Advise for new futures trader.

V

Vas62

Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course :) ) etc.
Thank you in advance for your input.
Vas62
 
Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course ) etc.
Thank you in advance for your input.
Vas62

Trade the ES only to begin with.

Starting capital suggested: $15,000.00 for trading brokerage #1, and $15,000.00 for trading brokerage #2) Use the 1% rule for equity risked per trade. (1% of equity<# of points used in your stoploss *$50.00 for the ES) In this case you can trade 1 contract with a 3 point stop. Do not exceed 3% of equity risked if your first trades fail, but stick with the 2:1 ratio.

Broker: IB (Interactive Brokers) or a Broker that uses the platform by Patsystems named J-trader such a Lions Futures.
2nd. Back-up Broker: Anyone with a 24 hour live trading desk that accepts phone orders.

  • No lagging indicator(s) recommended.
  • Trade from price action alone risking 3 points with a target of 6 points. Try to hold this plan and fit your setups to trade with this.
  • Find setups that allow you to maintain a winrate 60% or better by backtesting your ideas and discover the statistical time of day and/or the type of set up that can achieve this 60% winrate and 2:1 profit to loss ratio. Also keep track of you average loss to average win ratio and check to see if you are maintaining a positive math expectancy by using this free site:

    http://www.hquotes.com/tradehard/simulator.html

As far as observing parallel movements in the market (or divergent) with other instruments consider:

Dow Industrials
Nasdaq composite
Semi-conductors
Tick chart of NYSE
NQ Futures

Your hardware should be backed up with 2 ISP providers. One DSL and One Cable. Buy yourself a cheap gasoline powered generator at Costco or Sams club for power outages. 2 computers one to back each other up. Remember to install everything on both computers. Laptops are neat too...but you might want to add bigger monitors.

You should have a minimum of 2 computers....one for each ISP. No Internet surfing on the work computers..... get a third one for that, including this ET site and any squawk boxes.

Windows XP pro. and no less than 512mb Ram. 2D graphics works well with the modern video cards.

You should have a separate charting program and a separate data feed. Esig as the datafeed with Investor R/T by Linnsoft is good or Ensign for windows or Tradestation of course.

Nice big LCD monitors that are easy on the eyes....hint- use black background on your charts.

I think I can write a book........so I will shut up and let the others contribute......there is so much more.....

Probably I should have just said........join a chatroom and watch them trade.

Oh yes.....keep a trade log, get a mentor.....and fire up an Excel spreadsheet and spreadsheet your MAE and MFE to evaluate your set up and its entry and exit. Later on evaluate scaling in and out with multiple contracts.

Bye...hope this helps,

there are many more experienced folks here that I am sure will help you......good luck...

Michael B,
 
Quote from ElectricSavant:

Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course ) etc.
Thank you in advance for your input.
Vas62

Trade the ES only to begin with.

Starting capital suggested: $15,000.00 for trading brokerage #1, and $15,000.00 for trading brokerage #2) Use the 1% rule for equity risked per trade. (1% of equity<# of points used in your stoploss *$50.00 for the ES) In this case you can trade 1 contract with a 3 point stop. Do not exceed 3% of equity risked if your first trades fail, but stick with the 2:1 ratio.

Broker: IB (Interactive Brokers) or a Broker that uses the platform by Patsystems named J-trader such a Lions Futures.
2nd. Back-up Broker: Anyone with a 24 hour live trading desk that accepts phone orders.

  • No lagging indicator(s) recommended.
  • Trade from price action alone risking 3 points with a target of 6 points. Try to hold this plan and fit your setups to trade with this.
  • Find setups that allow you to maintain a winrate 60% or better by backtesting your ideas and discover the statistical time of day and/or the type of set up that can achieve this 60% winrate and 2:1 profit to loss ratio. Also keep track of you average loss to average win ratio and check to see if you are maintaining a positive math expectancy by using this free site:

    http://www.hquotes.com/tradehard/simulator.html

As far as observing parallel movements in the market (or divergent) with other instruments consider:

Dow Industrials
Nasdaq composite
Semi-conductors
Tick chart of NYSE
NQ Futures

Your hardware should be backed up with 2 ISP providers. One DSL and One Cable. Buy yourself a cheap gasoline powered generator at Costco or Sams club for power outages. 2 computers one to back each other up. Remember to install everything on both computers. Laptops are neat too...but you might want to add bigger monitors.

You should have a minimum of 2 computers....one for each ISP. No Internet surfing on the work computers..... get a third one for that, including this ET site and any squawk boxes.

Windows XP pro. and no less than 512mb Ram. 2D graphics works well with the modern video cards.

You should have a separate charting program and a separate data feed. Esig as the datafeed with Investor R/T by Linnsoft is good or Ensign for windows or Tradestation of course.

Nice big LCD monitors that are easy on the eyes....hint- use black background on your charts.

I think I can write a book........so I will shut up and let the others contribute......there is so much more.....

Probably I should have just said........join a chatroom and watch them trade.

Oh yes.....keep a trade log, get a mentor.....and fire up an Excel spreadsheet and spreadsheet your MAE and MFE to evaluate your set up and its entry and exit. Later on evaluate scaling in and out with multiple contracts.

Bye...hope this helps,

there are many more experienced folks here that I am sure will help you......good luck...

Michael B,
More...


what is all this?? what fool would type all this tripe on the day of rest no less? join the peace corp if you wanna do charity.
 
Based on life expectancy figures.......well I will be dead soon.

So I better hurry and try to give instead of just take......at least I am breathing now!

Help this guy out folks......no one helped me!!!! Well...I take that back there were a few....

But all this stuff....this guy should know if he is going to trade Futures.

Stocks will be back......maybe he should just wait it out.......

Michael B.
 
Electric Savant,

What a gift to the original poster. You're generous dude.

One question, I'm trading ES with IB, and want to set up a backup broker, especially after reading the clause in their agreements about having alternative trading arrangements. Is it possible to close an ES position initiated through IB using another broker, or is the backup for hedging purposes? Does globex know who I am regardless of where my order comes from?

Thanks man,
Sean
 
Electric Savant,

What a gift to the original poster. You're generous dude.

One question, I'm trading ES with IB, and want to set up a backup broker, especially after reading the clause in their agreements about having alternative trading arrangements. Is it possible to close an ES position initiated through IB using another broker, or is the backup for hedging purposes? Does globex know who I am regardless of where my order comes from?

Thanks man,
Sean


Hedging

P.S. Don't forget to close out your positions at the same time, and thanks for the kind words.
 
Quote from Vas62:

Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course :) ) etc.
Thank you in advance for your input.
Vas62
More...


dude,

first time, try the DJIA emini contact. you may like it and it is easier than es/ nq imo. you can use a simulator for free at www.cbot.com

enjoy,

surfer
 
Also keep track of you average loss to average win ratio


Reverse that statement above. (Avg. win to Avg. Loss ratio)

ooops. (justed wanted to see if you folks were on your toes)

Michael B.
 
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