It works best in volatile choppy markets. Not sure where some of these entries came from on the journal but from the es reopen yesterday to todays close there were plenty of good signals. Jagmot himself posted the 36 short signal way before it hit at 3 am , but then did not take it. I hate to sound like a broken record but due to mean reversion in ES, it is best not to take a long signal with a gap below or a short signal when there is a gap above.
Rule of 10 Journal
- Thread starter jagmot
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It works best in volatile choppy markets. Not sure where some of these entries came from on the journal but from the es reopen yesterday to todays close there were plenty of good signals. Jagmot himself posted the 36 short signal way before it hit at 3 am , but then did not take it. I hate to sound like a broken record but due to mean reversion in ES, it is best not to take a long signal with a gap below or a short signal when there is a gap above.
Thank you for the correction. With the exception of one trade my profits were generated by taking the 3points mit and over the same period gave back approx 12 points (stops) vs a "kicker" of 5.50 net.
Jagmot traded on Thurday with longs which got stopped out....I could not take those trades as my ma 9/18 was too powerful and I pigged out on the day...days you only dream about.
Well, yesterday was a 2nd gap in a row day, so the gap getting filled had a 90+% probability. So missing the short would have been a wise decission. Also, Jagmot missed an overnight trade that went 10 points in the money. It just shows that certain discrations needs to be applied and you can not miss otherwise good signals...
I meant exactly what I said.
If the market gaps ups, there is a GAP BELOW, I avoid taking a long signal if there is a GAP BELOW due to a high chance it will fill.
If the market gaps down, there is a GAP ABOVE. I avoid taking short signals as long as there is a GAP ABOVE that can fill. Friday was a perfect example.
It seems there are a lot of other rules that go with the "Rule of 10", LOL. 
Just got home, long weekend. I have to get to sleep otherwise I won't be able to get up tomorrow morning for the open. I will be answering posts tomorrow morning when things quiet down.
Reality is, I picked a bad week to start trading live money for this strategy. Let's remember, I lost less than $2,000, which is less than 1% of my overall portfolio.
If I was in front of the computer tonight, I would not have traded r10 signals as FRE and FNM are a big news item.
If you did trade r10, you would have been stopped out on a short and then missed by a few ticks a long. You could have then taken another short that you would still be in at approx 1276.
I prefer to wait here and hold off on making trades until we get past the opening as it I suspect it to be quite volatile.
GN all
If you did trade r10, you would have been stopped out on a short and then missed by a few ticks a long. You could have then taken another short that you would still be in at approx 1276.
I prefer to wait here and hold off on making trades until we get past the opening as it I suspect it to be quite volatile.
GN all