Bought ES spread 1730-1760(4:15) 10/18,Friday, bought spread at 1735.50 market price, the floor was 1730 so with the market uptrend I thought the risk reward would be good. Bought at $63.00 per contract, please review my thinking? Thanks Mike
Spread trade review
darrell
#2
Well the market did go up so that is good. The risk was a max of 55 per contract though if you bought it at 1735.5 with a floor of 1730 as the difference is 5.5 - US 500 ticks in .1 - so 55 ticks - risk * $1.00 per tick = $55.00 risk
As far as risk/reward yes that is great - on a max to max - but rarely do you get the max…
When did you enter - what price as the underlyhing when you entered - what is the difference between the underlying and the spread (breakeven distance) (from trade room we determined was about 5 ticks to breakeven which is acceptable)
Why precisely did you enter? Method/system/opinion/etc…?
What was your trailing stop or take profit method?
Where you taking on the full risk of $55.00?
All these questions need to be reviewed for determined it all…