Okay, every day the markets are trending down, trending up or consolidating. What is trending? In this set up, it is “JeffDots” trend line indicator (thank you Jeff). But it could do many other indicators (SuperTrend, DC and so on). I use the 89 period setting, why 89? I read it somewhere a while back and it seems to define the trend well. So when the “JeffDots” (will call it JD from now on) is red then only shorts and when it is green only longs. Gray is neutral. The Gray consolidation trades are optional and more aggressive; I don’t trade them for now. When JD is gray I eat, get some coffee or go back to work!
My trade triggers are the baby trend lines (BTL). Once the price breaks the trend line (or close above trend line if conservative) on a green JD then I go long, if it breaks at the red I go short. With the gray line I use two horizontal lines and (would one day) trade the break out. Drawing trend lines are 60 % art, 60% science (I am still working on some math issues in my life), but even with different trend lines the targets are within reach. My targets are small (+6), so are the stops (-7). I use the 1M chart, but I think you can use any chart. I stop trading from 11 (US CST) until 1:00, and no news trading. I also avoid any new trades after 2:30 CST. I trade for a net of three wins and stop for the day. I stop trading at three stops as well. I have a full time job so some days I don’t trade at all. Why the YM; Y not. But the set up should work on all miniz as well as CL. I trade from 1 to 5 contracts, and I am all in all out.
This is new set up for me and for the past month it seems to work well. Most probably I will make some minor modifications in future posts and will welcome any and all feedback.
A picture is worth a 1000 tick, so I have attached two. Today, I only traded the morning session the afternoon session to show more examples (as well as why it may be best to stop trading when the goal is reached).
Kareem