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I start this journal to help me monitor what I'm doing. I have been trading for over 8 years and a few years back find the option to trade using order flow. The path has been long, but actually, I'm in the process to feel that I found a consistent way of trading.
The way consist identify institutional traders and where they are interested in trading. I don't have any special information, more than looking at volume ladder charts, volume profile and DOM. I try to locate areas where institutional traders play his game, like icebergs, absorption, reloadings, sweepings... and going with them.
All the trades post it here will be live trades. The starting balance is 50k. I will start trading in a conservative way, 2 contracts till I have 2k and then I will increase size. The max loss in this account will be 2.5k and then will go again to sim trading. My daily loss limit will be 500$.
I don't have any specific plan to start the day because I found that on my side flexibility is a key, and need to be in the present when I trade. I don't focus on what traders have been doing in the past. Previously to take any trade I monitor where I am, if buyers need to be present or not, basically what I call directional areas. To do that I use my daily volume profile. The open is always key on my thinking and is where I monitor areas to trade.
I'm a day trader, and these means that all positions will be flat at the end of the session. My main market is the mini SP 500. I don't trade any other market. I feel comfortable with this market.
Hoping that this space helps me to be more focus to find weak and strong areas to increase efficiency and to keep me on the right path for live trading.
Nice question, but money is not important. BTW, my intention is to trade size and planning to trade with 6 contracts or more. These means that I need to have enough money to trade in a conservative way, means 1 contract every 10k. The max loss is to protect the money from me and keep this account live enough to trade with it. I have the opportunity to don't start with a low account and have less pressure to win because I have the option to blow up my account 20 times and be out of the game.
Hope this never happens but who knows. This is why I open this space, to help me improve what I do.
Thanks! Looks like it's around my alley what instrument you're trading and style (maybe you're a bit longer than couple of minutes). Are you going to make videos too on the trades or just in writing? The reason i'm asking is because iceberg and things like that can only be seen from dom. Thanks again, and good luck!
Total trades: 3
Short Trades: 3
Long Trades: 0
Result Activity: Losing day
Mental State: Focused
1 TRADE 1C
I saw buy institutional traders positioned in the open at 61's area, with 2150 contracts. At Second Range Bar buyers were controlling the movement, but fail to go higher at the third bar and go against buyers at the second bar. At 64's area saw sell icebergs coming at market and take a short trade. The market sweeps up and takes me out. What I fail in this trade was in the risk location. The risk needs to be positioned up from the Third Bar, and not inside of it.
2 TRADE 2C
Following the previous actions, i saw sell icebergs at 63's area. I take a short trade being down from sweep zone and looking at sell institutional activity. In this case, I have seen how the market was refusing to trade at 62, close to the initial position from buyers. My thinking was if sellers are positioned and have trapped at buyers, why don't blew up them? Accordingly, of what I saw, I decided to close the trade.
What I feel in the second trade was that the long side was an option but my mind refuses to take long trades. This was happening because the market was trading at new highs and have no auction reference. My mind was uncomfortable at the long side, but the day was clearly up. With buyers at 61's area and positioned again at 63, the best option was to take a long trade. In a few moments looking the action, I feel to go long because saw buyers actively trading, but the action was too slow and with no zones to look and no auction references, was only intentions.
3 TRADE 1C
I saw the same action, sell iceberg, but again without control. Trade managed and close with a little loss. Well managed and focused on what was happening.
CONCLUSION:
Being at new highs with a gap down was biasing my mind to refuse to take long trades. With out auction references, I need to feel that what I see is what it's. Buyers...buying take longs. I'm happy with the end because I was able to manage against positions. I don't want to call them, wrong positions because if I take the trade was because the option was present, but in the past, the end of today would be moving my stop and closing at the end of the day with my losing position at new highs.
The lesson learned was that if I see that sell institutional traders don't follow his positions the expectation is that the opposite side, buyers, will take the control of the move. Go out of against positions and try to take the other side if the context is telling me that the scenario is valid.
Total trades: 5
Short Trades: 2
Long Trades: 3
Result Activity: Losing day
Account Balance: 49688.28
Mental State: Focused
Weakness to work: Accept risk and losers
We open today again at new highs. This is an uncomfortable situation but needs to trade in any situation the market is and will be. Yesterday I felt that new highs were not my preferred choice to work and today I decide to reduce risk at takes all the trades with 1 lot.
1 TRADE 1C
This one was looking at buying institutional actions. Passive buyers were active and accordingly to the previous scenario, bullish, take the long. New buyers were out of directional control and close the trade at BE.
2 TRADE 1C
The previous image explains what happens. I was long looking at buying iceberg orders with aggressive buyers. I was confident in the option to the market goes long, because we're near the previous highs, but the move down was really aggressive, taking my FULL STOP.
3 TRADE 1C
This one was a subjective trade. Don't have any institutional action to go with it. After taking the trade saw institutional actions, but being in the trade, this action was only to give hope in something. Looking that the market was going against my position a move my stop near to the today's highs. Lost connection and was not able to manage nothing and won't be able to close manually the position. This is the best trade today because tell me a weak area to work, accepting risk and losses. Not being right is not an easy task. Seems that the previous decisions let me trade subjectively with out asking me about risk and what happens if the trade doesn't go in my favor. I will monitor that because I think will be a handicap in my way to be a trader. I have marketed the zone to take the trade based on institutional actions for accept risk and loss.
4 TRADE 1C
This one was looking at buyers out of directional control and with a few offers acting like a wall. Risk up this offers and expecting to go at today's lows like a target. Move it in my favor, but decided to close it at break even.
5 TRADE 1C
Looking at previous buy actions, I saw passive buyers absorbing sellers and trading aggressively. Take a long with a risk down previous aggressive buyers at 70. Expecting to go near today's highs. Exit at Target.
CONCLUSION:
Thinking about my trading today, I didn't learn something new. I have a clear weakness speaking about risk and acceptance. Basically, need to work at it. I will add an equity curve to give me a visual way to see the result of this behavior and give me reasons to take it out of my trading. The rest was accordingly to the plan and manage risk. For tomorrow I will be focused on maintaining my losses little and try to give room to my winners. Follow institutional traders and remember that if they don't go, I will be out of the trade.
