S/R Emini Journal

Thom64 · Aug 10, 2006

Greetings,

Could anyone give me a place to look for info on limit down or up days?Ive heard this is the most dangerous part of futures trading,and a plan needs to be in place in the event your locked in on the wrong side.
Ive googled several phrases,and I get just the definition.Do you folks plan for them,or have you experienced one?

Peace,
Tom

pkts · Aug 10, 2006

Quote from romik:

current activity

Hey Romik,

I enjoy reading your divergence journal. Do you pay attention to any other areas when you trade divergences? For example, you are going long right below what looks to me like the 200 day MA. I take it you don't look at this as resistance?

Thanks,

pkts

romik · Aug 10, 2006

Quote from pkts:

Hey Romik,

I enjoy reading your divergence journal. Do you pay attention to any other areas when you trade divergences? For example, you are going long right below what looks to me like the 200 day MA. I take it you don't look at this as resistance?

Thanks,

pkts

thank you.

1. my intraday trades are not divergence based in regards to entry. I did experiment with short TFs recently and concluded that they work best in longer TFs, hence Divergence journal.

2. 200MA? what do you refer to?

3. Here I showed my primary system entry/exit based on S/R, not divergences, if you have a Q regarding divergences, could you please ask me in that journal.

4. I do implement quite a few parameters to see exit targets.

KyivTrader · Aug 10, 2006

Quote from Thom64:

Greetings,

Could anyone give me a place to look for info on limit down or up days?Ive heard this is the most dangerous part of futures trading,and a plan needs to be in place in the event your locked in on the wrong side.
Ive googled several phrases,and I get just the definition.Do you folks plan for them,or have you experienced one?

Peace,
Tom

Hi Tom!

I think this link here gives you all the information you need:

http://www.cme.com/trading/prd/equity/pricelimits2549.html

It's the official information given out by the Chicago Mercantile Exchange.

There were many limit up and limit down days during 1999 and 2000 but I have not seen any in the last few years as far as I can recall.

If you need such info for other contracts, just go to the exchange web site. They must have it. Hope this helps.

pkts · Aug 10, 2006

Ahh, I didn't realize you traded S/R as well as Divergence.

2. 200 MA is 200 day moving average. I don't have eSignal but based on my rudimentary calculations 200 day MA is around 1274.50 on the ESU contract. I expect it to have a hard time staying above it.

3. Point taken, will do.

Thanks again!

Quote from romik:

thank you.

1. my intraday trades are not divergence based in regards to entry. I did experiment with short TFs recently and concluded that they work best in longer TFs, hence Divergence journal.

2. 200MA? what do you refer to?

3. Here I showed my primary system entry/exit based on S/R, not divergences, if you have a Q regarding divergences, could you please ask me in that journal.

4. I do implement quite a few parameters to see exit targets.

romik · Aug 10, 2006

Quote from pkts:

Ahh, I didn't realize you traded S/R as well as Divergence.

2. 200 MA is 200 day moving average. I don't have eSignal but based on my rudimentary calculations 200 day MA is around 1274.50 on the ESU contract. I expect it to have a hard time staying above it.

3. Point taken, will do.

Thanks again!

OK, yes I see. Examples in this journal are based on PTs of ~2 pts per trade. I am currently flat until 68.25, if reached, I'll be short then.

Now, I do have a positional short at the mo and your 200MA I derive from actual cash index ~70 mark, you are right there, but THAT is actually based on a BRD on daily.

4re · Aug 10, 2006

Quote from 4re:

I also think we are going to sell off.

Today was a perfect example of why I don't try to call the market. It is also a good example of how you can still make money in the market without knowing or caring which way the market is going to go.

4re · Aug 10, 2006

Quote from Thom64:

Greetings,

Could anyone give me a place to look for info on limit down or up days?Ive heard this is the most dangerous part of futures trading,and a plan needs to be in place in the event your locked in on the wrong side.
Ive googled several phrases,and I get just the definition.Do you folks plan for them,or have you experienced one?

Peace,
Tom

Tom,
I have never seen one in the emini market. They do happen I am told and if you are against one it would hurt bad. The key is to trade with the momentum rather than trying to fade every big move. IMO...That way if you get caught in a limit move you make money instead of lose money. The other way to avoid it is not to trade with as much margin. Most future traders trade here because of the margin though so what I do is limit my exposure to the market by trading with momentum for short 2 points and get out. Usually I am in and out in a few minutes so the rest of the day doesn't matter to me.

Gary

volente_00 · Aug 10, 2006

"Amateurs open the market, pros close it"

riaamaan · Aug 10, 2006

I alluded to a possible strategy when eCBOT went down last week. If I were caught in a limit move against me in the eMini, I would try to take the other side on the DowMini (or visa versa) and hopefully mitigate the damage.

It's a plan I hope I never have to implement, but I think it's good to have a strategy for the most unlikely of scenarios.

Of course, the plan may not be implementable if both markets are experiencing limit moves. Then start looking for ERS, NQ.....something that will offset the damage.