Does anyone (successfully) daytrade without stops? For example, suppose I trade ES and I get long at X. Say I have a profit target of X + 4. Now suppose ES moves 1 point against me. Then I move my profit target to X + 4 - 1 = X + 3. The profit target would always be 4 points above the lowest price on the ES since I entered the trade. I would continue this target adjustment til I was out of the trade. I would never have a stop so I would always be selling on some strength. And there are numerous 4 point moves on ES so I'd probably get out before the end of the day. I realize that this method would occasionally take big hits. However, the number of singles (i.e., 2 and 1 point gains) you would get might make up for this. I'm sure variations of this have been tried before - any comments? Any other stopless methods (besides Mr. Market) that people actually trade?
So you would ride down the ES 20 straight points only to get out 4 points from the bottom? Doesn't make much sense. Why so afraid of setting stops? If you're experience with them makes you paranoid about setting them, then work on your timing and patience. But trade w/o stops (and using that exit system you mentioned) and eventually you will blow out -- just a matter of time
I don't trade without stops. How many times does ES go 20 points down without a 4 point retracement somewhere along the way to shake people out? I'm just curious if someone has been able to make a stopless system work for them (besides Mr. Market).
This is very true. Risk management is what makes trading profitable, if you can't take a risk of losing less than what there is to gain, how exactly are you ensuring that you will make money at the end of the day, or the end of the week?
High percentage of winners? What if I changed the system to 1 point instead of 4 and only traded it during lunch hours when there are lots of whipsaws? I don't know the trading method specifics, but it seems like the response so far is that stopless trading would obviously never work. Must be so then.
So you will only blow your account slower. Basing a system on lunch time whipsaws is not a good idea.