I am going to start this thread as a public corn daytrading journal. I trend-trade corn futures (front-month) intraday. To any professionals, please point out anything that I am doing wrong, any mistakes I am making. I am a beginner to live trading.
Honestly kevinkdog, I would love to know what those are. I am completely technical in my approach. However, I want to learn more about the news reports that effect my market. Can you provide a list or link to one of the important news events for corn?
You should also be aware that corn market, as other grains, has price limit. It is 40 cents as of now. That means you can be trapped in a position if you're on the wrong side. It does not happen a lot, but it is something you should keep in mind.
bobarian, I trade the full-size contract. There is a mini, but I don't trade it. I like the full-size. I would imagine the volume is less on the mini.
My method is trend following in nature; I will be posting it later. Already made 2 cents per contract, with two trades. One breakeven before commissions, and the other +2 cents! Too bad I am simming it today...
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My trades are marked up on the images. I will be including charts usually. Today was just a sim day. I am trading with one contract per trade.
My timeframe: 133-tick.
My indicators: TJS_PullbackChannel(blue channel) and 45 period SMA(Pink line). I also have some labels up on the chart, but I do not use them for this.
The TJS_PullbackChannel is an indicator that I developed. It is essentially a 0.5 coefficient Keltner channel with the period being 22. Type: EMA. This will have the same results as the TJS_PullbackChannel; almost exactly.
My signal for longs is when the lower band of the Pullback channel(pc) crosses above the moving average. I enter long at the ask with a 2-tick stop, and a 2 cent(8 tick) target. As soon as I have two ticks, I move my stop to breakeven. I then trail it 3 ticks below from there.
My signal for shorts is when the upper band of the Pullback channel(pc) crosses below the moving average. I enter short at the bid with a 2-tick stop, and a 2 cent(8 tick) target. As soon as I have two ticks, I move my stop to breakeven. I then trail it 3 ticks above from there.
If the cross has already happened, I will enter when the price closes within the bands. I then manage the trade with the same rules.
I am not in front of my computer all day long, so I don't take every trade. If I miss the crossover, I don't like to chase; rather, I wait for a pullback.
I am using one contract right now.
I let the market have at least the first 5 mins after the open to work things out. I use the front-month contract, the continuos chart, and the extended hours in my calculations. I will only trade during the pit sessions; all trades must be closed before 2:14PM EST.
If anyone is interested in the thinkScript or the formula for the TJS_PullbackChannel, let me know.
Tomorrow I am trading live! Let's see how it goes...
If anyone has any questions, feel free to let me know.
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