Its true that in the big picture its probably better to give the cash a more flexible range (3-4) points. But, I'm real stickler about this. For me its very important to enter on limit after the cash tests. the future tends to overshoot increasing my chances of a satisfactory fill on limit. Its probably damaging my bottom line this approach but it gives me false sense of control. (using limits) I've been doing it forever this way so its become a bad habit. Any how thanks for the advice I should run a through backtest and see if I'm really shooting my self in the foot with this little nuance.
YM Journal
- Thread starter Adamned
- Start date
The lines are very simple. You just connect the shadows if they are not excessive. If they are excessive than use the bodies
I was looking to take the short side and hold until the rates market closed. And if I was nicely ahead I would of stuck with it even past 3pm to hit the 30 pt objective.
I was looking to take the short side and hold until the rates market closed. And if I was nicely ahead I would of stuck with it even past 3pm to hit the 30 pt objective.
You dont have to change anything but the futures hit and bounced off and the cash was approaching, I think a few ticks is fine to ensure an entry. Both charts look the same to me, only difference might be a few ticks on the cash.
In hindsight it was fine to miss the trade as the market came screaming back after flirting with a few pops to 12660 in the YM so you should feel very happy about your approach lol.
In hindsight it was fine to miss the trade as the market came screaming back after flirting with a few pops to 12660 in the YM so you should feel very happy about your approach lol.
This brings up a very interesting paradox. If the cash would have just hit the line at 2:07 p.m. Would there have been the sell off I was looking for. Its possible. As soon as 3pm (21:00 C.E.T.) hits I think alot of market participants especially here in europe close their books. Hence, the market can be pushed around to some institutions liking.
In my future posts I will attach Mountain charts instead of candles. I had a few a people struggle with why and how I'm drawing the lines. I guess its only easy for me because I've been using this approach for years. By using the mt. chart I think it would improve the accuracy rate of the setup. As you see yesterday it was very clear on the mt. chart that the retest missed my line. This is not as clear when you look at it on a candle chart. This improved accuracy rate and simplicity definetly comes at a cost. You will miss a few valid signals when the shadow retests but the close does not (Candle retests- Mt. doesn't retest). To rectify this shortcoming you could look on both types of charts. It surely can't hurt to look on more than one dimension of price.
If anyone reading this journal has not yet read Reminiscences of a Stock Operator or doesn't have it on e book format you can download it for free on this website.
www.trading-naked.com/Articles_and_Reprints.htm
I personally don't like Livermore the person he lost everything he owned way to many times. This should never happen more than once. But, the principles and fundamentals of successful trading are very clearly dealt with. I think that is the most important thing for the reader and he drives home the fundamentals of this business in a very personal way that somehow I can relate to. The first time i read this book I was so happy about reading it. It was one of those times in life when you read a really really good book. Its really a priceless moment and I can think of only a few other books that made me feel that way.
If anyone reading this journal has not yet read Reminiscences of a Stock Operator or doesn't have it on e book format you can download it for free on this website.
www.trading-naked.com/Articles_and_Reprints.htm
I personally don't like Livermore the person he lost everything he owned way to many times. This should never happen more than once. But, the principles and fundamentals of successful trading are very clearly dealt with. I think that is the most important thing for the reader and he drives home the fundamentals of this business in a very personal way that somehow I can relate to. The first time i read this book I was so happy about reading it. It was one of those times in life when you read a really really good book. Its really a priceless moment and I can think of only a few other books that made me feel that way.