S/R Emini Journal
- Thread starter 4re
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Thanks for the warning.
Trading channels is really tough.
You have higher percentage trades if only take a strong break (gap) of the previous days' High/Low, or if you just stick to wide range reversals (not just talk'in, also show'in).
The thing is, you are going to have to restrict yourself to only trading once or twice a week ... but those trades will be almost guranateed money - and your gonna have to go for the trend move to make it worth your while.
But if you analyze channel formation and can catch the correct break - and even hold overnight - you can use that as a swing potential and make a 'kill'in without having to play those divergence games (yep I'm still study'in trying to figure out how to get the long move).
Later,
JJ
P.S. Once the "news" becomes public knowledge, it's already been factored into the markets.
Gary,
I don't know whether I asked you this already, I think I have, but I can not recall whether you answered anyway.
Martingaling S/R levels. I use it all the time with my breakout strategy and the principle is very simple, most will be familiar with it. In my experiences so far, even though we trade of different levels, adjusting a position by X 2 (as you hit a 2 point loser) as price nears that same entry level. Let's face it, it is a not such a frequent occasion for ES (or any other instrument) to just keep bouncing of any price level during any given trading session, eventually it will breaks through that level and in case of ES 2 points is not much of a movement, especially after it has bounced a few times of an "important" price level. I yet have to hear 1 argument against this simple approach, apart from under-capitalisation issues. It might sound naive, though I believe this approach just might work at any price level intraday, simply pick a current price and go either long or short, stop after 2 points loss, re-enter on price approaching same level with double position size, etc,etc. Obviously, I have not given this much thought in respect of ANY level, though it does work most of time on my S/R levels.
Romik
I don't know whether I asked you this already, I think I have, but I can not recall whether you answered anyway.
Martingaling S/R levels. I use it all the time with my breakout strategy and the principle is very simple, most will be familiar with it. In my experiences so far, even though we trade of different levels, adjusting a position by X 2 (as you hit a 2 point loser) as price nears that same entry level. Let's face it, it is a not such a frequent occasion for ES (or any other instrument) to just keep bouncing of any price level during any given trading session, eventually it will breaks through that level and in case of ES 2 points is not much of a movement, especially after it has bounced a few times of an "important" price level. I yet have to hear 1 argument against this simple approach, apart from under-capitalisation issues. It might sound naive, though I believe this approach just might work at any price level intraday, simply pick a current price and go either long or short, stop after 2 points loss, re-enter on price approaching same level with double position size, etc,etc. Obviously, I have not given this much thought in respect of ANY level, though it does work most of time on my S/R levels.
Romik
I haven't used it before but I think Boro did it just last week, if I remeber correctly. The only time I have ever doubled up was in the middle of a winning trade. I really don't see anything wrong with it if you have a reason to believe (I.E. that charts are showing you something) that it is going to work. I wouldn't just blindly double up though. Like you stated though, as long as you have the capital to do so.
Since I do have several new traders that watch my calls and my trading I try very hard NOT to do the "do as I say, not as I do" mentality. If you know what I mean.
I had a little trouble following the original post. If you're suggesting that you come back after a stop with double the original position, I did not and do not do that.
However, my initial profit target for the first half of my position is equal to the stop amount of a full position. So when I get the first half of an order filled, it recoups an earlier stop and the second half rides until I get my exit signal.
Hope that makes sense.
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