Scalping and Stop Loss orders

[fxquest]

Hello All,

I started scalping futures a few months ago. Things go well most of the time however I can not seem to figure out a reasonable Stop Loss strategy. The regular "risk/reward" calculation does not work well for scalping as the "reward" is often one tick - commissions. By definition, a stop loss that is hit erases many trades for a scalper. I am looking for a S/L strategy that will protect from BIG losses but will not be hit unless it is really an emergency.

Would any of the scalpers agree to share their S/L strategy? Do you use an actual stop order or is it a mental stop, time stop or something else?

I tried two Stop Loss strategies but they both not as good as I would like them to be

1) Place a S/L outside the immediate trading range:
problems with this approach:
- any false spike outside the range will hit the S/L
- if the range is wide or if trading in the middle of the range, the S/L might be too big.
- the 'range' is not always very well defined.

2) Do not place a Stop Loss but take the opposite position in a well correlated contract as soon as things seem to go the wrong way (e.g. hedge ES with NQ or EUR with CHF).
problems with this approach:
- splits the focus to two contracts
- requires very fast decisions on both sides (can get confusing...)
- too often the first contract exits in profit while the "protecting position" is in the red.

Any suggestions from successful scalpers will be appreciated.

Thanks,
fxquest

 

[indexgold]

what are you scalping, this would help??

 

[fxquest]

what are you scalping, this would help??

I scalp e-mini futures S&P 500 (ES), Nasdaq 100 (NQ) and Currency futures (EUR currency and CHF currency @ globex)

Thanks,
fxquest

 

[indexgold]

I only just seen you post.. I myself trade the EURUSD Futures for short moves 2 to 6 pips.


I write something for you tomorrow on how I use

 

[hanzahar]

Hello All,

I started scalping futures a few months ago. Things go well most of the time however I can not seem to figure out a reasonable Stop Loss strategy. The regular "risk/reward" calculation does not work well for scalping as the "reward" is often one tick - commissions. By definition, a stop loss that is hit erases many trades for a scalper. I am looking for a S/L strategy that will protect from BIG losses but will not be hit unless it is really an emergency.

Would any of the scalpers agree to share their S/L strategy? Do you use an actual stop order or is it a mental stop, time stop or something else?

I tried two Stop Loss strategies but they both not as good as I would like them to be

1) Place a S/L outside the immediate trading range:
problems with this approach:
- any false spike outside the range will hit the S/L
- if the range is wide or if trading in the middle of the range, the S/L might be too big.
- the 'range' is not always very well defined.

2) Do not place a Stop Loss but take the opposite position in a well correlated contract as soon as things seem to go the wrong way (e.g. hedge ES with NQ or EUR with CHF).
problems with this approach:
- splits the focus to two contracts
- requires very fast decisions on both sides (can get confusing...)
- too often the first contract exits in profit while the "protecting position" is in the red.

Any suggestions from successful scalpers will be appreciated.

Thanks,
fxquest

what is your target profit and stoploss actually?