If you're using stops then it's much easier: just figure out how
much you will lose if your stop gets hit. If you only want to lose
$1000 max, then you can just divide $1000 by $50 to get your ES
stop points value. $1000 / $50 =
I was talking about 20 points per contract.. ANyone who
would leave a 4 point stop overnight deserves to get stopped out or
shouldn't enter the trade in the first
place. Don't
forget... there is more gaps up overnight than gaps down.
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The other way of looking at it...
SPY System - substituting SSO for SPY
Posted by pdquig on 30th of Apr 2011 at 10:19 pm
If you're using stops then it's much easier: just figure out how much you will lose if your stop gets hit. If you only want to lose $1000 max, then you can just divide $1000 by $50 to get your ES stop points value. $1000 / $50 =
20 ES points for one contract
10 ES points for two contracts
4 ES points for five contracts, etc.
not really.
Posted by zach06 on 30th of Apr 2011 at 10:42 pm
I was talking about 20 points per contract.. ANyone who would leave a 4 point stop overnight deserves to get stopped out or shouldn't enter the trade in the first place. Don't forget... there is more gaps up overnight than gaps down.