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My 6E trading strategy

  #901 (permalink)

Bala, PA, USA
 
Trading Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Mirus, IB
Favorite Futures: SPY, Oil, Euro
 
monpere's Avatar
 
Posts: 1,858 since Jul 2010
Thanks: 300 given, 3,321 received


forrestang View Post
If anyone has other instruments they've been watching, along with what settings for the chart resolution, I'd be interesting in hearing WHAT you use, and WHY you've chosen that setting.

Example, I've been looking at the CL, and the 1508/377 combo appears to provide a similiar frequency of signal as the 6E. Along with that I am looking at stop/target of 13/25 tics. Also, instead of giving it a minimum of 2 tics within a SR level like 6E, I'm willing to give it 4 tics based on the way CL moves. Everything else is the same (not looking for changes in settings indicators, just chart resolution and why).

I didn't mess with the TF, but I did bring it up quickly. The 1508/377 looks fine, but it was a completely different frequency of signal, in that 1508 tics on TF doesn't bring up as many trades due to the volatility of TF compared to CL or 6E.

The reason I mention is because Charles mentioned the other day there is a certain 'look' that provides the best opportunities. I think for me personally, it would be nice to tune my eye to 'that look.' This particular 'look' happens every once and a while, and once one could recognize this 'look' easily, deploying it across a few instruments might make trading a bit easier. There are valid trades without 'the look,' but for me I would like to have the option to look just for that one type of pa.

'The Look' was basically price remaining above/below the cloud in an obvious trend. The cloud will also have some fatness to it. Basically anytime price goes more than a few tics into the cloud, the look dissapears.

In the case of price coiling, or not really being in that obvious trend.... when it starts to move in one direction or another, waiting for 'that look' could make things easier.

Here are two different instruments over the same period. I tried to mark off the areas with 'the look' in green, and the other areas where price isn't in that obvious trend mode in red.

Interesting. This is the way I trade. I have been calling that 'look', setup 'pictures'. I trained my eye to see the set of rules of my setup as a picture, that I can recognize instantly. So, then I can watch 3 or 4 uncorrelated markets, and instantly recognize setups in any of them.

As the system in this thread seems to be a trend following system (as every pullback system is), I think it should be equally easy to follow multiple uncorrelated markets. If you would develop a rule to determine if a market is in the proper trending mode (I personally use 20/50/200MA stack), then it that market is not trending properly, then you can just ignore it, and focus on any market which is in that mode.

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