Followed the mechanical scalping system for 30 trades throughout the day. No actual trades placed. The system seems to avoid losing money and can make enough to cover commissions, but that is about it. I will make one more tweak to it for Monday. If it doesn't perform better on Monday then it will be time to move on, though whatever I move on to might contain remnants of this system.
Journal of ashes and Eminis
- Thread starter phoenix_rising
- Start date
Instrument to be traded
E-mini S&P 500 (ES)
Trading Style
Discretionary, intraday, scalping.
Trading Rules
1. Intraday only â No overnights ever.
2. No positions to be opened before 9:30am or after 4:00pm.
3. No positions to be opened 10 minutes before any economic announcement.
4. Any open position must be closed 5 minutes prior to any economic announcement.
5. Trade size of 1 contract until advancement conditions are met.
6. Risk/Reward shall never be worse than 1:1.
7. Hard stops to be entered immediately up opening fill.
8. Hard target orders are to be entered immediately upon opening fill.
9. Positions may not be reversed when stopped.
Method of learning
The first day trading will consist of a maximum of 3 trades using 3 tick target and stop orders entered immediately upon fill. At the end of the day (or the 3 trades), analysis of the trades shall be done to determine how the size of the stop and target affected the trades and whether the target could have easily been larger, etc. The main goal is to initially try and improve entry skills. With the 3 tick stop/target, I should randomly end up with a 50% win/loss ratio. The goal is to be able to improve entries to the point of much better than random entry.
The limit on the number of trades per day will be increased by one on the day after three consecutive win/loss ratios of 65% or better, to a maximum of 10 trades. The number will decrease by one after three consecutive days less than 45%, to a minimum of three trades per day.
Modification of the stop and limit sizes is discretionary and to be based on analysis of my past trades along with the general feeling of the trading day.
The number of contracts can be increased to two after the number of trades has reached 5 per day and the previous two week win/loss average is 70% or higher. Further increases are to be considered at some time in the future.
E-mini S&P 500 (ES)
Trading Style
Discretionary, intraday, scalping.
Trading Rules
1. Intraday only â No overnights ever.
2. No positions to be opened before 9:30am or after 4:00pm.
3. No positions to be opened 10 minutes before any economic announcement.
4. Any open position must be closed 5 minutes prior to any economic announcement.
5. Trade size of 1 contract until advancement conditions are met.
6. Risk/Reward shall never be worse than 1:1.
7. Hard stops to be entered immediately up opening fill.
8. Hard target orders are to be entered immediately upon opening fill.
9. Positions may not be reversed when stopped.
Method of learning
The first day trading will consist of a maximum of 3 trades using 3 tick target and stop orders entered immediately upon fill. At the end of the day (or the 3 trades), analysis of the trades shall be done to determine how the size of the stop and target affected the trades and whether the target could have easily been larger, etc. The main goal is to initially try and improve entry skills. With the 3 tick stop/target, I should randomly end up with a 50% win/loss ratio. The goal is to be able to improve entries to the point of much better than random entry.
The limit on the number of trades per day will be increased by one on the day after three consecutive win/loss ratios of 65% or better, to a maximum of 10 trades. The number will decrease by one after three consecutive days less than 45%, to a minimum of three trades per day.
Modification of the stop and limit sizes is discretionary and to be based on analysis of my past trades along with the general feeling of the trading day.
The number of contracts can be increased to two after the number of trades has reached 5 per day and the previous two week win/loss average is 70% or higher. Further increases are to be considered at some time in the future.
I like the plan 
Slow and steady, sensible approach with good controls. Post your results and then
0. Observe
1. Tweak selectively
2. Go to 0.
Good luck!
Slow and steady, sensible approach with good controls. Post your results and then
0. Observe
1. Tweak selectively
2. Go to 0.
Good luck!
Thanks Sub. I'm sure you recognize the start of the plan, at least it should be vaguely familiar to you. 
OK, I admit it. I blatantly copied part of your posted trading plan. Uh oh, I think I hear the phone police... Gotta run...
I will begin this plan tomorrow and post my results.
OK, I admit it. I blatantly copied part of your posted trading plan. Uh oh, I think I hear the phone police... Gotta run...I will begin this plan tomorrow and post my results.
I agree and I don't think I have understimated it. Although this is a relatively new journal, I have traded (rather unsucessfully) for awhile now. The plan was written in a way that I believe makes sense given what I have learned about my strengths and weaknesses. Time will tell. Let the games begin! Again!
No more live trading today as per my plan. I will watch the markets and probably paper trade for at least part of the rest of the day.
3 RT / 1 Contract / 0.75 Points
2 winners / 1 loser = 66%
Hard stops/targets @ 3 ticks +/- entry price
Trades
1. Sell 09:43:54 @ 898.00 for +0.75
2. Buy 09:47:35 @ 898.25 for +0.75
3. Sell 10.03:47 @ 900.50 for -0.75
I had (in what would have been trade number 1) attempted to enter one trade by joining the offer instead of hitting the bid. My offer wasn't taken and everything continued to move in what would have been a profitable direction. I need to consider whether entries must always be at market in order to ensure fills, though I often see so much action going on it seems like joining can be a good way to get an extra tick. Something to think about. Market order entries would most likely scale better as the number of contracts per order increases. For now, I will leave bid vs. ask entries as discretionary.
The third trade was one that really ticked me off. Fear of missing out on the run caused me to enter before the minor pullback. I of course entered at the bottom, a four tick pullback ensued, my stop was hit and then the market continued on for what would have at the very least hit my original target. This was an emotion trade as my brain kept telling me to wait for at least a few tick retraction before entering. This lapse of control is what turned this from a +2.25 point, 100% win/loss day into a +0.75 point 66% day. I may need to add something to my trading plan along the lines of "never open a position within two ticks of the immediate high/low in the direction of the trend". Not sure about the wording, but I know what I mean.
In general I am pleased, as my calls were generally on the money even if order entry mistakes or emotion (maybe that is also an order entry mistake?) as the reasons I didn't have a perfect day trading my plan.
I will analyze my stops/targets a bit later. I'm not sure if I'll post that, unless someone really wants to know.
3 RT / 1 Contract / 0.75 Points
2 winners / 1 loser = 66%
Hard stops/targets @ 3 ticks +/- entry price
Trades
1. Sell 09:43:54 @ 898.00 for +0.75
2. Buy 09:47:35 @ 898.25 for +0.75
3. Sell 10.03:47 @ 900.50 for -0.75
I had (in what would have been trade number 1) attempted to enter one trade by joining the offer instead of hitting the bid. My offer wasn't taken and everything continued to move in what would have been a profitable direction. I need to consider whether entries must always be at market in order to ensure fills, though I often see so much action going on it seems like joining can be a good way to get an extra tick. Something to think about. Market order entries would most likely scale better as the number of contracts per order increases. For now, I will leave bid vs. ask entries as discretionary.
The third trade was one that really ticked me off. Fear of missing out on the run caused me to enter before the minor pullback. I of course entered at the bottom, a four tick pullback ensued, my stop was hit and then the market continued on for what would have at the very least hit my original target. This was an emotion trade as my brain kept telling me to wait for at least a few tick retraction before entering. This lapse of control is what turned this from a +2.25 point, 100% win/loss day into a +0.75 point 66% day. I may need to add something to my trading plan along the lines of "never open a position within two ticks of the immediate high/low in the direction of the trend". Not sure about the wording, but I know what I mean.
In general I am pleased, as my calls were generally on the money even if order entry mistakes or emotion (maybe that is also an order entry mistake?) as the reasons I didn't have a perfect day trading my plan.
I will analyze my stops/targets a bit later. I'm not sure if I'll post that, unless someone really wants to know.
A chart of my three trades is attached.
The targets for both trades 1 and 2 were overrun by 2 ticks before moving down to my stop, meaning I would almost certainly have been able to get one of those extra ticks for myself.
As for trade 3, argghhh. Direction was fine, just blew the entry. It also would have easily garnered and extra tick beyond my 3 tick target if I had entered on the minor pullback (the one that stopped me out). That was the entry my brain was waiting for, but fear of losing the trade overruled me.
Another emotional issue that may have been a factor in the early entry of trade 3 was that the very first thought that popped into my head when the cash register of my second trade rung was that since I only had one trade left, even if it was a loser, I would still have a profit at the end of the day. I need to treat every trade as if it was the difference between being positive and negative for the day.
The targets for both trades 1 and 2 were overrun by 2 ticks before moving down to my stop, meaning I would almost certainly have been able to get one of those extra ticks for myself.
As for trade 3, argghhh. Direction was fine, just blew the entry. It also would have easily garnered and extra tick beyond my 3 tick target if I had entered on the minor pullback (the one that stopped me out). That was the entry my brain was waiting for, but fear of losing the trade overruled me.
Another emotional issue that may have been a factor in the early entry of trade 3 was that the very first thought that popped into my head when the cash register of my second trade rung was that since I only had one trade left, even if it was a loser, I would still have a profit at the end of the day. I need to treat every trade as if it was the difference between being positive and negative for the day.
You could be right. I picked them as a starting point, since I had to pick something. Part of this process is for me to figure out what stops and targets work for me. I do plan to adjust them as time goes on.