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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: coug who wrote (39568)	10/29/1999 2:35:00 PM
From: Matthew L. Jones	Respond to of 44573

Coug, Thanks for your response. I'm new at watching the S&P's. By the way, I don't call in orders-- mine are done online (one second execution) on the Globex system-- supposedly all day long and the night session. Anyway, the way I arrived at my 1 point initial stop loss is by taking the 5 minute chart (what I use to trade off of) and run a 10 period EMA (highs) along with the 10 EMA (lows) The idea is to see what the average range is on that chart. That was about 2.4 points on a 5 minute chart. If that is my potential near term reward, I want my near term risk to be about 1/3. I felt like .75 was a little too tight, as I got stopped out a lot. I figure using a 1 point stop I had 2.4:1 ratio of reward/risk. My goal is 3:1 but I didn't feel it would be practical to set them any tighter. I too like the 20 period Bollinger bands in conjunction with RSI and Stochastics, and particularly on day charts. I am using 1% MA envelopes on intraday charts to get the same effect. It sounds like you are trading a little longer swings to me. I'll keep you posted as I play with this more. Thanks again. Matt