Totally agree with you. Price action is everything! I have put together a scalp method were I use a 4 contract ATM to using a 15 min chart swing high and low and a 125 tick chart for entry. I take about 25 to 50 trades a day(But sometimes a lot more) to capture 15 to 20 ticks a trade with a max 4 tick stop loss. In the trade for a few sec's to 5 min depending if I am able to catch a momentum move off a swing high or low. I export my trading logs to excel. Here is my log from friday and the 16th of april.
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WOW ! 25-50 trades a day sometimes a lot more ????? That would be over trading for me.......I look for about 6 trades a day MAX.
But........if you are successful and this fits your personality......then BRAVO!!
I have been amused by some traders that participate in the futures.io (formerly BMT) forum ascribing HIGH value to NON price based information to make trading decisions. When it's all said and done......the price will tell you what you need to know. It is....after all.....the end result of what ever you are looking at.......so for me......I don't look at all that other crap.....it is not helpful for me...just a HUGE distraction.
I'd certainly like to see how you set up your trades.....if you care to share. (chart)
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I continue to follow your posts with great interest, thank-you, Jeff.
I prefer to trade 3 lots, taking a small (and hopefully fast) small profit of +6 (was +8, but markets seem tighter recently), t2 around +20 and then a runner, which more often than not ends up <20, but occasionally gets >100. However, with FDAX I only trade 2 contracts and the same with CL, which I only started trading since joining this forum. With a 2 lot, it's VERY frustrating to see +20 become a +8 stop out, especially when the market then continues as planned (see attached chart of a CL trade this morning).
Did you always trade with a 2 lot target, or did you reach this after experiencing the same issues as me ?
Btw, as for your wonderful dots and eDanny's fantastic programming, I decided if I couldn't see the chart setup before the alert sounded, I shouldn't be trading, ditto for the dots, so they've both gone (although it's still your indi). EMA is set to 34.
Onwards & upwards...
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I'd prefer to trade with 3 lots too.......but until I achieve the kind of consistency I want there is no sense in trading more contracts.......just too much risk. I look at the two lot approach as a progressive approach.......not a final destination.
As far as dots go....or any indicator for that matter.......they are not necessary. If you can see price action without them.........well.....that approach would be preferred. So good work! Keeping it simple ! I find in my quest to become a better trader that doing studies on indicators ultimately helps me understand price action better.......even if I end up NOT using a particuliar indicator.
Oh......I am a big believer in taking early profits on your first contract (and tightening your stop to reduce risk)......to NOT do so is presumptuous.
Yes, CL can be frustrating.......to achieve your first target and then get stopped out at +1 only to see the market move in your direction.....but I have decided NOT to re-enter as that would be "chasing" in my book. So......I'm satisfied with a small profit and start looking for the next set up.
So jtrade, what is it you are looking at on your chart?
Last edited by Jeff Castille; April 28th, 2010 at 02:02 PM.
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Jeff - thanks for the response. The next chart I post will show my trade rationale, but it won't be till tomorrow (assuming I take a trade; my ego will probably also require that it be a winning trade ).