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FREE ES Trading Strategy that works
- Thread starter DonKee
- Start date
Quote from Hombre:
I have one if you don't mind.
have you tried other CBOT or CME markets like ZN, currencies, NQ,YM with this method ?
BTW ,thanks for the great contribution !!
I pretty much only trade the ES.
What ever market you want to look at, make sure the 3-10-16 is accuratley flowing along with the description I have posted before:
Visually, here is what I am looking at and what the strategy decscribes with the indicators.
1) First Cross: This is the 16 line alerting me to the trend changing direction.
2) The 3-10 histogram moving to the opposite side of the zero line from the 16 line. This is the 3-10 histogram telling me we are having our first pull-back after the trend change.
3) The 3-10 histogram turning back towards the zero line. This is the 3-10 histogram telling me the pull-back "might" be exhausted and the trend is ready to continue.
Remember, the First Cross is about taking a position after the first pullback in a new swing direction. The ES can have 2-6 trend changes throughout the day that are big enough to capture 2-4 points. Some of the markets you mentioned, EC, ZN, SN might have one swing change during the day. That means if you miss that trade, you might be done for the day with that market. Of course, the good side is, if you catch that trend change, you're on board for a great ride.
One of your goals in trading should be to find a way to enter a trade during the first pull back in a new trend. If you can match up an indicator that describes that action for you, you should be able to set up some money management parameters that will make you money for that particular market.
Quote from DonKee:
I pretty much only trade the ES.
What ever market you want to look at, make sure the 3-10-16 is accuratley flowing along with the description I have posted before:
Visually, here is what I am looking at and what the strategy decscribes with the indicators.
1) First Cross: This is the 16 line alerting me to the trend changing direction.
2) The 3-10 histogram moving to the opposite side of the zero line from the 16 line. This is the 3-10 histogram telling me we are having our first pull-back after the trend change.
3) The 3-10 histogram turning back towards the zero line. This is the 3-10 histogram telling me the pull-back "might" be exhausted and the trend is ready to continue.
Remember, the First Cross is about taking a position after the first pullback in a new swing direction. The ES can have 2-6 trend changes throughout the day that are big enough to capture 2-4 points. Some of the markets you mentioned, EC, ZN, SN might have one swing change during the day. That means if you miss that trade, you might be done for the day with that market. Of course, the good side is, if you catch that trend change, you're on board for a great ride.
One of your goals in trading should be to find a way to enter a trade during the first pull back in a new trend. If you can match up an indicator that describes that action for you, you should be able to set up some money management parameters that will make you money for that particular market.
Thank you very much for your help.
Thank all of you that were thoughtful enough to say "thanks".
I think (hope) that most traders understand that every methodology will not be suited to everyone's emotional make-up and lifestyle. Part of being successful is finding a trading strategy that is in sync with YOU.
I hope it will encourage a few others to take a small amount of their time to describe something that they're doing that is working for them!
I think (hope) that most traders understand that every methodology will not be suited to everyone's emotional make-up and lifestyle. Part of being successful is finding a trading strategy that is in sync with YOU.
I hope it will encourage a few others to take a small amount of their time to describe something that they're doing that is working for them!
Quote from DonKee:
I pretty much only trade the ES.
What ever market you want to look at, make sure the 3-10-16 is accuratley flowing along with the description I have posted before:
Visually, here is what I am looking at and what the strategy decscribes with the indicators.
1) First Cross: This is the 16 line alerting me to the trend changing direction.
2) The 3-10 histogram moving to the opposite side of the zero line from the 16 line. This is the 3-10 histogram telling me we are having our first pull-back after the trend change.
3) The 3-10 histogram turning back towards the zero line. This is the 3-10 histogram telling me the pull-back "might" be exhausted and the trend is ready to continue.
Remember, the First Cross is about taking a position after the first pullback in a new swing direction. The ES can have 2-6 trend changes throughout the day that are big enough to capture 2-4 points. Some of the markets you mentioned, EC, ZN, SN might have one swing change during the day. That means if you miss that trade, you might be done for the day with that market. Of course, the good side is, if you catch that trend change, you're on board for a great ride.
One of your goals in trading should be to find a way to enter a trade during the first pull back in a new trend. If you can match up an indicator that describes that action for you, you should be able to set up some money management parameters that will make you money for that particular market.
I really like this setup - so many people talk about buying the dip. It can be hard to find such opportunities by just looking at a bunch of charts - at least it's harder for me. I much prefer having some kind of indicator (programmable) that can give an indication of a high probability setup, something that can be built into a screening application. I've been looking for something like this for a long time, looking forward to back testing this puppy. LBR claims something like 66% win rate with this. Of course, a lot depends on money management.
thanks DK
Quote from Pascal:
I assume this strategy only works in a trending market after looking at it. So, you need to add that on inside days, you shouldn't trade.
Actually I just trade it every day, but maybe you have a good point.
Can you explain how you know a day will be an "inside" day before the open?
Quote from Pascal:
I assume this strategy only works in a trending market after looking at it. So, you need to add that on inside days, you shouldn't trade.
You can prove or disaprove your assumption ( before altering rules or adding new rules ) by sim trading it for couple of weeks.
Just ""looking at it "" it's not enough .
Simply just changing your timeframes will change amount of trades significantly so you can have intraday trends ( during the inside day ) big enough to make a few points.
Quote from Hombre:
You can prove or disaprove your assumption ( before altering rules or adding new rules ) by sim trading it for couple of weeks.
Just ""looking at it "" it's not enough .
Simply just changing your timeframes will change amount of trades significantly so you can have intraday trends ( during the inside day ) big enough to make a few points.
All excellent points.
(btw, this might wind up being a narrow range day, but we just had a nice sell signal right after the market retraced 50%: my fills were at 9:40:36 at 908.25. only had to take 1 point of heat.)
We all know the market cycles itself from "relatively" narrow range days into "relatively" wide range days and back to "relatively" narrow range days. This is the thinking behind "narrowest range day in the past X days".
It can be of some help when you're looking for a range expansion day.
As I've mentioned before, trading is about being in sync with the market. If you see and feel chop, bring in your targets and trade fewer cars. If you feel a trend day (yesterday), widen your targets and trade more cars.