ES Journal Archive (2006 - 2008)

[Buy1Sell2]

Quote from m4a1:

it's interesting how there was a weird spike to 1390 a few days ago during afterhours trading and not we are are going to close at around 1390 on this fed day.

Spikes can happen during the day and stop folks out with horrible fills. When trading long term, those spikes are generally in the direction of your trade, and are not a problem.

 

[m4a1]

short 1391.75

30 min

 

[Buy1Sell2]

Quote from m4a1:

exit at either reaction high/low, opposite grail, or profit target. that's what he says he's doing.

Exit below reaction low and above reaction high ---not right at it.

With regard to profit targets, let's say you are using a system that defines a stop point 2 points outside the reaction low and that would give you a total stop of 3 points. Then you should find a system that would give you normally 9 points at least. That should be the minimum initial target. However, as a new reaction low replaces the old reaction low, your target can change as well so that it is 3 to 1 at the bare minimum. This is the point I am making about letting your trade run to maturity. It's whatever you define as the area that you want to get out, then that's where you exit the full position. Myself, I would let it run to the 9 points if that was where I felt the trade would go. --all the while raising the stop when the reaction low moved. See-you might end up with a 9 to 1 or 9 to 0 eventual reward to risk!. Make no mistake- if your initial stop is 2 pts, then your initial target MUST be at least 6 pts.

 

[Buy1Sell2]

Quote from m4a1:

short 1391.75

30 min

Stop and target?

 

[m4a1]

stop: reaction high of 1394 or opposite grail.

don't really know about target.

 

[m4a1]

what if you find that the opposite grail always gets you out earlier so that your risk/reward is less than 3 to 1?

also, my current trade has a 3 point stop. to maintain 3 to 1, i am looking for a gain 9 points. is this unrealistic for an intraday trade?

Quote from Buy1Sell2:

Exit below reaction low and above reaction high ---not right at it.

With regard to profit targets, let's say you are using a system that defines a stop point 2 points outside the reaction low and that would give you a total stop of 3 points. Then you should find a system that would give you normally 9 points at least. That should be the minimum initial target. However, as a new reaction low replaces the old reaction low, your target can change as well so that it is 3 to 1 at the bare minimum. This is the point I am making about letting your trade run to maturity. It's whatever you define as the area that you want to get out, then that's where you exit the full position. Myself, I would let it run to the 9 points if that was where I felt the trade would go. --all the while raising the stop when the reaction low moved. See-you might end up with a 9 to 1 or 9 to 0 eventual reward to risk!. Make no mistake- if your initial stop is 2 pts, then your initial target MUST be at least 6 pts.

 

[m4a1]

another question: to maintain a 3:1 ratio, does it mean you need to enter you positions near the reaction low/high so that there is enough upside/downside left?

 

[Jander]

I would think that would be a bit unrealistic for an intraday, a large number of the days dont range but 5 or 6 points all day

 

[m4a1]

today might be the pullback day that b1s2 talked about. here's what i see.

60 and 240 are both coming off rsi highs of above 70.
30 and 15 both showing short grails.

 

[romik]

Quote from m4a1:

today might be the pullback day that b1s2 talked about. here's what i see.

60 and 240 are both coming off rsi highs of above 70.
30 and 15 both showing short grails.

Have you tried out a line chart yet? I am urging you to give it a try since your entry/exit is solely based on grails.