Simple Profitable Method

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I prefer to keep the number of trades a day smallish, maybe 4 or so.

Every entry and exit involves commission and possible slippage. Best to keep them as small as possible.

I like that quote I read, an old pro said that you really only need one decent trade a day.

Of course, 2 decent trades is even better.....
 
Mo06,

I agree. But when I take a trade, I really can't tell a good trade from a bad trade.

I look at the trade setup then say to myself, this looks great. So I enter the trade and it flips back on me. Other times I enter the trade and it goes like crazy.

What do I know...I am still perfecting my entry/exit skills...

snarlyjack
 
Quote from Algorithm:

Simple question for the thread....

I actually have traded on occasion a method very similar to this technique for longer period swings with pretty good success. I agree that this method can indeed be successful and have been keeping up with the thread from the beginning.

My question is to those that have been using this trading method with futures successfully, which future is this method best suited for?

I know some are trading the ER2, but is it very profitable for the YM also? Are the YM moves large enough that enormous size isn't necessary?

Thanks in advance.
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Algorithm ... Yeah, it works ok for the YM. I can do a few ticks with just one contract...if i follow the signals correctly. I could step up to 3 to 7or 8 cars but im still just too inexperienced. If i get impatient, then its likely im gonna take a lose. Looks to me like for most moves - 7 to 15 ticks - you have time to scale in, but not always. Just have to be set up with order execution mechanics so you can act quickly with market orders.

Seems to me that, on average, one is gonna need to bring into play at least 7 - 10 cars to do "serious" money with YM.

... rj
 
Thanks for the replys.

I was thinking about even trying some single stock futures (SSF's) on something like the DIA. Looks like the method would work pretty well (at least in theory, mechanics might be a whole different kettle of fish). Might be interesting, but I have never traded SSF's and wonder what the fills would be like as well as spreads when going to punch out of a position.
 
Trader28,

Today just wasn't the best day. In one of my previous posts today I was saying how the ER2 looked to be the best today. There have been a few ok moves on the YM today, but not like usual. There's usually a few more larger moves that are lot smoother, etc.
 
Just to stick my considerable oar in a bit;

Over the last couple of weeks i've been experimenting with 10 & 60 minute charts in place of the 2 & 10.

Same methodology as described by T28, just larger time frames. The perspective is kept the same.

I find the commissions a considerable burden when dealing with 20 point moves, and emotionally I am more comfortable with the larger time frames.

Pretty corking day as it so happens, i've been short since 1pm EST on the ER2 at 770.3. There have been some really lovely long trending moves the past few weeks as well.

Might be worth considering if commissions on 'scalps' are making life difficult for you, or the cut throat speed of 2 minute trading is giving you anxiety attacks.
 
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