So...those of you in the chat room in the mornings know that Paul and I are goo goo ga ga over the 34ema and the ER2. I wanted to perhaps get some feedback on this methodology, as I really want to implement it.
I think I may start posting at the end of each session here what the opportunities were at the end of the day. Today, there were 8 total, one was after hours that I was papertrading.
It's a very interesting concept, and even if you take 2-3 of the opportunities that come up thats a nice supplement to the income stream.
The delta divergences that I use also tend to work well with this methodology, giving less total opportunities, but more defined ones.
I've attached a chart, so hopefully we can get some discussion going about this.
I'd love to know peoples' takes on stop placement, first of all. From the looks of it, one could place a stop right under the low of the bar prior and be safe. It gives a small amount of risk for the 1.00 looking to be gained.
I'm looking at a 233t chart and looking at this as a scalping method, not a longer term (5-30 minutes) method. This would be over and done with within 2-3 minutes most times. And getting 100 dollars per contract in 2-3 minutes....not bad.
So...let's discuss
What are your thoughts on the strategy?