NAV, thanks for the heads up on what you saw. Your system is a good one, and you know that you have my greatest respect as a trader. I'm daytrading-or a day or two trading, specific stocks only at this point. And, as a funny aside-as far as my individual trades go, I believe they will trade to target regardless of overall market direction.
As I told Fib last night, my main concern at this juncture is getting the rotation of money in and out of sectors right, because it is alowing me some juicy hits-and I just haven't seen the same percentages on offer to me to trade the indexes lately. I don't ever trade on news either-"it's in there" as far as I'm concerned.
Good luck on your trade, my friend.
I used to trade with a 1:2 risk/reward, 5 point risk and 10-15 points profit on SPX. I have successfully executed and posted hundreds of trades on this board. It's no more possible in the present environment. It's unreasonable to use a 5 point risk for overnight trades (although gap-downs are rare events these days
) . Without overnight risk, you can't catch most moves in SPX. It's not that the risk has increased, but the reward part is compressed because of the HFT/Low volatility etc. So i have now reduced my expectations to a crummy 1:1 risk/reward 10 point stop and 10-15 points profit. In most cases my system will give an exit before my 10 point stop is hit. So the actual risk/reward is slightly higher. But if i cannot achieve even 1:1 risk/reward, i will quit trading SPX for a while. Cuz there are so many excellent trading vehicles with healthy volatility.....emerging markets, currency pairs and some select commodities. I will move to where the action is instead of spending too much of my energy on SPX, if this low volatility persists.