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>I have paper traded the S&P500 for a while and always put my Stop just 1 Tick
>below the last bar's low. Assumimg that it works on paper, is there a danger
>that in real-life trading when my Stop that would be placed (just like I
used
>to do paper trading
I hate to be a nattering nabob of negativism but it's pretty hard to
believe you could make any big money this way. Maybe I'm wrong. Personally
I get the best results going for the big trend days and intermediate term
swings. If you get just a few trades a month you can make a bundle. The
faster you trade, the less money you make relative to expenses. Also as the
wiggles get smaller the randomness becomes more significant, reducing the
possible percentage of successful trades. As you trade faster and faster
ultimately you will just churn and gradually piss away money. Of course
your broker will make a bundle!
The thing that nobody likes about longer-term trading is that you have to
give stuff a reasonable amount of room. Based on the daily chart. That
means you need to trade SMALL enough to handle the perfectly normal
drawdowns. If the trend continues you can pyramid. You'll make far more in
the long run, IMHO.
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