Techniques for Day Trading the ES, NQ, YM, MES, MNQ, and MYM

It also implies we might want to learn how to trade “chop” since the market trades most of the time in ranges and channels (horizontal or slanted chop). Trends are composed of BO’s or spikes followed by channels (which can be called slanted chop). If a trader only trades trends i.e. BO’s followed by channels they are missing out on many trades once price gets to the horizontal chop i.e. range. If a trader only trades the BO or spike portion of a trend they often are missing out on the many trades in the channel portion of the trend and the horizontal or range portion of the cycle.

I believe day traders and especially scalpers should learn to trade all the market cycles. Develop tactics or techniques to trade in each phase of the market cycle. Trading doesn’t have to be boring. There is plenty to do and watch for. If one has the mental energy he can likely trade almost any bar of the 81 five minute bars of the ES. If a bar looks like it is not tradeable dial down to a smaller TF where micro channels…micro wedges..micro trends..micro BO’s can be found and traded.

If one’s mind get fatigued or stressed out then it is best, imo, to stop trading for the session. Otherwise, too many mistakes will be made.
 
Here are a couple of trades I took in the ES this morning. The first one was averaging down and ended up being a loser. Highlighted in red for all the doubters! ROFLMAO. The second one was averaging down in a bear channel and ended being profitable. Highlighted in green for all the fans! LOL

When using averaging down techniques one has to be prepared to scuttle the trade once the market proves one is wrong. Then I like to reverse directions and trade larger size IF the context supports doing so. I don't always double up and reverse to get back a loss. Such a tactic must be conducive to the larger context. In this case a bear channel. My first short entry on trade #2 was the same size as my entire losing position on trade#1. Then my subsequent entries (i.e. entries 2 and 3) on trade two (the averaging down entries) put me at twice the ending position size of my trade#1 which gave me a loss. Therefore, price didn't have to travel as far down on my second trade to recoup my loss and give me a profit, as it traveled down rendering me a loss on my trade#1. The key concept here by doubling up is to recoup a loss, and perhaps soon be back in the money, on less distance traveled to brought on the loss.

This time I took the time to type up the explanation of the two trades on the chart and mark up the chart. Now I have to go to town. Probably done for the day. I also traded MES but not worth mentioning as it was a minor gain, if any.

ES marked up and with orders.jpg
 
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Here you can see the concept of distance traveled graphically from 1st entry to the exit of each trade. Trade #2 (yellow) is less distance traveled to recoup loss and be in the money really good than the distance traveled from trade #1 to create the loss. Not only was trade#2 less distance traveled, but also the distance actually traveled was even less than indicated by the arrow to just recoup the loss of trade#1. But it ended up with a profit so the distance travel is not 1/2 but a little more for the profit!

ES marked up and with orders distance traveled.jpg
 
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volpri said:
Here you can see the concept of distance traveled graphically from 1st entry to the exit of each trade. Trade #2 (yellow) is less distance traveled to recoup loss and be in the money really good than the distance traveled from trade #1 to create the loss. Not only was trade#2 less distance traveled, but also the distance actually traveled was even less than indicated by the arrow to just recoup the loss of trade#1. But it ended up with a profit so the distance travel is not 1/2 but a little more for the profit!

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Your trade #2 was a profit of 875 bux. What was the trade #1 loss for? What did you net? between the two trades? You are so happy to post profit figures, but never loss figures.
 
Overnight said:
Your trade #2 was a profit of 875 bux. What was the trade #1 loss for? What did you net? between the two trades? You are so happy to post profit figures, but never loss figures.
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Lol I got the entire loss of trade #1 back on trade 2 plus, in addition, a small profit of 875.00 after getting the loss back. All in trade#2. You bellyache about me not postings losses so here you go. Here is one. BUT it didn’t last long…ROFLMAO.

LOOK Fedex the purpose of me posting was to show a technique I use to get back a loss in a hurry and with price moving only about 1/2 the distance it had traveled when the loss was incurred.
 
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volpri said:
Lol I got the entire loss of trade #1 back on trade 2 plus in addition a small profit of 875.00 after getting the loss back. You bellyache about me not postings losses so here you go. Here is one. BUT it didn’t last long…ROFLMAO.

LOOK Fedex the purpose of me posting was to show a technique I use to get back a loss in a hurry.
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What was your loss on trade #1?
 
Lets pretend it was 1200 loss on trade #1. In trade number #2 I then made 2075 (1200 plus 875). Or let us pretend the loss in trade #1 was 300. In trade #2 I made 1175 (300 plus 875).

See it doesn’t matter. I made 875 after deducting all previous losses for the day. I made two trades. One was a loser and one was a winner. I ENDED THE DAY 875.00 profit.

Not sure what your point is? I shall retire now to arise in time for the market open. Hopefully, if I can drag my carcass out of bed. Goodnight.
 
volpri said:
It also implies we might want to learn how to trade “chop” since the market trades most of the time in ranges and channels (horizontal or slanted chop). Trends are composed of BO’s or spikes followed by channels (which can be called slanted chop). If a trader only trades trends i.e. BO’s followed by channels they are missing out on many trades once price gets to the horizontal chop i.e. range. If a trader only trades the BO or spike portion of a trend they often are missing out on the many trades in the channel portion of the trend and the horizontal or range portion of the cycle.

I believe day traders and especially scalpers should learn to trade all the market cycles. Develop tactics or techniques to trade in each phase of the market cycle. Trading doesn’t have to be boring. There is plenty to do and watch for. If one has the mental energy he can likely trade almost any bar of the 81 five minute bars of the ES. If a bar looks like it is not tradeable dial down to a smaller TF where micro channels…micro wedges..micro trends..micro BO’s can be found and traded.

If one’s mind get fatigued or stressed out then it is best, imo, to stop trading for the session. Otherwise, too many mistakes will be made.
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Good Morning Volpri,

This is the best post of the month on ET forum. I perfectly perfectly understand what you mean. I trade everything, I do not discriminate. Crude Oil taught me a value lesson this time last year trying to be a one trick pony in price action.
 
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