[wrines]

From my observation of this strategy on ER2 and YM, I have yet to see it be very effective at all on YM, and very effective on ER2 with a couple caveats.

On ER2, I set this up as a bracket trade as soon as I see what the 9:15-9:30 range is. The buy/sell on the breakout is an OCO order I set up in Ninja. One of the things I like about ninja trader is that is can be set up to then automatically manage a trade beforehand, and I have found it effective to use a setting where I have an initial 1 point stop loss and 5 point target, and then once there is .70 profit it moves the stop to entry +.20, and trails every +.70 (locking in .50 profit every step). Doing it this way has kept me out of losses on the reversals and yet locked in decent moves at the same time. Today, for example, we had a reversal but I was able to lock in 1 point before that.

It can be tough to manage if you cant do it automatically with something like Ninja, because the instrument reverses so rapidly you dont have time to adjust before a .70 profit becomes a loss...and insisting on a minimum 1 point gain can lead to a loss instead.

My .02 from experience this past week.