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Option Trading Strategies

Hi Anna, First and foremost, I would like to thank you for this wonderful site that you have with it’s rich contents. I have learnt a valuable lesson in understanding how trading mechanism works and how to invest wisely in financial markets. I’m humble by the courage that you have, in creating a niche for yourself in a male dominated workspace. I started trading online since 2005 on Option trading – learn from another woman trader. But the amount of time to research and scanning for potential Option just exhausted me. Since I am in the South East Asia – Singapore, The US market open, at local time will be at 09:30 PM or 10:30 PM depending on the season. And I have a day job that required me to be in the office at 08:30 in the morning, I can’t stay up too long. I than move on to futures index E-mini Russell 2000 to be a day trader. The nature of the E-mini Russell 2000 market that it’s volatile and the platform that I use to trade, suit me. I use Interactive Broker and Ensign Charting program to monitor the market and I use Bracket Trader to execute the trade. I will finish trading within two hours of market opens or early if I hit my daily targets. I have setup in Bracket Trader program to have my stop loss and also my profit target when I execute a trading position. The problem is with my trading plan is like I have one step forward with profit but two step backward with my losses. The questions that I would like to ask you, what the best formulas to derive in calculate the profit/loss ratio in Futures Index market. I have a target of 5 ticks profit against 10 ticks stop loss. Most of the time, when I enter a position, after follow strict set of conditions and parameters in the chart, I will hit the profits very quick. Usually, less than 10 min due to the volatile of the market. But if I have a bad signal, trade that did not go my way. I got stop loss at 10 ticks which means I lost two times my profits. Should I close position, if the trade didn’t go my way, which will be less than 10 ticks? Or should I just let it go and loss 10 ticks. Appreciates your comment and advice. Thanks and Cheers Abdul