Will do that at the end of this month. Thanks.
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My Daytrading Method
- Thread starter eminitrader007
- Start date
Will do that at the end of this month. Thanks.
Quote from eminitrader007:
Thanks!!!
VR for tomorrow:
1297-1298.
The S&P has been relatively stronger than the DOW because of the Oil companies. Once we get the sell signal in S&P we will execute it in YM. For example if the ES opens below the VR and when it gets to 1297, we will sell the YM with a 40 pt. stop. This way the risk is the same 4 ES points but the reward could be higher because YM will likely underperform ES.
sold ES 1297, stop 1301, exit @ close
YM 11158(paper trade), stop 11198
YM 11158(paper trade), stop 11198
Quote from eminitrader007:
Stopped.
The market opened at your Value Point, meandered for an hour, and then blew off for the days high of probably 1312 or so.
The market never traded below the 40 SMA, so a Sell Signal was never triggered.
As it is currently constituted, your trading methodology continues to ignore the dominant trend of the market, thus while your value areas are significant for what they represent (the point at which the highest number of contracts traded in the previous trading session), you are not trading them correctly and probably have a win rate of something around 50/50 (wins/losses).
With a 4 pt stop and a 4 pt target that gives you a negative expectation after commissions.
I'd examine the method a little closer and attempt to get it at least in the 55/45 (or higher) range before committing any real capital to it.
Best Regards,
Jimmy
Quote from JimmyJam:
The market opened at your Value Point, meandered for an hour, and then blew off for the days high of probably 1312 or so.
The market never traded below the 40 SMA, so a Sell Signal was never triggered.
As it is currently constituted, your trading methodology continues to ignore the dominant trend of the market, thus while your value areas are significant for what they represent (the point at which the highest number of contracts traded in the previous trading session), you are not trading them correctly and probably have a win rate of something around 50/50 (wins/losses).
With a 4 pt stop and a 4 pt target that gives you a negative expectation after commissions.
I'd examine the method a little closer and attempt to get it at least in the 55/45 (or higher) range before committing any real capital to it.
Best Regards,
Jimmy
Thanks Jimmy for your contributions here. Actually, if I trade with the trend my win/loss ratio is about 70% and risk/reward per trade is 3 to 2.
I would consider today's action as a change in trend. The market hasn't moved this way for a long time. I will take long-signals only from here. I'll see how this goes from here and maybe re-evaluate the strategy at the end of this month.
The only way I would go short is if there is no follow-through early tomorrow.
Will post the VR later today.
emini, today was a misleading day, and you probably still want to look on the short side.
The point Jimmy made is valid, because you will find that the weight on the strategy changes with different amounts of lots traded.
Sorry if I bashed around before, just relating what happens to me. I get messed up pretty bad too.
The point Jimmy made is valid, because you will find that the weight on the strategy changes with different amounts of lots traded.
Sorry if I bashed around before, just relating what happens to me. I get messed up pretty bad too.