Days of Stopping Out Question

cd173

Active member
209 1
Hello Futures Traders

Does anyone have a policy of 'calling it quits' on loss making days. On scalping the DAX I have a rather crude method of 3 lossing trades in a row, which is roughly £100 (6 points or so as I'm at early stages) on 1 contract. History appears to be teaching me that these are the days I should stay away :rolleyes: On days when I start with good trades I generally continue to do so, but on loss days it's down hill from there.

It's obviously psychological on my part, but appreciate any thoughts out there

Thanks
 

cd173

Active member
209 1
Hi Qaza

Do you consider that too large or too small. i think it might be a bit on the small side, but so far it's ok. I take profits with a trail stop of a couple of points. So if the move is 5 points I'll come out with around 3.
 

qaza

Active member
235 0
scalping is a serious topic but the scalpers that I've known never worked with a set stop loss

they tended to trade on their "feel" and would rather reverse than stop
 

cd173

Active member
209 1
Qaza

Agreed it's not much, but may I ask which time frame you use, as I get plenty of signals thru the course of the trading day on a 1min chart.......possibly the problem.............2min chart today does give a clearer picture. Trades generally last only a minute or 2, sometimes seconds.

Cheers
 

qaza

Active member
235 0
I use a 1 min chart to trade dax and I find that ok for short term trading

I try to avoid scalping................. altho most of my trades are scalps cos I am not patient enuf.

Do you trade long anfd short when scalping or do you stick to one side ?
 

cd173

Active member
209 1
Hi Qaza

I use stochastics + a confirming signal for entry. I find I have to be v quick once the confirming signal comes, otherwise I miss the entry. I go long and short. I use Buttontrader for the speed factor. It also has a reverse facility on it, but I'm no way near that good!!!
Yes, patience or lack of plays IMO to big a factor in my results. If I held on, I'd make more.

Enjoyed DAX up to around 8.20am then lost until around 8.40am due to signals but no movement (should have checked volume :eek: ). 2min chart today looked to give better results and a clearer picture.

May I ask what type of system you use?

Perhaps I'm over trading........

Cheers
 

qaza

Active member
235 0
well thats the problem with indicators like stochastics, they give signals when the mkt goes nowhere

I could'nt imagine scalping with indicators........... I only look at the price action, even volume is totally unimportant.

My system is really about what I think the mkt is doing and is the result of watching the charts unfold
 

cd173

Active member
209 1
When the market trends I find the signals work very well, but sidesways movements are a disaster. Yes, agreed price action is the key, but I find the signals work for me....if the market decides to move.. :eek:
 

cd173

Active member
209 1
Qaza

Yes, some good signals after 8.40am ish. see the attached mess of a chart :cheesy:

You can see where it all went wrong for me!
 

Attachments

  • DAX June 2004 (1).JPG
    DAX June 2004 (1).JPG
    228.8 KB · Views: 288

qaza

Active member
235 0
cd

I'm not smart enuf to understand what your signals are telling you but when I watched really good scalpers they would always be selling at the offer price and buying at the bid.

Its like a market maker, if you are selling at the offer and buying at the bid then if there is sufficient noise , which means that you can buy/sell frequently you should make money, hope that makes sense.

If your signals are reliable then why not try to apply them to a 5 min chart and let em run a bit.
 

cd173

Active member
209 1
Yes, quite right. From what I understand the DAX will generally follow the trend after the first hour's range. So, if it breaks the high of the first hour, go long and vice versa short. I don't short if the market is trending upwards. Although many times you could scalp a couple of points.

If you see the 2min chart attached, you'll see it gave a much clearer picture with fewer signals.....so maybe there's a solution to overtrading!

As I said before I suffer from impatience/nerves so I more often than not exit too early!
 

Attachments

  • DAX 2min June 2004(1).JPG
    DAX 2min June 2004(1).JPG
    241.9 KB · Views: 222
 
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