ES Dailys: MoO/MoC Trades

O

OddTrader

A summary for easy reference and continuation of my live calls:

"Live Calls: any instrument, any method, any timeframe (open to all)"
http://www.elitetrader.com/et/index...-any-method-any-timeframe-open-to-all.292298/

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Trade 1, Tuesday, Jun 16, 2015:

EOD Trading {symbol}; {direction}{entry price}; {stop price}; [exit].

ES; Short 2084; SL 2089; Close ???/EOD.


My EOD trading above is derived according to the method below that I learned today from Romik, plus certain/major modifications.

http://www.elitetrader.com/et/index.php?threads/es-journal-2015.288816/page-374

romik said:
And just a few words about methods used, as what I do implements the edge in money management, I don't go all secretive about the method, it's rather simple. RSI points to oversold/bought, MACD histogram points to buildup of either strength or weakness in price action, you have established predominant trend, so clear on direction of trade/s to be taken as will be banking on support from other trend followers. Now you need to study average range attainable, that way you can establish average loss and average reward. Look for tightening ranges (wedges are my favourite) and potential double bottoms/tops. To substantially reduce risk entry has to be taken from very fast charts, like 1min and below. That's it in a nutshell.



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ES; Short 2084; SL 2089; Close 2089.

Loss: -5 points.

http://www.elitetrader.com/et/index...ethod-any-timeframe-open-to-all.292298/page-2

OddTrader said:
ES; Short 2084; SL 2089; Close 2089.

Loss: -5 points.
More...

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Maybe it should be called a Dailys trading, a very simple OOD (entry at market open price)/EOD (exit at market close price) trading system, no overnight position is held.

Plan: Average loss 4 points, and 70% losing trades. Wining 30% trades at 12 points average profit. Expectancy 0.8 points (= 3.6 points - 2.8 points) .
 
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Trade 2, Wednesday, Jun 17, 2015


ES; Short MOO (~@08:30); SL 5 points; Exit MOC(~@15:15).

http://www.elitetrader.com/et/index...system-at-intraday-price.292320/#post-4137577

OddTrader said:
ES Specific : 08:30-15:15

http://www.elitetrader.com/et/index.php?threads/moc-futures-orders-at-ib.189564/


Q http://www.cmegroup.com/trading_hours/equities-hours.html

Open Outcry

CME ClearPort
US Index Futures and Options (CME)
E-mini S&P 500 Futures & Options 16:00 17:00-16:15 16:45,
15:15 17:00-15:15,
15:30-16:15
S&P 500 Futures & Options 16:00 17:00-08:15 16:45,
15:00 17:00-08:15,
15:30-16:15 08:30-15:15
UQ


==================================

ES; Short 2101.

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Loss stopped, -5 Points.

Accumulative -10 points.

http://www.elitetrader.com/et/index...ethod-any-timeframe-open-to-all.292298/page-7

OddTrader said:
Loss stopped, -5 Points.

Accumulative -10 points.
More...
 
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Trade 4, Friday, 19 Jun, 2015

ES; (Still) Short MOO; (As usual) Stop-Loss 5 points; (Again, if not stopped out) Exit MOC.

Because China Indexes dropped today by 6+%.
http://www.wsj.com/articles/chinas-...ex-falls-into-correction-territory-1434682051

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ES; Short 2111.

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Exit MOC 2098. P/L +13-15=-2 (for 4 days).

http://www.elitetrader.com/et/index...thod-any-timeframe-open-to-all.292298/page-11

OddTrader said:
Exit MOC 2098. P/L +13-15=-2 (for 4 days).
More...
 
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ES MoO/MoC Orders:

" MOC futures orders at IB "
http://www.elitetrader.com/et/index.php?threads/moc-futures-orders-at-ib.189564/

J.P. said:
MoC orders, per se, are not available for ES but are offered for the large (SP) contract. They are simply Market orders that are filled during the last 30 seconds of trading. So, at IB, if you want to trade ES MoC, simply place a Market order with a Start Time of 15 seconds prior to the close, typically 15:14:45 Chicago time. The IB server will fill and report back your order at precisely that time. And there you have it.

Regards,
JP
More...
 
Found online from a vendor: " Why You Should Trade End-Of-Day, Not Intra-Day " in 2 parts/posts:

Q

Many traders email me asking how they can trade with their busy schedule or say that they don’t have time to sit in front of their computer watching the markets all day. My answer is usually something along the lines of: “Well you don’t have to sit in front of your computer all day if you learn to trade end-of-day Forex strategies”. Now, by ‘end-of-day’, I simply mean after the New York close; it doesn’t have to be exactly at the New York close, but generally there’s a large gap of time between the NY close and the London open where trading is very quiet (the Asian session), and this is the best time to analyze the daily charts and make your trading decisions. This is what I mean when I say “end-of-day trading”.

You might be wondering why I am not a big fan of intra-day trading. Well, the reasons are pretty simple; there is more random price movement or market ‘noise’ on the intra-day charts, and they thus contain more ‘clutter’ and are just more difficult to trade than the daily charts. For a skilled trader who is already successful, intra-day trading might be something to consider. But, if you are a beginner, a struggling trader, or simply someone who doesn’t have a lot of time each day to devote to trading, trading the daily charts in an end-of-day manner is going to be your best option.
Keep your day job

End-of-day trading basically allows you to fit in trading around your schedule, whatever it may be. You can keep your day job with no problems. Many people seem to think that if they can’t sit and watch the markets all day then they can’t trade, this is simply not true.

In fact, being away from the market is actually good for you – this is a ‘hidden’ advantage to end-of-day trading. Since you won’t be as involved with the markets you will have a ‘natural filter’ against over-trading and this will likely increase your bottom line at the end of the year. It’s a statistically proven fact that low-frequency traders make more money over the long-run than high-frequency traders, on average.

As an end-of-day Forex trader you can live your life exactly as you are now, but instead of spending 30 minutes watching television at night, you can simply analyze the markets according to your trading plan and look for price action trading setups. It might seem too good to be true, but really it’s not; the truth of the matter is that once you learn an effective trading strategy and develop into an effective trading plan, you really do not need to spend hours analyzing the markets each day.

Less clutter on your charts and in your brain

Humans have a tendency to make trading far more complicated than it really is. I am not saying that trading is ‘easy’, because as we all know it’s not easy to make consistent money in the markets. But, most people make the entire process of trading far too complicated, and really the analysis part of trading is actually very simple. The difficult aspect of trading lies in taking profits and remaining unemotional. Deciding to enter or not is the easiest decision you have to make in the markets; essentially it all boils down to this; there’s either a signal or there’s not.

Once you have learned and mastered an effective trading strategy like price action, you then need to formulate it into a trading plan. After that, it’s as simple as checking the markets each day after the New York close and seeing if your trading edge is present. Once you develop this into a routine it really should not take more than 30 minutes or so for you to decide if there’s a signal worth trading. I get emails from traders everyday telling me they are frustrated and confused and then they tell me they are using forex indicators and checking the markets all day…they simply cannot see the forest for the trees! Meaning, the REASON they are frustrated and confused is because they are over-complicating the easiest part of trading, which is analyzing the charts and looking for a trading signal.

More ‘bang for your buck’

What I mean by ‘more bang for your buck’ is that by being a daily chart end-of-day trader you are making more effective and efficient use of your time. Since daily chart signals are more powerful and contain more ‘weight’ than intraday signals, it means your time is better spent analyzing the daily charts after the NY close where you can simply check the markets for a signal real quick and then walk away. Any signal you find is likely to be much more significant than a signal you may have found earlier in the day or night on an intra-day chart. Thus, you are getting more out of spending less time in the markets by focusing on the daily charts rather than sitting at your computer all day trying to trade the intra-day charts.


UQ
 
Q

HOW to trade end-of-day

Another email question I often get is “How do I trade end of day” or “What is end of day trading”? So, this next part should clearly answer those questions, and if you email me about it I am going to refer you to this article ;)! So, let’s discuss how to trade Forex (or any market) end-of-day:

Remember this: 30 minutes a day is all you need to analyze the markets and find your entry or manage your trades:

• It ALL starts with the signal – You scan your favorite markets and first look for a clear signal of one of the setups in your trading plan. After you have mastered your trading strategy this should be a very easy and quick task, taking no more than about 10 to 15 minutes. You are simply looking at the daily chart time frames for obvious instances of your trading edge. If nothing stands out to you after 10 minutes or so of analyzing the markets, there probably is nothing worth risking your money on. Where traders get into trouble is when they don’t see an obvious signal right away and then keep looking until they convince themselves there’s something worth trading, even though there isn’t. This is a very easy trap to fall into and you’ve got to ignore that temptation to ‘dig up’ something to trade when there is nothing ‘ripe’ staring you in the face.

• Looking for levels – Match a signal up to a level; if you find an obvious price action setup the next thing you’ll do is see if it lines up with any obvious level(s). You’ll have to draw in the key daily chart levels at the start of the week and then analyze and adjust them if needed each day after the New York close. This is also not something that will take much time after you get some education under your belt and understand what a key level is vs. a level that isn’t as significant. Here’s a video on drawing support and resistance levels.

• Gauge market conditions – Is the market trending or consolidating…? If it’s trending is it in a strong trend or is it slowly grinding higher or lower? Is the market in distinct trading range? Where are the obvious key boundaries of the trading range? Make sure your signal makes sense in the context of the current market conditions. For example, maybe you see a decent looking pin bar strategy but it’s against a very strong trend…probably not the best setup then.

• Make your own daily commentary – Making a daily commentary of your favorite markets is a good way to get an objective view of the charts each day. Using the guidelines in your trading plan and the three points above, go over your favorite markets each day and make notes about what you see, actually write or type it out so that it becomes a habit. Then once you finish with your top 5 or 10 favorite markets, go back and re-read your comments and see if anything really stands out to you. This process will give you a good overview of what’s happening in the market and will help you better understand the overall market picture and whether or not anything is worth trading…it will help you stay “in tune” with the markets and will work to develop your discretionary trading sense. This is one of the biggest things that helped me become successful in the markets.

• When you’re done, you’re done – Once you go through your daily ‘end-of-day routine’, you have two possible outcomes: there’s either a trade or there’s not. Either way you should walk away. You either enter your trade parameters or you do nothing, and either way you should leave your charts until the next day, then come back and see what happened. This act alone will almost completely cut out the temptation to over-trade, which is most trader’s biggest downfall. You aren’t going to help anything by looking at the markets and staring at your trades. Sure, you might nip a couple of would-be losers early, but in the long-run you’re only going to end up cutting your winners short, closing trades at breakeven, and generally just interfering in your trades when you shouldn’t.

This 24 hour break from the markets shows that you release your arrogance and that you truly understand you can’t control the markets. Let the market do the work for you, you should have already accepted your risk on the trade…you should basically assume you are going to lose on the trade, so that every time you come back the next day and see a winning trade it’s a nice surprise, and a loser is not a disappointment but rather something you already expected. It’s when people expect to win on every trade that they start becoming emotional.

Summing up the end-of-day trading strategy

As you can see, end-of-day trading is not only a good strategy, but it’s also a philosophy. The philosophy of not being glued to your charts, of accepting that the market will do what it wants, and of generally just being less involved with the markets is a mature trading philosophy that shows understanding of how the markets work and of how the trading game is won. It really allows you to release that ‘need’ to be right and to control everything in your trading. So, even as you become more experienced and perhaps want to trade lower time frame charts, this philosophy of briefly checking the markets for your trading edge, making a decision and then walking away, will still benefit you and can still be used.

UQ
 
From online from another vendor, in 3 parts/ posts:

Q

EOD Trading Signals and your Trading System

EOD trading signals (eod: end of day) are trading signals that are generated off the daily price bars after the trading day is finished. These do not require monitoring during the trading day, as the complete daily price bar is required to generate the signal.

Advantages of End of Day Trading Signals

Using end of day trading signals in your trading system has some distinct advantages over shorter term day trading signals. The primary advantages are:

Significance
Flexibility
Time to act
Higher profit per trade

End of day trading signals are more significant because as you look at progressively shorter and shorter timeframes the markets generally become more random and noisy. For example, the amount of random noise in a 1 minute bar chart is much higher as a proportion of total price movement than the amount of noise in a daily bar chart. This means that eod trading signals should be more significant than signals generated on shorter term charts like the 1 min, 5 min, 1 hour or 4 hour bar chart.

This is because with end of day data you can choose when you place your trades across the trading day – you can place your orders at the open, the close and you can place stop or limit orders that will get you in or out if your conditions are met.

You should not need to monitor the markets throughout the trading day if you design your system appropriately. Using eod trading signals you have the flexibility to design your trading system to fit you. For example: If you…

…like to sleep in: Trade at the close
…work full time: Place limit and / or stop orders after market hours
…have to pick up the kids from school: trade at the open
…don’t know when you can turn on the computer: Place limit / stop orders

Using eod trading signals for your trading systems also gives you much more time to act. You have time to do your analysis between the close of the market and the open then next day (or even the close the next day if that is when you place your trades).

In my view the most significant benefit of using eod trading signals as opposed to shorter term data is that your trades will be longer. This means you can generate a higher average profit per trade than you can with intraday data and short term trading signals.

This is important because the higher your average profit per trade, the less significant the impacts of commission and slippage. This means that you will be more likely to remain profitable over time.
Disadvantages of EOD Trading Signals

The potential disadvantage of using end of day trading signals is the accuracy with which you can place your trade. If you want to very precisely time your entry triggers to try to squeeze every last bit out of a trade then you may benefit from using shorter term data.

In my experience however, the return for effort from trading shorter term was not worth it given how much money can be made on daily bars and the high level of flexibility eod trading signals give you to enjoy your Life!

Especially for new traders I would suggest that daily price data with eod trading signals is a good place to start. Once you are consistently profitable using this approach then consider shorter timeframes if that fits your objectives and your lifestyle.

UQ
 
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Q

Market On Open Orders - A Useful Tool

Market on open orders (MOO Orders) are an extremely useful tool. They can help you get into the market right at the opening price without having to place a market order immediately when the market opens.

Although not available in all markets or by all brokers, if you have access to them they warrant consideration for inclusion in your trading system.
What are Market On Open Orders?

A MOO order is simply a market order which is placed when the market is closed and which remains dormant until the open. When the market opens the order becomes active.

Once the MOO order becomes active, it behaves exactly like a normal at-market order.
Benefits:

The main benefits of MOO orders is that you do not need to place a market order right at the open to get the opening price. This means that you can design trading systems that enter or exit at the open with some degree of certainty.

This may be useful when you have a full time job or other responsibility that may at times prevent you from being at the computer when the market opens.

Being able to place market on open orders is also useful if you want to trade on some foreign exchanges that are not in your time zone. For example, living in Australia I find that the opening times of the exchanges in the USA and Europe are just not very convenient - something about needing sleep I think! So this type of order could still allow me to design a trading system that uses the opening price to enter or exit the market.
Drawbacks:

The potential drawbacks of market on open orders are similar to standard market orders with one caveat...

... If you are going to place market on open orders and not be present at the open of the market you really do not know what price your order will be filled at. You must ensure you understand the full ramifications of this because markets can move a lot further than you would think over night!
Conclusion:

If they are available for you to use on the exchange and with the broker you use, Market On Open orders can be a helpful tool if used cautiously. They can add flexibility and also provide you with some certainty that your order will be placed at the open just in case you cannot be in front of your computer at the time.

Remember to consider how you will place your stop loss orders also - these are important for protection of trading capital and ensure you don't lose too much on any one trade.

Regardless of how or why you use different order types, they should all be documented with reasons and instructions in your trading plan to ensure you (or the person placing trades for you) know exactly what you need to do in all situations.
UQ
 
Q

Market On Close Orders - Another Useful Order Type

Market on close orders (MOC Orders) are a useful order type for helping you secure a price at or close to the close of the day. They can help you get into or out of the market right at the closing price without having to place a market order immediately when the market closes.

Although not available in all markets or by all brokers, if you have access to them they warrant consideration for inclusion in your trading system. For example, some traders will want to exit at the close if a certain price level was breached during the trading day. This could be used to execute either a trade entry signal or a trade exit signal.
What are Market On Close Orders?

A MOC order is simply a market order which is placed when the market is open, but before a certain time which is set depending on the exchange. The MOC order remains dormant until near the close at which time it becomes active.

Once the MOC order becomes active, it behaves like a normal at-market order.
Benefits:

The main benefits of MOC orders is that you do not need to place a market order right at the close to get the closing price. This is useful in many situations where intraday price action provides you with the trading signal to place a trade at the close of the day.

This may be useful when you have a full time job or other responsibility that may at times prevent you from being at the computer when the market closes. It is also useful for trading systems where placing a trade the close of the day offers better profitability than waiting for the open the following day.

Being able to place market on close orders is also useful if you want to trade on some foreign exchanges that are not in your time zone. It is also useful if you want to place a trade but are not sure that you will be in front of your computer or able to call your broker just before the market closes.

This type of order can allow you to design a trading system that uses the closing price with some confidence that you will actually be able to execute your trades as the closing price.
Drawbacks:

The potential drawbacks of market on close orders are similar market on open orders...

... If you are going to place market on close orders and not be present at the close of the market you really do not know what price your order will be filled at. You must ensure you understand the full ramifications of this because markets can move a long way during the trading day if some extreme event occurs or there is a major announcement.
Conclusion:

If they are available for you to use on the exchange and with the broker you use, Market On Close orders can be a helpful tool to ensure you can trade at the closing price. This certainty enables you to develop trading systems which trade at the close knowing that you should be able to replicate system results in the real world. They can add flexibility and also provide you with some certainty that your order will be placed at the close in case you are not at your computer when the market closes.

Regardless of how or why you use different order types, they should all be documented with reasons and instructions in your trading plan to ensure you (or the person placing trades for you) know exactly what you need to do in all situations.
UQ
 
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