How do you roll your SL point
Posted: Tue Jun 21, 2011 10:27 am
When trading a version of the turtles system (at 80/40), anyone has any ideas how to adjust the SL point when rolling to a new contract month.
Supposedly we roll the E-Mini from June to Sep by closing at say 1150 and reopening at 1170, do we just move the SL point up by 20 points. If the old SL point was at the 40 day low of the June contract, say at 1000, it doesnt mean that the 40 day low of the new contract will be at 1020. It appears there are three options:
1. Set the new SL, 20 points higher than before, i.e. maintain same risk, irrespective of the new 40 day low.
2. Set the new SL to the new 40 day low, if that is more than 20 points higher, we are reducing the risk but increasing the chance of being stopped out
3. Set the new SL to the new 40 day low, if that is less than 20 points higher, we are increasing the risk but reducing the chance of being stopped out.
Supposedly we roll the E-Mini from June to Sep by closing at say 1150 and reopening at 1170, do we just move the SL point up by 20 points. If the old SL point was at the 40 day low of the June contract, say at 1000, it doesnt mean that the 40 day low of the new contract will be at 1020. It appears there are three options:
1. Set the new SL, 20 points higher than before, i.e. maintain same risk, irrespective of the new 40 day low.
2. Set the new SL to the new 40 day low, if that is more than 20 points higher, we are reducing the risk but increasing the chance of being stopped out
3. Set the new SL to the new 40 day low, if that is less than 20 points higher, we are increasing the risk but reducing the chance of being stopped out.