Some of us are working the 71.75 signal right now. The last short signal I had was from 72.25 reaction.
Rule of 10 Journal
- Thread starter jagmot
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Some of us are working the 71.75 signal right now. The last short signal I had was from 72.25 reaction.
Low of day was 63.25....
In the meantime we have a trade BUY@71.75 s/l 68.75
9-11 BUY72.75 and 70.75 ...initial stop 69.75 and 67.75
I am currently reviewing how I will trade this style and have come to the conclusion that I will trade it ONLY when it coincides with my price performance model that I trade...today for instance would have been the buy @ 65.50..although stopped, my personal trade carried me through to 79.00 on a reduced (free wheeling) position.
It will significantly reduce my opportunities, but I will be comfortable knowing I will going in the "same direction."
Quote from volente_00:
To old to do a little night trading with the young ones ?
Still a skeptic ?
Gotta tell you, I'm in front of my screens from about 7:30AM CST to 3:15PM CST, every day, for years. That's plenty as far as I'm concerned. If I carry a position overnight, I don't watch it. LOL.
As far as the strategy, I like the fact that it has you buying weakness, selling strength. I do that in my own trading. And I think that type of strategy has much to offer, especially relative to the more common types of strategies which chase strength, and sell weakness.
I don't use 10 point reactions for entries personally. Nor do I use 3 points stops. But frankly it has worked pretty well in my opinion for the last couple of weeks. And it's probably less important exactly how many points you're using for stops and entries, than just the idea that your method puts you into the market after they've been running it for a while.
I think a little work with the basics and a guy could have a pretty good technique.
While I do think there's some discretion involved in which 10 point move serves as your entry, and exactly how you handle the trade after you've got it on.....that doesn't disturb me in the least because I think the market is all about discretion. It's been easy enough to see roughly where a trade ought to be made according to the strategy.
All in all I think it looks to be a promising method, especially with some work.
OldTrader
If I am in it I am watching. I guess being burned in the past on gaps in equities will do that to you. I sleep when I am flat, no worry in the world about whether my stop will get hit.
Contrarian trading in ES is all about mean reversion. Many people fail because they don't understand that. In the begining I lost of ton of money being a chaser. I would rather jump in front of the train with a small stop then chase and get stopped on the mean reversion. I originally started in index futures as a scalper. This simple strategy has taught me patience and prevents me from overtrading. Something any rookie could probably benefit from. It has also allowed me to greatly increase points per trade than just scalping did.
Don't you mean moving the stop to entry? If the trade moves +3 in your favor, your stop at -3 is breakeven. Sorry to state the obvious.
you should already be long from 71 area if you took the signal from 81.75.
Yeah missed it, what happens in those situations? Do I follow up with the posted setups or wait for that missed opportunity to play itself out to "be back in sync"?
Also, in this situation (where my new reaction high is lower than the previous one), should I set up a trade @ 71 or is it "too late"?
Thank you very much for your help overall
How did you miss it ? You read the chart and posted the entry long before the signal came.
Be patient and wait for the move. It does not matter which way as long as a "10" materializes. FWIW I posted earlier about being bullish at 71 because of the inverse head and shoulder pattern on the daily and the fact that 71 represents a 50% retracement from 60.25 to 81.75. If 71 can hold, you just might see 91, perhaps tomorow. Do you wanna be short before a run to 91 ?