Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Tiobingo

Russell EMini

Recommended Posts

Any Russell eMini traders finding success day trading the Russell these days? It was tough going for me a few months ago but it seems to have really come alive lately. I'm curious how traders are doing with it. What timeframes, objectives, etc. I like the 377 tick chart with my strategy.

Share this post


Link to post
Share on other sites
Any Russell eMini traders finding success day trading the Russell these days? It was tough going for me a few months ago but it seems to have really come alive lately. I'm curious how traders are doing with it. What timeframes, objectives, etc. I like the 377 tick chart with my strategy.

 

ICE Russell 2000 Emini TF is sensitive to volatility. Thus, that "come alive lately" you saw is due to key changes in volatility.

 

Time frames - 1min, 2min, 3min, 5min and 15min on a multiple monitor setup.

 

Objectives - Every day is different especially when volatility changes

Share this post


Link to post
Share on other sites

Yes wrbtrader. I follow the vix every day and noticed a huge surge right around the time that the Russell began to open up. I use it to help me determine the time frame that I will apply my strategy to. Like Tiobingo, I like tick charts, range bars and volume bars more than time bars. I do watch time bars and sometimes they even perform better than the tick charts I use, but I prefer a dynamic chart that also adjusts to market conditions.

Share this post


Link to post
Share on other sites

I have traded the TF off and on for the past few years. I have a love hate relationship with this market. I find that when I trade it I need to be on top of my game when it comes to jey level adjustments/stop management. When it's on there isn't a better market out there. When it starts to chop it can be difficult to handle (look at the first few months of 2010).

 

I also like using range charts on the TF. Currently I am trading the 5 range chart (.50). I'm able to get done with most sessions within the first hour of trading. I target 10 or 15 ticks depending on the type of setup it is (I track 2 types of setups). Like tiobingo said it has really come alive lately.

Share this post


Link to post
Share on other sites

My Russell trading today ended flat. I've seen some fomc days where the Russell was on fire, with many consecutive winners. Today, I would have ended positive but I don't trade 10 minutes around big news events and, needless to say, the winner that would have made the difference happened during the New Home Sales report. I ended up with - .1 today and was content to quit with that. Two of my trades ticked me out at breakeven, one was a partial loss and the other a full winner. Trailing stops had no potential this morning, that's for sure.

Share this post


Link to post
Share on other sites

It's always a tough call on Fed day. I didn't trade it this morning myself due to the Fed and the rebalance going on this week. My system did make it through decent with 3 wins and 2 losses for a positive 9 ticks of profit.

 

I wasn't expecting much out of the Fed release this afternoon and boy was that the case. Almost a non event in the afternoon trading. Still could see a selloff going into the close but so far a very choppy day.

Share this post


Link to post
Share on other sites

I just went live (real cash) a couple weeks ago with the TF using a volume bar breakout strategy which I backtested to Jan 4th with a 70% win ratio. The trouble is to achieve that win ratio, my risk/reward is 1:1, sometimes slightly negative and when the losers occur they are "large" which shakes my confidence to be honest. This strategy calls for basically putting on the trade and walking away which I think is best for my personality as I tend to micro-manage, but when the losers occur I say to myself "damn it, if I had been watching I could have managed this better" bla bla....

 

Not to ramble on or hi-jack the thread, but I'm interested if others have tried this "walk away" approach...?

Share this post


Link to post
Share on other sites

Great conversation on a favorite market. Thanks to the posters on this one.

 

TF used to be a personal favorite as well, when it changed from the CME to ICE it lost a lot of its luster to me -- but that really seems to be changing and the volume has seemed to return as has the volatility.

 

I always liked the speed of execution on this market as well. And reasonable margins. I think it's a better market for many than something like the ES which I find trickier to trade despite the volumes.

 

As to your post, markl67, I do like the set and walk away approach - of course strategy dependent. The key there is can you make your rules virtually mechanical? If you can, and you have a set of rules, then you can do that. Where I think this walk away falls apart is when you really don't have that -- it is subjective or has a lot of conditionals.

 

However, if you can get it nailed down to the specifics, I find psychologically it's much easier to trade NOT watching every tick then watching it. I've tried many times to have the monitor on and avoid it -- but it's virtually impossible. Instead, I personally sometimes turn off the monitor with the charts, and keep doing my other work on the other monitor or I know I'll just flick back to view the chart a 1,000 times in a few minutes :)

 

The key though is having those exact rules, and not beating yourself up over what "coulda/shoulda" if you would have been micro-managing....

Share this post


Link to post
Share on other sites

It really depends on the type of trade one is. Putting on a swing trade (overnight holds) or position trades (several weeks)...yeah...a walk away monitoring of a trade is ok. However, for day trading purposes...I can't imagine nor met anyone that was consistently profitable on the Russell Emini TF futures doing walk away as the primary approach as a day trader.

 

Thus, I myself as a day trader only do walk aways whenever I swing trade or position trade but rarely ever for day trades. Remember now, we're talking about the Russell Emini TF which is a volatile trading instrument. Yet, I do understand if a day trade position has moved strongly in our favor (big profits) and the day looks like it's going to be a trend day...yeah...set the trail stop and walk away but that's a rare type of day trade. I've done such only a few times this year but only after the position had gone in my favor more than +7 points and when I felt the trading day may continue developing into a trend day without any deep pullbacks.

 

Simply, walk away from a day trade position has never been a goal in my trading plan nor do I believe such can be consistently applied profitably a part of day trading. In fact, if a day trader is strongly considering "walk away from a day trade position"...that's a day trader that will better spend his/her time and energy in learning how to manage the discipline, stress, emotions of a day trade.

Share this post


Link to post
Share on other sites

I love the idea of a walk away approach but I'm going to agree with wrbtrader the russell is not a good market to try it on. This market can move on a dime (especially rencently) and you can miss things very quickly. If you have a detailed trade plan that you can stay committed to then it should be an issue to track the trade. If the trade plan has been proven to put the odds in your favor then it shouldn't be a problem watching the screen and staying disciplined to the rules. It just seems to me walking away from a TF chart would make it difficult to make stop adjustments and all other money management decisions. Not to mention I'm sure you would miss new setups that come on. My plan calls for looking for 2 wins and a positive result or the first 90 minutes of the session whichever comes first. I don't typically find it difficult to stay focused for that amound of time.

 

This is assuming you are talking about a daytrading approach. With swing trading it is totally different. I will only look at my swing charts a couple of times a day. I feel just fine walking away from these.

Share this post


Link to post
Share on other sites

Thanks for the responses. I got a private message from someone telling me to avoid putting on an OSO type trade making the stop public as that could ruin a good strategy. I guess insinuating that stops are intentionally "run"...and, to be honest the "consperacy theory" part of my brain has thought that could be true. Opinions on that...do you think stops are intentionally run?

Share this post


Link to post
Share on other sites

Mark,

On Forex with some low end brokers I would say they might stop hunt. Otherwise, no. Each broker logs time and sales and if a there are a lot of buyers or sellers and they happen to be at your level then so be it. I always use OCO orders, so that I can move the target or stop as I need to and they protect you from stray orders. If you do think that the market did not hit your stop, call your broker and have him show you time and sales.

I have several data feeds, so I can compare price action and to be honest. I have not seen that, so use them!

Share this post


Link to post
Share on other sites

If you notice in my charts above I get in on the pivots. I use a 5 tick hard stop always. The bars I enter on are called head and shoulders with the spike being the head, which have little room for error. Timing is the essential factor. I can say from my experience trading 10 contracts that I have not experienced a bias to take me out just because I was at that price with a stop.

Share this post


Link to post
Share on other sites

Would agree on this. I don't think you will see your particular sop hunted. Instead there could be traders guessing where stops could be hiding but your particular order is not in their sights.

 

 

 

If you notice in my charts above I get in on the pivots. I use a 5 tick hard stop always. The bars I enter on are called head and shoulders with the spike being the head, which have little room for error. Timing is the essential factor. I can say from my experience trading 10 contracts that I have not experienced a bias to take me out just because I was at that price with a stop.

Share this post


Link to post
Share on other sites

My broker (Tradestation) told me that the OCO orders aren't actually sent to the market until the price gets close to your levels. So it wouldn't really be possible for someone to intentionally try to hit your stops since they wouldn't actually be in the market yet. The drawback to that approach though, is that when your order is placed, you will be near the back of the line. To avoid that, you'd have to place unattached orders and manage the bracket manually, by yourself. You would get your order in the cue sooner that way. Always a double edged sword with every trade decision it would seem.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • $AIZ Assurant stock nice breakout, from Stocks To Watch , see https://stockconsultant.com/?AIZ  
    • Date: 28th March 2024. The US Dollar Strengthens As Economists Believe The ECB Will Struggle To “Hold”. Early this morning, the Fed Governor advised “there is no rush to cut rates” and “the data within the upcoming months” will be vital. The US Dollar Index rises to a 1-month high. The value of the USD will largely be based on today’s data on economic growth, consumer sentiment and pending home sales. Dollar and index traders are closely monitoring tomorrow’s Core PCE Price Index which analysts expect will read 0.3%. A higher inflation reading can potentially pressure stocks and support the Dollar. Strong declines in NVIDIA and Netflix stocks pressured the NASDAQ on Wednesday. Though, buyers entered late in the session to boost the overall price. EURUSD The latest comments from members of the Federal Reserve are supporting the US Dollar. The forward guidance between members of the Federal Reserve is mainly not aligned. The Chairman advises the Fed does not need much more proof for the regulator to feel comfortable reducing rates. Whereas the Fed Governor, Mr Waller, advises there is no rush, and he wants to see a few months of data before determining the next move. Therefore, the upcoming inflation and employment data will remain vital and could even push back rate hikes further. According to economists, the Federal Reserve will cut the interest rate on 3 occasions this year, but the timing of the first cut is less certain and may change depending on upcoming data. A positive factor for traders is that EURUSD exchange is not witnessing conflicting currencies. The US Dollar is trading 0.12% higher while the Euro is declining against most currencies. The Euro is trading 0.06% lower against the Pound and the Canadian Dollar and 0.16% lower against the Japanese Yen. Yesterday, the head of the Bank of Italy, Mr Cipollone, said that the authorities were confident that inflation would return to the target of 2.0% by mid–2025. He also supports the lower of interest rate and will use this as a basis for adjusting monetary policy. The Euro is generally under pressure as investors believe the European Central Bank will struggle to avoid cuts if the Fed decide to delay their adjustments. The US Dollar will be influenced by four major economic data releases. The US Final GDP, Weekly Unemployment Claims, Pending Home Sales and Consumer Sentiment Index. If these read higher than expectations with the weekly unemployment claims dropping, the US Dollar is likely to witness further support. However, investors should note the main release will be tomorrow’s Core PCE Price Index. Traders are expecting no major news for Europe and volatility levels may fall tomorrow as European markets are closed for Easter. Technical analysis currently points towards a continued downward trend. The price is trading below the neutral on the RSI and below the 75-Bar EMA. However, investors should note this will also be dependent on upcoming US data. USA100 The price of the USA100 was under pressure throughout the whole US session but was saved by an increased volume of buyers late in the session. However, a positive point is the components held onto their value. Even though the index fell in value, only 28% of the components declined. Investors will now turn their attention towards tomorrow’s PCE Price Index and the upcoming earnings season which will start in mid-April. The price is now trading slightly above the Moving Averages but slightly below the 50.00 on the RSI. Therefore, technical analysis remains at the “neutral” level and continues to indicate a larger price range. If today’s economic data is positive the stock market can witness confidence and support as this continues to indicate a soft landing. Though, if the data is too strong, it could also trigger a hawkish Fed which is known to be negative for the USA100. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $IBKR Interactive Brokers stock narrow range breakout watch above 111.16 , see https://stockconsultant.com/?IBKR
    • $ISRG Intuitive Surgical stock narrow range breakout watch above 403.07 , see https://stockconsultant.com/?ISRG
    • $JETS ETF top of range breakout watch above 20.61 , see https://stockconsultant.com/?JETS
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.