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Trapped traders - a source of consistent profitability?


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Trapped traders - a source of consistent profitability?

  #51 (permalink)
 Keab 
London UK
 
Experience: Intermediate
Platform: SierraChart/Prorealtime
Broker: Sierra Chart/prorealtime
Trading: SandP futures
Posts: 510 since Jul 2013
Thanks Given: 123
Thanks Received: 316


Tradetronics View Post
I am referring to ES. I am just sim trading. And the best of it all is the fact that I am a significant loser. That means I am losing everyday significantly. That is great. Because there must be someone on the other side who is significantly making money.

I think it is important to analyzse the ladder in combination with DOM in slow motion to turn this around...

Everyone that succeeds in becoming consistently profitable with the ES (meaning making money on daily basis with just ES) is the absolute king. Really a king!

I'll post a lot more in future but IMO relatively 'flat' markets like the ES are very hard to trade in this manner. I trade the Dax mainly, and switched from the bund as this is relatively 'flat' as well.
By flat I mean that price moves up and down is quite condensed as there is little room for it to move in a swing like fashion. Contrast this with the scale of the Dax and the Dow.

I trade against trapped traders on the Dax mainly as they are far easier to spot in these 'stretched' markets. Take a look at the Dow if you're US based and see what you think.

Also, there are less hfts in operation on these less condensed markets as the larger price moves and slight slippage means they don't really get involved. Contrast price action on the thick market of the SandP vs the Dow.

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  #52 (permalink)
 Keab 
London UK
 
Experience: Intermediate
Platform: SierraChart/Prorealtime
Broker: Sierra Chart/prorealtime
Trading: SandP futures
Posts: 510 since Jul 2013
Thanks Given: 123
Thanks Received: 316

Also I would advise you to look up videos by a vendor called Bookmap. They talk about where orders are clustered in the market and will help you to understand how liquidity works, how the market is structured, and why stops are used by savvy traders to open their own new positions at a great price.

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