Based on your comment shown above, why change anything? If you have found a way to consistently make money using any method or instrument, why are you looking to change anything? I find that many people look to "optimize" what is already working, and end up hurting themselves more than anything.
Also, can you provide more information on what you mean by you missing your entry point? Are you using a limit order and you fail to get filled?
Personally, I prefer range bars, 6 range for entry, and always use market orders. I will on occasion get some slippage more than a tick , but I am looking for entries which are usually followed by some decent momentum, and thus don't want to miss my entry point. Range bars speak to me, Renko may speak to you better. As far as a larger chart, I only use them when price is trading outside of my entry chart, and I need to determine a possible area of support/resistance, for stops/targets.
Keep it simple, and if you have something which is working, only look to increase size, and not change anything else.
Just my $.02.
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I guess you are considering range or renko, not so much to 'slow' the market down, but more because range and renko have a definable point where the bar will close and the next one open. In that way I assume you are saying your strategy allows you to see a signal setting up so you would put your order in advance at the forecasted close of a bar (or +1 tick or whatever).
I trade CL this way. I used to trade a range chart like Gary, but 7 tick. Now I use a 5 tick Renko as I find this talks to me better. I use BetterRenko but SbSRenko works just as well.
I scalp for 4 or 5 ticks (on most setups) so I use Limit Orders for entry - but I acknowledge a number of times you will not get filled as the market skips past your limit. Gary (see his post above) accepts a little bit of slippage as he is going for bigger profit targets that I am.
Best thing to do is put up 3 charts (yours, range and renko) and trade them in SIM for a while and see what you think.
When I say missing my target I am referring to this. I believe that my entry is going to occur one tick above or one tick below the close of the currently forming bar. I have my set up in place but this bar needs to trigger the set up so I must wait for the tick bar to close. Once it closes I need to place my order fast, but sometimes the market moves so quickly that my limit order never gets filled. I wind up loosing out on a nice winner.
As far as trading one chart is concerned, it is my own personal bias not to do it. I cannot even count the number of great trade set ups on my trading or trigger chart I have passed up because, momentum, volume or cycles are moving in the opposite direction on the higher time frame. If I would have taken the trade I it would have been a looser or at best a scratch win. Its when these energies align that you get your low risk, big winning trades.
What’s tough about trading range bars is trying to figure out what your longer term time frame chart should be. Today I traded CL on SIM, using an 8 range as my trigger chart and a 900 tick as my confirmation chart. Optimally, the ratio should be about 3:1. This worked out really well for me. I hit my first three trades and all three were nice runners.
Here is the magic of trading 2 charts. Your short term or trigger chart defines your risk. You enter one tick above or below the trigger bar on your short term chart with your stop one tick above or below the same bar. So the length of that one bar defines your risk. But then you follow the cycles, momentum and volume on the longer term time frame to determine your reward. It can be nail biting at times, as the shorter term time frame goes trough 2, 3 or even 4 cycles, with the market making small retracements against you with each cycle as the longer term time frame chart pushes forward on its “entry” cycle”. But this is how you can capture a 5 wave move.
If you trade 2 or more contracts you should close your first right before first support or resistance level, close the second in the same way if you trade 3 contracts and then try and get a full long term cycle run out of your last contract. This is where you get a 5 wave winner. Just one trade like that and you’re done for the day. But the hallmark of the strategy is that your risk is small and potential reward huge.
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crude is getting hit around 100 every time it crosses that area in the past few weeks. does any body see this worth a short @100.1?
or is it just building abase before it goes higher back to its 103 range where it was sent down from ?
anybody with some technical charts / info to share ?
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The following user says Thank You to Big Mike for this post:
In theory every time a level is re-tested it's less likely to hold, however $100 is a very important level for crude.
Do you have a trading plan? If so would the short at 100.1 be valid? If so I think you should take it. If the answer to either question is "no", then I think you should not take it. The most important thing IMHO is to follow the plan.