Keeping It Simple

ok.. I'm using atr(10) and have 34.74 for nq. anyway I don't think your method is that complicated, believe me I've tried complicated:) What you describe is very similar to the way I've been trade for about the past 3 months. I used to scalp and it got to be extremely taxing on my nerves. Trend trading seems to be working for me and I'm much easier to live with now.

I've learned from reading your comments and that's lead to some minor changes in my trading plan. I didn't play nq this am but did catch ES about the same as you except I did take a long at 89.5. Covered 1/3 at 94.5 and then took 1/3 at 900 and stopped and reversed short at 93.5. In addition to trendlines I used retracements quite a bit. 93.75 was 38.2 pullback from the mornings move, initially I was looking for a pullback there and a continuation move up but when it gave way it triggered me to exit long and short. I just covered the remaining of that short at 81.5. Not a bad ES day.
 
Quote from dbphoenix:

After two days of no trades, it would seem as though there's no money to be made here. However, today presents a good example of how important it is to avoid becoming bored and miss excellent opportunities.

If there are any questions, feel free to ask.

--Db
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What exactly made you stay out of the market for the last two days?

Thanks in advance,

Banker
 
Quote from jstormbo:

ok.. I'm using atr(10) and have 34.74 for nq. anyway I don't think your method is that complicated, believe me I've tried complicated:) What you describe is very similar to the way I've been trade for about the past 3 months. I used to scalp and it got to be extremely taxing on my nerves. Trend trading seems to be working for me and I'm much easier to live with now.
More...

I tried scalping for quite a while myself, but, like you, I found it to be awfully wearing, especially considering how little net profit there was within the context of how much time it took. Plus the number of trades was ridiculous. So far I've made three trades this week and have done far better than I would have if I were scalping. Plus I'm able to leave the computer, do chores, run errands.

And I don't think it's all that complicated either. A few people have actually made cracks about it, but AFAIK they're not making any money doing whatever it is they're doing, if anything, so it doesn't keep me up at nite.

In any event, I'm interested in your criteria for your initial entry and for the reversal entry. I'm sure others are as well.

As for retracements, that's what I used to do before I gave scalping a shot, but as the value of the NQ fell and the range contracted, I experienced more and more failures, largely because the thrust just wasn't there. Eventually I may find that I can go back to it, but I'm happy with this for now.

--Db
 
Quote from GD2KNO:

ALL THIS SEEMS RATHER COMPLEX - SEND ME PM AND I'LL TELL YOU ABOUT "SIMPLE"

HAPPY HOLIDAYS
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I did sent PM to the author of this post and instead of telling me about " simple " she (he ) throwed a SPAM at me.
Happy holidays my butt..
 
Quote from Bankedout:



What exactly made you stay out of the market for the last two days?
More...

I don't know that I can tell you "exactly". I suppose that technically one could have entered at 1021 (time), but it seemed as though buyers were trying to push a car uphill. As for the reversal, I've found that they are more likely to be successful if price has reached its target first, like today. But even if taken, the trade would have been good for no more than breakeven using this system. But then this isn't a scalping system.

As for yesterday, it seemed as though no one was trading. In fact, there were times when I thought my datafeed had been interrupted. Again, technically, one could have entered at 1050, but that wouldn't have accomplished anything either.

I know a lot of people don't want to have to "read" the market, which is why mechanical systems have so much allure. But if I see no impulse or thrust or velocity or whatever you want to call it, I'd rather not throw my money at the market and hope for the best.

I do trade what the system calls for on paper if I choose not to take the trade for some reason just so I know whether or not the system continues to work (a decline in the success rate will warn me to start tweaking, or looking for something else). But with real money, I like to see the kind of energy we saw this morning. That's what gets you to breakeven, at the very least, and what powers reversals.

--Db
 
Quote from Walther:



I did sent PM to the author of this post and instead of telling me about " simple " she (he ) throwed a SPAM at me.
Happy holidays my butt..
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That is disappointing. But it's probably one of those enter when the blue line crosses the red line things, and I've been there done that and don't want to go there and do that any more.

--Db
 
Quote from jstormbo:

ok.. I'm using atr(10) and have 34.74 for nq. anyway I don't think your method is that complicated, believe me I've tried complicated:) What you describe is very similar to the way I've been trade for about the past 3 months. I used to scalp and it got to be extremely taxing on my nerves. Trend trading seems to be working for me and I'm much easier to live with now.

I've learned from reading your comments and that's lead to some minor changes in my trading plan. I didn't play nq this am but did catch ES about the same as you except I did take a long at 89.5. Covered 1/3 at 94.5 and then took 1/3 at 900 and stopped and reversed short at 93.5. In addition to trendlines I used retracements quite a bit. 93.75 was 38.2 pullback from the mornings move, initially I was looking for a pullback there and a continuation move up but when it gave way it triggered me to exit long and short. I just covered the remaining of that short at 81.5. Not a bad ES day.
More...

Nice job. I'm also curious on how you go about your business.

Banker
 

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Quote from dbphoenix:



I don't know that I can tell you "exactly". I suppose that technically one could have entered at 1021 (time), but it seemed as though buyers were trying to push a car uphill. As for the reversal, I've found that they are more likely to be successful if price has reached its target first, like today. But even if taken, the trade would have been good for no more than breakeven using this system. But then this isn't a scalping system.

As for yesterday, it seemed as though no one was trading. In fact, there were times when I thought my datafeed had been interrupted. Again, technically, one could have entered at 1050, but that wouldn't have accomplished anything either.

I know a lot of people don't want to have to "read" the market, which is why mechanical systems have so much allure. But if I see no impulse or thrust or velocity or whatever you want to call it, I'd rather not throw my money at the market and hope for the best.

I do trade what the system calls for on paper if I choose not to take the trade for some reason just so I know whether or not the system continues to work (a decline in the success rate will warn me to start tweaking, or looking for something else). But with real money, I like to see the kind of energy we saw this morning. That's what gets you to breakeven, at the very least, and what powers reversals.

--Db
More...

Thanks, that's kind of what I figured you would say. Not that there is anything wrong with that. I love to read the market too. It's one of my favorite things to do. Probably why I love trading so much. Not necessarily day trading though. It can be fun, but I miss planning out longer term attacks on the market.

Banker
 
Quote from Bankedout:



Thanks, that's kind of what I figured you would say. Not that there is anything wrong with that. I love to read the market too. It's one of my favorite things to do. Probably why I love trading so much. Not necessarily day trading though. It can be fun, but I miss planning out longer term attacks on the market.
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Though this has nothing to do with "the system", as far as the longer term goes, I'm interested in seeing how the NQ behaves at the 11/11 low. There's the possibility of an H&S "top", for those who follow that sort of thing. Or we may just segue into another trading range.

And as for reading the market, I find it helpful to review Wyckoff every now and then just to keep myself grounded.

--Db
 
db

regarding my reasons for entering where I did today are as follows. The morning entry(long), for me playing gaps is many times a gut level decision that I have to make quickly, do I fade or stand aside and let the dust settle? This mornings entry was on the 9:39 bar, although the gap open wasn't anything that signficant here's what I put in my journal. 1)nq leading,quickly filled the gap and showing positive rising momentum 2) Market internals(trin falling from 2.15 etc) seemed to indicate there could be some buying momentum to substanciate and opening run up. That said after that little pause 9:33-9:38 broke up I took 1/2 normal position at 89.5.

I typically trade in 3 lot increments and I look to take the 1st one at 3-4 to catch the initial impulse at least cover a portion of the cost in the event we get a reversal so I took 1/3 at 94.5 which we hit quickly. Knew 900 would be tough so I took 1/3 there and then let the 3rd ride to stop. Which brings us to the stop and reversal. After getting 2nd lot at 900 and getting the double top just under that I slapped up a retracement from the mornings lows to the double top(898.5). The 38.2 bar seemed to offer some initial support so I was observing whether we would bounce there and continue another run at 900 or would it break down. Also I keep the floor trader pivots on my charts and while I don't trade off them much I noticed that it was right there at the 38.2 retracement from the highs(93.66) so I decided that if we lost 93.5 I'd stop out of the long and take a short position. I take my entries off the 1 min bars so looking at that chart probably makes it more obvious. From there I took 2/3 at 86, once each time we went there(11:15 and 12:45 Est) and then took 81.5 for the 3rd lot.
 
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