The CL/NQ experiment

Rashid_G. said:
Still think there is a buried reason for much of this: you don't want THIS trade to be a losing trade so you seek the absolute lowest TF and stop possible.
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I go by setups that show up on the 5min.
The charts are 1min charts because Ninja puts the trade lines only in that time frame.

A fast trending market in your mind means you could lose a lot so maybe you subconsciously avoid it.
You may also think deep down making money in trends is something anyone can do (too easy) so not as emotionally rewarding.
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Actually my back-testing showed that my system works best in trending markets but there are some days like today that the setups are scarce.
I never thought of the idea that some aspect of trading can be too easy and thus I will not want to participate (lack of reward) but maybe you are right.

Gabe
 
From what I have see in CL so far it seems to frequently chop in zones for a while.. (NoDoji please comment) IF so looks like waiting for some structure to build, drawing lines, and when the convincing break happens THEN trade.. These lines HAVE to be of a minimum length though..

What I am saying is a bar or 2 bar signal should only be taken IF there is broken structure OR a reversal off SOMETHING drawn on the chart..

Maybe I can go back to daytrading.. make a fortune!... :p NOT!
 
Gabe2004 said:
No secret.
From my back-testing I found that a stop of 11 ticks on a 5min chart,works for me.
I don't look at volume.
Today, I was taken out of trade #3 for 7 ticks. The MAE on that trade was 10 ticks so had I left the stop @ it's original 11 ticks, I would have been ok.
I moved my stop up because price moved above the high of the entry bar.
I should have waited for the bar after the entry bar to finish but I didn't.
Trade #2 and #4 clearly went against me.
I will continue with my Market Replay back-testing tonight.

Gabe
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Vol=volatility.

Anyone looking at your trades can see your stops are too tight. You seem to be trading some sort of pulback entry, but that often puts you into a congestion zone, just like rashid observed. If you are entering in congestion, you have to have stops outside the congestion zone or you will get knocked out way too often.

JMO obviously, but I can read a chart.
 
Rashid_G. said:
After the breakdowns there weren't ANY signal to follow the trend??

Where are your level lines?

Seems you find a way to trade just the chop (slower market) and avoid where the quick money COULD be. Same happened last week on that day when you traded ALL the chop and the chop only.
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Yes, exactly. He is doing everything backwards.

The typical newbie mistake is to try to trade the countertrend. It seems safer, but of course it is thin ice. Gabe does not seem to be doing that, but it seems to me his entries and his stop placement are not on the same page.
 
AAAintheBeltway said:
Vol=volatility.

Anyone looking at your trades can see your stops are too tight.
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I mainly trade off the 5min chart and my initial stop is 11 cents as that is what I arrived at looking at historical MAE.
These stops are adjusted to the extreme of the entry bar.
Yesterday may have been an exception.
I am investigating and I have made some observations but I want to re-check them.

Gabe
 
AAAintheBeltway said:
but it seems to me his entries and his stop placement are not on the same page.
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The following chart is showing my placement of entries and stops.

Gabe
 

Attachments

  • CL 03-14 (5 Min) 1_28_2014 Entry-STP rule.jpg
    CL 03-14 (5 Min) 1_28_2014 Entry-STP rule.jpg
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So that worked out great for you. Are you still in the trade?

In general, I think stops are not a good way to exit. They are the last resort, insurance against a breakdown in discipline or something unexpected. I would prefer to dump a trade when the entry conditions have been disproved or violated. For example, if entry is crossing a MA, then a recross invalidates the trade.
 
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