ES Journal Archive (2006 - 2008)

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Quote from Buy1Sell2:

The 240 minute chart that I posted on page 414 was very beneficial in showing the way to get long. The 240 gets a bit of a jump on the daily chart without having the constant decision making that charts of lower time frames. I will post the 240 more as we go and invite comments.
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I'm not a FX trader at this time but have read many references to the 4 hour chart. Seems to be a reliable timeframe for those who actively trade these markets.

Looking forward to your posts.
 
B1S2,

have you witnessed unrealised divergences on daily/weekly TFs and if you have when do you say to yourself - I am not taking the heat no more?

Obviously, the higher the leverage the more vulnerable the position would be to volatility. But if we talk %age risk to trading capital, where would you pull out?

I also understand that you do average your position while build up, but going back to my initial question, if that divergence does not work out in your favour how much (%) of your trading capital would you risk on that position?

Thanks,


Romik
 
Quote from romik:

B1S2,

have you witnessed unrealised divergences on daily/weekly TFs and if you have when do you say to yourself - I am not taking the heat no more?

Obviously, the higher the leverage the more vulnerable the position would be to volatility. But if we talk %age risk to trading capital, where would you pull out?

I also understand that you do average your position while build up, but going back to my initial question, if that divergence does not work out in your favour how much (%) of your trading capital would you risk on that position?

Thanks,


Romik
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I try not to risk more than 2 percent of total portfolio (not trading account) on any one trade idea. 2 percent would be the absolute maximum heat as it relates to portfolio total.--Yes divergences do sometimes fail on longer terms. However, they are much easier to see in my view on the longer frames--(Daily). This is due to the fact that the closing price on a daily or weekly chart is in fact a "closing" price. This is where the professional sentiment was agreed upon on that day/week. The key is to never risk more than 2 percent. This can either be done with stops if trading full size or averaging in and then using stops. Either way, it's a 2 percent max risk.
 
I am doing quite a bit of study this weekend on stop placement and specifically replacing the intial stop with a trailing stop along the way. I have never been real good at stop placement and have preferred to start small and average in to positions. That has been very successful over the years. However, I may incorporate stops as a regular part of my short term trading again here in the near future and increase my initial trade size. As usual, I will post when I make the trades/stops.
 
I have to recommend Bo Yoder and John Person's books on futures trading. Almos done with Bo and working on some material of Person's I got at the Trader's Expo. They have great sections on stop loss determinations and exits.

I already feel like I have a better picture as to where to place stops and where to let profits run. Hopefully I can work it in and not just read about it lol..
 
Went short at 1265.25 right after the open. We seemed to be losing momentum and had a topping tail on the 9:40 candle (5min).

I set a stop exit just above the R2 pivot point as a target which the market opened aboveand got filled at 1263 for 2.25 points

These Pivots are derived from the Sunday night session so not as wide as normal pivots but still provided a good profit target.

Market has moved since past it but buying pressure keeps pushing back.... Gonna sit out until it settles for next entry.
 
As I had indicated over the weekend, I will begin incorporating stops after doing some extensive research over a long period of tdata. I currently have a sell stop in at 1253.75.
 
Quote from optioncoach:

Went short at 1265.25 right after the open. We seemed to be losing momentum and had a topping tail on the 9:40 candle (5min).

I set a stop exit just above the R2 pivot point as a target which the market opened aboveand got filled at 1263 for 2.25 points

These Pivots are derived from the Sunday night session so not as wide as normal pivots but still provided a good profit target.

Market has moved since past it but buying pressure keeps pushing back.... Gonna sit out until it settles for next entry.
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Very clearly, this was a good day trade move. The 5 minute chart should probably be traded usually for just a few points. Do you agree in general unless the larger charts show the same direction?
 
I use the daily charts and 5-minute charts together to look for trend and support and resistance. You could certainly trade the 5-minute charts for larger moves then quick scalps. It all depends on where previous levels of support and resistance are and how much room I think it can run in the current trade.

Since I was trading off the opening I did not have much guidance to how far it could fall and therefore set a stop at the level I described. If I was bearish overall on the daily's I could have held the position longer. However we bounced strongly off the lows 2 days ago so I did not want to over hold my shorts.




Quote from Buy1Sell2:

Very clearly, this was a good day trade move. The 5 minute chart should probably be traded usually for just a few points. Do you agree in general unless the larger charts show the same direction?
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