CanOz
Home runs feel good, but base hits pay bills!
- Joined
- 11 July 2006
- Posts
- 11,543
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In addition to news, higher time frame analysis, no one has discussed trading multiple contracts. While this requires a larger account there are advantages to scaling multiples contracts...
There are three basic ways to do this:
1.) all in all out
2.) scale in scale out
3.) all in scale out
I prefer all in , scale out and here is why...
Here is a flag pattern, with a nice rejection candle, i go long, it takes 2 contracts off at 5 ticks...reverses and takes out my 5 tick stop loss....net 0, cost is brokerage
The advantage is that trading 4 contracts i can have another one ready for a take profit at 10 ticks, and then a runner.
The disadvantage is if you don't get it right that often the full stops can hurt your average win to loss ratio.
Pretty sure most successful futures traders are trading multiples, but you need to know your market so that you can "usually" get those first 2 contracts off, MOST of the time.
CanOz
There are three basic ways to do this:
1.) all in all out
2.) scale in scale out
3.) all in scale out
I prefer all in , scale out and here is why...
Here is a flag pattern, with a nice rejection candle, i go long, it takes 2 contracts off at 5 ticks...reverses and takes out my 5 tick stop loss....net 0, cost is brokerage
The advantage is that trading 4 contracts i can have another one ready for a take profit at 10 ticks, and then a runner.
The disadvantage is if you don't get it right that often the full stops can hurt your average win to loss ratio.
Pretty sure most successful futures traders are trading multiples, but you need to know your market so that you can "usually" get those first 2 contracts off, MOST of the time.
CanOz