
 
(login for full post details)
  #4 (permalink)
Leeds UK
 
Experience: Intermediate
Platform: TradingView
Broker: LCG, Oanda
Trading: ES, 6E, Cable
 
Tymbeline's Avatar
 
Posts: 470 since Apr 2015
Thanks: 1,228 given, 640 received


Chence27 View Post
My trading strategy yields the following results:

1/3 of all trades are big winners (50-100 points). 1/3 of all trades are small winners (20-50 points). 1/3 of all trades are losers (hit the stop loss at 10 points).


Wow ... I wish I could say the same.

Given the current volatility of NQ/MNQ, I regard $2,000 as the minimum requirement to trade 1 lot of MNQ (or $20k to trade 1 lot of NQ), for myself.

With $2,000, if confident in the results you've mentioned above, I'd probably just trade 1 lot of MNQ with a 20-point target and a 10-point stop-loss. The expectancy that way is a huge +10 points (+$20) per trade, so it would take me only about 100 trades to double the account.

Then I'd think about trading 2 lots with a 10-point stop-loss, taking one off at +20 points and letting the other run as far as it reasonably will, trailing its stop manually above/below the swings high/low.

I have to say - they're amazing results.

Reply With Quote


futures io Trading Community Traders Hideout Emini and Emicro Index > Position Management Advice


Last Updated on January 16, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1500 prizes from Topstep!

February
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
 

Call Option Buying: The New Pain Trade? w/Carley Garner

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
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.
no new posts