Very interested in how you determine the relative “out of norm”-ness of the YM NQ pair. I have been trying various things and can’t find any repeatable mechanical setup. Thanks!
Hi,
I have few (trading) friends that feel the same way. They have tested ( Tradestation) the same set up and did not find it profitable long term. My guess is that the set up works if you don't get greedy and exit at the right time (probability of touch). It will give you a window to take +$50-80, then just as fast, it will take it away. And I do mean fast. The key is to watch and take it at market. Of course, I could be very wrong and there will be one day per year ( hand tested) that I will have a very large draw. Not a black swan event, but a hurtful loss. But I am aware of that. BTW, I am always out EOD, so the loss is never too bad, for me. And I trade small ( 3-5 micro lots).
I will continue to post and if start losing daily, then I will reconsider/retest. Thank you for your feedback and please feel free to share any charts/feedback concerning the set up. I am a beginner with only 10 years of trading
Also, I recently got into Tradestation and learning auto trading/testing, more on that in the near future.
Good trading,
K
The following user says Thank You to kareem40 for this post:
Here is my one and only Forex position. I added a target at the top of the channel. It came close, but not enough to fill. It's up about 60 PIPs so far. Still no new FX positions. I did not have much time with my work obligations to look for a set up. Day trades to follow next.
Here are daily day trades. Still the same with ES using news/VSA and the YM/NQ Spread. The first trade was a retest of close of the set up bar. I sold as it did not reach the close of that set up bar, again at volume. I closed at 1.5 points ( $75). The second trade I took at the test of an established trend line-bearish day. I did not like the price action at the resistance ( TL) after I entered and I bailed. I got a good fill (lucky) with +.5 since I was aiming for a scratch or a small loss.
After that I got very busy at work and could not watch the ES chart much. I noted few good set ups, that I would have possibly taken for a couple of points each.
Below is my Spread ( Sell YM -5: Buy NQ-5) trade. That trade look heat ( around $140, maybe more since I could not watch it all the time) and I added to it as it went against me, which is part of my trading plan. It also took a long time to mature/pay. I bailed ( toward EOD) at the time of this snap shot below for +$42. I don't think it ever reach my typical $50 target.
It was a good day with no mistakes, low risk and a bit more than half ( +$134) of my daily goal.
K
No charts today. I did take one pair trade around the open and for some reason decided to step out for 20 minutes. Once I was back, the pair was in the worst possible draw of -$360. I am still holding it and usually I close all at EOD, but I think ( bad sign!) I have seen the worst of the draw. I has been improving ever since and I will look for tomorrow's open for taking hopefully a better loss. With this draw, I did not take any other trades and stopped trading for the day.
I am still holding the FX ( CADJPY) at profit. I am unrealized of -$290 as of this post. Not a good day and a mistake. Never leaving an open pair trade. Never get too conformable with your trading/set up and most of the time the first loss is the best loss.
Yes, I am still stubbornly holding the spread at a nice loss! I thought the Fed minutes news will cause enough mayhem to give me a decent exit/loss. I was wrong.
As I am watching my spread loss. I did watch the NQ most of the day and did notice few good set ups, which I took. I am up $130 on the NQ and down plenty on my pair trade
Good day, but still feeling like Sh1t with the loss am still hold.
K
Hi Palais,
Thank you for the post. Stops are never placed in advance and are taken at market two ticks below the most recent H/L swing. Targets are taken, most of the time, at market as well, based on the live forming bar and volume. You have to understand that the speed of the live bar is never shown on a historical chart. It can be a key to holding or running. Most of the time, targets, will be at the bottom/top of a channel and/or re-test of a trend line. But, many times they are at my $200 daily target, if it gets there.
I will start adding lines to possible good targets in future posts. Most of those will be in hindsight, which again I have a perfect trading record at. But please remember that it is very hard for me to stick with those as I am trading live. BTW, the blue dashes are the longs and red are the shorts. I am not sure if they show or not. I tend to take profit too fast and take my time with stops-basically I am still an amateur.
K
The following 2 users say Thank You to kareem40 for this post:
No chart set ups today, just news trades. It was a good day to do so as when we have Fed speakers. We tend to get strong moves both directions with time to enter at low risk. I have also traded my new trading toy, Tradestation. I opened an account to attempt at System Trading. I have only had it a week, but my system trading future does not look promising at all. Most of my tested systems had very bad equity curves. But I wanted to learn how to use Tradestation, so I traded some micros ( news trading as well) for a +20. It was small with 1-2 micros each trade. I do like their chart trader, of course NT chart trader is still the best. Speaking of which, please vote for me here if you like this journal:
I would love to win a NinjaTrader. IB's charts are not fun with work with!
My spread looks much better today and I maybe able to bail at break even in a day or so. I am up $91 with IB and $20 on Tradestation for a total of +$101.
An okay day, short of goal again, with low risk and no mistakes. It was challenging working with two different platforms at the same time.
I actually forgot that I still have my FX (CADJPY) open. The set up is no longer there, but it seems to be close to Target. It's about 20 PIPs away at the time of this posting. I don't think I will have the time to review/add additional FX swing trades anytime soon. I do at times, when indices markets are slow,trade FX off breaking news.
I don't explain my charts. If you like to follow my trades, look for these lines.
