That is why setting goals and having trading techniques are very important in Forex trading. Without them, those who over-trade and are afraid of losses are not too likely to improve.
Over-trading versus Fear of Loss
- Thread starter SimpleMeLike
- Start date
I've noticed from other threads that you are a jigsaw dom scalper. Ive ran across many people using Grady or Davies system but never actual met one that is consistently profitable, I'm not even sure those teachers are from watching them trade. Have you met anybody successful with their methods or dare I ask are you?
All I am going to say is I am pleased with my results and when I trade I am very relaxed.
Jigsaw tools are just tools. There is no "system"; it just has more information than the typical dom or tape found in ninja trader. It will show pulling and stacking of limit orders. It will show a daily volume profile and accumulated volume at price and individual trades at price. The tape allows you to filter out smaller trades. I find the information helpful. It can take a long time to understand what you are seeing on the Jigsaw dom.
I am not doing what Grady does; he is trading the bonds for a couple of ticks. I have watched his videos and some of the information helped me but I am not interested in his style. Peter Davies has an interesting approach to the ES but I don't trade the way he does either.
I am using jigsaw tools along with other tools (footprint chart, volume delta, volume profile and a 70 tick chart) trading the 6E futures contract. I am looking for short term movement but the term "scalper" may not be appropriate. My initial targets are 10 to 20 ticks and will take more if I can and less if the order flow tells me to get out.
Cool, appreciate the insight.All I am going to say is I am pleased with my results and when I trade I am very relaxed.
Jigsaw tools are just tools. There is no "system"; it just has more information than the typical dom or tape found in ninja trader. It will show pulling and stacking of limit orders. It will show a daily volume profile and accumulated volume at price and individual trades at price. The tape allows you to filter out smaller trades. I find the information helpful. It can take a long time to understand what you are seeing on the Jigsaw dom.
I am not doing what Grady does; he is trading the bonds for a couple of ticks. I have watched his videos and some of the information helped me but I am not interested in his style. Peter Davies has an interesting approach to the ES but I don't trade the way he does either.
I am using jigsaw tools along with other tools (footprint chart, volume delta, volume profile and a 70 tick chart) trading the 6E futures contract. I am looking for short term movement but the term "scalper" may not be appropriate. My initial targets are 10 to 20 ticks and will take more if I can and less if the order flow tells me to get out.
Here are a few things;
1) I don't know if jigsaw works too well on equities.
2) The basic concept in using the DOM/Tape is to watch the auction in real time. You are looking at the four participants. Passive buyers on the bid, passive sellers on the offer, aggressive buyers hitting the offer and aggressive sellers hitting the bid. It's all about how each are reacting to the trading.
I am only looking at the inside bid/ask and two to three levels past that for the 6E contract. Everything else past that is suspect.
Let's say you see a potential long trade. You want to see larger market buy orders hitting the offer. You want to see the bid firming up and you would like to see the offers start pulling. It is hard to see this until you know what you are looking for. It will not be obvious for a trader new to the method as the bids/offers are always changing.
3) Jigsaw is very helpful in spotting iceberg orders. Very smart to cut a trade or not get into one if someone is soaking up all the market offers on one side. I have been sitting at my computer many times shaking my head as people kept hitting an iceberg with hundreds of contracts and not getting anywhere. To people just using volume on their charts it might look like an opportunity.
The way I play icebergs is wait to see who wins the battle. When price breaks either the market orders will be trapped or the guy that just did the iceberg will be trapped. Makes for a pretty good move.4) I find having a footprint chart up is very helpful. I am able to look at the previous trades. I am looking for a) imbalances b)Absorption (it shows up in both the footprint and the DOM) c) Exhaustion and d) momentum. Some people claim they can see all this on the DOM but I can't.
5) Pick the right instrument to trade and concentrate on it alone. I trade the 6E only. I like the fact that it has plenty of liquidity but not a LOT of liquidity such as the bonds and the ES has. I don't know if I could see the trading as well when there are 2 or 3 thousand contracts sitting on the limits. On the other end of the spectrum I don't think I would do well with it trading crude oil either. There aren't enough contracts for me to get a good read.
You know how simple my trading is? I have a longer term moving average up to keep me on the right side of the market. I have a T3 up to have a visual cue of a possible change of direction. My volume profile is there to keep me out of the chop (usually occurs near the VPOC). My second chart is just a 70 tick candle chart looking for doji's. When I see a trading opportunity I start reading the DOM/tape. If I get in I watch the DOM/Tape throughout the trade and either let it hit my targets or bail out when I know I was wrong.
Tilson t3 moving average. It isn't anything special.
If you are trading a system, in my opinion I feel like you should follow the system to a T but keep a profit target in mind. It also depends on how much capital you are working with. You have to be realistic about your profit and losses when it comes to account size. How much are you willing to risk and what is your average profit following the system's every trade. I would make my profit target around the average of how much the trading system usually makes.