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?
20 Tick Stops on Slings and Elevators?
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.
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.
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.
@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.