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In general - Bad entries today, which make for difficult trades and much worse odds.
1023:02, long 1, -6T
Looking back I don't know why I took this trade. LOC poor, STRUCT poor, and I tightened up the stop and got stopped out to the tick. Lots of ERRORS. Bad start to th the week. Follow rules: location, direction, structure, CD, R:R, why.
1037:51, Long 1, +8T
Late entry, otherwise OK.
1304:19, short 1, -5T
Late entry. Was hoping it would come back, but it became clear it wouldn't.
1318:37, Long 1, -9T
Good entry. Left ATM alone. Got stopped out to the tick! Oh well...
Should have just gotten back in.
1322.06, short 1, +1T
ERROR, did not wait for bar to close.
After the flat lining on the Bids I should have gotten out.
1317:30, short 1, +1T
This is a trade where the entry was poor, but the exit saved my butt. If I had reacted to that bottoming pattern a bit quicker I might have wrestled an extra tick. But I'll take one tick. It's better than nothing and it paid the commission.
I purchased the No BS Day Trading basic course ($89.00) and have been digesting the contents. I have been doing some simulation trading during regular trading hours and I can understand the basic idea be hind his premise: try to anticipate the move using the DOM in order to reduce your stop losses (risk). He recommends DOM only trading, which I find a bit limiting. I agree the DOM and recent BID/ASK volume is important, which is why I have it on my screen, but I find PA history, as well as CD history to be very helpful. Those things can keep you out of bad trades. I can see that using only a DOM could force the trader to focus more on immediate price action and make him develop a price chart in his head.
He also compares different vehicles which is a good exercise for every trader to do. Basically divide the commission by the tick value. So if the commission for CL is $4.14 (AMP pricing) and a tick is $10.00 then the commission is 41% of tick. For the 30 year treasury (ZB) the commission is $2.44 and a tick is $31.25, so the commission is only 8%. Over many trades, that could be a significant savings. Natually he trades treasuries and recommends against CL, stocks and is not too keen on ES.
So now you know why I am not posting trades for a while.
OK, so I read the No BS Trading eBook and watched the videos and I get the gist of it, I think.
The basics: anticipate, look for the bid pulls or ask pulls. Look for the action before the breakout. Look for the wedges (triangles) basically before a breakout. Don't go against the momentum (trend). GET OUT FAST if PA doesn't go your way. Enter at a point where the fail point (where you gotta get out) is close sl that your loss is minimal. Watch both the bid-ask ladder and the current bid and ask volumes. Use the volume-at-price mountain view to get an idea where support and resistance is. Etc.
I had been trading this past week in simulation, but today I tried a couple of live trades. Here they are:
1039:56, Long 1, +1T
So I caught a low point and got in well but chickened out very early trying not to turn a win into a loss. The probem was that the run-up was only two ticks. Notice that I am using current traded bid/ask volume not recent traded bis-ask volume. When using the curent volume you must rest the numbers a lot. Otherwise you get big numbers that get increment bu just a few and, visually, you can't tell them apart. I have to admit that the jigsaw DOM seems to reset the numbers more often in the videos I saw.
1314:01, 1 short, +3 tics
sorry I took the picture after trading ended on Friday so ladder or recent bid-ask volumes.
almost a liquidity vacuum down draft then a consolidation before I went short. Asks were holding the line (see the two green CD bars and white down arrows just before entry) so I took this trade IN ANTICIPATION. My reading of No BS Trading is that he believes in trading off confirmation for lower risk. I was use the top of the consolidation, 41.50 as the point above which the premise for the trade would fail.
The exit was a chicken exit as usual.
No BS Trading likes the treasuries and is against trading CL. And I can see their point. The commission as a percentage of a tick is much higher for CL. CL PA on a per tick basis is much faster, to the point where, IMHO, it is too fast to watch with just a DOM. You need a chart. I think No BS trading DOM only bias and his examples - he shows a picture of a prop shop with only DOMs up on about 50 screens - works for treasuries and other vehicles that aren't too fast and have decent tick size (like $30.00). I'm not certain it works for CL. I'm also beginning to think that in CL one should not think in terms of a price point but a price range, perhaps about 3 ticks, which would be the equivalent to one tick in the 30 year treasury futures.
Only +1T after commissions but still I came out ahead and learned from my trading a little.
0955:00, 2 trades, -4T+5T=+1T before commissions
First trade I thought it was going down more. second trade I cought the reversal but chickened out early.
Still learning No BS Trading stuff and don't have it down completely.
1304:32, 2 trades, 0T+1T,
First trade I got out late the large green candle should have gotten me out earlier but I didn't take it.
Second trade got out perfectly. Lucky trade; but, hey, I'll take it.
So I made a few trades trying to implement No BS Day Trading techniques. I can see why he argues for trading treasuries. CL is very fast much more volitile making it difficult to trade directly off of a DOM. I believe my setup with either volume bars or delta volume bars, along with cumulative delta and and the delta divergence arrows, and the graphical Depth Ladder gives me pretty much the same information but in a formate that allows me to process the faster action more easily.
