I heard it explained that some of the HFT boxes stopped trading at a certain point, and that the lack of liquidity that created, combined with the preceding crash in the credit derivitaves markets just created a total snowball effect. It just shows the darker side of how influential those bots really are. I'm actually curious what specifically stopped the plummet - maybe Cramer's remarks about PG? ... maybe YM hitting RTH -1000 to the tick?
ES Journal Archive (2009 - 2010)
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I heard it explained that some of the HFT boxes stopped trading at a certain point, and that the lack of liquidity that created, combined with the preceding crash in the credit derivitaves markets just created a total snowball effect. It just shows the darker side of how influential those bots really are. I'm actually curious what specifically stopped the plummet - maybe Cramer's remarks about PG? ... maybe YM hitting RTH -1000 to the tick?
long term trend is still up... till significant lower levels are taken out.
Quote from NoDoji:
Yes
My platforms were acting strangely at the open. One was out of sync with the other and I was afraid to trade after yesterday's action caused my DOM to lock up. I decided the open was just too volatile after yesterday and I took the dog to the park. (I gave everyone here immediate notice, so I don't want to hear about how anyone missed a chunk of that almost vertical move down from 1119.75 to 1090.75 after I left, when the 5-min chart offered the ultimate short signal at the close of the 10:10am bar: 3-tick failed breakout through the previous bar's high well below a falling 20 EMA, leaving a red shooting star behind.)
So I returned to see that I missed that incredible move and was, how should I say...pissed.
The hammer off the 1090 level from such a deep lower channel line overshoot was inviting to longs. I figured since I missed the big down move, I'd try for a bounce. Placing a stop at only 1097.75, I went long 1099.50, small size, figuring maybe a 5 pt bounce was in the cards. I liked the overall price action and moved my stop to 1100 and decided to just sit on it a while. Price was back and forth in wider moves than I was used to with ES, so I stepped away from my desk to avoid micromanaging the trade. When I returned 1109 resistance was broke thru and price had overshot the upper channel line, so I took profits, which were significantly more than I expected. There was another 11 pts left in the tank, but I was edgy.
The last push up from where I covered was one of those moves that looks overextended, so I jumped in quickly as an early short figuring I'd scalp a few pts on the exhalation of the move up. However, the 11:20am bar left behind was a decent short confirmation, so I held on and down it went, so I targeted 1103.50 just above the previous pivot low, but I covered when price found quick support off 1105.75. Something about bears and bulls and pigs came to mind.
Took a break, then did some scalping in the range to the short side, hoping to catch another panic move, but everything was shallower by then.
I really have a lot of respect for guys like Schiz who trades back and forth so easily. There was as much to be taken both directions in the later day drifting range.
Thank you so much for your details, learning from it.
Days like today and yesterday, i don't have the gut to jump in.
Especially the long side.
Now i am trying to do one good trade for one day.
Baby step, but this is what i have to do
Quote from luckylucy:
Thank you so much for your details, learning from it.
Days like today and yesterday, i don't have the gut to jump in.
Especially the long side.
Now i am trying to do one good trade for one day.
Baby step, but this is what i have to do
You're welcome! Nothing was more helpful to me than watching Greg Capra and Oliver Velez a few times on-line trading live and talking about what they were doing and why. I saw successful trades, trades that were exited early because of certain price action, and how tight you can place stops when you're patient and wait for a proper entry zone.
Now when I trade I talk to myself as if I was teaching someone the proper way to trade. This helps keep myself in line. I still occasionally fall prey to dumb trading, but much less now!
Today it took a lot of nerve for me to jump in because I was just not used to ES jumping around like CL usually does. I didn't want to be whipped out of a good trade, also didn't want to place too wide a stop, so I passed up on a lot of good setups mainly because I didn't jump in quick enough and didn't want to chase an entry.
All it takes is one good trade for a decent day's pay. Any one of my trades today would've given me a good day. I no longer chew so much on what I miss because there are just so many opportunities every day.
maybe it was just a fire drill,maybe the dukes were trying to prove a point,or send a message to benny and the boys,they would not have tried it unless they were short,maybe the banks needed a big wad of cash, the 30 and 40 point pullbacks just weren't enough return on there 550 point rally,so they backed it up ,re loaded their accts,and they will take another run at it ...the fact that we will never know ...,should tell you something...why keep it a secret if you have nothing to hide
guys i started a thread on this below to tag this so it doesnt get lost in the journals, looks like stop limit orders are submitted to cme right away after the parent is filled, see the thread for ib's wording.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=198298
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