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.
"It's not the knowing that is difficult, but the doing"
“I have heard many men talk intelligently, even brilliantly, about something – only to see them proven powerless when it comes to acting on what they believe” - Bernard Baruch