china white
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lads - sorry if i sound a bit daft here - what is 1 ATR?
personally i DO think that stoploss management is the most important thing in trading. That is why I am keenly interested in how u approach it. In my trading style - on all "normal" trades I use a 0.3% = 3.25 SP pts trailing stop. On all scalps (that is where u go against yr guts prompted to do so by a tick divergence) I am 0.15% fixed stoploss with the same target - which gives u an expected payout of 12-16 teenies (from my experience, and only if tick divergence is not quickly negated - in which case u reverse back to the trend).
personally i DO think that stoploss management is the most important thing in trading. That is why I am keenly interested in how u approach it. In my trading style - on all "normal" trades I use a 0.3% = 3.25 SP pts trailing stop. On all scalps (that is where u go against yr guts prompted to do so by a tick divergence) I am 0.15% fixed stoploss with the same target - which gives u an expected payout of 12-16 teenies (from my experience, and only if tick divergence is not quickly negated - in which case u reverse back to the trend).
china white
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so it must reflect the current volatility of the market - and therefore makes loads of sense.
I'll tell u where my 0.3% stoploss comes from. at 15% front end volatility of SPX u get 15/sqrt(252) = 0.95% DAILY volatility = 10 SP pts. A reasonable stop loss on yr trade is 1/3 - 1/2 of the daily volatility - which makes sure u dont get TOO shafted if u misinterpreted the trend, but keeps u in the trade if it is just jibbering about. I personally go with 1/3 as I prefer to be stopped out and then re-enter if the circumstances r right.
brilliant forum u've got here. many thx again for the invite.
I'll tell u where my 0.3% stoploss comes from. at 15% front end volatility of SPX u get 15/sqrt(252) = 0.95% DAILY volatility = 10 SP pts. A reasonable stop loss on yr trade is 1/3 - 1/2 of the daily volatility - which makes sure u dont get TOO shafted if u misinterpreted the trend, but keeps u in the trade if it is just jibbering about. I personally go with 1/3 as I prefer to be stopped out and then re-enter if the circumstances r right.
brilliant forum u've got here. many thx again for the invite.
An interesting interview here. Although the chap featured is a futures trader, his wisdom applies equally to all markets.
His ethos is similar to my own. I especially agree with his idea of looking at the character of current price action to determine his strategy, rather than a one size fits all market conditions approach.
His ethos is similar to my own. I especially agree with his idea of looking at the character of current price action to determine his strategy, rather than a one size fits all market conditions approach.