[Trader333]

Jerry,

That is great that you have found IB to be OK for volume as that was my only concern and if it works for you then it is fine for me. Thanks also for your comments on Forex which I will apply.

Blowfish,

I think IB must have sorted this out and the only reason I asked was because back in around 2003 I was using IB as well as eSignal and plotting volume for both on US Stocks. There was a very big difference between what I was reading from IB and that of eSignal at the time. It is great though that my concerns are not an issue any more and I am very much looking forward to applying this approach.


Paul

[BlowFish]

Hi Paul,

To be honest I have not looked at stocks but I can say that things like index futures appear to be good and have been for some while.

[Trader333]

I decided to try Jerry's approach today and with anything like this I prefer to limit my risk before I am familiar with the method so I decided to try it on the Dow Mini Future (YMM8) with 2 contracts. I have attached two screenshots of my entry and exits and I would appreciate feedback from others who have been using this. The trade was profitable with +8.5 and +23.5 points so even if I did not do things as I should have it has not cost me a loss



Paul

[jperl]

Originally Posted by Trader333 »

I decided to try Jerry's approach today and with anything like this I prefer to limit my risk before I am familiar with the method so I decided to try it on the Dow Mini Future (YMM8) with 2 contracts. I have attached two screenshots of my entry and exits and I would appreciate feedback from others who have been using this. The trade was profitable with +8.5 and +23.5 points so even if I did not do things as I should have it has not cost me a loss



Paul

Good setups and good trades Paul. You've got the basics down correctly. Notice also that if you missed the trade at the VWAP you could have entered at the retrace back to the 1st Standard Deviation.

[Trader333]

Good setups and good trades Paul. You've got the basics down correctly. Notice also that if you missed the trade at the VWAP you could have entered at the retrace back to the 1st Standard Deviation.

I did wonder about that Jerry so thanks for this.


Paul

[jperl]

Originally Posted by Trader333 »

I did wonder about that Jerry so thanks for this.


Paul

Also think about what you would have done if the trade at the VWAP had not gone your way. Would you have exited the trade at the PVP or done something else?

[Trader333]

Hi Jerry,

I would have exited at either the PVP line or 1st Standard Deviation away from entry whichever was nearer at the time. Is that how you would have played it ?

Also when you said that I could have entered at the retrace back to the 1st Standard Deviation, would you exit if the trade went against the position at the 2nd Standard Deviation ?


Paul

[jperl]

Originally Posted by Trader333 »

I would have exited at either the PVP line or 1st Standard Deviation away from entry whichever was nearer at the time. Is that how you would have played it ?

That is what most traders would do and in my opinion leads to a slow bleed of your capital. To avoid that you have to have a complete change of thinking about stop losses. You might want to reread the thread on "Scaling in and Risk Tolerance" to get a different perspective.

Originally Posted by Trader333 »

Also when you said that I could have entered at the retrace back to the 1st Standard Deviation, would you exit if the trade went against the position at the 2nd Standard Deviation ?

Not sure I understand what you are asking. If you had entered at the 1st SD and the trade went to the 2nd SD then I would have exited at the 2nd SD for a profit. If I didn't exit at the 2nd SD, I would have not allowed the trade to become a loser. I would then have exited 1 tick below my short entry.
On the other hand if I entered at the 1st SD and the trade went immediately against me, I would have scaled in another contract at the VWAP.