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Impossible question to answer since you've provided no context.
How long is the flight from where you live to New York?
One persons answer has no bearing on the next persons answer, everyone trades a different style, different method, different approach, different account size, and for different reasons.
But I can say that in general, people are obsessed with trading tiny time frames with tiny stops, in order to give the appearance of minimizing pain from stops.
I'm creating this thread with the purpose of a 'catch all' for any trading related question that futures.io (formerly BMT) members want to ask, but don't want to create a new thread for -- or find an existing thread to reply to.
Yes, I need to try some other things to get the better P/L ratio. Smaller time frame as entry & stop is one of the option after watch your webinar.
I Know too small stop has not much meaning. But it is kind of hard to get the balance.
I saw some guy do have very tiny stop by trading with DOM. What do u think about it? However, it means I need to change the broker and trading software.
It is not how many ticks you will take it is how many ticks is necessary? What does your back test say? What does your forward test say? What do your ratios look like? What kind of probabilities does it all produce? What kind of draw downs can your count size handle? Point being stop not just something decided arbitrarily.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
For my specific intraday set up my stop size is about 3 NQ pts. But i adjust +/- with ATR. again its all about context and what i am trying to do. Always pick the right tool for the job. Nothing can be cookie cutter.
I agree with what Big Mike wrote previously. However, i would not be too far from truth by saying on the NQ when momentum is kicking in or a move is developping a stop of 12-15 ticks is realis'tick' if your entry level allows at least a 1:1 risk reward for your first contract. If you then use that profit as a cushion for holding against the opposing force that will try to scare you to death by revisiting your entry point then a greater reward might be expected on your remaining contract(s).
Even though the context is not specified it is still possible to form an educated guess about it by doing some calculus even though there is no system in the picture. What comes first? your tolerance to risk, your backtests or reality? Simple statistical test my point the person in the right direction. To be sure, just look what arnie did to find the typical rotation on the ES. I would think this question here falls into this category or research department: