Day-Trading 2.0 for small traders

[triplepack]

Hi Ironfist,

Nice trading , the pbp trades look just like mine, since my last post I have looked at your sugestion of 500 volume bars and tried those myself, having said that on the
V500 past history indicates to me that it can give betwen 15 and 25 points on a signal,
I think the 5pt target you used on this time frame was too low and prone to getting suffocated in the general noise at this timeframe.

By going down to say V200-V250 or possibly less, with the 5pt target you may well be able to have a clearer path to the profit target, but speed of execution is the trade off your going to have to be nifty or have a trade execution tool which puts the stop loss and target once the trade is accepted.

One other disdavantage of this time frame is overtrading. I try to overcome this with a done for the day target of 25-30pts.

I think it is getting the balance between time frame , what the market gives at that time frame chosen, stop losses which make sense on a R:R basis and speed of execution.

I think on the charts you posted you were trying to trade a faster time frame target with a longer timeframe stop.

Hope this helps.

 

[shasha]

It's real interesting to see how price dance in different frequencies.
In the early part of 6/3 YM is dancing nicely with 500V, as charted by Ironfist. Later in the day, 250V was the tune playing in the air.

 

[timokrates]

Quote from triplepack:

Hi Ironfist,

Nice trading , the pbp trades look just like mine, since my last post I have looked at your sugestion of 500 volume bars and tried those myself, having said that on the
V500 past history indicates to me that it can give betwen 15 and 25 points on a signal,
I think the 5pt target you used on this time frame was too low and prone to getting suffocated in the general noise at this timeframe.

By going down to say V200-V250 or possibly less, with the 5pt target you may well be able to have a clearer path to the profit target, but speed of execution is the trade off your going to have to be nifty or have a trade execution tool which puts the stop loss and target once the trade is accepted.

One other disdavantage of this time frame is overtrading. I try to overcome this with a done for the day target of 25-30pts.

I think it is getting the balance between time frame , what the market gives at that time frame chosen, stop losses which make sense on a R:R basis and speed of execution.

I think on the charts you posted you were trying to trade a faster time frame target with a longer timeframe stop.

Hope this helps.

Very good post triplepack, thanks.

I found this webinar from Linda Raschke where she goes over this problematic of setting targets and stops. Like jjrvat she also mentions the ATR as a possibility to define them for the timeframe you trade.

http://www.cmegroup.com/education/interactive/nyte/raschke/index.html

 

[alea_jacta_est]

Maybe I like to KISS as much as possible, but here it is anyway to set a target (very hard thing to do predicting the future):

Take the extent of the last wave and factor it by a number less than 1 (play with it) and exit at least a partial amount at that target measured from your last wave swing point or "natural stop" point. This "device" can also be used to filter out waves that are almost "spent" at the time of entry and can be passed due to reward/risk analysis.

 

[IronFist]

For you guys who said "good trading" to me about yesterday, you know I finished up the day with a loss, right?

Although that reminds me of something I heard from Dr. Elder (on an audio version of one of his books). It said something like (paraphrased) "Successful traders don't worry about making money; they worry about trading well. If they trade well, money will naturally follow."

Or something like that.

I try to keep that in mind when I take a loss... I try to stay away from thinking "ow, that sucks" and try to think more like "well I exited that trade at the correct place, so I did well."

Anyway, I'm getting chopped up this morning. There was a nice little rally that started at 9:44am CST but I didn't take it cuz it didn't follow a HL.

I'm taking the morning off to go to the flying field and relax and I'll come back and trade this afternoon and then backtest the rest of the morning's data.

 

[triplepack]

Hi Ironfist,

Yes well done good trading, you stuck to the PBP , ok there was the small detail of not making money LOL, but I think you got more out of that session of trading , clarification of hh-hl etc and analysing the timeframe for your particular trading style and targets/stops.
And you stuck to the plan . Great trading!

I have a box to tick if I had a good trade ( not nescasarily a winning trade). I ty not to focus on the p/l but how many good boy ticks I can get then I know i am sticking to the plan and points then slowly come as the market knocks the bad habits out of me. Still got plenty bad habits though.

Triplepack

 

[Dr.N]

Hi Ironfist,

jjrvat's PBP method really works even with recreational trader like me … take a look of my yesterday chart,,,as you can see i use OSO order function setup for 10 contracts on each trade w 5 ticks target/5 ticks stop loss..

I am certain that jjrvat’s method can be made to be very profitable and easy to use I just wish I had more time for it…good luck with your testing!

 

[IronFist]

What is OSO?

btw I'm still getting destroyed today Charts to come at the end of the day.

What are those colored horizontal lines on your chart?

 

[IronFist]

So did anyone else fail miserably today?

I could have taken profits sooner, but taking profits too soon yesterderday (+5 ticks) lead to a loss for the day, so I decided to leave the trades open until the FastMA reversed today. I can't win

Morning:

Afternoon:

My worst day since 5/16, and my 2nd worst day ever.

Today's Trades:

-25
-11
-7
+10
+0
+3
-16
-5
--------
-51



To be fair, taking profits on all trades today after +5 pips would've resulted in:

-25
-11
-7
+5
+0
+5
-16
+5
----------
-44

But still.


Ok, was today just a crappy day or did I do something horribly wrong?

 

[Dr.N]

Ironfist

I thought you were using the same platform as I have judging by the charts you have posted…the OSO (order sends order) is a conditional function command offered by tradestation allowing user to choose limits and condition for given targets, stop losses, etc…good feature to have in money management arsenal….

How could you possibly lose so many ticks today? Don’t you employ stop-loss function? What about taking on longer time frame like 4-8 minutes?