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Making a 100 a day

  #20 (permalink)

Denver
 
Trading Experience: Intermediate
Platform: Bookmap and Jigsaw DOM
Broker/Data: Stage 5 Trading
Favorite Futures: ZN
 
lax99's Avatar
 
Posts: 433 since Jun 2015
Thanks: 623 given, 809 received


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Thanks kindly for your reply, @lax99

I've never used renko bars before (never heard of them) and I use TOS as my main platform, so I'll give them a call and see if I can install the bars.


So when you say "Crude loves to move in 8 tick rotations, the ES in 5 tick rotations, and the treasuries in 4 tick rotations" - you mean that one should set the "brick" value at 8 points for crude, so that another one doesn't get drawn until there's 8 ticks worth of movement?

How did you come up with the rotations figure for each commodity?



Thanks again.


Before you go looking into Renko bars, I'd suggest sticking to whatever method you have set up right now. Market rotations aren't intrinsically bound to chart type or bar length or anything like that. Feel free to read up on em, but just know that they aren't the holy grail. The holy grail is a matter of understanding the auction process in your market and your personality in response to risk in said market.

As far as rotations go, don't worry about setting a chart to XYZ or something like that. What time frame do you trade in? 30 seconds? 4 hours? A handful of ticks or volume bars? Stick to that time frame and look at what crude does in that frame.

There should be a zigzag indicator for TOS floating around here somewhere. I did my rotation study the old fashioned way I loaded up my time frame and measured the high/low distance of any given move, as well as the distance of a retracement against the move.

It took me way too long, but I quickly got a feeling for the way the market breathes and moves when it trends versus when it auctions back and forth. I made a big spreadsheet of the movements--typing them in by hand--and then looked at stats for the data set.

I looked at 1 minute, 5 minute, and hour data. Obviously the market is going to have different characteristic rotations in each different time frame, and punching the numbers gives you a great idea of what to expect from your given product.

Feel free to let me know if you have any other questions!


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