NexusFi: Find Your Edge


Home Menu

 





Stop Size for ES


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one elitetradernyc with 4 posts (0 thanks)
    2. looks_two fminus with 3 posts (6 thanks)
    3. looks_3 DrewDown with 2 posts (0 thanks)
    4. looks_4 trendisyourfriend with 2 posts (1 thanks)
    1. trending_up 3,617 views
    2. thumb_up 8 thanks given
    3. group 9 followers
    1. forum 13 posts
    2. attach_file 1 attachments




 
Search this Thread

Stop Size for ES

  #1 (permalink)
 elitetradernyc 
new york, ny
 
Experience: Intermediate
Platform: ninjatrader
Trading: stocks, options
Posts: 80 since Nov 2012
Thanks Given: 6
Thanks Received: 4

How you guys set the stoploss for ES? ive noticed most of the time that the ES moves up 1 or 2 points then down 1 or 2 points then up again when its choppy however when its moving real fast, it doesnt go back down or up so a very low stop could be used. On average ive found that a stop between 1.5 and 2.5 points or between 6 and 10 ticks works best. Any thoughts?

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Better Renko Gaps
The Elite Circle
Exit Strategy
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Deepmoney LLM
Elite Quantitative GenAI/LLM
 
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
Battlestations: Show us your trading desks!
18 thanks
  #3 (permalink)
 
fminus's Avatar
 fminus 
Washington DC
 
Experience: Advanced
Platform: TT
Broker: Dorman
Trading: US Treasuries
Posts: 126 since Sep 2009
Thanks Given: 156
Thanks Received: 299


I usually set my safety stoploss to about +1 point more than the average rotation when it's a normal rangey type of day. Other times, I'll use some variation of a percentage of an ATR (i.e. 25% of 10-day ATR). Just depends on what I feel like at the moment.

In trading, shortcuts lead to the longest path possible.
Reply With Quote
  #4 (permalink)
 
trendisyourfriend's Avatar
 trendisyourfriend 
Quebec Canada
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: AMP/CQG
Trading: ES, NQ, YM
Frequency: Daily
Duration: Minutes
Posts: 4,527 since Oct 2009
Thanks Given: 4,171
Thanks Received: 6,018

I'd say the vast majority of traders use a stop between 2 and 2.5 points. If you use tools like market profile or the vwap along with a volume ladder aka footprint you could lower it (stop) between 3 to 5 ticks. However, lately on futures.io (formerly BMT) we have seen proponents favoring a no stop loss scenario and averaging down when price goes againts you.

Reply With Quote
  #5 (permalink)
 
fminus's Avatar
 fminus 
Washington DC
 
Experience: Advanced
Platform: TT
Broker: Dorman
Trading: US Treasuries
Posts: 126 since Sep 2009
Thanks Given: 156
Thanks Received: 299


trendisyourfriend View Post
I'd say the vast majority of traders use a stop between 2 and 2.5 points. If you use tools like market profile or the vwap along with a volume ladder aka footprint you could lower it (stop) between 3 to 5 ticks. However, lately on futures.io (formerly BMT) we have seen proponents favoring a no stop loss scenario and averaging down when price goes againts you.

I think you should clarify adding when price goes against you and is still within context of the plan and you are able to buy more for better price vs adding more in hopes of minimizing loss. The 2 activities can look identical without a plan and discipline. The first option will allow the trader to add more while still being confident and perhaps even just getting out when they realize they are wrong. The latter option leads to hoping for a rebound and probably emotional puking and capitulation.

Addendum: I just want to add that I'm not trying to correct you, be offensive, or sound like an arrogant know-it-all in any way. Just adding my thoughts on what I've realized so far in my journey.

In trading, shortcuts lead to the longest path possible.
Reply With Quote
Thanked by:
  #6 (permalink)
 
trendisyourfriend's Avatar
 trendisyourfriend 
Quebec Canada
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: AMP/CQG
Trading: ES, NQ, YM
Frequency: Daily
Duration: Minutes
Posts: 4,527 since Oct 2009
Thanks Given: 4,171
Thanks Received: 6,018

Here is a potential scenario using today's price action...

When price begun to retrace, you could have started a buying campaing at today's VAL then add at Yesterday's VPOC and finally attempt to add at the Low of the day (RTH session). Your mental stop loss could have been placed below support as seen on the picture.


Reply With Quote
Thanked by:
  #7 (permalink)
 rosho01 
London/UK
 
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96


elitetradernyc View Post
How you guys set the stoploss for ES? ive noticed most of the time that the ES moves up 1 or 2 points then down 1 or 2 points then up again when its choppy however when its moving real fast, it doesnt go back down or up so a very low stop could be used. On average ive found that a stop between 1.5 and 2.5 points or between 6 and 10 ticks works best. Any thoughts?

Discussion on stops is massive, do a search.

If you can read the market to be fast moving or choppy then good skills, whether its trending or ranging may also impact your stop placements. And theres a potential myriad of other factors which may influence your stop, like indicators and dare I say recent price action.

Visit my NexusFi Trade Journal Reply With Quote
  #8 (permalink)
 elitetradernyc 
new york, ny
 
Experience: Intermediate
Platform: ninjatrader
Trading: stocks, options
Posts: 80 since Nov 2012
Thanks Given: 6
Thanks Received: 4

Thanks but what do you mean when you say average rotation? How do you determine it?


fminus View Post
I usually set my safety stoploss to about +1 point more than the average rotation when it's a normal rangey type of day. Other times, I'll use some variation of a percentage of an ATR (i.e. 25% of 10-day ATR). Just depends on what I feel like at the moment.


Started this thread Reply With Quote
  #9 (permalink)
 
fminus's Avatar
 fminus 
Washington DC
 
Experience: Advanced
Platform: TT
Broker: Dorman
Trading: US Treasuries
Posts: 126 since Sep 2009
Thanks Given: 156
Thanks Received: 299


elitetradernyc View Post
Thanks but what do you mean when you say average rotation? How do you determine it?

By average rotation, I am referring to the average harmonic rotation of the markets (in whatever timeframe you are trading). It is the ebb and flow of the market as it rotates back and forth, back and forth. If you don't have IRT or SC to conduct this research you can even get a feel for it just by placing a simple Swing indicator (also on futures.io (formerly BMT) download section) and you'll start to notice that on average price will move a certain number of points before turning around. Obviously you just can't just use this in a blind mechanical way but it helps me get an idea on the flow of the markets and where I'm probably wrong if wrong. FT71 talks about harmonic rotations in his webinars (i forget which ones), so I highly recommend you check them out when you get the chance. There are also some stats on this posted in the master homework thread. Hope this helps.

In trading, shortcuts lead to the longest path possible.
Reply With Quote
  #10 (permalink)
 elitetradernyc 
new york, ny
 
Experience: Intermediate
Platform: ninjatrader
Trading: stocks, options
Posts: 80 since Nov 2012
Thanks Given: 6
Thanks Received: 4


Thanks a lot the swing indicator is EXACTLY what i needed, u a godsend.

Started this thread Reply With Quote




Last Updated on April 30, 2015


© 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