Quote from MacroEvent:
fandelem - yes i keep holding the higher positions and then any lower previous positions are covered at +.25 to pay for the commissions of that previous price level attempt ---- so if the price action will bounce around enough during an upward movement of price you are then able to "replace" your previously lower price positions. you also have to remember we are on the 16th day of the SPX not breaking a previous major support level and this is more of a "probability" trade for me ---- it has been many many years since this has happened. so i am trading this swing as the price action movement will allow to shoot for the probability that we will break one of these major s/r levels soon.
OK. Help me understand things a little further. Let's take an example close to the one in reality:
Let's say you define a range on the ES between 1230 and 1240. Current price is around 1235.
Account1 starts accumulating 1234.75 - 1230 SELL SHORT which comes out to about 15 positions, *IF* the current price starts going down.
Account2 starts accumulating 1235.25 - 1240 BUY LONG which comes out to about 15 positions, *IF* the current price starts going up.
Am I following so far?
So let's say Day 1,
hour1: price goes from 1235 to 1236 range; you have now accumulated a % of your BUY LONG position at 1235.25, 1235.50, 1235.75, and 1236.
hour2: price goes from 1236 to 1234 range; you have now started to accumulate a % of your SELL SHORT position at 1234.75, 1234.50, 1234.25, and 1234.
hour3: price goes from 1234 to 1237 range; when price hits 1235.50 (*your first .25 profit of your BUY LONG), you SELL your 1 BUY LONG, profitting,
but how do you get rid of your SHORTs in this case? this is my missing link to understanding your idealology. excuse my ignorance, please!
