Forest or Tree Level Resolution Level Traders hold through all flaws (a stall is a flaw). Limb, Leaf and Bug Level Resolution Traders trade through the flaws.
- Spydertrader
Spydertrader's Jack Hershey Futures Trading Journal
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Forest or Tree Level Resolution Level Traders hold through all flaws (a stall is a flaw). Limb, Leaf and Bug Level Resolution Traders trade through the flaws.
- Spydertrader
Spyder, this is very helpful. Is it your rule-of-thumb to set your entry points based on the width of the channel?
For example, you said that the channel width was 2 points, so you set an order to go long when the ES was 2 points above (the current price) and and order to go short when the ES was 2 points below (the current price).
Is there any validity to apply the same reasoning based on the YM or should one just stick to the ES when placing these orders? Thanks.
For example, you said that the channel width was 2 points, so you set an order to go long when the ES was 2 points above (the current price) and and order to go short when the ES was 2 points below (the current price).
Is there any validity to apply the same reasoning based on the YM or should one just stick to the ES when placing these orders? Thanks.
I have never tried using the YM to enter with the ES on an FOMC Day Bracket, so I could not say either way. One could research this, however, by reviewing each of the FOMC Day's over the last 5 years (or so) and determine how using the YM would have worked on those particular days. In such a fashion, you'll know how well your methods would have worked for you in the past, and have some idea of how they might continue to work in the future.
- Spydertrader
Spyder
What do you do about stops? According to your snippet you would have went short like I did only to have it reverse on you immediately. Did you just hit a market BUY when it turned on you?
edit: never mind. I see I was looking at the wrong lines. The blue lines were your entry.
What do you do about stops? According to your snippet you would have went short like I did only to have it reverse on you immediately. Did you just hit a market BUY when it turned on you?
edit: never mind. I see I was looking at the wrong lines. The blue lines were your entry.
BB, If I can jump in here... I think what Spyder is saying is that you set your buy/sell orders far enough out of the channel so to avoid those "fake outs." In other words, the price movement has to be definitive. I suppose that one could argue that they may be getting in late (i.e. not the very very best price), but better to be on the safe side I would guess on these FMOC days. These are just my thoughts. Thanks.
BB,
Here is my ES and YM chart at 2:16. Please look at the notations to see my logic. My using the YM was really an experiment. I suppose, when I trade the FMOC days for real, I'll base my orders on the ES. I used a OCO order whereby my buy or sell order is executed at Market when the condition is met. I noticed that everything happened so damn fast, that I would think a limit order would get passed in a NY minute!
Thought it beared repeating..
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