I did 9 trades on ES and my target is 1 pt. If I see a good setup for a bigger move I will do an extra contract and try for more than 1 pt. Today that didn't happen as the market was very balanced.
By gap trade do you mean fading the gap? A gap getting filled is one thing I look for but I need to see some evidence that the market is going to fill it. So to do it one needs to have a good feel for the market. Some gaps are due to a change in sentiment overnight. Some are due to manipulation by smart money.
Excellent post. Scalping dax & crude was kind of a happy accident. I was interested in scalping ES & The Bund. So I was researching some scalpers and I saw a video of a guy scalping the dax. I noticed what he was doing and so I tried it out and it worked right off the bat. So I tried it on crude and it worked. I did that on sim for 3 days and it was unbelieveable how well it worked.
However the reason it worked was more of a coincidence IMHO. The market was balanced last week. The past 3 days have been more of a challenge. And I wasn't looking for a challenge.
So I hope that answers your question. Sometimes I wait 30-60 minutes for a setup on ES/Bund (I trade them the same) and my thinking was I could scalp dax/crude. But it's not that easy. What makes me successful on ES is my feel for it and the fact I study the context quite seriously (knowing all S/R levels for example). I can't do that on Crude & Dax, I don't have time.
Please don't think it was for a challenge or ego or anything like that. I just thought I found something easy. I was a bit naïf. So I think you're right, because dax/crude takes my attention away from bund/es. so when bund/es are trading I'll focus on them.
I need to start increasing my size and building consistency. That's the most important thing right now. I can't keep trading 1-2 lots forever. Time to take it up a notch.
In my opinion, they would all work! It is just a matter of sticking to them and proper money management.
Nobody does, they go through one big trend period and the range traders go out (including myself). One or two big ranges and the trend traders all jump ship.
Forex is terrible for smaller time frame trading compared to futures in my opinion. The cheapest commissions are like $8.00 and that is if you get filled anywhere near your target entry! haha... I never get my entry even with ATC etc..
Makes no sense to me. Might as well just trade futures and click the 'market' button. haha..
The following user says Thank You to bluemele for this post:
Enjoying reading your journal and also your blog.
Above you mention about watching DOM only for months. But I presume you have to know what to look for, otherwise you could be watching and not "seeing" what you are supposed to see ? So would a person have to have some guidance on this, in terms of the essential nuts and bolts. Wondering if you have any views on this and on where to get such guidance if required ?
Also is the DOM 'easier' on some instruments ? e.g. would it be easier on slower markets ? Is the ES tougher to read than say the Bund etc.
Look forward to your views.
The following user says Thank You to jitasb for this post:
Great questions. The No BS Day Trading ebook & video will give you an idea of what to look for, but my experience is it never happens exactly as he describes. However reading that will give you an idea of what to look for. Basically you have to constantly be looking at how the bids & offers are changing along with price, and what is traded where and are the bids & offers pulled or trading? It's quite demanding really and a couple hours is enough. There's a lot of other stuff and after you see if for a while you just "know" if a bid is real or fake, if it's about to get pulled, etc. After watching it for a while you start to develop your intuition. I've been using the DOM for exits for a year now, but was using bar charts for entries.
It may not be clear from my posts so let me summarize: For ES & Bund I use my charts to determine where I'd like to enter trades. When price gets there, I look at the DOM to find a good low-risk spot to enter and then I manage the trade on the DOM. This will be the subject of my next blog post. So for ES & Bund I'm not watching only the DOM. In between trades I watch the DOM to study it and learn it and if I can I scalp for 1 pt. Today's trades were just scalps off the DOM but I was watching the charts to see the balance area & the high & low. The guys who trade DOM only have to remember the highs & lows, I find it easier to look at a chart. But there is a big difference between looking at a chart to see where price is in relation to where it was, and using a chart to enter on a bar pattern or a higher high etc. The latter I do not do any more.
It's definitely easier in slower markets. The no bs guy recommends treasuries. Since I already trade ES & Bund I just study the DOM on those. ES goes pretty quick. I spent a few weeks watching ZN and it's easier & slower but also boring. Euro moves too fast and crude & dax are way too fast to learn. So I'd recommend ZN or ES for US hours and Bund or Stoxx for European hours.
The following 2 users say Thank You to cunparis for this post:
I don't have a specific link I was just searching you tube for scalping and watching all the videos I could fine. There are a lot on dax scalping. Many don't have sound so we don't really know what they're doing.
The following user says Thank You to cunparis for this post:
I forgot to ask about platform. Form what I have read generally X-Trader is the one to have ? If I watch the DOM in Tradestation for example, presumably that won't give me as much in terms of learning ??