NexusFi: Find Your Edge


Home Menu

 





The Beast Slayer, Lance's NQ Trading Journal


Discussion in Commodities

Updated
      Top Posters
    1. looks_one lancelottrader with 843 posts (4,515 thanks)
    2. looks_two redbarntrades with 59 posts (147 thanks)
    3. looks_3 Rrrracer with 28 posts (117 thanks)
    4. looks_4 Okina with 23 posts (41 thanks)
      Best Posters
    1. looks_one lancelottrader with 5.4 thanks per post
    2. looks_two Rrrracer with 4.2 thanks per post
    3. looks_3 Big Mike with 4.1 thanks per post
    4. looks_4 redbarntrades with 2.5 thanks per post
    1. trending_up 448,960 views
    2. thumb_up 6,047 thanks given
    3. group 647 followers
    1. forum 1,639 posts
    2. attach_file 251 attachments




 
Search this Thread

The Beast Slayer, Lance's NQ Trading Journal

  #1081 (permalink)
 
Chippstrader's Avatar
 Chippstrader 
Randolph+NJ/US
Market Wizard
 
Experience: Intermediate
Platform: Sierra Chart
Broker: Stage5/Advantage Futures
Trading: NQ
Posts: 2,050 since Jan 2015
Thanks Given: 5,241
Thanks Received: 3,656


lancelottrader View Post
I have been trading Nq seriously for almost two years after having mainly traded CL before that. It has been sort of a love/hate relationship, but things have definitely improved in the last few months. Here a few points and observations that I have gathered from my efforts.
1. Nq is one of the trickiest and most difficult instruments to trade. Now, there are those with large accounts who can use stops with 100's of ticks that would disagree with me. But for an average retail trader using 20-40 tick stops, NQ can eat up your account quickly. Why? Because it can convince you that it is moving in one direction with extreme strength ..only to reverse equally strong in the opposite direction. Then, when you think the new direction is the right direction..it will fool you again, and reverse.
2. NQ reacts very strongly to minor areas of support and resistance. If these are not taken into consideration, you will find yourself taking lots of heat quickly or being stopped out. I have learned that price can form these small areas of S/R in real time and are not always easily visible on higher time frames. These areas serve as barriers. Price can often get through them if there is sufficient order flow, but..not usually without some serious bounces first. Meaning, for example, you can be in a trade and see no obvious support and resistance in the way. Then you hit one of these areas (that I find on my 2 range chart and mark up) and suddenly price bounces the opposite way 20 to 30 ticks in seconds. Sometimes it takes price two or three times to penetrate these barriers. What I try to do is wait for those little mini breakouts and when price action tells me the odds are good it will break, I enter the trade.
3. Some days, NQ can have price movement that is almost impossible to trade. There are days or at least extended periods of time during a session where virtually every trade you enter will lose. Price can move in a choppy, chaotic manner. This can be caused by some sort of turmoil or it can be a Fed guy talking..or just indecision on the part of big traders. If you aren't able to spot these moments and keep your finger off the trigger, you will have serious issues. One thing I mention that I do is to engage in some sort of self talk or verbal commentary. I am always describing at any given moment what type of price action I think I am seeing. By saying it out loud, it keeps me in the moment and centered..instead of my thoughts silently going all over the place. Regardless of what methods you use, it's imperative to recognize these adverse conditions before you end up having a disasterous day.

Now these tips can apply to any instrument..but I feel they most show themselves on NQ, due to it's innate volatility.

Thank you for writing much in detail about. I have been watching and trading NQ for 3 years. But recently, I realized I can't take its volatility anymore and stopped NQ and moved to YM and ES.

--------
Chipps
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Deepmoney LLM
Elite Quantitative GenAI/LLM
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Better Renko Gaps
The Elite Circle
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Futures True Range Report
The Elite Circle
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
Battlestations: Show us your trading desks!
26 thanks
The Program
18 thanks
  #1082 (permalink)
 
josh's Avatar
 josh 
Georgia, US
Legendary Market Wizard
 
Experience: None
Platform: SC
Broker: Denali+Rithmic
Trading: ES, NQ, YM
Posts: 6,216 since Jan 2011
Thanks Given: 6,752
Thanks Received: 18,136


lancelottrader View Post
Maybe volatility isn't quite the correct term, but since I've been watching NQ the last few years, I find it moves at most times much faster than CL. I can go into a CL trade most of time..and it can take quite a while before it makes 20 ticks or so. Extreme patience seems to be required often. Nq, on the other hand goes 20 -40 ticks in a few seconds. I find it to be much different.
Even if things slow down, it will still be fairly easy for me to get 20 to 30 tick pops throughout the session. I have gone back several years scrolling through charts and my system would have pretty close to the same wins as I have now.

It might be a worthwhile endeavor to quantify this on an intraday basis -- in my copious free time next week I may see what I come up with.

Reply With Quote
  #1083 (permalink)
 
Scalpingtrader's Avatar
 Scalpingtrader 
Hanover, Germany
Legendary Amateur Trader
 
Experience: Beginner
Platform: NinjaTrader
Trading: ES
Posts: 1,945 since Apr 2014
Thanks Given: 3,144
Thanks Received: 5,147



lancelottrader View Post
Had some extra time today, so I put together another video. This is from today's trades.


Your remark at the end reminds me of what I was reading somewhere about Taxi drivers, let’s call it the bad weather fallacy for now.

The text was basically stating that what many Taxi drivers typically do is that they have a daily goal in terms of $ they want to make before calling it a day. Now what happens is that on days where not much is going on, like e.g. sunny days where people bike or walk, they spend hours and hours waiting to finally get their daily number.
On the „good“ days (for the taxi driver anyways) e.g. rainy days or cold days or what have you, they get to their number fairly quick and take the rest of the day off after driving only 2 or 3 hours instead of continuing to drive for a full „session“.

Longterm result? The average $ earned per hour is much lower than it could be.

Or stated otherwise, they could
a) make more money with the same effort
b) make the same money with much less effort
just by shifting their, well... shifts.

Plus this way they only ever get to enjoy piss weather

Imo this translates perfectly to trading - you “just” got to learn recognizing those bad sessions early on...

Reply With Quote
  #1084 (permalink)
 lancelottrader 
west palm beach florida usa
Market Wizard
 
Experience: Advanced
Platform: ninja trader
Broker: Optimus Futures/ Rithmic
Trading: NQ
Posts: 1,112 since Oct 2011
Thanks Given: 1,113
Thanks Received: 5,386


chipps1983 View Post
Thank you for writing much in detail about. I have been watching and trading NQ for 3 years. But recently, I realized I can't take its volatility anymore and stopped NQ and moved to YM and ES.

I don't blame you. I have quite a few setups that work on other instruments..but really only about one technique that works for me on NQ. I sometimes like YM better when it's moving well, like today.

Failure is not an option
Started this thread Reply With Quote
  #1085 (permalink)
 
Brandenton's Avatar
 Brandenton 
Virginia Beach, VA
Legendary Lost At Sea!!
 
Experience: Intermediate
Platform: NinjaTrader
Broker: TopStep
Trading: YM, MYM
Posts: 830 since Sep 2016
Thanks Given: 754
Thanks Received: 1,556


lancelottrader View Post
I don't blame you. I have quite a few setups that work on other instruments..but really only about one technique that works for me on NQ. I sometimes like YM better when it's moving well, like today.

I can relate as well. I've Just recently been dabbling with the NQ, but my PNL swing is just out of this world. My bread and butter has been with YM and plan on sticking with it until my account is big enough to handle stops that can support the risk I need to play with that monster.

Visit my NexusFi Trade Journal Reply With Quote
  #1086 (permalink)
 lancelottrader 
west palm beach florida usa
Market Wizard
 
Experience: Advanced
Platform: ninja trader
Broker: Optimus Futures/ Rithmic
Trading: NQ
Posts: 1,112 since Oct 2011
Thanks Given: 1,113
Thanks Received: 5,386

Video of today's trades.


Failure is not an option
Started this thread Reply With Quote
  #1087 (permalink)
 lancelottrader 
west palm beach florida usa
Market Wizard
 
Experience: Advanced
Platform: ninja trader
Broker: Optimus Futures/ Rithmic
Trading: NQ
Posts: 1,112 since Oct 2011
Thanks Given: 1,113
Thanks Received: 5,386

Had a pretty good session.


Failure is not an option
Started this thread Reply With Quote
  #1088 (permalink)
cryptocrazy
bradford + UK
 
Posts: 6 since Jan 2018
Thanks Given: 8
Thanks Received: 5

Great videos ive subscribed and started reading the entire thread. The logical forex site seems to be down is there any suggestions you have for replacement of those indicators to emulate the same setup?

Reply With Quote
Thanked by:
  #1089 (permalink)
 lancelottrader 
west palm beach florida usa
Market Wizard
 
Experience: Advanced
Platform: ninja trader
Broker: Optimus Futures/ Rithmic
Trading: NQ
Posts: 1,112 since Oct 2011
Thanks Given: 1,113
Thanks Received: 5,386


cryptocrazy View Post
Great videos ive subscribed and started reading the entire thread. The logical forex site seems to be down is there any suggestions you have for replacement of those indicators to emulate the same setup?

Thank you very much. I appreciate it. I'm not sure why the Logical Forex site is down, but when I chatted with the owner a few months back, he said he was trying hard to have a version for Ninja 8. It could have something to do with that.
I think you can find an indicator on Ninja called Swing..in the drop down list. That is a little similar to the magnet lines drawn in Logical Forex. Also the black spine I refer to on the 2 range chart can be sort of duplicated by plotting a 75 period ema .

Failure is not an option
Started this thread Reply With Quote
Thanked by:
  #1090 (permalink)
 lancelottrader 
west palm beach florida usa
Market Wizard
 
Experience: Advanced
Platform: ninja trader
Broker: Optimus Futures/ Rithmic
Trading: NQ
Posts: 1,112 since Oct 2011
Thanks Given: 1,113
Thanks Received: 5,386


Did well today, although I had a few difficulties early on. The big keys for me now is not to get upset over being up then losing back my profits. In the past, that really disturbed me so I would often quit a session when I was only a little up. Now I trade generally for at least two hours and just keep taking what I think are good setups. The math is working out much better that way.


Failure is not an option
Started this thread Reply With Quote




Last Updated on April 11, 2023


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts