Quote from sandygray66:
Perfect analogy!
On a separate subject, while there's been plenty of clear discussion on how/when to enter, I haven't seen the same clarity on how/when to exit.
Earlier you mentioned that $200 could have been gotten on the first short before it whipped back to switch into a long. So, how do you know when to hold for $200, $400, $800+ (like yesterday afternoon) etc.? I suppose you'll say read the price action, which comes from experience......but please try to be a bit more specific than that. I've been trading the ES full time for 3+ years, but that doesn't mean that I know whether it's next move is going to be 4 pts or 16 pts or whatever.
It doesn't seem that using fixed targets and stop losses is conducive for making this strategy work consistently. Some guidance here would be appreciated.
Posting charts and showing what could have been gotten in retrospect is easy (Jack does it all the time).....knowing how to manage the exit in real time is the hard part.
Kudos to those who have posted blotters (Mandelbrot & Voyageur) that show that they know how to manage the exits.
* You have to pay attention to where the MACD is in relation to its Zero Line.
* If you get a Buy Signal with the MACD above the Zero Line (or crossing it) you can expect about 16 ticks of profit from that trade (reverse the logic for a Sell Signal).
* If the Singal is not supported by a Zero Line cross, you can only expect 4 to 8 ticks of profit (ES equivalent).
* Trader28 has mentioned over and over that he trades the ER2, so if you're looking at his numbers you have to cut the amount in half.
