No registration required! (Why?)

Money management Ideas?


While I'm watching the "paint dry" on this S&P market I thought I'd find out what most of you do regarding Money Management under the conditions I describe.
Lets suppose the following and we'll also say this is all hypothetical so there are no "issues":

1)You are short from 1444.50 with eight contracts and you initially risked 2 points. Total risk is 16 points initially.

2)You take 4 off at 1442.50 and move your stop to breakeven on the remaining 4 which we will call "Runners". For those who don't know this term, I use it because I am planning on having these remaining contracts "run" to further targets.

3)You take 2 more off at 1440.50 ( which was twice your initial per conract risk ). Ok at this point you have made back all of your initial risk. Would most now put their stops at 42.50 on the last two contracts?

4)I will admit there are probably better ways to manage the first 6 contracts and I'm open to ideas but lets "talk" for a minute about the ramianing two contracts. Would most trail their stops so you are always risking the same amount of equity to your target? In other words if I am 2 points away from my target would you place your stop 2 points back? When I get to within one point of my target would you keep your stop one point away to keep the risk to reward even or would you make it even tighter?

I've actually struggled with this for quite some time as it seems to be a big trade off between giving the market some "wiggle" room and keeping a decent risk to reward. Perhaps it would be better to just take all of them off when there is a two point target and not have to think about "runners" but for me it is sometimes a bit painful to watch the market go in my favor and not have enough contracts "working" to get to bigger targets.

Hope this is understandable.

Bruce
I think that you can try Ninja out in simulation mode for free so you can test all the features that you want to use and make sure that they're working before you subscribe to it.
Are you simply using 2 points because that was your initial risk? I have found the rule of thumb of setting stops according to the past three days volatity works well. Why set your stops based on risk? That's like setting your price for a product based on your cost rather that what the market will bear.

My thoughts....
Very Intersting TraderBrian.

I'm trying not to set any stops, but determine the mkt direction for the week...5-7 trading days....at sell at at the high or close to the high and buy close to the low...and wait for it to hit the weekly pivot.

This week both ES and ER opened to close to weekly pivot. I like to see a variance of 8-12 pts...the more the better....as the weekly pivot will be hit.