What a day! Looked like a heart attack. Volatility is a good thing...but it can wear you out if you are not patient. Also, it can shake you out and make it tough to keep that runner going.
I have a theory about the necessity for an intra day trader to become the 1 point king.
That means getting your first target with an accuracy of around 77%. This can buy some risk (or all of it depending on your leverage) and put you into a free trade so you have a good chance of catching an extended move.
Of course, with that kind of performance level who needs more than a point!
Last edited by Jaguar52; February 9th, 2010 at 03:29 PM.
I have 4 - 20" in row. I read from left to right as I scan for trades setting up. For th YM, I only use 1 trade setup and have just 2 charts - 8m and 15m.
All else is range charts 7/5 combo, except the ES which is 5/3 range combo.
I use 30m, 60m for big picture and pivot levels for each instrument.
When I have the auto trader on, I have a chart for the FDAX, CL, and ES with it running on each.
I have a second computer with 2 monitors running Ninja as backup.
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Begin Live Trading after successfully completing the Acid Test. This test must be done on your own, not in a trade education room using others signals. You can use Replay or live market on sim to practice. If you cheat, you loose. You must use live market data to take the test.
Designed for the Emini S&P. For other markets contact me for the scenario (YM, CL, TF). Obtain my recommended journal and detail everything you do. Most important is what you did wrong and what you did right. PASSING GRADE is to double your account within 3 months, or close to it. If you need to reset your sim account then you must start all over from scratch - no refunding.
You must have a starting SIM balance of $5,000 and trade 2 contracts. The first target is 4 tics for 2 contracts with 8 tick stop. It is all in and out at first target. Get in, get out, get paid. This needs a high personal performance rate of at least 75%. You can add 1 contract for every $1000 profit earned. If you lose $1k, you must reduce your contracts back to 2.
You must have a starting SIM balance of $5,000 and trade 2 contracts. The stops are the same as option 1.
The first target is 4 tics for 1 contract and set your second contract target at no closer than 8 tics. You can add 1 contract for every $1000 profit earned.
Once your first target is hit, move your stop to 4 tics behind your entry price (scratch). When price moves 7 tics toward your target, move your stop to entry (break even) and leave it there. If price moves to 8 tics (fill or not), move your stop up 4 tics above your entry price and leave it there. You can add 1 contract for every $1k in profit. If you lose $1k, you must reduce your contracts back to 2. You are only allowed to have 1 runner at any time. So you must manage your trade and take the bulk of your profits quickly to buy your stop (or as much of it as you can afford)
This can all be set up in your Ninja dom strategy. Refer to the Ninja videos or your manual on how to do this.
You must have a starting balance of $10,000 and trade 1 contract. Your stop is 10 tics, your 1st target is 6 tics. Once price moves 6 tics to target, move stop to entry +1. At 7 tics lock in 3tics.
Manage your trade. The goal is 24 tics - . Increase this to 40 tics for the 10 bagger!
As you can tell, there are many ways to slice the pie. The most important is to decide how much risk you can tolerate (which comes to no more than 2% on any single trade), what your personal performance level is in being able to see a valid trade setup, your ability to decide in time and pull the trigger, and how to manage a trade for maximum gains. All this you can learn on sim and your performance record is going to reflect it.
What you will not learn on sim is the emotional upheaval as you take stop after stop. So, if you get stooped out more than 3x in a row, stop trading that day. So, trade the sim as you would real because you have a time frame of 3 months to pass the test. If you find yourself in the second year of trying to pass the acid test, then maybe you should quit trading and do something else.
Study and Practice Options:
1 - Advance your chart one tick (bar) at a time. On each bar decide trade, no trade.
2 - Same as above put strip down the chart to the price bars, and 1 oscillator.
3 - Run market replay no recent than 3 months.
4 - Run simulated data, but have someone else change the trend settings for you every 27 minutes.
5 - Use a 610 or less volume chart, a 3 range chart, a 30 seconds chart, or a 55 tic chart.
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2C - 5 ticks - all in all out. Stop 10 ticks.
2C - 1st T 5 ticks, 2nd T 15 ticks. CL is more volatile and moves faster than the ES. Initial stop is 15 ticks (catastrophe just in case) but money stop is 10 ticks.
1 C - go for it. Stop 15 ticks.
What you will need to pass this test:
Very good trade setups that you can trade without hesitation.
Sound capitol preservation decisions.
Trade for money attitude.
Focus on price (movement) action.
Ability to accept a smaller stop out if price action dictates.
A lot of patience.
If you cannot pass the test within 3 months, then that is OK. Try to get it done in 6 months. However, if you experience more than 50% draw down, then recovery is almost impossible.
So, take as much time to practice on sim as possible. Do not think that being on sim for 1 year is bad. It is fine. Nobody said this was easy, and if they do I doubt they are real. Once all your practice is done, and you start the test you either pass of fail.
If you draw down more than 30% then consider that account blown and you may as well reset the sim account and start again.
If you cannot pass the test within 1 year....then you have a difficult choice.
You will have to find something that YOU CAN WORK or work at something else.
I recommend that you try the test with what you have now. If you can make it work for you then super...and you may go to cash. A few things will be different. The biggest is the emotional part. There is no substitute for the fear factor. The only thing that comes close is to have a well funded account. I recommend 10k pr contract minimum. Also fills on entry and exit will be different, especially as you increase contracts. So, best way is to be ahead of price and use buy/sell stops in as much as possible.
I look at trading as a profession. It is a business and in order to live off of it, then you have to be proficient. This take time. I consider 3 years as par for the course.
The first year you get all the technicals done - money management, setups, patience, discipline, capitol preservation decision making, trading for money, passing the acid test
The second year you learn how to lose properly. This means you pretty much break even. You learn how strong you are and you start to grow into your profits.
The third year you start to make some money, recover past loses.
The fourth year you take off and actually make money you can use.
It may take you longer or it may be shorter. Depends on you.
However, one thing that is very important. If you find you are making money, then take some money out of your account each month and enjoy it. Even $20. Once you get yourself tuned into getting paid for this activity, the more your brain will accept it as a profitable endeavor and want to repeat it.
Oh, one last thing. If you want to really sharpen your skills....trade in front of a crowd!
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