Inventory Grab Alert 4/30/09!

Status
Not open for further replies.
Quote from AMT4SWA:

It is an amount of contracts that I have found through experience which will create price reactivity (cause a zone to at least be defended initially when price returns). There are thresholds of "held" inventory that make a difference most times when price returns to a delta zone.
More...

When you say "there are thresholds of "held" inventory that make a difference most times when price returns to a delta zone.", do you have a percentage figure on what you mean by most?

I notice at times you take "aggressive" entries as price approaches a zone and this often requires/allows you to control your avg cost basis by continuing to increase your total position size as price moves against your initial entry. You've mentioned in the past that you are comfortable with this since you "know" you have additional layers of inventory sitting behind you.

For traders with smaller accounts, it would make sense to only play the "stronger" inventory levels so my question is, based on the way you identify inventory zones, if you were to ONLY take trades in your strong zones, what kind of accuracy would you get?

In other words, if your trading plan allows zero average-ins and for you to set your 5-point max stop on that 1 entry, I would expect your accuracy to be VERY high since it is this zone you are "banking on" to hold when you take (semi)aggressive entries?
 
Quote from SoCalTrader619:

And there you go folks!!!!

Buyers could not get the job done. Time to give in, dump their shares, and regroup at lower levels.

SEE YA AT 883!!!!
More...

well done socalT

sosueme
 
Quote from sosueme:

Interesting, your bias is short and yet the price is biased to the long side.
I do agree I want to see price move away from the channel formed around the rth open today before the next move is evident.

Do you ever buy into a rising market or do you only short it.

sosueme
More...

Are you a believer yet?

Can you fathom shorting into a rising market?
 
Quote from Jericho:

Thanks whoever filled my order, this is better than Craigslist!
More...
Nice hit sir! :cool:

Filled at my 902.25 targets level (covered last 911.00 entries and 1/3'rd of 912.25 & 913.25 entries). I also just covered the last DAX 5021.00 short positions I was holding here at 4966.00 :)

My next targets are now set at 892.25 and the 882.25 level.
 
Quote from chuckt101:

In other words, if your trading plan allows zero average-ins and for you to set your 5-point max stop on that 1 entry, I would expect your accuracy to be VERY high since it is this zone you are "banking on" to hold when you take (semi)aggressive entries?
More...
I would say that entering your position right at or within the delta zone (having a 5 pt stop) will many times give you at least one good bounce off that zone (more than 80% of the time). The delta zone will also give you time to decide if you should hold your trade or not, with the rotations of price you may get as price trades to and then reacts with that resting inventory (so you have some options).

There are no 100% probabilities in trading set-ups, so you have to work with what the market gives you on a case by case basis. :)

Yesterday and today for instance, we had a Delta Zone called out ahead of time from 911 to 914. If you entered a static short position at 911.00 up to 913.75, you now have price at 897's while you had a 5 point risk on at your trade entry (your stop was never touched).
 
That is a wrap for me today with next resting targets set in place at 892.25 & 882.25 :)

Have a great trade day all and I will be back tomorrow.....time to go do some flying today. :)
 
Status
Not open for further replies.
Back
Top