Giving back some of morning profits overtrading afternoon

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SunTrader said:
I watch up/down volume percentages and they all were pedal to the metal from RTH open on, but funny thing happened around 1230pm RTY, eMini and other indices futures stopped going down even though vol percentages (and TRIN) were still extremely bearish. Told me to ignore them, then late in the day they finally caught up. VIX also topped around 1230pm. Internals are extremely important on reversal days.
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Man, it would be a gift to see your charts that Show what you are describing.
 
On an average day, time and volatility compression become problems
for day traders as the day progresses.

I could probably safely assume 80% of day trading income
comes from the first 2 hours.
 
Made $1,254 today and got out nicely before giving all of my profits back. Once, I saw the signs of the Stockmarket going up, I sold some put options. Still have other positions going my way, both long and short. Have a couple under water. I use only the StockCharts to manage my positions. Tomorrow, is another day. Maybe, I will buy some options, sell some options. Depends on the price action and stockchart of the individual stocks. I may also, re-enter those same trades I sold but, at more favorable prices.
 
Was a good day.
upload_2022-1-24_20-41-19.png
 
formikatrading said:
This has nothing to do with a.m. / p.m. This is not understanding the market environment.
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Yep. I'm lucky enough that my strat works in any environment, albeit with different sizing and entries depending on vol. I only had to take trades as per my strategy. Caught the bottom on Russell. Love that little guy.
 
My guess is SunTrader's not going to do that for 2 reasons -- 1) It's part of his secret sauce; and 2) it's not just some charts -- it's also the skill and intuition to put the pieces together.

I don't know SunTrader but just from his post I can tell he's looking at the market at a level that very few people on this site have or even believe is possible.

easymon1 said:
Man, it would be a gift to see your charts that Show what you are describing.
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formikatrading said:
secret sauce, intuition.
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No secret sauce sought. lol
Just the ocular example of that described here, if one exists:

"RTY (most interest rate sensitive)
has been the leader on the downside, and today on the upside.
I watch up/down volume percentages and they all were pedal to the metal from RTH open on,
but funny thing happened around 1230pm RTY,

How often does this event occur? On what timeframe chart(s) ? Over what period of time?
eMini and other indices futures stopped going down even though vol percentages (and TRIN) were still extremely bearish. Told me to ignore them, then late in the day they finally caught up.

VIX also topped around 1230pm.
Internals are extremely important on reversal days."

Not a whole lot of moving parts here.
A marked up chart would lend credence to this otherwise artisanal (intuition) technique.

Suntrader might just lay a marked up chart on us. No secret sauce required. Nobody, Suntrader included is expected to show their hole card.
 
Artisanal trading is notoriously subjective and difficult to reduce to Morse's "Mundane Three", thereby making it difficult to generate reliable stats on. This aspect of intuitive "market feel" trading is a source of high uncertainty, variability, and frustration for traders.

For those not averse to a Simple Testable Method that's easy to generate stats on, then this might be a step forward in gaining a profitable perspective on the market.

This method lends itself especially well to newby traders who think their discipline is lacking when the actual issue may likely be that there is no set concrete trading framework to follow with discipline in the first place. A trader can learn a Lot by trading this method and working outward from there. Or just get extremely good at this method and ride it across the board while shifting focus to its application to the different instruments, options, position sizing, etc.


Here's a marked up chart for the RTY 10 minute chart for the the day of interest.
Simple Engulfing@Sup/Res. No handwaving required. No secret sauce required.

rwdfg.png


"Trading an Engulfing Candle at Support & Resistance provides greater conviction."
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-10#post-5014575

What are the mundane three? per - Robert Morse:
1) What triggers a buy or a sell to open?
2) What triggers an exit?
3) How do you size your trades?

This method can be nailed down so tightly that a trader can play this game with it: Suppose your paycheck was based on percent entry triggers correctly taken?
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-12#post-5072564

What's Different from The Mundane Three about your ACTUAL Trading?
https://elitetrader.com/et/threads/...-of-the-pants-trading-it.360073/#post-5418496
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