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

[volpri]

I am going to have to leave as I have other things to attend to. Just remember, TR techniques will work until their is a successful BO and when that happens then a trader must go with the BO. but most remember most BO attempts fail within 5 bars. However, eventually a BO will succeed.

 

[MACD]

@volpri Thanks for all your posts and brilliant approach to using "bar by bar trading" !!!

volpri

"We mold our own reality in the markets. No one else does."


"@Baron , what do you think of putting this thread in the hall of fame?"




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[volpri]

I did take another trade and scaled in. Will explain later. Got something else to do.

 

[volpri]

Here are my trades for Friday. I have already explained in a post above the first two long trades (each one two points with multiple contracts). They are located in far left of box. After these first two trades when around 20 bars sideways to down were made I then drew the box. Price trade started trading back down around bar 11:55. Then started back up bar 12:15. Since I determined it was in a TR by then I waited until price got back up near the top 1/3 of the box. I then shorted 3 contracts bar 12:40 (my first entry short). Sometimes as it moves against me I will continue to scale but martingale on each successive entry. However, from bar 9:00 to bar 10:40 there was a strong move up. In a case like this it is probably best to reduce the size of each subsequent scale in so if price were to go quite a bit above the top of the box before turning back down one's risk is somewhat reduced as opposed to martingaling. So, as I scaled in my second entry short was on bar 12:55 where I added 2 contracts. It broke above the box and I added the third time but this time one contract. So now I have 6 contracts in place waiting for the move down. Why? because 80% of BOs top or bottom of a TR fail and price heads back into the range or at least towards the range (if it had gone out of the range).

On bar 13:35 I covered my third entry short (1 contract) for 7.5 points. I covered my second entry short (2 contracts) on bar 13:45 for 3.5 pts profit. I covered my first short entry (3 contracts) capturing 2 points also on bar 13:45.

So that is how one captures 13 points on one trade scaling in twice after initial entry and done so in a few minutes at the top of an established TR and scaling in as price moves against you, but reducing size on each subsequent scale in. Your stop loss has to be wide. to give the trade the opportunity to work.

Context is what is important here. Established TR. Price in top 1/3. Most BOs in a TR fail. So, odds are successful trade.

Add the other two previous trades of two points profit each one (and each with multiple contracts but no scaling in) and that makes capturing 17 points in a relative small amount of time.

No sitting around twiddling thumbs waiting for some obscure setup that or may not come during the session. This scalping. 1 to 8 points in an index. Manual HFT. LOL

Notice that bar 13:45 where my last two times I covered shorts. It went down with momentum and a BO out of bottom of TR and kept going down. Too bad I was not watching to move my profit target orders on such strong momentum and capture even more points but I had placed my Profit targets and was busy doing something else and they got executed.

 

[NoahA]

Notice that bar 13:45 where my last two times I covered shorts. It went down with momentum and a BO out of bottom of TR and kept going down.

We should also consider that if you were watching, going long at the bottom of the range would be appropriate... no? Price tried to go back into the range on the 14:00, but rejected it. If you would have gone long, and scaled in, it doesn't look like you would have been able to exit for any profit, especially if scaled in, and because it was so late in the day, there probably wasn't much time to reverse and double the position. Do you think this might have turned out to be a loss? Or perhaps after such a large bear bar, you wouldn't have tried to go long at the bottom of the range?

 

[volpri]

We should also consider that if you were watching, going long at the bottom of the range would be appropriate... no? Price tried to go back into the range on the 14:00, but rejected it. If you would have gone long, and scaled in, it doesn't look like you would have been able to exit for any profit, especially if scaled in, and because it was so late in the day, there probably wasn't much time to reverse and double the position. Do you think this might have turned out to be a loss? Or perhaps after such a large bear bar, you wouldn't have tried to go long at the bottom of the range?

After such a large bear bar and made on momentum I would not go long but wait to see is it was a successful BO. I would wait to see if the BO holds below the bottom of the range on PBs? and it did. Every attempt to reverse the big bear bar failed. If I was looking to trade in this case I would be looking to short not go long even though price was at the bottom of the range. Remember, eventually a BO will succeed. This one did. Second, I don't care much for trading in last hour or so of the session but sometimes will if the context is right.
Third we were 48 bars or so in this TR. About time for a BO to succeed.

 

[NoahA]

Remember, eventually a BO will succeed. This one did. Second, I don't care much for trading in last hour or so of the session but sometimes will if the context is right.
Third we were 48 bars or so in this TR. About time for a BO to succeed.

Thanks for the analysis.

 

[doubledoubledoublecup]

I watch what price does around high of the day. Here I take two - 2 point long trades as price gets close to the HOD. One as price gets close HOD. And the other after it breaks the HOD. The reversal up on bar 9:00 and the subsequent price action was strong. However, we could see a reversal around this HOD or a P.B. followed by a resumption to close the opening gap. I figured that a long trade in this area would likely have enough momentum to test the new high again in any event of a PB so I went long but grabbed what it gave me quickly. So 4 points in a few minutes.

I didn't turn computer on until after 10:00 so I missed that reversal up.

View attachment 334047

Hi Volpri, good to see you continuing with the thread. On the last trade, why did you took a long trade just below high of day which seems like a big resistance at that point?

 

[volpri]

Hi Volpri, good to see you continuing with the thread. On the last trade, why did you took a long trade just below high of day which seems like a big resistance at that point?

Those were short trades that I was covering. Look at my post 1794 again. On bars 13:35 and 13:45 I was covering my short entries on bars 12:40, 12:55, and bar 13:55. In other words, I scaled in (average down) short then covered those three entries on bar 13:35 and bar 13:45 (that big bear bar). Does that explain your question?

 

[NoahA]

Those were short trades that I was covering. Look at my post 1794 again. On bars 13:35 and 13:45 I was covering my short entries on bars 12:40, 12:55, and bar 13:55. In other words, I scaled in (average down) short then covered those three entries on bar 13:35 and bar 13:45 (that big bear bar). Does that explain your question?

I was also confused since those were exits, but then I realized his question refers to post 1775. There it does look like you went long just below possible resistance as you marked it.