DT or not, very sick pa since Thursday painting overhead resistance all the way down today. Today's low was the last area of support untill the high 70's on major timeframes.
ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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This has nothing to do with the lot size. No offense, but if ure mathematically challenged, allow me to run you through some hoops.
Suppose ES had a daily range of 25 points today. By daily range, I mean from the high of the day to the low of the day. Now further suppose I made a killing of 20 points, regardless of how many contracts I traded. I could be trading 1 lot or 40 lots. Now dividing 20 by 25 equals 80%. Hence, I would give myself a "B" for the day. This is the most simplest approach.
You can also get a little more creative by taking the trends or the hour of the day into account. For instance, you could divide the day by the number of trends that occurred throughout the day. As an example, we had 2 trends today: a downtrend in the morning and an uptrend in the afternoon. So you would measure the length of each trend, say, 13 points for the morning trend and 20 points for the afternoon trend, which collectively yielded 33 points. You then divide the points you made by this number
With the time of the day approach, you break down the day by the hour and measure how many points were registered for each hour. Let's say ES dropped from 918 to 910 between 2:00-3:00 PM. At the same time, you scored 5 points in those hours. So you divide 5 by 8 to arrive at 0.625 for that time slot. You repeat this for the other hours and then in the end take the average of the entire day by adding the numbers and dividing it by the number of trading hours .
I hope that makes sense.
Quote from saliva:
Watch out, bro. This baby refuses to die and she's way past her shelf life. C'mon coax her and strangle that lovely neck for me, will ya?
The nature of our rallies since the high made @ 886 on 4/30 have been rather strange. The highs are made from short squeezes of grand proportions.
Eventually, when the squeeze is over, ES may very well drop like a rock. But as long as Support keeps Supporting, it seems as tho the shorts are oblidged to make new highs with their buy stops.
We can't make lower low's unless bears are willing to sell thru support. They have been trying, but someone is soaking up the sell orders. It's not for a lack of effort!
for the successful discretionary / price action traders, is it a case of once you become consistent you should always be so, since your results aren't based on a 'system' which would stop working as the market changes (something ive heard mentioned)
Im by no means successful, but ive had some good results this last few months after years of study and practice, but im constantly paranoid about people who keep saying that the market is always changing and that you have to keep changing your methods!?
Maybe some of you old hands can shed some light.
Im by no means successful, but ive had some good results this last few months after years of study and practice, but im constantly paranoid about people who keep saying that the market is always changing and that you have to keep changing your methods!?
Maybe some of you old hands can shed some light.
Thanks for the reply.
Number of contracts does matter in your equation.
Here is an example:
Let's say ES had a daily range of 20pts.
Let's say you only had one trade -profitable - for the day.
Here is where the number of contracts comes into play.
If you traded 20 cars and exited all at +1, you made 20 ES pts, thus matching ES's daily range for the day, giving yourself an A+.
If you traded 1 car and exited all at +1, you only took 5% of ES's daily range, giving yourself an F.
The trade being the same, the size changing from 1 to 20 cars.
See what I mean?
This is why I like your equation - net profitable pts vs daily range pts - only if it's based on 1-contract trades.
A trader that can take 80% or more of the daily range via 1-contract trades is a lot more efficient than another trader hitting the same number by using multiple contracts.
And your equation is meant to measure efficiency vs daily volatility.
Hope I've been clear enough.
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