Rule of 10 Journal

[Pekelo]

Quote from volente_00:

last reaction low was not 71.5.

After checking it again, correct. After 3 am there was a 62.75. Around 5 am the 72.75 entry was passed/filled and it dropped back to exactly 69.75 where my automatic overnight system would have taken the 3 points gains.

Quote from volente_00:

This happens to those who ignore 9/18 directionals.

Sorry Sir, but I don't do no directionals...

 

[volente_00]

Quote from Now is Now:

Yeah, I understand your point.

Volente can clarify, but my feeling was that he would be trading more than one contract (obviously,as there are 2 entry points) and that each entry is independant of the other, therefore would take a 3 point stop on each...on the other hand should the initial entry go 3 points his way and slide back to the initial price he kills the trade and the second leg doesn't play any role.

My understanding for the 9-11 rule is to at least get in within a point of the proposed "10" trade and counter that with an entry a point beyond the "10" and set the stops accordingly.

Should the entry be like today where his second go to 6975 ,as it did, he would adjust his stop to 7275...if it hits, his worst loss would be a net 2 points . Alternatively, he may clip a profit at the 6975 and let the other entry run...I don't know for sure, but that is how I may do it using the 9-11, which I like after making the adjustment for the price performance.

Hope all this makes sense.

This is not what I do as I do not believe in averaging in but if it works for you then run with it.

I'd like to think jag for opening this journal. The fact that it has opened people's minds and has got them thinking for themselves on strategies instead of trying to follow others is a very important concept in trading.

 

[Now is Now]

Quote from volente_00:

Pek , i do not average in. I use discretion to enter somewhere between 9 and 11 points, with the average being 10. I used to use hard 10 with a 2 point stop. I then changed to a 3 point stop to be able to take the 9 entry and still have the same stop out area as if I had taken a hard ten with a 2 point stop. By sticking to a fixed number, you miss trades that often run 9- 9.5 such as last night.

Ok so I am wrong in my assumptions, then.

Therefore,the trade 7075 /7275 or quote, "somewhere between 9 and 11 points", unquote was stopped out ; if the trade was taken at all.

 

[volente_00]

Quote from Now is Now:

Ok so I am wrong in my assumptions, then.

Therefore,the trade 7075 /7275 or quote, "somewhere between 9 and 11 points", unquote was stopped out ; if the trade was taken at all.

I don't understand your stop placement.

If a 9 entry is at 1250 and i short 1, and a 11 is at 1252 and i short 1, the stop on the 9 trade would be 1253, stop on the 11 would be 1255, your average is 1250 +1252 / 2 or 1251 average with a 3 point stop would mean your stop is at 1254, and if market is already at 53 and triggered the 11, then 1 point of wiggle room seems pretty tight to me, but if you make it work then run with it.

 

[jagmot]

Quote from jagmot:

As I go to sleep tonight, I am leaving a long at 60.50 from the 70.50 high (stop 57.50). You could perhaps use 67.50 as the high, however I do not believe there to be enough of a 'reaction'.

Missed by a few ticks.

Currently have orders bracketed at 65.00 and 75.50

Edit: Long at 65.
Stopped out.

 

[volente_00]

Quote from Pekelo:

After chrecking it again, correct. After 3 am there was a 62.75. Around 5 am the 72.75 entry was passed/filled and it dropped back to exactly 69.75 where my automatic overnight system would have taken the 3 points gains.



Sorry Sir, but I don't do no directionals...

There is so much more to trading then scalping and fighting the trend. I used to be just like you. As you get older you will slowly figure it out.

 

[jagmot]

Quote from volente_00:

I am in the camp that all gaps in indices eventually fill. Intraday is strong, odds of fill in the 3 days after gap is strong.

So then your system would only have you taking shorts for the next two days (as there is the gap from fri-sun below)

TIA

 

[volente_00]

Quote from jagmot:

Missed by a few ticks.

Currently have orders bracketed at 65.00 and 75.50

The long scares me. I'm thinking gap fill next 3 days.

 

[volente_00]

Quote from jagmot:

So then your system would only have you taking shorts for the next two days (as there is the gap from fri-sun below)

TIA

Mean reversion and magnet.
I am usually bullish on tdays but I don't fight gaps.

 

[volente_00]

fwiw, the 9/18 has said downtrend since the cross at ~ 1271