S/R Emini Journal

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Quote from riaamaan:

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.
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Greetings,

Thanks to all for the input,after thinking about it for a while,a couple of things came to mind.

A limit move could be great if your on the right side.That is statistically 50% of the risk removed,depending on your trading style.

In theory,if your stop was blown through on a huge move,and the limit was touched,a switch to an asian trade could offset the damage.

The subject was brought up on a site,and it seemed the worst case scenario.A strategy for it might cut down on the valium.

As a fairly new trader in futes,I find it hard to think of a stop being missed,but I am told it happens.Being short seems to be a better position to avoid a deep move against.Impulse buying seems to always involve profit taking for an exit.

My question is how much do you folks fear a limit move against you?

cordially and peace,
Tom

BTW great thread Gary,Im trying to adjust to S/R trading,its logical to buy a trend move,but to a newb it feel like paying too much.Much to learn.
 
Quote from riaamaan:

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.
More...

Greetings,

Funny you mentioned that,as I saw the YM go dead,I noticed during the day that the ES and NQ dropped quite a bit,when it resumed,it was still trading at a premium.It took about 30 mins for it to align with the others,seemed too easy money,and I passed.Same happened this week with the YM being down,and the ES and NQ up over 1%,both couldnt be accurate, I did short the NQ as I beleived the YM was accurate.

Just a comment,since I like to look for paradox type moves.

cordially and peace to the whole world,
Tom
 
Quote from Thom64:

Greetings,

Thanks to all for the input,after thinking about it for a while,a couple of things came to mind.

A limit move could be great if your on the right side.That is statistically 50% of the risk removed,depending on your trading style.

In theory,if your stop was blown through on a huge move,and the limit was touched,a switch to an asian trade could offset the damage.

The subject was brought up on a site,and it seemed the worst case scenario.A strategy for it might cut down on the valium.

As a fairly new trader in futes,I find it hard to think of a stop being missed,but I am told it happens.Being short seems to be a better position to avoid a deep move against.Impulse buying seems to always involve profit taking for an exit.

My question is how much do you folks fear a limit move against you?

cordially and peace,
Tom

BTW great thread Gary,Im trying to adjust to S/R trading,its logical to buy a trend move,but to a newb it feel like paying too much.Much to learn.
More...

Tom,
Thank you for the nice words. I can honestly say that I don't even think about limit moves unless someone asks about it (which is rare). I am pretty sure that there is a better than 50% chance of me being on the right side of one or totally being out of the market when it did happen. The reason being that I trade with momentum and that I am in for such a short amount of time. I know most of the time when you mention futures and people talk about limit moves they are referring to some of the old futures markets (pork bellies, sugar and such) we are in a computerized traded environment that is much more effecient and our type of futures is a lot different. For those reasons I don't worry about limit moves. Hope that helps.

Gary
 
Limit Up
The maximum amount by which the price of a commodity futures contract may advance in one trading day.

Notes:
Some markets close trading of these contracts when the limit up is reached others allow trading to resume if the price moves away from the day's limit. If there is a major event affecting the market's sentiment towards a particular commodity, it may take several trading days before the contract price fully reflects this change: on each trading day, the trading limit will be reached before the market's equilibrium contract price is met.

Google is my friend. You cold reverse the logic for a Limit Down move.

We don't see them in the e-mini's because of the high liquidity and sophisticated (and highly regulated) market makers, but I'm sure they could happen in the metals, livestock or agriculture at any time.
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Here's what I see for the next days S/R.
 

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OK guys I am ready to make some money today. I have to do it in the morning though so lets get some big moves today....
 
Days like this seem like they would be frustrationg and the are in a way but it also lets me know that my charting was very accurate. Early on we bounced off of resistance at 1277 and headed down so my 1277.50 entry was not hit. Then we came down and bounced off of my support so my 1268.75 entry was not hit. If either does break should be good for my 2 points.
 
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