I will be presenting the M&M trade for the next thirty days. M&M's are tasty little bits of goodness. I confess to having a major weakness for the little chocolate tidbits of joy. So the trade is called an M&M trade because its just a little tidbit of joy. Not to big, not to small, just right.
I guess you can call it a scalp but I don't like that word. Instead, it will be an M&M from now on.
The basic premise is this: Take small bites in the trend direction only.
I will be defining trend in three major ways:
1. Direction of the 5 min chart with a 20EMA. Price above.....generally long. Price below, generally short.
2. Super Trend on a 12 range chart. Super Trend set to ATR with a multiplier of 2.
3. Hand drawn trend/S/R lines.
4. 15WMA on the 12 range chart
Trade entries occur when the ST and the 5 min line up in terms of direction and my 15WMA gives confirmation. See screen shots for today's trades.
Exits will ALWAYS be 10 ticks. Small bites of the larger trend. Hence the M&M name.
I'll use some price action discretion to either take trades the ST on the range chart does not necessarily agree with but I will show you one today that fit my definition of a discretionary trade.
There will be some money management as well. I intend to start with two lots and add another lot up to five for every $1000 in net profit. I will include $5 per lot in commission for my net profit figures and for calculating position size.
Profit goals are net 50 ticks every day per contract and I will stop trading at -50 ticks per day.
Also, will be flat 5 mins before any major news event and will indicate on the chart.
Trading times begin at 6:00PST and end at 11:30PST or when I obtain +/- 50 ticks.
Stops are 14 ticks on all trades. The key to making this work is not R:R but expectancy. Is the win rate higher than the lose rate? Thats all that matters here.
I confess I did not trade this today. But I will be starting tomorrow.
The indicator list is included. The only ones necessary are the Felton Trend MA and the SuperDuperTrend. The rest are just assists for things I like to see.