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Jonathan,
I use two completely different methods to trade the S&P. One method uses
the 30/60 minute bars which always means that the less time you have to watch
the market, the bigger the protective stop, I like to think of it as my
Catastrophic protective stop and will only be used if the market just falls
out of bed. But this stop may be anywhere from 4.00 to 10.00 on each contract.
This method makes good returns and is easy to trade. The second method is much
more time involving because I'm looking for the right reward to risk trade,
but because I'm willing to watch the market more, the risk is normally about
2.00 points or less and I will only be looking for trades that have a min. of
2.5 reward to 1 risk. I also have time elements built into my rules, because
if after 25 minutes, I am not profitable, most trades drift till they hits my
stops. I want the market to hit my entry stop and keep going.
Anytime I can get 10.00 in the S&P's, I just take it on the first
contract. Another method for taking profit on the first contract is to cover
the losses that I may have had if the previous trade was a loser, once I take
profit, the 2nd contract, I place a breakeven stop. If I have not got stopped
out on the second contract on the close, I will take it overnite. I will place
an order in Globex 13.00 from the close and hope that I can re-enter on the
next days' open if filled during the night.
Oat
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