Trading Rules

Spectre2007

Spectre2007

/ES - can be any derivative

Chart
240 tick
180 EMA (low)
200 EMA (low)
Previous Day Hi Lo Close
Previous Close (large horizontal line drawn)
Trendlines 240 tick chart
Larger timeframe Trendlines
Price pattern recognition/repetition

1) 9:30 10:30 price average calculation
2) Is price above or below opening range
3) Is the last EMA crossover implied bearish or bullish
4) Impending news events
5) Look for breaks of trendlines or support and resistance
6) Wait for retrace, initiate position in conjunction with EMA, opening range implications
7) Always use predefined stoploss (Every trade needs a stop loss entered.)
8) Look for lunch time mean reversion
9) Look for post lunch time trend resumption
10) Look for bounce or violation of previous days highs lows.

The above will keep your chances for survival higher.
 
If your looking to play mean reversion, wait for failure at daily high and proximity to long term high. (Mean reversion on longer timeframe)

Or failure at long term low and prev day low..
 
Spectre2007 said:
/ES - can be any derivative

Chart
240 tick
180 EMA (low)
200 EMA (low)
Previous Day Hi Lo Close
Previous Close (large horizontal line drawn)
Trendlines 240 tick chart
Larger timeframe Trendlines
Price pattern recognition/repetition

1) 9:30 10:30 price average calculation
2) Is price above or below opening range
3) Is the last EMA crossover implied bearish or bullish
4) Impending news events
5) Look for breaks of trendlines or support and resistance
6) Wait for retrace, initiate position in conjunction with EMA, opening range implications
7) Always use predefined stoploss (Every trade needs a stop loss entered.)
8) Look for lunch time mean reversion
9) Look for post lunch time trend resumption
10) Look for bounce or violation of previous days highs lows.

The above will keep your chances for survival higher.
More...

Well thought out, but newbies won't think much of it as this takes study and knowledge to understand your list took years of watching the screen. Thank you Sir, I wish more of older traders gave more like you just posted.
 
Handle123 said:
Well thought out, but newbies won't think much of it as this takes study and knowledge to understand your list took years of watching the screen. Thank you Sir, I wish more of older traders gave more like you just posted.
More...

To understand the nuances of the above it took years of screen time. It may look simple but it’s not. It’s quite mentally challenging to trade tick charts. Every time I violate any of the above rules, it always decreases probability of a good outcome. It takes a extreme amount of discipline to follow the above.
 
Real live trading rules -- from a real live trader -- maybe in response to a real live (if newborn) market?

This market just keeps getting better and better. :D




("Nice post, Spectre!"):)
 
Scenario 1:

Price is below OR
Last EMA crossover bearish
Price is at intermediate term highs
Price has created downward progression with a retracement, the retracement itself has created a tick trendline. The retracement progresses up to tick resistance(previous tick peak), the tick trendline breaks:

Action: Enter short with stop loss
 
So basically you could workout all the permutations of the conditions above and create plan of action or more importantly a plan to do nothing if signals conflict.


If price is in the middle of a intermediate term range, the only guidance you have is intermediate term trendline or support resistance. Price loves to travel from intermediate term high and low. It loves to range trade.
 
Spectre2007 said:
So basically you could workout all the permutations of the conditions above and create plan of action or more importantly a plan to do nothing if signals conflict.


If price is in the middle of a intermediate term range, the only guidance you have is intermediate term trendline or support resistance. Price loves to travel from intermediate term high and low. It loves to range trade.
More...
Only 70%to 80% of time....
 
If it’s a highly emotional volatile day going in. All you need is a set of EMAs on a tick chart. If price is expected to cover a tremendous amount of ground. The EMA crossovers are minimal compared to a slow day. Price just keeps going in one direction.
 
Seriously? EMA crossovers on a tick chart?
No offense. I’ve enjoyed many of your posts, but on this one, I can’t think of a more guaranteed path to failure.
 
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