DP Trades - Scaling Out

[tombtrader]

I have been looking at my DP trades that have not hgit their opposite DP targets. Because I am so short term, there are quite a few of these.

I have started using the ATR stop - 1 tick as a first profit target if its further away than 2.1R (When the stop is on the "wrong" side of the trade). I only do this when the trend seems to be intact and the countertrend r/r is greater than 3R. I take profit on half and move stop to B/E.

This allows me to take trades I may otherwise reject.

Anyone else doing anything new with trade management of the DPs or TS4s?

[Matt Bowen]

Hi tombtrader,

I can't make heads or tails of that post...what are you saying? Put up a picture with an illustration or something :confused: Otherwise, I don't think anybody else is going to respond because it's not clear what you are asking...at least I can't follow it.

Thanks,

Matt

[jtrade]

I follow tt - he's talking about using the ATR stop as a target for counter-trend DP trades (because they're counter-trend, the ATR stop is the target not the stop).

tt - I also use this area as a resistance zone for possible reduction of position size, depending on where the floor pivots are (for intraday index trades, I prefer the pivot points). I also draw lines to mark major support / resistance as possible places to reduce size (pretty conventional TA, but effective).

BUT.... as a long-time "3-lot scaler outer", I am looking at holding my full position for the whole trade - some of the time, at least - as it can be more profitable. I know Van Tharp's objections to scaling out, but much as I appeciate his work - essential reading for all traders - I do not agree with all of it.

Just flown from Sydney to Amsterdam, so very jet-lagged - apologies to those who cannot understand my rather badly-written post.

:p

J.