NQ Beginner - Trading With Discipline

Quote from Sniemiec:

Would appreciate your comments on this Kid. Anek took this short earlier but was stopped out. I saw it break down, so I took the short.

EDIT: Sorry, forgot to add, this was good for $470 with 1 contract.

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Very nice trade
 
Quote from kidPWRtrader:

Eh I suck at journal titles.

I wanted to start a journal 2 months ago but got sidetracked by Anek's thread and was constantly posting in there. I was recommended to start my own journal once again, so here I am.

EXPERIENCE:
I have been swing trading for just a little over 1.5 years with the last few months being moderately positive. I think I am better suited for intraday trading because of my patience, but we shall see. My initial experience with futures have been really good, although I have for the most part traded based on feel, which is a big no no in my opinion.

GOALS:
My monetary goal is to take a hypothetical account equity of $5000 and with a maximum daily drawdown of $250 and maximum weekly drawdown of $750, double my account. There is no time limit for this task.

The drawdown limits I am imposing to mirror what I would have to do in the real world to feel comfortable. If I am able to pull off this task without more than a total drawdown of $1500, I will go live.

The goal that matters most, however, is that I stick to my trading plan. This is the purpose for creating this journal. If at any time I break my rules, I cannot lie to myself or anyone else and make excuses.

Trading Plan:
I will for the most part use a trend following method. I will be using nothing but price, volume, and T&S. No indicators of any kind.

I will for the time being have 2 charts that I will trade off of. A 500 CV chart and a 1000 CV chart. I will use whatever gives me the best entry and sometimes will drop for a lower time frame if need be in a fast market.

For trend qualifiers, I will be making mucho mucho channels and trend lines and will be watching the 60 minute chart as well as the 5 minute chart for volume.

I will also be paying attention to times of important economic news/contract expirations which I have never done before and see under what conditions are most ideal for me to trade in. I will for the most part stay out of dull times unless I see something that MUST be taken.

To get my bearings, I will have the previous days close and High/Low plotted as well as the day's open on my charts each morning.

I will be trading a single NQ contract using MBTrading feed (which I will change when I go live cause they suck) and Opentick for historical data.

Entries:

1. White Hammers after completion if can get in the range of the white hammer (vice versa for shorts).

2. A break of a smaller time frame trendline that is with the bigger time frame trend with a wide range bar (greater than last 3 bars bodies)

3. A break of a faster moving trendline near a previous long term trendline with a WRB before the break of the smaller trendline as in #2. This scenario will have better r/w, but a smaller probability of success.

There must be at least a 1 : 2 risk to reward scenario for all of these setups. Always enter after the completion of the signal with limit order or during the last few remaining moments before a bar closes. After 2 bars after the signal, I will cancel the order if I don't get a fill.

4. A break of a long term trendline. A wide range body must visibly penetrate the trendline. My signal will be based on a pullback to 25-50% of the previous bar length (i've heard of this called a "kissback" bar).

Exits:

To the first profit target, a break of the new trendline created with the assertion of the new trend(a close below/above it) or a wide range bar or 2 normal bars closing above/below the last bar. If profits locked in, use a longer term trendline or keep putting stop underneath last low / above last high. I will also be looking at things like equal moves, previous resistance/support levels, fib extensions, wave count, slowdown of momentum (with shallower sloping waves) to get me out earlier if I think it can get me a better price.

Stops:

Stop will go one tick below the lowest/higher bar in the entry. For entry #4, it will be above/below the bar previous to the "kissback" bar.

Other Considerations:
I will be constantly looking for new setups and better entries/exits. I will be discussing their potential use here.

I will also be attempting to learn to read the tape using T & S. I will not be taking ANY signals off of any of my findings until I can verify through enough experience that the findings are indeed valuable. This is a problem I've had in the past - by integrating too many things into my system, I don't know what accounts for my successes and what accounts for my failures.

As a reminder, I would like to start looking for a Piscuy style entry where in a pullback or bounce, the bar does not make a new high/low and the entry signal is given on the break of that bar with the overall trend by 1 tick. This will be a project for me to do in the coming weeks.

Hope that wasn't too long. I undoubtedly forgot many things so I will have to post them later.

I am 100% confident that if I am able to act disciplined, I can take my trading to a new level and this is what the journal is really all about. More about my discipline will be posted in later responses.

Thanks to anyone who participates!!
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your trading plan will NOT be profitable.... more homework needed.
 
do some homework by searching thru the ET threads and find out what actually works. (hint - you have to have some understanding of the market to figure out what actually may have some value)
 
Sniemiec: I don't trade breakouts because I like setups with high R/W. This allows for more fudge room and seems intuitively like a better strategy for my personality. I also know that breakouts have a high failure rate and even if you are good at trading them you have to be prepared for good sized drawdowns.

Please don't take anything I say too much to heart though. Many ways to trade and I certainly shouldn't be saying what's right or wrong.

Anything I say is right/wrong is for my own personality based on my limited experience.

Just about the only thing I think anyone should be able to get out of my journal is my patience and work ethic in researching my setups.

Some people including a recent poster has commented that my plan/setups will never work. True and not true.

I am not trading live. I keep detailed statistics and analyze all my trades. I am not expecting to make money tomorrow. I am not expecting to make money in 3 months from now. Everything is one day at a time for me. Either a setup works, or it doesn't. But, I won't know until I get hundreds if not thousands of trials.
 
Dozu I addressed your post a little in my prior response.

I have no intention of paying anyone for mentor ships as I have complete confidence I can figure things out myself.

My understanding of the market is limited. This is why I make observations and test them to see if there is any edge in them. If not, I discard them. Rinse and repeat.

Someone told me last year at the start of my equities thread that I would fail using my method. By the end of paper trading my strategy as I was developing it, I was up 30-40%, and when I went live, for the first time in a year, I was able to start consistently making money.

I don't give up easily...
 
It is amazing how people take the time to criticize, but offer no constructive advice...

Kid, you do not need to justify yourself to anyone...

Maintain focus on your goals, analyze your failures along with your successes, adapt accordingly.

Perseverance, dedication and discipline…and there is no doubt you will succeed…

hwk
 
hwkaiser


It is amazing how people take the time to criticize, but offer no constructive advice...
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1. Observe qqqq spy dia intc msft csco in premarket hours
with AMTD Last sales (or another)
Alsov calculate influence of news for companies ,which can have influence on market (EYM/DIA and EN/QQQQ component's) ,gold,oil,zn ,Barnake and political events

2. Take only 1 point risk(20$) for 3-30 points reward for one enh8 and stop loss advancement tactic ,which depend from your opinion about market volatility and trading record

Time of entry 8.00-10.30 NY hours (Stock market opened 9.30 NY) Not more as 3 attempts per day .



Each attempt 4 enh8 with SL 1 point (4*20$)

Each position increase( if market going for you)
must be calculated as new trade . ..

take paper game (if you not have) with CME FIFO rule and real time quote www.openecry.com or AT from www.infinitybrokerage.com

you can play small contest for 300$ price ,without entry charge
by www.marketzar.com ,if win play great contest for 50$ entry
and 1500$ price


Your respectfully ...

http://www.youtube.com/watch?v=6TOW_4TXJ2Q
 
SSSS, I appreciate your advice though I honestly don't know how to apply most of the things you said.

I checked on Marketzar but it seems its like a casino. Seems very fishy to me and even though it says its free, to download the platform on the agreements it still lists 50 bucks even though I clicked on the free one.

Have you ever entered the contest?

300 dollars cash prize is honestly a very small amount if I am going to be harassed by the company and then possibly billed, etc. etc.
 
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