facebook  youtube  blogger

How Long?

Hi! Can you give me some principles to determine how long I should set an expiry for in a pending order? Should it be a multiple of the time frame (e.g., 12 X 15 minutes)? If so, what multiple would you recommend? Some other method?

You sent an interesting question, but no detail as to what you are trading. In any event, I know of no formula regarding how long to wait for an order to be filled. In general, I will wait until I'm tired of waiting, a better opportunity comes along, or something indicates to me that my order isn't likely to be filled.

Example: I want to sell uncovered puts on shares of a company's stock. As long as the shares remain in consolidation, there's a good chance for a fill. That could be many days. But if prices begin to trend upward, and the available premium begins to shrink, or premiums shrink because of loss of time value, I will abandon the trade to look for something else.

Example: I'm day trading the mini Nasdaq (NQ) on a ten-minute chart. If prices begin to trend away from my entry point, I won't wait very long. If I'm in a day trade, and prices begin to move against me, I am quick to get out of the trade while I can still get out without a loss of profit (if there is any), or loss of capital.

In essence, how long to wait for a fill is pretty much a judgment call.



Sign up for our FREE weekly Chart Scan newsletter!

We want to hear from you, Joe Ross wants you to learn trading. Email us your questions or if you need additional information. Another great investment is private mentoring with Joe, our students find this very helpful and accelerates their trading successes.

Private Mentoring with Joe Ross - Sign Up Today

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Wednesday, 21 April 2021

By accepting you will be accessing a service provided by a third-party external to https://tradingeducators.com/

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.