I wonder how you view this method? Does it make sense for you from the risk management perspective? If you use it why? If you don't why? I find the market very effective in taking BE out especially in NQ :-D I use it most of the time since I am just used to it but I feel it was "created" to justify psychological aspects of the game, while Mr. Market does not give an F
Personally, the correct question is how often @ what is the percentage of your winning trades hit BE without hitting SL before hit TP. The answer may got you thinking to design another trailing methods. Even that question is not enough. For example, one of my setups got 2 TPs and let profit run. It also has 3 trailing methods running at the same time since the entry.
I agree with both statements. Whatever works best makes sense to me, from the risk management perspective. I trade four lots. The first three lots have a fixed target and a fixed stop-loss (all volatility-related). The last lot has no target; it starts with the same fixed SL as the first three lots, and when they clear, its SL jumps up nearly (not quite) to BE and from there it trails tick by tick until it’s eventually hit. Once the first three lots hit their target, the chances of losing anything at all on the last lot are really very small. It feels to me like a very “unnatural” and “peculiar” method, because my position size is at its biggest when the risk is highest, at the start; it’s at its smallest after the trade’s already profitable, so I’m clearly far from “adding to winners” as I was taught. But my decisions aren’t made according to how it feels: only according to statistically significant evidence.
I am usually trading for a few points only in ES, my platform has a break even button so during fast moving markets it's easy to protect my position from going negative when I get close to my target but the take profit hasn't been filled yet.
Stops, while subjective, are always a guess. There is no "correct answer". A logical place to place a stop (takling a "long" here) is when the issue breaks a support you were playing for it to hold.
Backtesting shows me best sequence of moving stops, I generally scalping for 4-8 ticks. Another system goes for 2-10 points so stops are adjusted so risk at some point is less than targets. I never use "BE", rather make a tick on breakeven trade, someone has to pay for my coffee. LOL
We ran tons of simulations, and moving stop to BE will make draw downs smoother, but at the expense of performance.
Depends on what kind of mood I'm in,usually just play it by ear. If I've had 2 or 3 losing trades in a row I'm probably pissed off and in no mood to let the market take any more of my money and I'll probably scratch the trade at BE. I know I need to take a more Quant approach and drill down to pennies but I'm lazy and haven't gotten around to it.LOL