Futures I Trade Show & Brooks Book

Kiwi · #**211** 06-29-2009, 05:43 AM

Good point Blowfish,

Sometimes you just have a day that doesn't suit your strategy. Today, by my definition of trend HSI had 9 trends ... 9 ... and you can guess that when I say my strategy is a little like Brooks and I only do the trend trades it was a tough day.

On the other hand Midknight is (from my definition of trend) mainly a countertrend trader and he had a fantastic day today.

So its not that you need more than setups ... you just have to accept that some days won't suit some setups. Such is life. Tomorrow is another day.

forrestang · #**212** 06-29-2009, 04:47 PM

Today was an awesome day for learning. I feel as though I learned a ton from trading today. I actually wound up slightly in the red, but that was mainly due to stupidity. I knew what had to be done but got impatient into placing orders.

The chart should be self explanatory.

But there was strong reversal in the morning. Not sure how to catch these without some reversal pattern, at the very least a DBBF? Then into nice sideways action. When this happens, we want to fade the range.

In particular we want to fine SMALL bars occuring near the extremes of the range. When we see a fbo of some sort, we can then relax and expect two legs toward the opposite side of the range which happened several times, as opposite traders who entered the fbo will now be trapped, and their covering will help our position. All other fades were generally quick scalps it would seem.

On another note, on Wednesday, I will be in the "Pure_PA" chat room if anyone else is capable of dealing with the distractions of the chat room.

Forrest

szubaark · #**213** 06-29-2009, 08:53 PM

I hope you realize that most of these FBO were +5,+4 Failed Tick Scalper Profit. So you woudnt be able to even get your Scalper Profit, then it would turn back on you and Whack you for -2 Point Stop (What Al recommends)

That range was a Tight, Controlled 1PT Range.

Also that SHort u missed by 1 Tick, was HUGE COUNTER TREND NO NO.
U had a Doji at Top of a Strong Bull day, i was looking for a Long 1 tick above High of that Doji. inside bar formed instead, and i was afraid of WHIPSAW both ways which USUALLY happens LOL

anyways, another shitty day. At end of day, it looks all CLEAR of course.

Kiwi · #**214** 06-29-2009, 09:09 PM

Originally Posted by szubaark

At end of day, it looks all CLEAR of course.

LOL. Aint that the way.

My day (Tuesday) starts in 1.5 hours ... and I've just had GOOD NEWS. Torchwood will show in Australia only a couple of hours after it plays in the UK. Life is good. The world is fair. I think that even the markets will be kind on this last Tuesday of 2008/09.

Happy New Financial Year everyone

forrestang · #**215** 06-29-2009, 10:26 PM

Originally Posted by szubaark

I hope you realize that most of these FBO were +5,+4 Failed Tick Scalper Profit. So you woudnt be able to even get your Scalper Profit, then it would turn back on you and Whack you for -2 Point Stop (What Al recommends)

That range was a Tight, Controlled 1PT Range.

Also that SHort u missed by 1 Tick, was HUGE COUNTER TREND NO NO.
U had a Doji at Top of a Strong Bull day, i was looking for a Long 1 tick above High of that Doji. inside bar formed instead, and i was afraid of WHIPSAW both ways which USUALLY happens LOL

anyways, another shitty day. At end of day, it looks all CLEAR of course.

I'm a bit confused at what you're pointing out?

All the fbo's yielded @ least a scalper's profit. And 2 out of 3 on the top had two legs down for well more than a scalper's profit. The last one at the top of the range moved all the way down to the other side of the range in one leg .

The first fbo on the bottom had two legs up to the other side of the range. The 2nd fbo on the bottom (also a failed Low2) moved all the way down through the bottom of the range and failed to break further......THEN moved up back to the top of the range. The last one would have been a funky entry as you'd have to have waited for the close of the bar as suggested.

None of these entries would have hit a 2 point stop. You could have gotten stopped out many times by adjusted your stop beyond each bar, but with a 3 pt range, Brooks suggests givng your trade room to work if it hasn't moved at least 4 ticks.

That last one missed by a tick, I don't think that was a bad trade? Definetely questionable, but not a horrible setup. It was a doji bar, but....it was at the top of the sideways range we'd been in all day. I wouldn't call this a strong bull day, I actually would ignore and disregard that strong trend early int he morning. This wasn't even a spike and channel bull where you get a strong move up and then at least an increasing channel, it was absolutely flat with no encouragement from the bulls.

szubaark · #**216** 06-29-2009, 11:15 PM

Today was safe giving your trade room and not letting next candle High Low Stop you out since the Range was so tight. BUT you NEVER know when we could get out of the Range on a 5-10PT Spike (happened last week), then instead of -2 Point Stop, your Stop would have been -5.

If you Shorted the Top of Range and Bought Bottom then u got your Scalp Profit, BUT if you waited for Signal Entry, they failed. Even small candle at bottom after spike next candle made lower low to take you out UNLESS you didnt scale by next candle high/low.

I prefer to scale Stop by next Previous candle high/Low because you never know when it can Spike against you.

BlowFish · #**217** 06-30-2009, 05:12 AM

Originally Posted by szubaark

I hope you realize that most of these FBO were +5,+4 Failed Tick Scalper Profit. ....snip....

Funny you should mention that. Here'e the thing I don't think the ES is a great instrument to scalp (well sometime isn't). Al talks at length about how many ticks move you need to get a scalp etc. and the ability to trade 200 as easily as 2. I have traded the ES on and off for a while and can remember when 10 point (and less) daily ranges where common.

If the distance between the BO (break out) and the previous swing (see enclosed chart) is not enough for a scalpers profit you might want to consider passing the trade.

Anyway sometimes the ES is kinda lifeless and with holidays upon us there will likely be some pretty lack lustre days. Another thing to look at is the infamous 'bigger picture' after a couple of days of momentum (especially if the last one backs off from the extreme on high volume) you might anticipate a day (or three) of narrow range listless low volume trading. I don't have anything formal along those lines in my plan but certainly something to be aware of.

Anyway here's a DAX chart from this morning. I thought the action is kind of similar to the ES chart that was posted. Not unreasonable to take a short at the bottom there which gave a comfortable 8 or 9 ticks to the previous low the actual move went a wee bit further despite the fact that you would have been on the wrong side of the market from the point of view of a swing. Maybe other trades there....I woke up late.

Long story short the ES sometimes lacks volatility for scalping (imvho).

EDIT: <doh> actually the entry should have been a few ticks better triggered off the 2nd white candle

djohnsonhot · #**218** 06-30-2009, 08:12 AM

I waited all day on Monday, the 30th, to pick up the quickie profit when we broke the range...made $725 in less than a couple of minutes...I also caught the pre-market action.

Today, news may drive some break-outs...beware that action. Sometimes I will trade 30 seconds into the news. I also am looking for bullish or bearish action 45 seconds to a minute prior to news releases because the insiders will sneak in with buying or selling...I will take the other side of those trades for 3 ticks, and 10 contracts. Fast money, heart-stopping, pure Las Vegas trades...not for the faint of heart.

But, then again, this entire Emini trade takes stamina. If you are not clearing 4 points a day, then another job may be in order.....

szubaark · #**219** 06-30-2009, 11:22 AM

"I will take the other side of those trades for 3 ticks, and 10 contracts. Fast money, heart-stopping, pure Las Vegas trades...not for the faint of heart."

Yea and you probobly had 3 heart attacks already and your hair is falling out.

mbfromla · #**220** 07-01-2009, 03:11 AM

Hi guys, I'm almost done with the book, and this is what my understanding about trading price action, the chart is for 06.29.09

I've been trading for a while, and from what I understand, 80% of so of a time, if a trade doesn't immediately work out, most likely it will go against you. Therefore 90% of a time if a trade is over 4 ticks against you, most likely stop will be hit. So im thinking to have a 6 tick stop in a regular volatility day.

Also, If anyone is serious about trading price action, a few of us could form a chat room on yahoo to discuss it live during market hours, if someone is interested please drop me an email at job858@yahoo.com below is the chart,, comments will be apreciated,,,hope it's not too confusing