20 Tick Stops on Slings and Elevators?


#1

Apex’s recommended stop on Slings and Elevators is 20 ticks but the stated profit target is only 10-30 ticks (optionally trailing for more it says). That seems like a pretty low risk/reward to me…? You’d have to be correct something like 65% of the time to be profitable with R multiples of 0.5-1.5. Do these trades really hit at that success rate? Am I missing something?


#2

Are you saying 20 ticks is to much risk for these sort of trades??

If done correctly, pretty much everything is 75% +.

If you decide that these types of trades interest you, spend a while testing them out on Ninjatraders Replay and see if its something you are comfortable with.


#3

If those types of trades succeed at a rate less than 65%, then yes I’m saying 20 ticks is too much unless someone could explain why it wasn’t.

I will continue to keep trading them in the replay/simulator and see if I can get anything close to 75%. A success rate that high is pretty hard to believe.


#4

It is trying to find that sweet spot between getting stopped out to early or having to large of a stop, where you have dug yourself into a huge hole

Ive seen forex traders use 200 pip stops just to come away with 20 pip gains. Something I could never do.

When I began with forex, I was using 15 pip stops… Guess what… was getting stopped out quite a bit. Moved that to 30 pips and my overall winning % increased.

20 ticks is just that… a recommendation… If you feel its to much… then you could try 15 or even 10 tick stops and see if that makes you more comfortable.


#5

@NICKDECHELLIS You need do your own testing with spread sheets to see wat the success rate of the setups are over a large sample size. Test it using a 1:1 r/r. I personally do not take 10ticks on slings. I see ppl take 10tick scalps and then let the second contract run (I use to do this too). However, from a risk to reward stand point tht makes no sense to me bcus the success rate is nowhere near 75%.

My advice is to create spread sheets and track the performance of every setup b4 you start trading live. Wish i did this when i just started. Wud have became a profitable trader sooner.