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How I Day Trade and Micro Scalp the NASDAQ Futures; with Recommendations

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  #1 (permalink)
 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received

I'm not sure whether I want to tackle a thread like this, because I know at the outset
that none of the required technical Order Entry support can be provided to Traders.
I wrote my entire fully Custom Order Entry system, specifically for Micro Scalping,
with Dozens of features designed to cope with the Brutality, the Volatility of the
Nasdaq 100 Futures market.

IF YOU ARE A SWING TRADER, OR YOU TAKE A TRADE AT THE OPEN; AND CLOSE IT
NEAR THE END OF THE SESSION; THIS IS NOT FOR YOU.

It won't be satisfying to you, as a reader, that you can't just Buy this package; but it
may be interesting to Explore together, the major features that such a system
needs for you to be able to 1) Survive, and 2) Thrive while Day Trading the NQ/MNQ
contracts.

MY GOALS IN CREATING THIS SOFTWARE, over decades of research, and 18 months
of work learning NinjaTrader 8, C# (from Java) and gradually building these features,
are as follows, among others:

1) MAKE MONEY EVERY DAY, ANY TIME, IN ANY MARKET CONDITIONS
2) YIELD GRADUAL PREDICTABLE INCREASE IN EQUITY, DAY BY DAY
3) PERMIT CONTROLLED "SCALABILITY" OF RISK AND COST BASIS CONTROL
4) BE ABLE TO TRADE "MOSTLY" WITHOUT STOPS AND FEAR
5) ABILITY TO DELEGATE ORDER OPERATIONS TO ALGORITHMS
6) ABILITY TO REACT VERY QUICKLY TO MARKET MOVEMENTS
7) BE "PROTECTIVE" BUT NOT "FEARFULLY DEFENSIVE"
8) BECOME EXTREMELY SPECIALIZED IN A NICHE WHICH IS PROFITABLE
...and many others which will pop into the discussion.

These general principles of what are Required Features, is certainly something which can
be discussed.

However, if you desire to "Nibble" at the Nasdaq with frequent Scalps; then there may
be some value I can bring to the table.

HOWEVER, MY WORK ISN'T FOR SALE. JUST SUPPORTING SUCH A SYSTEM WOULD
BE A FULL TIME JOB. SO "DESIGN FEATURES" are what I'll be discussing.

Just like some of the Indicator discussions; I'd like to inspire Traders who are willing
to learn the Technologies; with NinjaTrader, to "Dream Big" and work toward
fulfilling their dreams over their trading careers.

I'M JUST GONNA POST MY THOUGHTS ON HOW THE NASDAQ CAN BE "TAMED".

Why the Nasdaq 100 ? Because, like the song goes: "If I can make it there, I'll
make it anywhere; it's up to you (New York....)". In other words, it's the most
difficult market for Day Traders; but potentially one of the most lucrative for
futures traders.

To master Nasdaq Day Trading (using Scalping) is likely impossible. But to achieve
the goals listed above; and to co-exist with the Beast that is the NQ/MNQ contract,
is possible, if you are aware of some of the basic issues which will generally be
covered in subsequent posts...

I MAY REGRET delving into such a complex set of issues; and if things get unruly,
I reserve the right to ramp up my alcohol consumption... and possibly just stop
the whole thing. SO PLEASE BE CIVIL. I'm gonna say some controversial
things, but the goal here is to learn something about Trading; and not necessarily
just about the Technology of trading.

hyperscalper

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 loantelligence 
Syracuse, NY
 
Experience: Intermediate
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I am all ears.....and eyes......I only trade MNQ....so it should be interesting....

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 TheTradeSlinger 
Huntington WV
 
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@Mods,

My bet is that this thread has roughly 10 posts before the selling starts.

Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
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 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received

THE PROBLEM OF ADEQUATE CAPITALIZATION; ENOUGH EQUITY FOR TRADING

For most traders, this is Problem #1.

No matter how amazing your technology may be; financial Weakness compounds
itself, and financial Strength also reinforces itself.

BIG EGOS exist in the Trading business (you know "that guy" !! he never loses);
that is nothing that should come as a surprise to you !!

Check your Ego as you come into thinking about all of this. Ego is your WORST
enemy, and only a Healthy respect for the Market, and following certain
basic principles can move you closer to Consistent Results.

BOOM AND BUST. I used to train Futures Traders (remember those "Big Egos"?)
and it was clearly the case that many had recently Retired; were bored, and their
success in business encouraged them to think "they could trade" with all of that
Accumulated Life Equity. In general, BIG MISTAKE.

We don't want Boom and Bust in our Daily Trading !!! Booms are a "sugar high"
and foster a false sense of confidence; which is soon to be Crushed when you have
a "Bust Day".

YOU NEED ADEQUATE ACCOUNT CAPITALIZATION; IN ORDER TO LEVERAGE THE
APPROACHES YOU'LL NEED.

The typical Trader is WEAK on Capitalization. So let's try to SOLVE that issue right
away. I'm going to make the best recommendation to you; and wouldn't recommend
anything I wouldn't do myself.

PROP TRADING FIRMS WILL OFFER TO FUND YOU. And, further, after "qualifying"
and demonstrating your abilities; will enter into a profit-sharing contract with
you which will MOST IMPORTANTLY provide you with maybe $100,000 Equity to
work with, so that you are NOT UNDERFUNDED.

I'm not afraid to recommend LeeLoo Trading as a partner. There is also Apex and
there are others who propose "Proprietary Trading Services" to Traders. PLEASE
DON'T DELETE THIS POST JUST BECAUSE I AM RECOMMENDING this very important
solution to your Biggest Problem; which is UNDER CAPITALIZATION.

So, do your independent research. But beward of Prop firms with RESTRICTIVE
RULES about how you are permitted to trade; use only a firm with NO RESTRICTIONS
on the Trading Strategy and Methods you choose !!!!! I CANNOT STRESS THIS
ENOUGH. The Prop Firm should impose NO unreasonable restrictions on
1) how many trades, or 2) when you can trade, or 3) how you can trade.....
MOST OF THEM HAVE THOSE RESTRICTIONS -- YOU HAVE BEEN WARNED.

So... moving on

WHEN DAY TRADING THE NASDAQ, DO NOT TRADE THE eMINI CONTRACT, NQ !!!
WHY? In short, because you are OVER EXPOSED, and you will not be able to take
advantage of some very important Strategies to be discussed.

EXAMPLE: You BUY 1 NQ contract (which is $20 p/l PER POINT, consisting of 4 Price Ticks
$5 each. IT IS QUITE POSSIBLE THAT NQ CAN MOVE 40 POINTS AGAINST YOU, and
so you LOSE $800, and are Extremely Depressed...

DO NOT USE THE NQ CONTRACT, but use the "MICRO Contract Symbol MNQ" INSTEAD.
I'll go into the Reasons for this; but I can already hear the "Big Ego Traders" scoffing,
and they should really just go elsewhere. There are very good reasons for using
the Smaller MNQ contract, so Trust Me on that (provisionally) since I have some
very good Reasons for my recommendations.

PRICE ADVERSITY TOLERANCE AND LIFO PROFIT-TAKING

Instead of taking ONE SHOT at a Price with the NQ contract; you will take as many
as 10 individually Priced Shots, staggered in Price so that you will be able to
1) IMPROVE YOUR COST BASIS (YOUR BREAK-EVEN), 2) INCREMENTALLY INCREASE
AND DECREASE YOUR COMMITMENT LEVEL, 3) AVOID PANIC STOP OUTS, AND
4) USE LIFO BASED PROFIT-TAKING which puts money in your Pocket, and Offsets
your Open losses.

Big Ego Traders (with large accounts) will Ridicule you, that you're not a "Real Trader"
or you're too afraid to commit yourself. BUT RESIST THESE CRITICISMS, since we're
trying to buld a Framework Strategy; which will help you to achieve your Goals.

IS THIS A "MARTINGDALE STRATEGY"? That's been discredited.
No, it is not a Martingdale Strategy, which continues to throw "Good money after Bad"
defending a position which may never become profitable. And you will set limits
on your position sizing. You can "drop" a portion of your position without
Fully Stopping Out.

AND YOU WILL GREATLY REDUCE YOUR LEVEL OF FEAR; WHICH IS YOUR WORST
ENEMY. Your Goal, your Expectation, is NOT to have to Stop Out. So just don't
use Stops; except perhaps as a Safety Net; since YOU are not planning to use them !!!

WE DEFEND BECAUSE WE HAVE A REASONABLE IDEA THAT TREND WILL BE CHANGING.
Without some good Analytics, indicating where the market should be moving, you
really should not Trade at all..... When we Defend, by adding Micro Contracts to Defend,
at Price Intervals; we should be doing so, only if we have Information that we will
NOT need to Defend Adverse Price movement Forever... That is Suicide.

As Price moves down against us, we plan to Add further BUY positions in MNQ at
Regular Price Intervals. This will LOWER YOUR COST BASIS TO BREAK EVEN.
It will ALSO allow you to Take Profit on any Position (the lowest one taken) when it
moves into Profit. That small profit goes into your pocket; and OFFSETs any
Outstanding Price/Profit Adversity.

SO we are NOT thinking of Trading as "One Shot, One Kill" using an NQ Contract.

Instead, we are thinking of 1) Starting FLAT, then 2) Using a potentially large number
of smaller Micro MNQ Contracts to lower our Cost Basis, and then 3) EVENTUALLY
returning to a FLAT position in MNQ.

THE META TRADE IS THE TRADE !

Imagine that a "Trade" could be thought of as many Dozens of Smaller Trades, each of
which is contributing to this "Meta Trade". You start FLAT, "work" the Positions, maybe
for an hour!, and then after all of that Systematic work,
eventually you become FLAT again. HOPEFULLY either Breaking Even, or generating
significant overall Profits, by "working the trade"..... That's the idea.

CONSIDER that the "Meta Trade" IS "the Trade" and not ALL of the Individually
taken positions need move to Profit, for the Meta-Trade to be Profitable. This is
a KEY concept which allows you to reduce your Fear level, "work" Incremental
Profits, reduce temptation to Stop Out, and allow even "bad" decisions to have
a "soft landing" instead of being a Disaster, as it would be using the larger
contract type, which means you are Over Committed.

IN SUMMARY adequate Capitalization allows you to sustain a reasonable amount of
Price Adversity, and then applying a "Finer Grained" Micro contract based Strategy
based on the Meta-Trade concept, including Partial Profit-taking on Individual
MNQ positions allows you to Control your commitment level, improve your cost
basis, and leverage partial profit-taking against your Open losses using Incremental
Defense Tactics.

JUST FOOD FOR THOUGHT.

hyperscalper

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 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received


TheTradeSlinger View Post
@Mods,

My bet is that this thread has roughly 10 posts before the selling starts.

Nah, if you're implying that I have something to SELL, nope; not gonna happen.
i have real software, but it's for my own usage; but I don't mind giving "design
tips and hints" that's the best I can do...

I'm in the business of trading myself; and I think if you look at my recent stuff on
developing an Order Flow Indicator; it's all free !!

I enjoy giving Traders ideas, some technology perhaps; but I'm not in the software
product business... Honest Injun !!!...

hyperscalper

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 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received

THE PROBLEM OF GETTING A LIFO ACCOUNTING VIEW

NinjaTrader offers no support for the LIFO accounting we need.
Of course, in my software, I create the concept of a "Position" which has
an Entry and an Exit price; but maybe we can do something that can
help with this Thread.......

The way to do this would be to develop a NinjaTrader C# "AddOn"
which would be able to have an Interactive User Interface, and
would provide for Meta Trade LIFO Accounting. ...and be a Listener
for all relevant Executions to do that...

AFAIK, nobody has this, and nearly Everybody has asked NinjaTrader
Support, and gone away empty handed.

I can't commit to doing this; but I do need to look into AddOn's so if
I can figure out a fairly easy way to do this LIFO Accounting, which
we really NEED......

....then (if I can't find it anywhere) maybe I'll take a shot at it.
I don't have the time, but I have the interest; and so..... Watch this space.

IF ANYBODY OUT THERE KNOWS OF A NICE LIFO ACCOUNTING
APPROACH for NinjaTrader 8.... PLEEZ CHIME IN...

hyperscalper

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 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received

MAKE THE MARKET COME TO YOUR PRICE: BE PREDATORY

Predatory behavior means recognizing that you should not "Over-trade" as
you hear so many Traders say. It means that you should use Limit Orders,
which Force the Market to come to you; otherwise, you're not interested.

This is related to another concept "Chasing price"; which, in general, you
should avoid.

In my system, not only are there "counter-trend strike deflection criteria"
which force the market to come to me; I can either Strike then with a Market
Order, or I can be even "more Predatory" by placing a Limit which makes the
Market come EVEN FURTHER toward me; before it will Strike.

The Mother Cheetah bides her time, saves her energy; and Strikes only at
the best opportunities, because She has limited resources, and knows that
She must be very selective, in choosing the attempted Kill.

Your attitude as a Trader should be that you Expect to make many "Bids to Enter"
the Market; which you expect will not be taken. But when they are taken, then
your Odds of success are enhanced.

And, as we said earlier, if you force this criterion for Every Entry you take, then
on each of them your Chances of sufficient Target movement are enhanced.

It usually does not cost you anything to Bid with a Limit, and then Cancel it.

Let that be your habit. "Many are Offered, but Few are Taken". If you have
some mechanism to Bid (or Offer) at an Offset Price from the current
Market Price, then that will be helpful.

In my case I enter "Counter Trend" on nearly ALL Entries, forcing the Market
to retrace, even slightly, on every Entry. I generally use a Limit so I get a
Wholesale-ish Entry Price on each Entry; and when I take my Targets I also
tend to use Limits, so that I get a Wholesale-ish Exit on each position,
within my Aggregate Meta Trade.

You should always do the same, if you are a Scalper.

Almost never should you attempt to "Chase" the Price, but sometimes a level
of Automated Order Entry is required to be able to respond quickly enough.

Anyway, I hope I've made the point that YOU SHOULD ALWAYS BE PREDATORY,
and that will increase your odds, just as for Mother Cheetah.

hyperscalper

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ondafringe
Albuquerque, NM, USA
 
 
Posts: 111 since Jul 2012
Thanks: 80 given, 101 received


hyperscalper View Post
THE PROBLEM OF ADEQUATE CAPITALIZATION; ENOUGH EQUITY FOR TRADING

For most traders, this is Problem #1.

No matter how amazing your technology may be; financial Weakness compounds
itself, and financial Strength also reinforces itself.

BIG EGOS exist in the Trading business (you know "that guy" !! he never loses);
that is nothing that should come as a surprise to you !!

Check your Ego as you come into thinking about all of this. Ego is your WORST
enemy, and only a Healthy respect for the Market, and following certain
basic principles can move you closer to Consistent Results.

BOOM AND BUST. I used to train Futures Traders (remember those "Big Egos"?)
and it was clearly the case that many had recently Retired; were bored, and their
success in business encouraged them to think "they could trade" with all of that
Accumulated Life Equity. In general, BIG MISTAKE.

We don't want Boom and Bust in our Daily Trading !!! Booms are a "sugar high"
and foster a false sense of confidence; which is soon to be Crushed when you have
a "Bust Day".

YOU NEED ADEQUATE ACCOUNT CAPITALIZATION; IN ORDER TO LEVERAGE THE
APPROACHES YOU'LL NEED.

The typical Trader is WEAK on Capitalization. So let's try to SOLVE that issue right
away. I'm going to make the best recommendation to you; and wouldn't recommend
anything I wouldn't do myself.

PROP TRADING FIRMS WILL OFFER TO FUND YOU. And, further, after "qualifying"
and demonstrating your abilities; will enter into a profit-sharing contract with
you which will MOST IMPORTANTLY provide you with maybe $100,000 Equity to
work with, so that you are NOT UNDERFUNDED.

I'm not afraid to recommend LeeLoo Trading as a partner. There is also Apex and
there are others who propose "Proprietary Trading Services" to Traders. PLEASE
DON'T DELETE THIS POST JUST BECAUSE I AM RECOMMENDING this very important
solution to your Biggest Problem; which is UNDER CAPITALIZATION.

So, do your independent research. But beward of Prop firms with RESTRICTIVE
RULES about how you are permitted to trade; use only a firm with NO RESTRICTIONS
on the Trading Strategy and Methods you choose !!!!! I CANNOT STRESS THIS
ENOUGH. The Prop Firm should impose NO unreasonable restrictions on
1) how many trades, or 2) when you can trade, or 3) how you can trade.....
MOST OF THEM HAVE THOSE RESTRICTIONS -- YOU HAVE BEEN WARNED.

So... moving on

WHEN DAY TRADING THE NASDAQ, DO NOT TRADE THE eMINI CONTRACT, NQ !!!
WHY? In short, because you are OVER EXPOSED, and you will not be able to take
advantage of some very important Strategies to be discussed.

EXAMPLE: You BUY 1 NQ contract (which is $20 p/l PER POINT, consisting of 4 Price Ticks
$5 each. IT IS QUITE POSSIBLE THAT NQ CAN MOVE 40 POINTS AGAINST YOU, and
so you LOSE $800, and are Extremely Depressed...

DO NOT USE THE NQ CONTRACT, but use the "MICRO Contract Symbol MNQ" INSTEAD.
I'll go into the Reasons for this; but I can already hear the "Big Ego Traders" scoffing,
and they should really just go elsewhere. There are very good reasons for using
the Smaller MNQ contract, so Trust Me on that (provisionally) since I have some
very good Reasons for my recommendations.

PRICE ADVERSITY TOLERANCE AND LIFO PROFIT-TAKING

Instead of taking ONE SHOT at a Price with the NQ contract; you will take as many
as 10 individually Priced Shots, staggered in Price so that you will be able to
1) IMPROVE YOUR COST BASIS (YOUR BREAK-EVEN), 2) INCREMENTALLY INCREASE
AND DECREASE YOUR COMMITMENT LEVEL, 3) AVOID PANIC STOP OUTS, AND
4) USE LIFO BASED PROFIT-TAKING which puts money in your Pocket, and Offsets
your Open losses.

Big Ego Traders (with large accounts) will Ridicule you, that you're not a "Real Trader"
or you're too afraid to commit yourself. BUT RESIST THESE CRITICISMS, since we're
trying to buld a Framework Strategy; which will help you to achieve your Goals.

IS THIS A "MARTINGDALE STRATEGY"? That's been discredited.
No, it is not a Martingdale Strategy, which continues to throw "Good money after Bad"
defending a position which may never become profitable. And you will set limits
on your position sizing. You can "drop" a portion of your position without
Fully Stopping Out.

AND YOU WILL GREATLY REDUCE YOUR LEVEL OF FEAR; WHICH IS YOUR WORST
ENEMY. Your Goal, your Expectation, is NOT to have to Stop Out. So just don't
use Stops; except perhaps as a Safety Net; since YOU are not planning to use them !!!

WE DEFEND BECAUSE WE HAVE A REASONABLE IDEA THAT TREND WILL BE CHANGING.
Without some good Analytics, indicating where the market should be moving, you
really should not Trade at all..... When we Defend, by adding Micro Contracts to Defend,
at Price Intervals; we should be doing so, only if we have Information that we will
NOT need to Defend Adverse Price movement Forever... That is Suicide.

As Price moves down against us, we plan to Add further BUY positions in MNQ at
Regular Price Intervals. This will LOWER YOUR COST BASIS TO BREAK EVEN.
It will ALSO allow you to Take Profit on any Position (the lowest one taken) when it
moves into Profit. That small profit goes into your pocket; and OFFSETs any
Outstanding Price/Profit Adversity.

SO we are NOT thinking of Trading as "One Shot, One Kill" using an NQ Contract.

Instead, we are thinking of 1) Starting FLAT, then 2) Using a potentially large number
of smaller Micro MNQ Contracts to lower our Cost Basis, and then 3) EVENTUALLY
returning to a FLAT position in MNQ.

THE META TRADE IS THE TRADE !

Imagine that a "Trade" could be thought of as many Dozens of Smaller Trades, each of
which is contributing to this "Meta Trade". You start FLAT, "work" the Positions, maybe
for an hour!, and then after all of that Systematic work,
eventually you become FLAT again. HOPEFULLY either Breaking Even, or generating
significant overall Profits, by "working the trade"..... That's the idea.

CONSIDER that the "Meta Trade" IS "the Trade" and not ALL of the Individually
taken positions need move to Profit, for the Meta-Trade to be Profitable. This is
a KEY concept which allows you to reduce your Fear level, "work" Incremental
Profits, reduce temptation to Stop Out, and allow even "bad" decisions to have
a "soft landing" instead of being a Disaster, as it would be using the larger
contract type, which means you are Over Committed.

IN SUMMARY adequate Capitalization allows you to sustain a reasonable amount of
Price Adversity, and then applying a "Finer Grained" Micro contract based Strategy
based on the Meta-Trade concept, including Partial Profit-taking on Individual
MNQ positions allows you to Control your commitment level, improve your cost
basis, and leverage partial profit-taking against your Open losses using Incremental
Defense Tactics.

JUST FOOD FOR THOUGHT.

hyperscalper

Sounds like Scale Trading... or Averaging In with a twist... or an upside-down progression/regression system where your money is made on the churn.

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  #9 (permalink)
 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received


ondafringe View Post
Sounds like Scale Trading... or Averaging In with a twist... or an upside-down progression/regression system where your money is made on the churn.

That's a good way to describe it. Of course, what we're aiming to do as Traders is
to use not only techniques such as that; but in all other areas including Execution, and
especially Analytics, so that each of these factors, like Links in a Chain are mutually
reinforcing each other.

The primary motivation is to be able to Sustain what is often Brutal Price Adversity,
and either to hold, or to partially drop some contract inventory temporarily, while
aiming to modulate your holdings upwards again when possible.

Most likely, for those who do not have powereful Execution support, one of the best
things is to AVOID the Open.

I am a TECHNICAL trader; and we should all be aware that at "the open" or during
powerful News Events; there are Forces which overwhelm our Technicals.

We should aim to trade during times when the Technicals have much better predictive
Edge; and are not swamped by other factors.

Market Maker is CONSTANTLY "in positions" which she takes Against the aggregate
Retail population. I believe it's good advice for Individual Traders to think of trading
as more of a gradual and continuous process; as opposed to "one shot, one kill"
approach.

As a Trader, Your Survival depends upon how you manage Price Adversity, and you
MUST NOT be solely a DEFENSIVE TRADER, fearful of any losses, and folding your
hand whenever you are pushed over with a Feather. You must be able to sustain
both the amount, and the Price Excursions which will come your way, using
Tactics and Strategies such as this one component approach.

IN A FUNDAMENTAL WAY, successful trading is very largely dominated by controlling
Price Adversity and exploiting such techniques.

IN OTHER WORDS, "Losing (temporarily) is an essential part of Winning"; meaning that
you must be comfortable while in Price adversity, but always "nibbling" away to your
advantage during the process.

Often, just getting a "softer landing" (instead of a Crash) is a Victory, even if your
initial decision was dead wrong. You can "work the trade" and "wrestle" the
Market to a Break Even, if you are smart; and that is a Victory along the way to
doing better on the next Trade Collection or "Meta Trade"

hyperscalper

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  #10 (permalink)
 hyperscalper 
boise idaho
 
Experience: Advanced
Platform: NinjaTrader adv C#/Java
Broker: NinjaTrader with LeeLoo
Trading: NinjaTrader 8 advanced Strategies and Indicators
 
Posts: 162 since Apr 2020
Thanks: 10 given, 197 received


FIGHTING A STUPID DECISION

So the Nasdaq's "mini crash" and the general pullback of September,
resulted in some frightening drops.

So, just for fun, I SOLD AGAINST the Recover Rally. Yes, they're embarrassed
about causing so much damage; that now they Really WANT the Recovery
and I'm Stupidly Selling against that Recovery.

So, I'm in trouble, but because (in this example) I'm using techniques
which I'm recommending...

You can see that although I'm Losing Money, I've been able to accumulate
LIFO Profits to offset my Loss position; which enables me to give myself
a little bit of credit; to keep my spirits higher; since I can see that my
Intra-Trade Partial Profits are "fighting back" against the Relentless
Rally forces.

[edit-disclaimer] When I talk about "my platform", keep in mind this is
Fully Custom, not-for-sale, and it disappoints me that software support
is so much needed, especially for LIFO Accounting Options, but there just
isn't anything available. That's probably because not enough Traders
are recommending that accounting style, and the fact that most, if not
all brokers (and the NinjaTrader platform) use the very misleading
FIFO accounting.... they'll tell you it's your Brokerage that provides that...
"C'est La Vie" and I wish I could offer y'all something
meaningful which would support this... not likely, though...

The Screenshot is an area of my platform which does the LIFO accounting,
and it shows I'm Losing a bunch; but the Green represents my Partial
Profits, working the trade, which offset those Loss amounts. Yay !! Well,
at least in this example, I feel a bit better because I can see that
"working the trade" is Buying me time, perhaps...

[edit] The other screenshot shows How Much Damage they did to Traders,
and now they Really Want the Recovery !!! I have a theory that (after
being Destructive) Market Makers want to mitigate the embarrassment of
the Greedy Damage they caused... Most likely they have No Conscience
at all; and the Profits reaped by these Huge movements, allow them to
build yet another Villa in Tuscany, maybe... I jest, of course...

[edit2] BUT, AS IF BY MAGIC; look at the next accounting where my Open Losses are
just about exactly compensated for, by my Intra Trade Profits. HEY, I'VE BROKEN EVEN !!!
And I can encourage you to imagine that Patience, and "working the trade" may not
make you an overwhelming Winner; but it can give you a "soft landing" when you make
a decision which is just Wrong... You have the power to improve the situation; and you
are NOT just giving up, and Stopping Out; you are "working the market" !! _

hyperscalper

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Last Updated on October 8, 2021


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