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Old 11-05-2007, 08:44 PM   #1

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The Chimp`s new "Futures Scalps"

Ok... for the sake of keeping things more organized I will start this new thread of a possible new graphic context where some very nice futures scalps can be taken...

I am a futures scalper myself, thats my full time profesion... if someone is interested a little more on my background presented here on TL you may want to check this threads :


http://www.traderslaboratory.com/for...ance-1714.html

http://www.traderslaboratory.com/for...rade-1802.html

http://www.traderslaboratory.com/for...rade-1942.html

http://www.traderslaboratory.com/for...rade-1994.html

http://www.traderslaboratory.com/for...ntum-1763.html

I do trade fixed daily targets... that changes from time to time... actually I am making U$50 per /day contract on YM, wich is equivalent to 10 ticks net..

Once target met, I call the day... go to research... actually forex... or happy hour...

What I am about to present here I DO NOT trade live YET... as it doesnt form part of my "formal" trading aproach... if eventually I really like it, I will trade it live...

This will be the first time that I bring something from my forex research to the futures arena... so far I had been trading very independently on futures related to the forex research...

Obviously there are a lot of philosofy on my trading that its there...

Thanks to the translation of Bruce`s work into NT (Ninjatrader) and some other key indicators that Sparrow coded, I tried today a little bit of some concepts translations into futures using NT... they look nice...

let me talk first about concepts... I will prepare some cofee first... cheers Walter.
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Old 11-05-2007, 09:29 PM   #2

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Re: The Chimp`s new "Futures Scalps"

Concepts... when you trade you must trade concepts...

Concepts are above any chart, indicator, time frame, instrument or subjective opinion...

You are not trading an indicator, but yes the concept... the indicator its just showing you, in an easy understandable way the concept you are trading...

So its not about becoming indicatorist, but more conceptist ( in my personal language )

So whats the concept the chimp fulls always arround ? well he likes the idea of centrifugal and centripetal action... the axis is the average of all price action, and it would not be axis nor average if it wouldnt have comes and goes in a rejection/refreshing fashion...

If you add to that the fact that the market is formed by cycles and that he takes little brakes on each move... then you have a very simple centrifugal morfology to start from :



with that said you have the basic premise to elaborate on a "scalper" centrifugal concept... the scalper wants to play "each" one of this "sub cyles" that happen inside a larger move as its moving outwards from the axis :




So what info we need to put together our centrifugal concept on the real world :

_Direction of the large move
_Perception of the pauses and continuations (Pullbacks and entries)

thats where optimization may come into place whehn I recognize the fact that advanced indicators can give you an edge on detecting this concepts more easy...

For the Centripetal concept, we have a phenomena called exhaustion, where the market wants to get back to the axis...



He starts showing signs that the bigger cycle is making an inflection back to the axis, and my strategy now is to play on that new direction...

You have to be open-minded... cant get enthusist only with one particular direction, because it will change...

comes and goes, every other day... over and over again... thats it...

How can we see that... well check my previous threads and you will see "one" way to see it... now on this new thread I will present "another" way to see it... but basicly the market is one, its the same thing... just diferent tools to see the same thing... something similar is happening on the forex research, there are a variety of ways to see the same thing...

basicly I believe in confort for trading, you have to enjoy it and feel confortable, some good smooth music behind... little stress , pure joy... the way you see this concepts can be many... find the best that suits you...

I will present here "another one"... nothing new really... just "another one"... cheers Walter.
Attached Thumbnails
The Chimp`s new "Futures Scalps"-1.png   The Chimp`s new "Futures Scalps"-2.png   The Chimp`s new "Futures Scalps"-3.png  
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Old 11-05-2007, 09:49 PM   #3

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Re: The Chimp`s new "Futures Scalps"

So for this new simple way of looking the same market I will use my classic 22Tick time frame on YM (miniDow) futures... only that chart, no need for larger time frames... (this is scalping)...


So let me present this menu of the info we need to extract out of a chart :

_Large direction

_Subcycles

_Timing Entry triggers

_Exhaustion hints

With that four things you are in bussiness...

This four things can be detected more easy with certain type of tools... I love interaction... if someone grasped after reading all this how it works each component of this menu... first he has evolved on market reading... second he may be ready to find optimized ways to read this same information...

I like so far the optimization of this one... didnt expect to do this work as I am on an old solid cadillac on my futures trading, but it sounds nice a little innovation...

on next post I start with "Large Direction"... cheers Walter.
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Old 11-05-2007, 10:05 PM   #4

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Re: The Chimp`s new "Futures Scalps"

"Large Direction" jejejej

almost a joke... I call on my scalping a "Large Direction" one that may last 10 minutes ¡¡ but still its the large direction ¡¡ because I trade the subcycles inside that "large directions" that some times dont get to 1 min of duration...

so this is scalping... not suited for everybody...

So Large Direction on this case will be presented very clearly by our "rainbow" indicator created out of vma`s... I just put two colors into it as I am only interested on the base magenta line and see momentum developments on the rest of the red area...





So even a kid can tell you on that chart where the large direction is going... very graphical, if we are above/below magenta axis band we are going up or down...

Nice thing with this rainbow is the momentum readings, when he expands its a healthy momentum, he becomes small, very low momentum (cycle conditions)... I recomend this series of videos on momentum discernment using rainbows http://www.traderslaboratory.com/for...ps-2558-3.html as it explains how momentum works and how you can read it thru the rainbow...

so thats how we define our "Large Direction" ... cheers Walter.
Attached Thumbnails
The Chimp`s new "Futures Scalps"-large-direction-1.png   The Chimp`s new "Futures Scalps"-large-direction-2.png  
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Old 11-05-2007, 10:27 PM   #5

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Re: The Chimp`s new "Futures Scalps"

Now I need to see the "Sub-Cycles"... the one I will actually trade... my bussiness... you gotta love them, have to become their friends, look them with love, buy them ice-cream... never get mad with them, they are your friends, they feed you...

So a nice way to see this is thru a line that defines the price action, smoothing down all the noise from the bars and at the same time its still a leading line... here I get out of vma research to my (insider research on hull averages )

This line will tell us whats happening on the development of the sub cycles... in a cristal clear way...

So let see here :













So its clear the subcycles inside a Large Direction move... you can clearly see the pullbacks and continuations with this lines...

On this case I am using a hull average 4 and a sma 4 of this hull... very simple, very powerfull... cheers Walter.
Attached Thumbnails
The Chimp`s new "Futures Scalps"-subcylces-1.png   The Chimp`s new "Futures Scalps"-subcycles-1b.png   The Chimp`s new "Futures Scalps"-subcyles-2.png   The Chimp`s new "Futures Scalps"-subcyles-2-b.png   The Chimp`s new "Futures Scalps"-subcycles-3.png  

The Chimp`s new "Futures Scalps"-subcycles-3-b.png  
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Old 11-05-2007, 11:15 PM   #6

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Re: The Chimp`s new "Futures Scalps"

So now that we know the "Large Direction" and the "Subcycles", we need to see our "Timing Entry Triggers" the one that tells me , now press the mouse button... it will NEVER be perfect, but has to be optimized...

So on this case the same lines that tell us the "Subcycles", will be also used in a quite efective way for our "Timing Entry Trigger"....

The Hull 4 and its signal sma 4 when they crossover they give an entry signal... this way we can make our timing on the price pane and not with an oscillator.. (something new for me, as I normally time with cci)...








i compared this signals with the oscillator, very similar... the edge is simplicity here...

If you look some of this examples here you will see some cases where there was a lot of whipsaws... well take the first one, then if you didnt get stoped with the chimps universal stop system http://www.traderslaboratory.com/for...stem-2754.html should you be glad...

Thats the very simple way of timing the entries on this scalping aproach... cheers Walter.
Attached Thumbnails
The Chimp`s new "Futures Scalps"-timing-entry-triggers-1.png   The Chimp`s new "Futures Scalps"-timing-entry-triggers-2.png   The Chimp`s new "Futures Scalps"-timing-entry-triggers-3.png  
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Old 11-05-2007, 11:58 PM   #7

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Re: The Chimp`s new "Futures Scalps"

Ok so now we want to see on our chart a fourth component that could amplify the perception of Exhaustion... "Exhaustion Hints"

One way is thru divergence... it may be tricky, but diverging rave tops are nice to call for centripetal refreshing setups of M`s types... this is counter trend, you must understand that on great momentum conditions they are agresive... still is one of my favourites setups once you get used to it... not suited for newbies... so this must be practiced a lot before any live tading..

The market is somehow far from the axis and its making an M type pattern where it can be ( lazy, equall or false break ) :



and on that extremes a divergence from an oscillator may come handy to confirm the "potential" exhaustion...




One nice classic oscillator for this can be the Chaikin Oscillator as it is a Macd of the Accumulation/Distribution line... so its not a macd of price itself but of price and volume making it more robust... there are many other oscillator for this as well...

so here some charts of this type of situations :







it is an agresive type of setup... you look for m`s and get more confident with the divergence... cheers Walter.
Attached Thumbnails
The Chimp`s new "Futures Scalps"-m-extreme.png   The Chimp`s new "Futures Scalps"-m-extreme-divergence.png   The Chimp`s new "Futures Scalps"-divergence-1.png   The Chimp`s new "Futures Scalps"-divergence-2.png   The Chimp`s new "Futures Scalps"-divergence-3.jpg  

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Old 11-06-2007, 12:23 AM   #8

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Re: The Chimp`s new "Futures Scalps"

The spirit of this trade its to shoot for a few ticks... nothing more than that... it is not intended to stay for any super move, thought there will be.. they are not your bussiness... this is scalping...

If you look carefully to the subcycle charts I use for example with the green arrows, you will notice that the arrows normally have an average size... that average size should be your target on any trade... you will also notice some few exceptions of super moves... for that you must understand that they do not form part of your trading getting the entire moves (at least on this scalping aproach)... thats why I use daily targets, its an excellent way to control greed... so let me do some videos on this... cheers Walter.
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