Hello All,
I have a strategy for trading 30 year Treasury Bonds where I go for a 4 tick profit with a 4 tick stop loss, a 1:1 risk reward. Once I am 2 ticks in profit, I would like for my stop loss to move up automatically to trail 2 ticks of profit in the event the trade goes against me. How should my ATM Strategy look to accomplish this. Thank you in Advance.
Roy
4 tick profits, with 1 tick slippage (bid/ask) at entry and one tick slippage at exit. Don’t you need then to have a 6 tick move to keep 4 ticks profit?
If you need a 6 tick move for profit and only a four tick move for a loss.
Is the risk then not 1.5 and the reward 1?
If you have a 2 ticks trailing stop, once you are up 2 ticks, and the next tick is in the wrong direction, will you then not have in bets case just 1 tick profit. And is the risk reward then not much worse as you started with a 4 tick profit and a 4 tick stop?
Even with a risk/reward of 1:1 you still make no money as fees and commissions are still to be paid. And you assume for that 1:1 4ticks profit versus 4 ticks loss, while you will surely have trades with only 1 or even 0 ticks profit due to the 2 tick trailing stop.
2 tick with a 2 ticks trailing stop is such a small move that you can get thrown out within seconds after getting in.
Out of curiosity: how many years are you already daytrading?
Trailing Stop-Loss Configuration Guide https://ninjatrader.com/futures/blogs/configure-a-custom-trailing-stop
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Hi Marcus,
Part time for about 6 months now. My original strategy is a 2 tick profit with a 4 tick stop loss. I am hitting about 70%. However, When I lose I have to increase my take profit or slowing attempt to crawl back into profit with the original strategy, and this is what I have been doing. It works, but takes patience and discipline. I appreciate your insight and suggestions. I believe I will design a strategy with a 6 tick profit, 4 tick stop, and trail my stop once I am up 2 ticks.
Let me know if you have anything to add to this strategy, and I greatly appreciate your feedback.
Thanks,
Roy
Thank you Maverick, this is very helpful!
Roy
This is great insight! I’m working on a strategy that uses a few indicators but calls an ATM strategy that is for longs and a different one for shorts. Both have one trailing stop setup. They start out wide away for stop loss and then ratchets inward by half once it moves in favor of the trade. The reason for that I had tried percentages for target and stop loss and if the market is moving too fast, it would not create the target and stop loss trades leaving an open trade for hours…lol…glad that was on a replay! The market for MNQ definitely act differently for trends up or down. Hope this is useful. -RickO
What I surely would do is start with just 1 micro contract. MES or M2K.
It is better to be a millionaire a little bit later than going broke fast.
DONT take MNQ as that is the most volatile, and you should avoid volatility. If not, you will be stopped out many times.
More than 90% of daytraders lose money.
And at least 50% of people who drive a car think they are in the top 10% of best drivers. Which is mathematically impossible.
It took me roughly 10 years to become consistently profitable. But I am not the smartest, so maybe that is not a good reference for your expectations.
So this one does even not make 2 ticks net.
Just noticed that you are trading bonds. I did not pay attention. But the same logic applies for Bonds. Do the math yourself with the formula that I used.
I always assume people trade what I trade. A professional deflection. 