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3 ticks is the maximum amount I want to risk per day. I suppose I could trade one contract of the MES and risk 30 ticks a day in that instrument, but I like trading the ES. Just a personal choice. Sorry I don't have pics because I don't use charts. I use the DOM and an Excel spreadsheet.
1 contract traded
Direction is short
Entry @ 3564.50
Exit @3566.25
Loss of -$87.5
I lost more than my typical 3 ticks. When my stop was triggered the liquidity disappeared and it lost a lot in slippage. There are no excuses but that is what happened.
It appears it is statistically stacked against you for 1-3 tick stop loss in the ES, but letting a winner run all day. That would mean you would have to perfectly pick the low or high of that trading session. Your RR would need to be greater than the ATR of a trading session. Your risk of ruin is likely 100%. Death by a thousand cuts.
1-3 ticks is more market makers / high-frequency land in today’s ES market. Scalping less than 4 ticks would require a stop greater than the reward and a high win rate to make up for that extra initial risk. The market can go 3 ticks in milliseconds and pop right back. This is easy work for a market maker.
You can also add more contracts on the MES. 10 = 1 on the ES. You are trying to swing trade and need to size your position according to a reasonable stop like a few ticks above/below a swing high/low. That could be 10, 20, 40 ticks away. If it’s too far for your taste, then it’s just not a good trade to take.
