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

I hope Volpri doesn't mind but I want to make another post in his thread. Looking at this chart we are talking about, lets say we saw this range that I outline before the shorts that he was talking. We are clearly in a down trend, but lets say for some reason we see the range which starts around 9:42, as outlined by the red and green lines, and decide to try a long at the first blue dot.

I know that Volpri has rules and perhaps that big bear bar might have him not taking a long, or simply for the fact that the trend is now down, but lets just say we try because of the range. Its obvious that the range breaks, and our long is in trouble. Then its nothing but bear bar after after bear bar. A tight stop loss might have gotten us out for a 2 point loss, but then we aren't sure what to do. Sure, going short might be wise, but after a break below the range, and a further drop, which made us take the loss, its now not an ideal place to short, so are stuck waiting.

So I say we stick with the long and average in. For me personally, I like to wait until I'm down about 4-5 points. I don't want to have to average in 5 times and make it turn into a very big trade. Now this is of course based on the average daily range or height of the bars. If the range on most days is barely 10 points, then averaging in at 2-3 point intervals makes sense. But if the range on most days is 30-40 points, I'm gonna wait till it goes 5 points against me.

So my first long was at 3698, and I add at 3693. Its for no reason other than the drop is accelerating, and there should be a pullback. My BE exit for this trade is now 3696 (to cover commissions), and we see that I didn't have to add a third time which would be at 3688. I get my BE exit and I'm happy.

2021-10-09--1814.55.png


Now clearly some days it will continue to drop, maybe I add a 3rd time, and it still doesn't work. Well, on those days, I might have a big loss, but you know what, it clearly means there is something to this drop, so after my loss, perhaps shorting will make it back.

But I want to be clear that this might be a long that Volpri would never take. I simply see ranges and want to buy the bottoms and sell the tops.
 
volpri said:
Gotta go ….football time. You watching them aggies speedo? Energy should be high. Bama is good. Will they be good enough?
More...
I don’t like the Aggies despite a number of Aggie friends but any day the Evil Empire loses is a good day.
 
NoahA said:
I hope Volpri doesn't mind but I want to make another post in his thread. Looking at this chart we are talking about, lets say we saw this range that I outline before the shorts that he was talking. We are clearly in a down trend, but lets say for some reason we see the range which starts around 9:42, as outlined by the red and green lines, and decide to try a long at the first blue dot.

I know that Volpri has rules and perhaps that big bear bar might have him not taking a long, or simply for the fact that the trend is now down, but lets just say we try because of the range. Its obvious that the range breaks, and our long is in trouble. Then its nothing but bear bar after after bear bar. A tight stop loss might have gotten us out for a 2 point loss, but then we aren't sure what to do. Sure, going short might be wise, but after a break below the range, and a further drop, which made us take the loss, its now not an ideal place to short, so are stuck waiting.

So I say we stick with the long and average in. For me personally, I like to wait until I'm down about 4-5 points. I don't want to have to average in 5 times and make it turn into a very big trade. Now this is of course based on the average daily range or height of the bars. If the range on most days is barely 10 points, then averaging in at 2-3 point intervals makes sense. But if the range on most days is 30-40 points, I'm gonna wait till it goes 5 points against me.

So my first long was at 3698, and I add at 3693. Its for no reason other than the drop is accelerating, and there should be a pullback. My BE exit for this trade is now 3696 (to cover commissions), and we see that I didn't have to add a third time which would be at 3688. I get my BE exit and I'm happy.

View attachment 269166

Now clearly some days it will continue to drop, maybe I add a 3rd time, and it still doesn't work. Well, on those days, I might have a big loss, but you know what, it clearly means there is something to this drop, so after my loss, perhaps shorting will make it back.

But I want to be clear that this might be a long that Volpri would never take. I simply see ranges and want to buy the bottoms and sell the tops.
More...
Despite not having perfectly horizontal boundaries, it was a trading range and fading the edges is perfectly sound.
 
NoahA said:
Well, on those days, I might have a big loss, but you know what, it clearly means there is something to this drop, so after my loss, perhaps shorting will make it back.
More...

Could you instead add when you have been proven right? Mean reversion trades have the problem that occasionally, you get big losses.

I'm still learning how to add well but it is a superpower when wielded correctly.
 
NoahA said:
I hope Volpri doesn't mind but I want to make another post in his thread. Looking at this chart we are talking about, lets say we saw this range that I outline before the shorts that he was talking. We are clearly in a down trend, but lets say for some reason we see the range which starts around 9:42, as outlined by the red and green lines, and decide to try a long at the first blue dot.

I know that Volpri has rules and perhaps that big bear bar might have him not taking a long, or simply for the fact that the trend is now down, but lets just say we try because of the range. Its obvious that the range breaks, and our long is in trouble. Then its nothing but bear bar after after bear bar. A tight stop loss might have gotten us out for a 2 point loss, but then we aren't sure what to do. Sure, going short might be wise, but after a break below the range, and a further drop, which made us take the loss, its now not an ideal place to short, so are stuck waiting.

So I say we stick with the long and average in. For me personally, I like to wait until I'm down about 4-5 points. I don't want to have to average in 5 times and make it turn into a very big trade. Now this is of course based on the average daily range or height of the bars. If the range on most days is barely 10 points, then averaging in at 2-3 point intervals makes sense. But if the range on most days is 30-40 points, I'm gonna wait till it goes 5 points against me.

So my first long was at 3698, and I add at 3693. Its for no reason other than the drop is accelerating, and there should be a pullback. My BE exit for this trade is now 3696 (to cover commissions), and we see that I didn't have to add a third time which would be at 3688. I get my BE exit and I'm happy.

View attachment 269166

Now clearly some days it will continue to drop, maybe I add a 3rd time, and it still doesn't work. Well, on those days, I might have a big loss, but you know what, it clearly means there is something to this drop, so after my loss, perhaps shorting will make it back.

But I want to be clear that this might be a long that Volpri would never take. I simply see ranges and want to buy the bottoms and sell the tops.
More...
It is a 1min chart. It probably was not the chart I was trading from. I don’t remember. I usually don’t trade 1 min charts. I think I was just showing the implied PB trades taken on a 5 min chart were an actual PB on a 1 min chart.

As concerns the range you drew in. On a 5min that would not yet be a range. But if I were trading the PA on the 1 min chart shown then it was indeed a range and I would likely go long at the bottom. But once we got a BO south with FT (FT being second bar after the BO closing low and a bear bar) I would dump my long and go short at the close of that second bar doubling my previous size to get back my loss and back in profit quickly.

From a 5 min chart perspective I shorted bar 9:35 and covered on bar 10:00 (10:04 on 1m) That range on the 1 min chart was a PB or pause on the 5 min chart followed by a continuation south once the PB ended. My exit on bar 10:00 (5m chart) at bar (10:04 1m) was a second leg down exit of a bear move.

On bar 10:05 I started shorting and as it pulled back I added 3 more times betting that it wouldn’t Pull back more than 50% of the move down from bar 9:32 to low of bar 10:05. On bar 11:10 I averaged down 1 more time then on bar 11:20 I exit the entire position making a profit on all the entries but the first entry short that which was made at the bottom of bar 10:05.

Remember, the trading was done on a 5 min chart.
 
Last edited:
You must log in or register to reply here.
Back
Top