The vast majority of my trading is in net credit options. I always carry a great deal of naked premium in my account. I also outright trade futures. I generally trade long term and build positions based upon weekly and daily charts, at least in ES and indices it's that way. I do trade some other markets with stops at times---currencies come to mind but even there I carry naked premium with no stop. That is the plan, so yes I do have a trading plan. As regards the shorter term trading, the plan is to trade mostly divergences and use hourly charts, so I am just learning that game. As far as rules, I have only one that is hard and fast and that is to never lose more than 2% of portfolio on any one trade or trade idea. Because of the time decay factor and the high probability of net premium expiring worthless, I do allow a larger drawdown but never larger than 5% on options. I would tell you though, I have never gotten past the 2% even on those types of trades.
ES Journal Archive (2006 - 2008)
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The vast majority of my trading is in net credit options. I always carry a great deal of naked premium in my account. I also outright trade futures. I generally trade long term and build positions based upon weekly and daily charts, at least in ES and indices it's that way. I do trade some other markets with stops at times---currencies come to mind but even there I carry naked premium with no stop. That is the plan, so yes I do have a trading plan. As regards the shorter term trading, the plan is to trade mostly divergences and use hourly charts, so I am just learning that game. As far as rules, I have only one that is hard and fast and that is to never lose more than 2% of portfolio on any one trade or trade idea. Because of the time decay factor and the high probability of net premium expiring worthless, I do allow a larger drawdown but never larger than 5% on options. I would tell you though, I have never gotten past the 2% even on those types of trades.
Hey porgie;
Read a recent futures book ad by Chick Goslin;
he noted futures are not about the future,
that leaves the past & present.
Read a recent futures book ad by Chick Goslin;
he noted futures are not about the future,
that leaves the past & present.
I like the mid range close on that last bar in terms of weakness. Failure to reach OB level on RSI is both a plus and a minus for this analysis. At the moment though , I think we would need to break the mini uptrend hourly line or have some kind of clear divergence signal etc to short. It may not be quite time for the short just yet. Although shorting here would have a very limted risk with a stop above the day's high--not just one tick though.
Went short at 1316.50 in the ES
Reversed to long at 1313.50
Stop at entry
Short signal is impossible for the next 75 minutes, only take profit can occur.
Probably long will continue till the close of the day.
OK, this is a bit new ground to me, but nevertheless, all gaps during the day in the index have been closed, apart from the 1306.6 range, that would be 1314 range in ESM6 i believe. It will be interesting what happens.
Spike, when you say "impossible", are you referring to your system's signals?
Spike, when you say "impossible", are you referring to your system's signals?
I call it a system, but most experts will call it luck probably.
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