Spydertrader's Jack Hershey Futures Trading Journal

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Actually my understanding of Jack's recommendation, that also makes sense to me, is to hold during lower volume / volatility retraces, and to reverse during higher volume / volatility retraces, which should be associated with larger price moves.

The lower volume retraces will probably turn out being flaws, and they don't have the power to move the price enough to be worth a reversal.

If you look a few pages back at my Friday trades, if I didn't decide to hold during that retrace, I could've squeezed a few points from that 5 point retrace. If that retrace had turned into a reversal, I would've given back a lot of points. My lesson from Friday is that when I recognized the FTT and decided to hold, I should've either exit, or temporary sideline.
Quote from FerdinandAlx:

... The most important thing however is to learn how to hold during large moves. ...
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My results are better when I sit through the retraces. I find trading from FTT to FTT to be more relaxing and it has the extra benefit that I stay on my resolution level.

The added risk when trading a retrace is that price can revert back in the dominant direction before you reverse, causing you to miss out on more points then you would have made if you held.
 
Quote from FerdinandAlx:

My results are better when I sit through the retraces. I find trading from FTT to FTT to be more relaxing and it has the extra benefit that I stay on my resolution level.

The added risk when trading a retrace is that price can revert back in the dominant direction before you reverse, causing you to miss out on more points then you would have made if you held.
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I agree sitting thu the retrace is the best. But not always easy.

If you close position somewhere between point 2 and 3 there is a chance you think you see new (mini) opportunities etc and start doing stupid things. (that's what happened to me). The result is you lose everything you just made.

regards,
Ivo
 
Quote from bi9foot:


Experts that have used or use APA/IF1/IF2 want to chime in.
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I'm no expert but it is my understanding that you invoke APA on your entry bar at the point it reverses against your position by dropping down to 1 minute using IF1,2 on this interval for the duration of the 5 minute ES (entry) bar. Then go back to IF1,2 as normal.

reference from seamless_continuous_trading[1].doc: Trades continue on the short term trading level by comparing the progress of the current bar with the prior bar as a trending reference bar. See IF 1, IF 2 Report. When IF 2 is invoked a reversal is made. It is possible that a subsequent wash and reversal may be required. When this comes up, the wash and reversal is done and the monitoring is done for the remainder of that bar on the 1 min chart using the IF 1, IF 2 strategy as applied to the 1min bars. This converts a 5min bar strategy to an intra-bar strategy. At the end of the remaining portion of the APA invoked on a 5min bar, the monitoring returns to the 5 min bar thus ending the intra-bar strategy. )
 
Quote from bi9foot:

Here is a diagram that I drew of what my understanding of IF1/IF2 and APA is. The drawing is based on a long orientation.

I am not entirely sure if after APA one goes exclusively into IF1/IF2 mode or if APA is an option depending on entry point.

In the drawing I have a sequence of APA -> IF1/IF2. However, after the APA action one could potentially go in APA again since the reversal entry point (in my drawing) is going to be crossed before reaching the close of the prior bar.

Experts that have used or use APA/IF1/IF2 want to chime in.

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1688680" width="400">
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The only thing I would add is that APA is to used when the Jokari window fails. Maybe some news intrabar causes a violent reversal or something like that. Visualize a B2B reversal and then you get an even higher red bar. That situation should be APA.

That said, I cannot call myself an expert either.

Best Regards
Oddi
 
Quote from R/R:
...monitoring is done for the remainder of that bar on the 1 min chart using the IF 1, IF 2 strategy as applied to the 1min bars...
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Thanks Oddi & R/R for the additional clarifications.

I do not remember reading the switch for the 1min interval even though I had read the document before; so good reminder to check it out again.

Personally I don't use IF1/IF2 however the recent discussions prompted me to try and understand what it is. In the process I came up with the diagram and decided to share.
 
After the FTT on the 10:20 bar I had a strong feeling that price would get fanned because of the low volume on the breakout of my channel. I then drew in a channel that used the lows of the 10:05 and 10:10 bars to see what price would do once it hit that trendline. When I saw that price indeed fanned around that level I adjusted the lower trendline two ticks to correspond with the 10:30 bar low and kept the channel in place.

The reason I picked that point one and point three is that the slope of the channel they made seemed to correspond with the way price was behaving. Whenever price fans and a channel rolls over I start looking for the new slope of the trend and this was the outcome.
 
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