ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Quote from Buy1Sell2:
Sorry about the loss today--I hope you don't stop trying the directional trading as it can be very rewarding. Just as an aside, I don't believe the folks here are suckers and your comment may have sounded disrespectful to some. Keep in mind if you would. Good luck to you and hope to hear from you again soon.
Thank you, and sorry if I sounded disrespectful to the good folks on this thread. It was my kneejerk reaction after that huge loss.
imo, trading volatility is more stable(and easier to forecast). I hav'ent given up on directional trading, but need to smooth out the equity curve and develop new techniques before entering that realm again.
Good trading to everyone!
B1S2,
I am thinking the same thing. You guys talk about divergences a lot, so I thought I'd throw in this "reverse divergence" which bearishly can indicate that the current daily downtrend(weekly is up) may continue.
How I will play it is that if there is another up day (like the one I put into the chart) I would put a sell stop under that bar(red line.)
First target would be today's low of around 1245 and the second target would be the most recent lowest low of 1220(on the cash SPX.)
ae_trading
And one more messy looking chart.
Maybe one of these days I'll post ES not $SPX
ae_trading
Maybe one of these days I'll post ES not $SPX
ae_trading
This a question to Spike.
I remember you mentioning that your system requires 30 min to establish whether the position you are in needs to be reversed, but what if there is a sudden change in price action that would result in your position going into negative territory. As you implement a 2 point stop level, would you interfere with the system and close the position even though the system has not established a reverse trade yet?
I am just curious how you treat these type situations, as I would expect that they do happen, maybe not often, but still.
Thanks.
I remember you mentioning that your system requires 30 min to establish whether the position you are in needs to be reversed, but what if there is a sudden change in price action that would result in your position going into negative territory. As you implement a 2 point stop level, would you interfere with the system and close the position even though the system has not established a reverse trade yet?
I am just curious how you treat these type situations, as I would expect that they do happen, maybe not often, but still.
Thanks.
No i don't need 30 minutes, what i need depends on the stage where my trade is in the system. It can be hourly, 30 minutes, 15 minutes, 3 minutes or even 1 minute.
The trades stopped by the 2 points stop represent less than 5% of all my trades. I never had a really big move that went against my position. It all depends on how you built up your trade. All the big moves that happen are always in the direction of my position. The biggest loss i had the last years was 3 points slippage included.
I always trade my system; the stop is only necessary to prevent that the loss would get beyond 2 points without a signal from my system.
My entries are very good. This means that from entry till exit the entry was the best quote available (more or less) but this doesn't mean the high or the low of the move. It means that from the moment i enter the prices move in favor of my trade and give me immediately some space and time to let the market do the job without being in a loss. That's the most comfortable position to trade.
Yesterday my system was long when we went up heavily. Unfortunately i closed my long just before the FOMC announcement, i was worried about the reaction and the profit was to small to have enough room to let the market move with a small risk.
Ive sold all 15 units today at 1281.50. We've had bearish divergence in Histogram, RSI and CCI. I am not going short at the moment, as I am playing the daily chart and looking intraday for long entries. I will reenter on bullish signal. In addition of course, I am short already in the long term account.
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