I want to stick with the ES because of the scalability, among other things. I feel if I can profit with 1 contract, I can use a similar strategy to profit with 100 contracts.
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If markets trend only 30% of the time intraday...
- Thread starter Starting Over
- Start date
If you believe that it only trends 30% then just use wide stops and small targets. Risk will be more than reward but you will be right 70% of the time.Quote from Starting Over:
Recently it has been trendy. I feel when this volatility ends, it's going to be back to that general principle that it will trend less intraday and want to be able to capitalize on that basic principle that it only trends 30%. Basically, I want to build a strategy based on price action.
This helped me. I started by coming up with some statistics on how much a particular instrument moves per 1 day, 2 days, 5, days, etc.
During trends these statistics can be used to...
1.) exit and take profits
2.) re-enter during the retracements.
Like wise these statistics can be used during range markets to avoid buying too close to the top and selling to close to the bottom on any given day.
Link these statistics to volatility and you will have better edge especially if you are going to be limited to trading just the morning after the open.
During trends these statistics can be used to...
1.) exit and take profits
2.) re-enter during the retracements.
Like wise these statistics can be used during range markets to avoid buying too close to the top and selling to close to the bottom on any given day.
Link these statistics to volatility and you will have better edge especially if you are going to be limited to trading just the morning after the open.
Quote from gtor514:
This helped me. I started by coming up with some statistics on how much a particular instrument moves per 1 day, 2 days, 5, days, etc.
During trends these statistics can be used to...
1.) exit and take profits
2.) re-enter during the retracements.
Like wise these statistics can be used during range markets to avoid buying too close to the top and selling to close to the bottom on any given day.
Link these statistics to volatility and you will have better edge especially if you are going to be limited to trading just the morning after the open.
Thanks for the response. I'm assuming you're calculating the average daily range or ATR? I'm actually considering employing such a tactic in my trading arsenal.