Trading chop

[Ditch]

I guess you could say the first 30 min were rather choppy. I've been looking for a method to trade during chop. On the chart you'l see the trades i took.

 

[dbphoenix]

Quote from Ditch:

I guess you could say the first 30 min were rather choppy. I've been looking for a method to trade during chop. On the chart you'l see the trades i took.

What's the method?

--Db

 

[Ditch]

As you know the problem with indicators is that they lag. I've noticed that when a macd crosse below 0 in a uptrend, that is often a good point to enter, because as a big part of the retracement has already happened. If you enter when the MACD turns positive again, you're actually being the break-out. when it's choppy this is a recipe to get burned, unless you're using big stops. So entering as i described gains a couple of points every time. the trades i took had some discretion, is was also looking for a touch of the donchian channel combined with the MACD XO

 

[dbphoenix]

So each entry is a counter-trend entry?

--Db

 

[Ditch]

No, the opposite it's a entry in the direction of the trend. Hope this chart clarifies.

 

[Breakout]

Actually, the first 40 minutes was pretty good on the ES, but, since then it's been crap.

 

[Breakout]

The last hour or so...chop, chop

 

[bobcathy1]

We are always "trading chop"....just some chops are longer than others. That is why it is good to scale out at the first move and if it is a short chop, the worst you will do is break even when you hit your stop. But if it is a long chop, you will be in there from the start of the move.

 

[Breakout]

Quote from bobcathy1:

We are always "trading chop"....just some chops are longer than others.

Hmmmm...never thought about it like that...hehe

 

[Ditch]

Quote from bobcathy1:

We are always "trading chop"....just some chops are longer than others. That is why it is good to scale out at the first move and if it is a short chop, the worst you will do is break even when you hit your stop. But if it is a long chop, you will be in there from the start of the move.

a trailing stop could work well also. right now im experimenting with pulling it up to 0 very fast, keep it relative loose till 10 pts and from there keep it very tight again. This causes you to be stopped often if the initial move hesitates, but i don't care about. this way your percentage if losing trades goes down considerably.