S/R Emini Journal

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Quote from JimmyJam:

You should check-out the thread written by 5Pillars, he uses a similar breakout/reversal strategy, only he "pyramids" his contracts so that he makes a lot more money in a shorter amount of time (if you search his handle you'll even find a thread were he shows his setup).

Best,

Jimmy
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I have read 5Pillars and I will not comment on a fellow Trader.
R & Wr can equal Right or Wrong, but as far as I am concerned it equals Rich or Wretched.
I am selling into the buying traffic and buying into the selling traffic and so I will leave it to you to figure out my slippage and most importantly my lot volume.
All I want is my 10 handles per session and I want them buried in the ABCD high traffic periods of the market.
Some days I am out in 30-40 minutes, some days it takes 60-90 minutes (usually because I cockup)

In order to make real money, you need real volume and lots of it and you need to be 1 tic ahead of the heavy traffic going in and coming out of the trade.
Lastly, dont take losses, trade your way to breakeven or as close to it as possible or reverse.
Ever tic you lose and every buck you payout in comms has to be earned back in front of the screen before you can bank your earnings.
 
Quote from hardyards:

Nothing clever I am afraid. I trade the open most days and trade in couples ie I take half my position of the table after 4 or 5 points and let the other half roll along and usually exit on a spike.
My target is 10 handles per session per couple or 11.30 am exit.
Entry is simple, I just watch the bid/ask volume and the average lot size when the price is meandering sideways for a few minutes. When I see a position building,
I set my stop on the opposite side of the range and enter very close to the opposite obvious breakout point.This gives me a 2 or 3 point risk rather than the traditional risk across the range. When my stop is struck, the big boys with their volume will take me across the range to where the breakout boys have their entry stops. Here is where I take half my postion off the table because there are plenty of takers on the other side.
The balance of my position runs on if the breakout is good or I bail on an exhaustion tick if it is a fake.

I set a 5 point hard stop at the time of entry and cut it 50% and bring it up to B/E +1 as required.
The hard stop is for system failure only, it has never been used I always bail or reverse at 2 points depending on volume and average strike size.

The open I trade on pure momentum plus a couple of other tricks and I dont really consider s&r until the IB period pivot points have established itself.

ES has a rhythm which you can see if you watch the impact of volume on price very carefully. I keep my third eye on L2, mainly to see fake orders as I watch a position being built.

Mainly, I am always thinking about covering my ass......how can I turn my entry into my advantage and take some points. The days of taking losses like a true man are long gone.

And that is about it really, apart from some of the finer points that I have spent every waking moment considering for the past nine years.
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Safe and simple, sounds like a good recipe to me. That's what I think is really cool is that we have several different types of traders in here. Nobody tries to make others trade their way. We just share info and hopefully we all are making money. The one thing that really chaps my hide is watching a winning trade turn into a loser, in this I think we both are the same. Well I hope everyone in here thinks this way and avoids that trap.

Welcome to the thread and I look forward to trading with you.

4re
 
Quote from JimmyJam:

You should check-out the thread written by 5Pillars, he uses a similar breakout/reversal strategy, only he "pyramids" his contracts so that he makes a lot more money (actually he probably makes the same amount of money, just in a shorter amount of time). Truth to tell, I don't really know, because I don't trade like'm, but if you search his handle you'll even find a thread were he shows his setup.

Best,

Jimmy
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I will look it up. I think I have chatted with him a couple of times on here.
 
Quote from mattjbarlow:

I placed a quick order when price broke out above 1286.25 and exited for a point. Looking at it now, I should have held out for 2. I'm a complete beginner myself and I have to say this is a great journal. I've been reading through it for the past several days and so far I've learned quite a bit.



Basically my goal right now, as I've read elsewhere on ET, is to "stay in the game long enough to learn it."
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This is something I have told other on here. In the beginning it can really mess with your mind when you start trading real money. The going for 1 or 1.25 points per trade can really help you out. Your account should grow just about every day like this. Grow slowly but surely is always better. It won't take long and then greed will set in (we all fight this). But you can always go back to looking for that 1 point gain to settle yourself down. I think it is a very good thing. Good for you and welcome to the thread. I hope you enjoy it.

4re
 
Quote from romik:

I've traded a hell of a lot of breakouts following WRBs so far and backtested loads more. There is a med/high probability of ES not retracing at all after such a WRB, of course I am only referring to immediate price action following a WRB, in this case that would be on a daily chart.

One only has to make some quick comparisons of yesterdays WRB to other ones, what is the ratio of breakouts of the closing price to pullbacks?
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Today's price action is very typical following such a perfect WRB, minimum pullback. That's one of the reasons I am not "afraid" to enter at the high of such a WRB and scale in on possible pullbacks.
 

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Hi JJ,
I have taken a look at Trin and Vix and my take for what it is worth is this.

ES is one of the most hunted animals on the planet. It is stalked by the most intelligent and cunning minds in the business and the normal rules of fair play simply are not applied consistently. Those rules that are in force are designed to entrap retail players in order for the big boys to feed. A small rodent is not much of a meal for the mighty hunter, but eat enough of them and you walk off with a full stomach.

The thing to remember about the mighty hunter is that no matter how loaded the odds are in his favor, no matter how careful he is to approach from up wind, no matter how lightly he treads across hard rock, he does leave tell tale signs.

The retail trader however leaves enormous signs without realizing it.
With the aid of high powered computers and vastly overpriced software and secretive natures the good ones eventually all arrive at a series of points centred around pivots( s&r)
The next step is the best. Like the lazy old lion who sends his wife(s) down to hunt at the watering hole at sundown rather than run all over the hot savannah during the day , the big boys focus on the pivots where the sweet meat lies, skillfully hidden in the open by the unsuspecting little traders.
The rest is history.
And so back to Trin & Vix.
It is all good stuff along with anything else that you can get to work in your favour.
The point is, everything is a derivative of price & volume and of course time.
The big boys know this and so all you really need to do is learn to track them, secure in the knowledge that if they are doing their job properly then you too will feed at the waterhole.

People will feel comfortable with emas, CCI, Trin, Vix, BB ... you name it, there is an indicator for every occasion. I should know, I spent 1000´s hours trying them all, until one day I turned of the PC and vowed never to turn it back on until I had figured out what this game is all about.

It is very simple and through its simplicity it becomes extremely difficult to do well and on a grand scale, but it starts and ends with this.
"Once upon a time a buyer and seller agreed on a price for the briefest of moments"
In the case of the ES this happens 100´s of times per minute involving 1000´s of contracts.

Anyway JJ, these are only my ramblings on a quiet day ... read them, ignore them, we all live to trade another day.
 
JJ,
I did read through the 5pillars journal. Very interesting indeed. Have you tried anything like it before? My only problem with it is that I am married to my charts. If I can't see it on my charts I have a hard time trading it. Maybe that is a fault of mine that one day I'll regret but I could not imagine putting on a trade without my chart telling what to do. I want to know if and when you try it though and how it works for you. One thing about the trading game is that it seems like those who think outside the box can suceed if they are persistant and stick with a plan

4re
 
Quote from 4re:

With such low volume I doubt if I will even enter a trade today.
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Quote from hardyards:

... In order to make real money, you need real volume and lots of it ...
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***
Actually, I'm not quite sure volume has anything to do with it on an intra-day level ... in fact, I think volume (when used as a verb) is just yet another lagging indicator (traders see price action, interpret it as moving up or down, and try to hope fruedian slip, I meant hoop on board, or bail).

Now if you are looking at EOD Volume in relation to Open Interest, NH/NL's etc., ...Or if you mean "volume" as in average number of contracts traded on a daily basis (to determine liquidity), I'll agree with ya when you're using it as a noun.

But intraday, as in action word, as a verb, nope, it's just another lagging indicator (else, how did we get Monday's action on such extraordinarily low volume? :confused: )

Happy 4th,

JJ

P.S. ... and not that it matters, but this guy agrees with me.
http://www.rc3200.com/en/..\article\column_traders.pdf
 

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