CL Redux
- Thread starter schizo
- Start date
VWAP Strategies
http://www.itg.com/news_events/papers/TP_Spring_2002_Madhavan.pdf (interesting volume pattern )
http://alphatrends.blogspot.com/2008/07/chase-gap-or-wait-for-vwap.html
there are two forms of risk in the market; price and time.
Why let the stock pullback and hope the buyers will re-emerge? Why wait for the buyers to show up?
Instead the better bet is to wait for evidence the buyers have retaken control ant to then buy on strength just as the stock regains its momentum.
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http://www.itg.com/news_events/papers/TP_Spring_2002_Madhavan.pdf (interesting volume pattern )
http://alphatrends.blogspot.com/2008/07/chase-gap-or-wait-for-vwap.html
there are two forms of risk in the market; price and time.
Why let the stock pullback and hope the buyers will re-emerge? Why wait for the buyers to show up?
Instead the better bet is to wait for evidence the buyers have retaken control ant to then buy on strength just as the stock regains its momentum.
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Has CL gotten to be a bit more difficult to trade lately?
Well, one of the changes is that before bots traded mainly in 5 point ranges, and mostly on chop days.
But now there are so many algo bots in CL these days you now have 12, and even 20 cent bots operating within trending markets, often counter-trend within a trend, so this plays havoc with stops, and figuring out direction until after the fact, or the overall strength and legitimacy of real long-term buying/selling intentions of the big players....almost provides ground cover for players at times.
The herky-jerky fast twitches are the bots.
Well, one of the changes is that before bots traded mainly in 5 point ranges, and mostly on chop days.
But now there are so many algo bots in CL these days you now have 12, and even 20 cent bots operating within trending markets, often counter-trend within a trend, so this plays havoc with stops, and figuring out direction until after the fact, or the overall strength and legitimacy of real long-term buying/selling intentions of the big players....almost provides ground cover for players at times.
The herky-jerky fast twitches are the bots.
I won't trade with a stop larger than .20. If there's a setup I like, but the stop would be larger than .20, I'll drill down to the 1-min chart and wait for a second chance entry.
Most of my stops are between .10 and .15, with occasional smaller stops.
I;m trading price swings, though, not swing trading or holding through deep retraces. I enter a trade at a key level and I looked to take a hard target profit at a key level, or if there's a decent trend in progress, I'll hold for more.
If by "lately" you mean "today", it was tricky price action. I placed many hard profit targets today when I realized every damn level would be tested, turning nice small profits into nothing.
Trend lines and channels were really helpful, because the 5-min bars were so wide.