Made a lot of progress, but feel like there's so much more to go...

[sillyw10]

you keep mentioning the micro ES, whats so special about it? there is already an ES with good liquidity and good margin available from some brokers, if you know what you are doing then it should not matter, should it?

you are joking..right..let us look at reality!!

I haven't traded for some time..personal reasons..I have decided to supplement retirement income by trying to make a few $ trading..the ES is the market I have chosen for now..might change in the future..but..that means I have to complete against the most traded index futures by the real professionals..meaning those who throw OPM around like it is going out of fashion!!

it doesn't matter what I think I know..the facts are those with the big money don't know..so price can..does..and will continue to..be all over the place..to make some money in such a situation requires..experience..knowledge.. patience..and..last but not least.. discipline!!

don't mind the fools who post here about big money..most of them don't even trade..they are daydreamers..not daytraders..just read what they write!!

any fool can make a few grand by clicking a mouse a few times..but to consistently take money off the table with the big players..well.. let's just say I am under no illusions..been there and done that

so..do you now know why I want to trade the MES instead of the ES?

 

[ironchef]

I haven't traded for some time..personal reasons..I have decided to supplement retirement income by trying to make a few $ trading..

So you retired and trading is like a hobby? Me? A silly willy, is an amateur but full time retail trader since 2010. I don't stand a chance.

 

[sillyw10]

So you retired and trading is like a hobby? Me? A silly willy, is an amateur but full time retail trader since 2010. I don't stand a chance.

give it another 10 years or so..then you will really see how silly you really were

trade when it suits.. couldn't give a damn if I miss 100 good trades..most important thing is not to lose too much back when you make it.. otherwise..why even bother!!

 

[trader99]

Maybe his strategy is independent of underlying, or instruments?

Yep. This morning I put on a GC futures trade based on a pattern I've seen elsewhere in stocks and other futures contract. The most cathartic thing is that I held onto the winner for an HOUR!

I know for you regular swing traders an hour is nothing.I'm mostly a daytrader so I try to capture intraday trends. So, that's a very good hold! I'm not a hyperactive scalper but normally I'm in and out in minutes or more depending on the trend.

But this morning I knew it. It conformed exactly to the pattern I've seen in the past. So I just sat through it. It had some pullback of a full 1 GC points but I held through that it went up 2-3 points higher the original local maxima.

Felt so good! Not so much the money. I'm only trading one lots. But because in the past I lost money trading against this pattern. But now I can capitalize on it. I also traded some MNQs. Positive again not much. But I went long when I should and went short when I should.

I think I will trade small for another week or two then start scaling.

What's a good scaling plan?

I think process is more important than money. Have the process down then money will flow in easily. But I don't want to be screwing around with 1 lots or micros forever.

Things are coming together and I can "think" correctly about market and price actions. Now time to capitalize on it.

 

[themickey]

Yep. This morning I put on a GC futures trade based on a pattern I've seen elsewhere in stocks and other futures contract. The most cathartic thing is that I held onto the winner for an HOUR!

I know for you regular swing traders an hour is nothing.I'm mostly a daytrader so I try to capture intraday trends. So, that's a very good hold! I'm not a hyperactive scalper but normally I'm in and out in minutes or more depending on the trend.

But this morning I knew it. It conformed exactly to the pattern I've seen in the past. So I just sat through it. It had some pullback of a full 1 GC points but I held through that it went up 2-3 points higher the original local maxima.

Felt so good! Not so much the money. I'm only trading one lots. But because in the past I lost money trading against this pattern. But now I can capitalize on it. I also traded some MNQs. Positive again not much. But I went long when I should and went short when I should.

I think I will trade small for another week or two then start scaling.

What's a good scaling plan?

I think process is more important than money. Have the process down then money will flow in easily. But I don't want to be screwing around with 1 lots or micros forever.

Things are coming together and I can "think" correctly about market and price actions. Now time to capitalize on it.

Past results is no guarantee of future results.

 

[trader99]

Past results is no guarantee of future results.

While that's a true statement in general, I think there are edges that are persistent. And the fun of trading is one does research to find more edges. It's constant learning and discovering adventure.

The #1 rule is good risk management. Cut your losses! Cut your losses! Cut your losses! Then ride your winners! Ride your winners. Bet an appropriate size so you can survive in the long run.

On rare opportunities when everything lines up then go for the jugular and make 10x!

Hopefully by end of year, I can say I have fruitfully apply all these principles resulting in good results.

 

[sillyw10]

Yep. This morning I put on a GC futures trade based on a pattern I've seen elsewhere in stocks and other futures contract. The most cathartic thing is that I held onto the winner for an HOUR!

I know for you regular swing traders an hour is nothing.I'm mostly a daytrader so I try to capture intraday trends. So, that's a very good hold! I'm not a hyperactive scalper but normally I'm in and out in minutes or more depending on the trend.

But this morning I knew it. It conformed exactly to the pattern I've seen in the past. So I just sat through it. It had some pullback of a full 1 GC points but I held through that it went up 2-3 points higher the original local maxima.

Felt so good! Not so much the money. I'm only trading one lots. But because in the past I lost money trading against this pattern. But now I can capitalize on it. I also traded some MNQs. Positive again not much. But I went long when I should and went short when I should.

I think I will trade small for another week or two then start scaling.

What's a good scaling plan?

I think process is more important than money. Have the process down then money will flow in easily. But I don't want to be screwing around with 1 lots or micros forever.

Things are coming together and I can "think" correctly about market and price actions. Now time to capitalize on it.

good scaling plan..well..I would forget about that until you master the making money bit with 1 contract..use the MES but use ES for DOM

have spent a lot of hours testing different setups with ES charts and DOM..what stands out is that most of the volume is HFT trading..apart from some of the crazy moves of late..the net difference in bid/ask volume on most setups is very small compared to the total volume traded..it really is crazy stuff..has to be seen to be believed..example would be a +400 bid volume on a timeframe or range that traded 3000 to 4000 contracts..no wonder the CME launched the MES as the HFT trading is pushing small traders away from the ES..anyone without trading experience who tries to trade the ES will not last long..and the cannon fodder must keep coming at all costs

after many many hours of staring at DOM and various charting setups analyzing bid/ask volume..imo it is a waste of time unless you can "join the party"..which of course most can't

much better imo to step back and leave them at it..I have reverted to the good old fashioned chart setups to avoid the HFT traders..while at the same time accepting the subtle differences that are there..which has required me to add one additional chart to the setup..which is..a line tick chart

the DOM can still be used to watch the sizes on bid/ask and momentum..but it can change so fast that it might be better to forget about it all together..after all..do you really want to spend hours firing off scores of trades to try and get a 1.5 profit ratio..all you are doing is working for the broker and the CME

in summary..the MES is a very good contract to learn about index futures trading..but..unless you already have some sound trading experience..odds are it will just be the same thing for most..just losing the money a bit more slowly

the detailed bid/ ask volume analysis I carried out confirmed my initial thoughts..trading the ES effectively is not easy..but it can be done.. providing one does not get "sucked in" to all the hype and learn what "patience" and "reaction" really mean in the big bad world of trading!!

 

[tenny1886]

good scaling plan..well..I would forget about that until you master the making money bit with 1 contract..use the MES but use ES for DOM

have spent a lot of hours testing different setups with ES charts and DOM..what stands out is that most of the volume is HFT trading..apart from some of the crazy moves of late..the net difference in bid/ask volume on most setups is very small compared to the total volume traded..it really is crazy stuff..has to be seen to be believed..example would be a +400 bid volume on a timeframe or range that traded 3000 to 4000 contracts..no wonder the CME launched the MES as the HFT trading is pushing small traders away from the ES..anyone without trading experience who tries to trade the ES will not last long..and the cannon fodder must keep coming at all costs

after many many hours of staring at DOM and various charting setups analyzing bid/ask volume..imo it is a waste of time unless you can "join the party"..which of course most can't

much better imo to step back and leave them at it..I have reverted to the good old fashioned chart setups to avoid the HFT traders..while at the same time accepting the subtle differences that are there..which has required me to add one additional chart to the setup..which is..a line tick chart

the DOM can still be used to watch the sizes on bid/ask and momentum..but it can change so fast that it might be better to forget about it all together..after all..do you really want to spend hours firing off scores of trades to try and get a 1.5 profit ratio..all you are doing is working for the broker and the CME

in summary..the MES is a very good contract to learn about index futures trading..but..unless you already have some sound trading experience..odds are it will just be the same thing for most..just losing the money a bit more slowly

the detailed bid/ ask volume analysis I carried out confirmed my initial thoughts..trading the ES effectively is not easy..but it can be done.. providing one does not get "sucked in" to all the hype and learn what "patience" and "reaction" really mean in the big bad world of trading!!

I would say if you are good with price action along with convergence and divergence in price in relation to other inverse co-related instruments. you can irk out a comfortable living scalping ES. I trade around 15-30 contracts average and so far have an average of 70+% win/loss ratio. Keeping losses small with precision entry along with minimal drawdown is the key. I trade using on the fly price action resistance and support.
i just tried a combine trial to see what the fuss about and for past 2 days, results are not bad, same as i get on my usual account. the first day was little difficult as i am new to the platform provided by tradovate so its not the best result so far as scalping you need quick fingers, me and my mouse are having some issues ha ha . Also the trial combine i over traded usually i dont trade more than 15-30 trades in total.

 

[trader99]

I would say if you are good with price action along with convergence and divergence in price in relation to other inverse co-related instruments. you can irk out a comfortable living scalping ES. I trade around 15-30 contracts average and so far have an average of 70+% win/loss ratio. Keeping losses small with precision entry along with minimal drawdown is the key. I trade using on the fly price action resistance and support.
i just tried a combine trial to see what the fuss about and for past 2 days, results are not bad, same as i get on my usual account. the first day was little difficult as i am new to the platform provided by tradovate so its not the best result so far as scalping you need quick fingers, me and my mouse are having some issues ha ha . Also the trial combine i over traded usually i dont trade more than 15-30 trades in total.

15-30 contracts?! Wow. I'm making hundreds to thousands just trading 1-3 lots across various futures instruments. I would make a lot more if i scale up to even 5 lots. But I want to work out all the kinks in my trading before I scale up.

I don't mind scaling up but with 15-30 lots how do you manage risk? you must keep things supertight. else a random adverse move of even 10pts would do some damage.

 

[tenny1886]

15-30 contracts?! Wow. I'm making hundreds to thousands just trading 1-3 lots across various futures instruments. I would make a lot more if i scale up to even 5 lots. But I want to work out all the kinks in my trading before I scale up.

I don't mind scaling up but with 15-30 lots how do you manage risk? you must keep things supertight. else a random adverse move of even 10pts would do some damage.

i dont trade more than 1-5 contracts per lot. It is the number of trades i take on an average 15-30 trades a day. i don't trade more than 3 contracts at get go, usually start with 1 and increase up to 5 depending on how it plays out.
risk is usually less than 2 points per trade.