ES Journal Archive (2006 - 2008)

[Buy1Sell2]

The disadvantages to the breakout/breakdown system that I am working with at the moment are:
--Many trades will not be winners
--Frustration
--Patience required
--Goes against human nature to buy at a high or sell at a low
--Can be commission intensive
--Whipsaws
--Traders get discouraged and will violate the simple rules
--A trader who can only trade 1 lot will not be able to increase size to reap the full benefit of the big winner.

Advantages:
--Losses are small during the whipsaws (may make up for commissions in that other types of trading may have you losing more per trade.)
--Very little thinking required
--You will always be in the big winner
--Big winners.
--There will be few or no large losses.
--Forces you to place stops

 

[Brucelee]

Quote from Buy1Sell2:

The disadvantages to the breakout/breakdown system that I am working with at the moment are:
--Many trades will not be winners

This one looks like a nice winner.

 

[Buy1Sell2]

I am not afraid of giving it all back while I search for the monumental winner.

 

[whoispaul]

B1S2,

you kiddin´? yours is one of the best methods (but dont want to call it systems) I have seen in a long time. All your points have merit, the marks of a truly great trader. Keep it up!!

Though I am a position trader I have found your deal about increasing size outside of noise while getting into a trade very useful.

Actual example: right now I am short March Beans. Overnite I added to my position at 667.75 with limit orders. Today I put in orders to buy (getting out of my shorts and going long) at 672 and at same time adding to my shorts at 661.50. Both levels are slighty outside the small trading range over the last few days.

What better way to work a trade after entry.

Thank you.

 

[Brucelee]

Quote from Buy1Sell2:

I am not afraid of giving it all back while I search for the monumental winner.

Well, from what I see you are on the right side, although it might take until next year to see a large move in your direction. All the indices are showing signs of rolling over, led by the Nasdaq.

 

[romik]

what is current profit per unit B1? I understand what you are doing, in fact I have been implementing that way of trading for a while now, though based on grails and it is great, can be frustrating, but when that winner comes, blimey, makes it all worthwhile. Just need to start figuring out when to add to a winning trade.

 

[Buy1Sell2]

Quote from Brucelee:

Well, from what I see you are on the right side, although it might take until next year to see a large move in your direction. All the indices are showing signs of rolling over, led by the Nasdaq.

Point to be made here-- I am still long on the positional ES trades and have been for a very long time. I have quite a bit of profit in this trend including sale of out of the money calls that have been expiring monthly. The system I am using here (experimenting with) is only an intraday/swing system. I do know that it works well on any time frame, but on positionals (daily, weekly monthly), I look at the technicals very heavily. I do however defer first to reaction lows/highs when considering a market's next move before I look at technicals.

 

[Brucelee]

Quote from Buy1Sell2:

Point to be made here-- I am still long on the positional ES trades and have been for a very long time. I have quite a bit of profit in this trend including sale of out of the money calls that have been expiring monthly. The system I am using here (experimenting with) is only an intraday/swing system. I do know that it works well on any time frame, but on positionals (daily, weekly monthly), I look at the technicals very heavily. I do however defer first to reaction lows/highs when considering a market's next move before I look at technicals.

Ok, I follow now. But, the longer timeframe does look down from a technical point of view, which might affect how you look at your longer term holdings I guess.

 

[Buy1Sell2]

Quote from Brucelee:

Ok, I follow now. But, the longer timeframe does look down from a technical point of view, which might affect how you look at your longer term holdings I guess.

It will be difficult for me to get too short while the weekly is still so strong. A breach of the 11/28 low would have me reconsidering. This is why I sell out of the money calls as a trend gets somewhat long. It offers income and a hedge. Note: I don't sell calls when the trend is in it's infancy.

 

[JimmyJam]

Quote from Buy1Sell2:

I am not afraid of giving it all back while I search for the monumental winner.

You got a lotta guts, but the average intra-day trader is going to have a hard time trying to pay the rent with this method.

For the record, some of the most famous traders around believe as you do ... Turtle Trading

Me, I gotta the pay bills.

Happy Holidays,

JJ