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This one is easy to respond:
I do not have the time to sit in front of the screens...
SO:
my rules made some good points over time and as long as it works - I will be part of the game :-)
In fact there is no need to change a winning horse :-)
As long you are WITHIN an instrument - you are not disturbed by others..
like SP shaking the DAX or Japanese/Chinese indices may shake too.
I am only looking on what goes WITHIN the index of choice.
So the play is surely involved by ALL the other indices but it is best to ONLY stay with
the chosen one - that makes it really easy to find a good decision.
It is like playint lotto or poker - the possibilities are TOO BIG to win - so stay with YOUR instrument.
Today the decision was easy:
Given that I am not at the screen I was looking how steep the down was on and before entry.
Then I saw that the following up was about the same - pulling back to close previous day's
end gap.
So I knew that it could perfectly go down - in ONE leg.
OR: coming back to sit in daily's Kumo (cloud) to wait for a break out up or down.
The price went indeed in daily Kumo and ended there - no break through.
This means: the beforementioned short is not dead.
In order to take a predfined target you do not have to be at your screen- why not just set a limit order then you will take profits once your level is hit/ eg +100 points? etc..?
Col
Profit taking with a limit order is of course not a bad thing.
There are 2 problems to deal with:
1) As you can not see at the very beginning of the day if this will be a trend day or a sideways day the setting
of the limit order (how much points?) is not easy.
2) Given we run a trend day and set 60 points profit taking and instead it could have doubled by the time limit?
So there is no easily calculation for a optimized taking profit. A short view at the profile (VWAP) can be helpful -
setting the take profit at the low volume node.
In fact my exit point by time is a optimum over a longer time - so I do not have any calculation about an eventual
taking profit...
After some basic trading experience to "make it simple" I think to not implement a complicated taking profit rule.
The weekly scenario mentioned before had not started too well.
Price went straight up in the daily Kumo and has broken out above this morning.
Yesterday we had a 179 points rally. And this had not turned yet. Today not much
vola expected - But:
Will be very interesting to see the wednesday trade - hoping for such trend again
and the same on Friday ;D
@GFIs1, how much of your methodology is mechanical vs discretionary? I notice you mention your rules and system a lot,...but I also notice you talk about things which seem very discretionary and not rule based.
Hi Darkpool
The system is fully mechanical - the stop setting according to situation (normally 30 points, some special at 15 points).
Of course you see many different times on a same weekday. This is caused by the situation given from previous day
moves, from news during the day (end time), by the Ichimoku cloud especially the daily and IB range. Thus the
days can not be traded without taking all these parameters in account. The main thing is to "see" when money is
getting into the market (here the DAX) and when it is going out again. Swimming with the crowd at the right time
seems to bring the points.
Unfortunately there are indeed a lot of boundaries like to find the right direction, the right entry and exit times - so it
is not to program easily. It is not the amount of rules (they have easily space on one page of paper) but the
various rules including all coincidences.
I am looking for the last of the week (friday) as well as the last of month (window dressing) and finally the
triple witch days. All of them have the same principle as a rule. But if friday and end of month for example
are one day after another the rule set needs to prioritize...
Hope this helps to see parts of the background.
No discretionary trades - all of them are semi-automated - means decision in the morning before 9:30.
