Stop Loss For Overall Account & For Each Trade
John Mills won first place in the non-professional futures division of the World Cup trading competition in 1998.
John sets two stop loss points.
First, he sets an amount for his overall account. Initially, he is willing to tolerate up to, but not more than, a 25% loss of his original capital. If and when his account equity grows to 150% of original capital, then he widens his stops on individual trades.
Second, he sets a stop loss amount for each trade made. For any individual trade, he uses a fixed amount of money as his stop loss equal to his profit target. He says the amount varies by market and account size. His stop loss appears to be in the neighborhood of $150 per contract.
John sets two stop loss points.
First, he sets an amount for his overall account. Initially, he is willing to tolerate up to, but not more than, a 25% loss of his original capital. If and when his account equity grows to 150% of original capital, then he widens his stops on individual trades.
Second, he sets a stop loss amount for each trade made. For any individual trade, he uses a fixed amount of money as his stop loss equal to his profit target. He says the amount varies by market and account size. His stop loss appears to be in the neighborhood of $150 per contract.
posted by Raymond T. Lee (See Disclaimer at bottom) at 9:04 PM
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