Iterative Refinement

Another fine volatile afternoon!

Temp_01-09_160738.gif
 
Today confirmed once again, at least to me:

-channels work (including RTL bo's)
-PV works
-YM leads ES
-STOCHs confirm
-SCT is rewarding
-not watching your P&L gives you more time to watch the market

Yesterday: +18 points / 13 trades (6 winners) / 100 minutes / HL=37.5
Today: +14 points / 15 trades (6 winners) / 85 minutes / HL=27
 
26 trades, +23.25 Points, ~74% ATR

I felt like I overtraded today...

On a bright note, I have been focusing on incorporating the Stocs into my MADA as an aid and I really like them! I have also begun using Jacks Log template which I also like very much!

For those who have not seen Callmates thread for the stochastics, that and Jack's log template can be found here:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=113044

My summary for the day is I still need very much to focus on HOLD. For some reason I have this EQ problem that I need to evercome (feeling squirrely with 'T' like I am spending too much time in Decide and Act and not getting back to MA - or kinda chasing the trend). Also, found myself on the wrong side a few times today and did not wash quickly enough. Some of it could be the additional tools and log which I have just added to my MADA (Feels a bit overwhelming at first - but so did doing the channels and gaussians at first) :)

Spyder et all, do you have any suggestions for this?

I have posted my trades below and will post my ES5M chart in the proceeding post. I entered the trading log by hand and hope to translate this into electronic format.
 

Attachments

Quote from cnms2:

Today confirmed once again, at least to me:

-channels work (including RTL bo's)
-PV works
-YM leads ES
-STOCHs confirm
-SCT is rewarding
-not watching your P&L gives you more time to watch the market

Yesterday: +18 points / 13 trades (6 winners) / 100 minutes / HL=37.5
Today: +14 points / 15 trades (6 winners) / 85 minutes / HL=27
More...

Very nice fruit for your labor!
 
That's really disgusting (not!!) cnms2. High 5 (or high 3 if you have an ulnar nerve palsy from leaning on your left elbow, chin in hand, while you ruffle through the bills with your right hand).

lj
 
Quote from ehorn:

Spyder et all, do you have any suggestions for this?
More...

First of all, nice work on your trades. You should be very proud of your efforts (and results).

Since you asked .....

I recommend not trying to 'gather it all in' by adding additional tools which may or may not add value to your trading. While I don't want to discourage anyone from following a path which may lead to enlightenment, I'd be remiss if I did not point out one very simple fact. During Jack's 50 years of trading, not one indicator appeared on his charts until 1997 or 1998. Jack used Hand Drawn charts until then. I've seen those charts - boxes of them - and other than the sticky notes describing the profits made per trade, these hand drawn charts contained nothing more than Price, Volume, Channels and Gaussians. Beginning with the USENET posts in the late 1990's, Jack added MACD and Stochastic Settings (different than the default) in an effort to get people to 'see' the changes in Price and Volume needed to trade as Jack described. In other words, The MACD, The Stochastic Indicator, The DOM, and The Tic chart all represented tools used to instruct a learning trader on how to 'translate' the information shown in a Price Bar. To that end, they are less representaive of a 'Finer Tool Set' and more an illustration of what occurs each and every day within each and every five minute bar.

Now, for those who believe adding indicators can help, I don't want to discourage your efforts. However, everyone should enter this path with their eyes wide open. As a result, I recommend reviewing easyrider's posts on the subject of using Indicators and Trading Rockets. In such a fashion you'll understand how he attacked the problem and arrived at success.

Again, while I do not wish to discourage discussion, everyone must understand the significant differences between using The MACD and The Stochastic Indicator for Equities Trading compared to Futures Trading of the ES. With Equities, no additional data enters the equation. The markets are closed. It's after hours and the charts remain static. In Futures, the data keeps coming, and coming. In order to 'see' exactly how this may hurt (or help) one's trading try this particular drill. I've posted it before, and I'll repeat it below.

One can perform a very simple drill in order to 'see' whether the addition of the MACD and The Stochastic Indicator might prove useful to one's individual trading. Simply, enter a trade (using a simulator) when The Stochastic 5-2-3 cross the 50% line in one direction. Exit when the Stochastic 5-2-3 crosses back in the opposite direction. One could even use the 'trigger' from the YM to trade the ES. One needs to perform this drill live - and not using static hindsight charts.

Again, some people may find value in adding these Indicators to there charts. Many, will simply find them distracting. Should people wish to discuss their use here (in this thread), I have no objection. However, I encourage a review of the older threads (linked from page one of The Futures Journal) first - as this has all been discussed many, many, many times before.

Focus on the low hanging fruit. Once you've harvested the easy to reach stuff, then, you'll find its time to move on.

Good Trading to you all.

- Spydertrader
 
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