What is less risky on the ES?

NexusFi · 2013-09-30T10:44:12-04:00

Depends mostly on your time frame, check the average true range of the chart configuration you are trading. I believe 1pt is too little of a natural breath space for ES. You will get stopped out virtually on all your 5 trades with 1 pt of risk if you are trading a 15min chart for example :) But maybe that's ok if you are trading a small tick chart, and so on... I would personally chose to take one trade, with 3 points stop and 5 points target; it will be also less expensive commission wise if you track …

Discussion in Traders Hideout

Updated September 30, 2013

What is less risky on the ES?

September 30th, 2013, 10:44 AM

#11 (permalink)

kevinkdog

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trendisyourfriend

I think Mack from price action trading (PAT) encourages people to aim for a 1 pt profit and put your stop at BE and try to manage a runner on the ES. I posted this question to see what other traders think of such a money management practice. I once tried it in my journey and was beeing stopped out all of the time. But it seems some have success with it.

My experience is that having breakeven stops almost always decreases system performance. That is for mechanical rule based systems. Very rarely does it make things better.

BUT, I can see the usefulness for discretionary traders from a psychological point of view. It can be deflating to watch a nice winner turn into a loser.