Velocity Trader DAX Journal

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How I trade the economic #'s.

Before I start I'm sure someone is going to criticize me for saying this and say that it's a losing game, but they don't have the tools I have(Bloomberg and Reuters) so let them say what they want they haven't played this game.

Basically the way I trade the #'s is If an eco# comes out better or worst then expect I try to buy or sell right when I see the release. I will get filled about 50% of the time(unfortunately I wasn't able to get anything short on the release of the employment report yesterday). The second way is I play the #'s is If there is a big spike I'll try to play the counter trend, but I use real tight stops because if people are trapped in the DAX it can go I lot further then one would expect without a pullback. FOR ANY BEGINNERS PLEASE DON"T TRY TO PLAY ECO. RELEASES WHEN YOU SEE IT RELEASED ON TV ( Once the financial news stations get the #'s they already been out for at least 10 seconds and that a huge difference.) ALSO, PLAYING THE COUNTER TREND AFTER AN ECO. RELEASE IS SOMETHING THAT TAKES TIME TO GET A FEEL FOR. ALWAYS HAVE AN IDEA OF THE LEVELS THAT THE MARKET CAN GO TO AND HAVE AN IDEA of where YOU WOULD WANT TO ATTEMPT TRADES BEFORE YOU GET IN THEM.



Divergences.

If the DAX is making news lows and the EUROSTOXX is selling off but not making new lows, I'll buy the DAX when I see size on the first uptick in the EUROSTOXX. I use tight stops, when this works it works right away. You should know on the next one or to ticks The inverse it true if the market rallying.

I also play the opposite if the EUROSTOXX is making new lows and the DAX isn't. I'll look to buy when the EUROSTOXX uptick on size. Again I use real tight stops and should know if I'm right within the next few ticks.

THIS DOESN'T ALWAYS WORK BUT IF YOU WATCH FOR THESE SCENARIOS I THINK YOU'LL SEE THAT WHEN YOUR RIGHT YOU CAN CATCH A GOOD MOVE AND WHEN YOU ARE WRONG YOUR RISK SHOULD BE ONLY 1-3 TICKS. IT IS ESSENTIAL TO GET OUT RIGHT AWAY IF THE MARKET DOESN'T GO YOUR WAY WITHIN THE NEXT FEW TICKS. NO WAITING, NO HOPING.
 
You shouldn't have that much of a problem with slipage. 90% of the time I'll get filled on 5 lots sometimes I may get a split fill.

IF you are play B.O.'s (break outs) thats a different story. You must anticipate them, if you try to go at the market once it breaks out you will get slipage. If you go at the market and the breakout reverse you will be immedialty under water fast. So becareful about play B.O.'s with market orders. I use limit orders
 
Thank you very much.

1. I don't understand why you could'nt get in yesterday. I was late, but came in at 3035 with a short. I used a market order.

2. Who leads the way? Dax or Eurostoxx? I think it is Dax. So why let Eurostoxx decide what you should do?

3. Do you always use limit orders? And if yes: why?

4. Do you trade double tops? And double lows?
 
Quote from velocity_trader:

I trade more frequently at the open in the DAX not with wider stops. In the early trading in the DAX I find if you are right you'll know right away.
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I find trading at the open a bit of a lottery. Any particular system you use or is it gut feel with a stop and reversal ?

Hope you keep the journal going !
 
I couldn't get in because i use limit orders when trading the news I get my price or I don't get it. I have been nailed trading new with market orders before.

In my opinion the ? as to who leads the DAX of the EUROSTOXX, there is no answer sometimes one does sometimes the other does. I look at the EUROSTOXX because it takes more volume to move it.
 
I always use limit orders on news, and when scalping I use market orders to get out. Thats just how I trade sometimes one tick will determine if I stay in or get out of a trade so I want to get my price.
 
Yes, but I wait for the market to come of the previous extreme first I don't offer or bid it there. More time then not you will see the DAX take out the previous high or low by a few ticks and if it doesn't blow through right away I'll take that reversal.
 
I trade the opening off feel. I look at how the Big DAX componets are trading I like to watch SIE, DBK, and SAP. I look for reversals off the highs and lows in the first 30 min of trading.
 
THIS IS NOT A PLUG FOR TT.


I also watch the volume at the highs and lows and early on and can see the quick momentum shifts with TT. I thinks is a feel I have developed over time, learning to read the TT screen.
 
Thank you very much.

How much do you use charts? And what time-frame do you use?
Do you use technical indicators (MACD, Momentum...)?
 
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