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

To: Gary E who wrote (14319)	2/1/1999 10:25:00 AM
From: SE	Respond to of 44573

Depends. On short term intra-day stuff, usually four points, sometimes less, rarely more. I try to find a point where I don't think it will go any further and get an entry that is within four points of that level. For example, if I want to short, say this morning's gap, 94.25 is life of contract high. I know if it gets there, the short will be in trouble for a bit, so I would want to set a stop perhaps just above that at 94.50. If I am using a four point stop, and for the trade I am describing I might only use three cause if it hits 94.25 it might run and I will be handed some nice slippage, so I might attempt to get short at 91.50 with a stop at 94.50. Three point stop and probably a good trade. The gain would outwiegh the risk. Of course hindsight is 20/20, but that is what I would have thought about had everything been online and working this morning. On my system trades, I use a 10 point stop. -Scott