Thanks Ditch...
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Yesterday's Hi-Lo range on the ES: a favor
- Thread starter candletrader
- Start date
Thanks Ditch...
You're welcome. Here's something else you might like to see. It's the opportunity report for ES at different holding periods. It's disturbing to see the volatility continue to shrink. If it keeps shrinking at this pace then daytrading will be very limited in 2 or 3 years.
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acrary,Quote from acrary:
You're welcome. Here's something else you might like to see. It's the opportunity report for ES at different holding periods. It's disturbing to see the volatility continue to shrink. If it keeps shrinking at this pace then daytrading will be very limited in 2 or 3 years.
won't it be ok to just go for the 2 day range instead? for example, in your file, if 17.4 points isn't enough for you right now, but 20+ points is, then you could hold overnight and go for the 2 day range. as your file shows, the 2 day range is 23.7.
but then the problem becomes you probably won't make as much $ in a year, because now it takes you 2 days to make what you could before in one day. if you wanted to make the same amount of money, would you increase the size of your trades? i know this might mean bigger drawdowns, though.
the other thing i was wondering, is there a current trading instrument with increasing ranges or at least not decreasing so much? or do the ranges of many markets generally decline together? if the ES range declines relative to price level, then maybe there is a bullish market out there with increasing ranges.
Quote from acrary:
You're welcome. Here's something else you might like to see. It's the opportunity report for ES at different holding periods. It's disturbing to see the volatility continue to shrink. If it keeps shrinking at this pace then daytrading will be very limited in 2 or 3 years.
Very interesting... thank you... I suppose we must all live in hope for an increase in the index levels, whereby identical % changes as now will allow larger points to be pocketed...
P.S. What are the larger numbers e.g. 2486, 1686, 1336... 241 ? Are they the number of trades under your system?
Quote from candletrader:
P.S. What are the larger numbers e.g. 2486, 1686, 1336... 241 ? Are they the number of trades under your system?
That's the total number of points that could have been had for the holding period in that year. ex. 2486 is the total points so far this year that could have been made buying the low and selling the high each day. 1686 would be buy at low today and sell at high tomorrow or vice versa. I use it to compare against my total points per-contract to see how efficient my trading is. I was taught that a decent trader will make 25% of the available trading profits in a trend. On my daytrading then, I should have netted 622 points per-contract so far this year if I traded all days.
Quote from acrary:
That's the total number of points that could have been had for the holding period in that year. ex. 2486 is the total points so far this year that could have been made buying the low and selling the high each day. 1686 would be buy at low today and sell at high tomorrow or vice versa. I use it to compare against my total points per-contract to see how efficient my trading is. I was taught that a decent trader will make 25% of the available trading profits in a trend. On my daytrading then, I should have netted 622 points per-contract so far this year if I traded all days.
0.25x2486 = 622
143 trading days upto yesterday...
622 / 143 = average of 4.34 points per contract per day... that's very impressive!