{REQ} help with an exit strategy

[jjthetrader 10]

Hi there,

 

I'm unsure of how to code what I am trying to accomplish.

My current strategy has a profit target set. Quite often the price will get just shy of this and reverse.

I am looking for something almost like a trailing stop but more like "If this happens then take this minimum profit".

 

Say I want 2 points on the emini S&P but if it got up 1 point and starts to turn how could I set a minimum profit of 1/4 point AFTER it turns?

 

Thank you kindly for any tips.

JJ

[feb2865 10]

I am not a fan of scaling out but this is what I've been using.

 

Lets assume you have a 1:1 risk ratio

 

I set a trail stop at the same distance of my profit target.

 

Example

 

2 ES points profit target/ 2 es points stop loss

 

Then I trail my stop-loss at 2 point (8 ticks ) better than entry price.

 

so everytime the market moves in my favor, the trails stop will reduce my exposure 1 tick less

 

That way, I am not too close to the market yet I give the trade time and space to develop.

 

It will make sense when you try on the market. Just that if you try this on demo remember that fills are not the same as real time.

 

You can also try ATR X 3 and keep your stop-loss on that disctance but personally sometimes stop-loss are way too wide. I don't like ATR that much.

 

Hope it helps

 

God Bless You

[jjthetrader 10]

Thanks for you insight. I like the 2 point stop as well. But what I don't like is the false moves in the direction of my stops that catch them and then continue in the direction I wanted them to in the first place.

Do you put your stops into the market or stop it out manually when it reaches that level?

 

My TS strategy has a 2 point stop but usually I've run up a bit and could have gotton out with a 1/4 point or more or even breakeven before the rundown to my stop.

 

What I'm actually looking for is tradestation code to take a minimum profit if I've run up and it starts to run down.

 

Thank you,

JJ

[feb2865 10]

  jjthetrader said:

Thanks for you insight. I like the 2 point stop as well. But what I don't like is the false moves in the direction of my stops that catch them and then continue in the direction I wanted them to in the first place.

Do you put your stops into the market or stop it out manually when it reaches that level?

 

My TS strategy has a 2 point stop but usually I've run up a bit and could have gotton out with a 1/4 point or more or even breakeven before the rundown to my stop.

 

What I'm actually looking for is tradestation code to take a minimum profit if I've run up and it starts to run down.

 

Thank you,

JJ

 

The ES was an analogy I don't trade ES, sorry if I mislead you.

 

Once I have an entry, I normally don't do anything. Either I win or lose. I have everything pre-programmed on my platform AKA stop-loss/trailng stops and profit target. As I have a trailng stop in place at a resonable distance form the market, I am not worried 'cause it will decrease my exposure systematically.

 

You must have a pre-concieved calculation on your Risk/Reward before placing a trade. If the range is too wide for your risk tolerance, consider not to enter. Stop loss are comprised on two things

 

1) Logical placement - Away form any pressure points AKA pivots,Fibs/ S/R etc.

 

2) Risk Tolrenace - not necesarily a percentage ratio of your bankroll but you much in your head are you willing to risk?.

 

from that pont, you must let the trailing stop reduce your exposure on the market.

 

There will be no escape from be stopped out ocasionally, not even with trailing stops. There's no free lunch my friend. You know that. Just consider yourself lucky 'cause your initial risk was reduced, unfortunately the market went the other way.

 

 

You need to account for current range on the market you're trading. Maybe 2 point ES has become part of the "noise" and you migth have to lower your gear and shoot for a wider stop-loss.

 

The overall range on indices has changed since late July I beleive. It's a fairly normall event by this time of the year as the summer is ending, newely refresh traders are coming back to the market and most fund managers are allocating funds into the bond market, hence pushing the market into new ranges and levels.

 

A fairly easy way to measure range: Just backdate your charts at the begining of august. If you're trading on 5 minutes, move up to a high timeframe like 30 minutes and establish an average high/low and midpoint( some people call the median) I beleive you can do it around the first week of August. Don't have to backdate the whole period just that week. Then move forward to the past week and compare. That way you will have an feel for what's going on and adjust your trades accordingly.

 

I don't know how many contracts you're trading, just have in mind ES is $12:50 a tick. My humble advice: It's good to lower the amount of contracts(hence lower your leverage) you're trading and shoot for wider ranges/stop-loss so you can be in tune with the market.

 

Another thing you migth consider: Everybody is screaming (Bull) lately. A weak dollar, Gold/Crude oil are going thru the roof, comodities are soaring, ect. I have a feeling that wider ranges are waiting for us ahead.

 

Peace

[jjthetrader 10]

Thank you, I appreciate the advice. When everyone screams Bull I get nervous.

 

Have a good weekend,

JJ