|
PureBytes Links
Trading Reference Links
|
The stop in relation to the targets are 1/1 for 80%, 2/1 return for 70%
probability and a 3/1 return for a 60% probability. The dollar amount of the
stop is dependent upon the time frame you are trading. It is obvious that if you
are trading a 3 min chart your stop would be far less then on a weekly chart. the
system works on all time frames and has the same risk reward ratio in each.
Therefor you can set up a trade to suit your money management parameters and then
determine if it is a one lot trade on the daily chart or a 10 lot on the 15 minute
chart.
MRLYNNG@xxxxxxx wrote:
> In a message dated 6/28/99 9:23:16 AM Pacific Daylight Time, ist@xxxxxx
> writes:
>
> << The system I use, utilizes stops and trailing stops. Once my entry price
> is hit
> there is an 80% probability of reaching the first price target. Therefore, I
> know that 20% of the time my stop will be hit. The majority of times before
> the
> stop is hit I know that I have made a mistake and exit the trade. I also
> have
> an entry in the opposite direction. Have a good week. Ira. >>
> **************************************
> Ira:
> To give traders a feel for both price targets and the proper use of stops,
> could you give a general idea of the size of the stops that you use versus an
> average price target. Also what determines whether you will stop & reverse.
> Thanks.
> Lynn
|