Diary of a simple price action trader - futures io
futures io futures trading



Diary of a simple price action trader


Discussion in Trading Journals

Updated by Mich62
      Top Posters
    1. looks_one Mich62 with 116 posts (180 thanks)
    2. looks_two bobwest with 4 posts (12 thanks)
    3. looks_3 Sandpaddict with 3 posts (3 thanks)
    4. looks_4 loantelligence with 3 posts (2 thanks)
      Best Posters
    1. looks_one Silver Dragon with 3.0 thanks per post
    2. looks_two bobwest with 3.0 thanks per post
    3. looks_3 iqgod with 3.0 thanks per post
    4. looks_4 Mich62 with 1.6 thanks per post
    1. trending_up 10,079 views
    2. thumb_up 209 thanks given
    3. group 37 followers
    1. forum 136 replies
    2. attach_file 168 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Diary of a simple price action trader

(login for full post details)
  #21 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received

Buyers at Y RTH Low bought price back to VPOC (and inside Y range and value) for now. Waiting for the open.

200604_ES_15m_VP_Buying_YRTH_Low

Visit my futures io Trade Journal Reply With Quote

Can you help answer these questions
from other members on futures io?
Sending an ACH from BoA to GFF Brokers
Brokers
US OTCQB STOCK Brooker for UK BASED RESIDENT
Brokers
Heat Map on Trendspider
Platforms and Indicators
Seeking an MT4 Indicator/EA that scans all Currency Pairs to identify setup
Platforms and Indicators
The logic of your strategies
Traders Hideout
 
 
(login for full post details)
  #22 (permalink)
Langley
 
Experience: Intermediate
Platform: IB
Trading: Futures
 
Posts: 225 since Mar 2020
Thanks: 256 given, 192 received


Mich62 View Post
Trading the micro ES

When trading the micro-futures one gets easily disappointed to see a profit of only $25 on a 5-point trade. You might think that's not going to make me rich and then you start overtrading. Some may take on more micro-contracts while some may think it's too expensive (in commissions) and go right back to the mini to make some hay.

But the micros are a great instrument in that it lowers leverage. High leverage is the number one reason retail traders fail as is explained clearly in the video "CME Micro Indices : New Trading Opportunities w/FuturesTrader71".

One should not look at $$ but only look at ticks or points made or lost (and that only over a certain period). While trading the micro just assume you're trading the mini. A 5 point win suddenly looks very attractive. When you can make that consistently in the micro you can scale-up to more contracts and eventually to the mini while doing the same trades over and over again. But first you've got to build good habits while preserving your capital. I see no reason not to trade the micro unless you are consistently profitable and trade size.

Al Brooks wrote that when you can make 1 point a day you can be a millionaire in a year. It's the only thing I understood from his first book.

Trade well.

There is SOOOOO much truth in this post. Read it! RE-READ again! Then read it AGAIN!

EVERY word in this post is so important.

Al Brooks is my mentor and I've recently found FT71. FT71, other than market profile, blows my mind. Everything this guy says RESONATES with me.

Sent using the futures.io mobile app

Reply With Quote
The following user says Thank You to Sandpaddict for this post:
 
(login for full post details)
  #23 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received


US AM session trading recap

Good afternoon one and all,

I managed to stay out of the open rotation and waited for a range to establish.

Trade 1: Sideways trading meaning sell VAH/high range and buy VAL/low range. Just scalping in the range for 10t (till the market shows direction).

Missed the long entry on the first PB (on 30s) after the breakout.

Trade 2: Long 2nd PB/BOPB (1 bar PB). Was late with my entry, looks more like a breakout trade. Stopped for -8t.

Trade 3: Long BOF/CPB for -5t, closed too early. Was with-trend and should have give it some more room (at least till the low).

Trade 4: Re-entry long BOF/CPB, closed at target 1 / high (also YVAH) for 9t. Target 2 was ONH (Pre-High) and target 3 was YH. Had only one contract on. Best solid trade of the day. Nice PB, BOF low on prior bar and YVPOC support.

Was writing notes for this post and missed the run to ONH. It's difficult to trade and make notes. Still trying to find my way combining trading & posting.

Trade 5: Long PB to IBH for a test of ONH/YH. Closed, no follow through, for -2t.

Trade 6: Short on rejection high for mean reversion to vpoc. Stopped on test high for -22t (2x -11).

Trade 7: Long again for a test ONH & YH. Hold on to my long (trend is up!) and let it go against me. Disaster strikes.

Trade 8: Long scale-in on a PB to YVAH (still with-trend!). Thought YVPOC would offer support (and trend would resume after testing YVPOC) but price went straight through it to visit the next level, VAL. Closed it at Mid-Range / VAL for 2x -44 & 2x -24 = -136t (-34pts).

Total for the day -152t.


200604_US_AM_session_trading_recap



I think the micro is a great instrument to try things out without doing too much damage to the bankroll but it also can cause overtrading and taking on too much risk (just like sim-trading). I've got to keep it in check. So, done for today. I think I've played enough. Things aren't going that well, so quit for the day.

On a more positive note, I think I've learned a lesson or two (once again). And that's all what counts. We are here to learn. And losing (the right way) is one thing we need to learn before we can be a winner. Back on the horse again tomorrow. Take care.

Attached Thumbnails
Click image for larger version

Name:	PTJ_Losers-Average-Losers.jpg
Views:	58
Size:	45.6 KB
ID:	300691  
Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to Mich62 for this post:
 
(login for full post details)
  #24 (permalink)
Nepean
 
 
Posts: 11 since Apr 2020
Thanks: 5 given, 5 received


Mich62 View Post
Trading the micro ES

When trading the micro-futures one gets easily disappointed to see a profit of only $25 on a 5-point trade. You might think that's not going to make me rich and then you start overtrading. Some may take on more micro-contracts while some may think it's too expensive (in commissions) and go right back to the mini to make some hay.

But the micros are a great instrument in that it lowers leverage. High leverage is the number one reason retail traders fail as is explained clearly in the video "CME Micro Indices : New Trading Opportunities w/FuturesTrader71".

One should not look at $$ but only look at ticks or points made or lost (and that only over a certain period). While trading the micro just assume you're trading the mini. A 5 point win suddenly looks very attractive. When you can make that consistently in the micro you can scale-up to more contracts and eventually to the mini while doing the same trades over and over again. But first you've got to build good habits while preserving your capital. I see no reason not to trade the micro unless you are consistently profitable and trade size.

Al Brooks wrote that when you can make 1 point a day you can be a millionaire in a year. It's the only thing I understood from his first book.

Trade well.

Totally agree with your thoughts in this post, micros I think it is a very good way to learn. Thanks for the journal, me being a beginner is going to learn a lot from it! wish you happy and successful trading!

Reply With Quote
The following user says Thank You to hugoab for this post:
 
(login for full post details)
  #25 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received

One should learn from his failures. Let it be a lesson, you've paid for it. (talking to myself)

Trades 7 & 8 yesterday (the ones that made me stop for the day) were really good trades if only I did the opposite of what I did. Why didn't I?

Because I was in a position and I had a plan, or maybe I should say, I was biased in the sense of, I think we are in a strong uptrend and we may see/test YH. Because I was in a position I did not see the signs the market was about to reverse (3 pushes up in an extended run, relative wide initial balance, shortening of the thrust, sell divergence). High prices attract sellers and I want to sell high, not buy when it's expensive. Buy when it's cheap. It's an auction. The market showed me that it doesn't care less what I think or expect. The market did it's own thing (matching buyers and sellers like an auction) and all I have to do is follow. My bias on the wrong side has some more consequences besides the loss:

I could not see the short opportunity for one. As a matter of fact, I was short just before I jumped in long on what looked like a pullback trend continuation and support at YVAH. The short (trade 6) was based on the high volume and low close (effort versus result, supply is coming in) but my entry was clearly a little early (wait for a test or kind of rejecting signal) and the stop in this case should go above the high so was too short.

When the market broke down I was still looking for an upward continuation. I thought YVAH (green dots) would provide support again (attract demand) so I scaled in. The market proved me wrong.

Because I was defending my trade I could not see what was really happening. The damage was done, financial and psychological. Another consequence was I had to stop for the day missing some good opportunities later on.

After a cold shower and a good dinner I was relaxed and did 2 small (1 lot) feel good scalps (not neccesary good trades) to end the day positive. Eh, a positive feeling that is, not de PnL of course. But your emotional state is more important than your PnL. Just like the process is, but that's another story.

Taking profits early and letting losers run is not going to make me a profitable trader. I need to keep my losses small (especially when scalping). And I need consistency.

Only when my balance has grown I can endorse concepts like "Let your winners run". Till then it's "Take your money and run".

Quote: The fact is that if you want to trade for a living, you need consistency a lot more than you need big wins, and veteran traders know that big wins donít come consistently. The implication is that looking for big wins is less productive. The direction your account balance moves is more important than the speed at which it changes. Can you end each day with just a few ticks of profit? Small gains will keep you into the game. "Success is based on low expectations...Nickels Holding Up A Dollar" - Source: https://verniman.blogspot.com/2009/09/un-ano-sin-lehman.html.

I feel I have all the pieces of the puzzle but have yet to create the whole puzzle. I hope this diary helps.

Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to Mich62 for this post:
 
(login for full post details)
  #26 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received

How to view the ES (ETH+RTH) and trade the MES on one chart in NinjaTrader 8.

I will look at the ES but when I make a trade it will be in the MES. To do this I made a chart with at least two Data Series. The first Data Series has to be (and this is important) the MES because the first Data Series will be automatically (by default) selected as Instrument when you select the chart window (in case you come back to the chart after you changed tabs to look at another chart).

The properties of the Data Series of the (invisible) MES are set as follows:
- Color for down bars to Transparent
- Color for up bars to Transparent
- Auto scale unchecked
- Panel 1
- Price Marker Visible: unchecked

Then add a second Data Series with the (visible) ES:
- Color for down bars: Red
- Color for up bars: LimeGreen
- Auto scale: checked
- Panel: 1
- Price Marker Visible: checked

I also add a third Data Series with (invisible) ES RTH Trading hours:
- Trading hours: CME US Index Futures RTH
- Color for down bars: Transparent
- Color for up bars: Transparent
- Auto scale: unchecked
- Panel: 1
- Price Marker Visible: unchecked

You now can add your indicators but make sure you select the right Input Series, that is the ES or ES RTH (under Indicator Properties).

This is how it looks like:




It's now very easy to make the transition to the ES (in time) without the need to change anything to the way you trade. Just delete the MES Data Series. You won't see any difference to the chart, it only has the ES as Instrument in the Chart Trader.

Happy trading!

Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to Mich62 for this post:
 
(login for full post details)
  #27 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received

Outlook for 06/05:

The ES market is in an upsloping trend channel on the 15m, starting May 22nd. Yesterday was an inside day but closed off the lows. At 15:30 ET price tested the low of the channel and found buyers at the HVN / VPOC from June 3rd ON session. Overnight session is bullish. Market reacted bullish to a better as expected Unemployment Rate. Price is above yesterday's range and value. ON VPOC at 3134.75. HVN at 3142 and 3150. Inventory is below and sellers can enter the market (trigger stop orders). Levels to watch are HVN 3123.50, HVN 3118, HVN 3111, YC at 3110.50 (gap close), YVPOC 3111.25, YVAH 3114.50, YVAL 3096.50, ONH 3164.50 ONL 3106.50.

Scenario's: watch for the market to test yesterday's & ON levels and sell towards them. Not very likely seeing the bullish pressure at the moment. If unable to move down watch for a possible trend day (trend continuation) although it could be we've had the best of the run already for today. Buy towards ONH, 15m channel line!, 3200 round number. If a range day, buy the low and sell the high (not short because the possibility of a breakout in this strong up trend). Buy on a breakout pullback (when outside value). Watch for mean reversion trades to the VPOC when inside value (i.e. buy VAL).

Economic:
- Unemployment Rate came in at 13.3% (versus 19.4% expected)
- Non-Farm Employment Change came in at 2509K (versus expected -7750K)
- Average Hourly Earnings came in at -1.0% (versus expected 1.0%)

Not advice to trade on! Just for me trying to plan ahead of the day!

Trade well.


Jim Dalton on preparation:
"We should prepare every day by writing three potential scenarios that could happen. The worst trader is a trader that has only one idea. He may get lucky but there's too much randomness in the market. We don't know that's going to happen and if we don't have contingency plans for the unexpected, we're scrambling and when we scramble we do some really silly things."

Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to Mich62 for this post:
 
(login for full post details)
  #28 (permalink)
london ontario
 
 
Posts: 25 since Jul 2015
Thanks: 6 given, 10 received

I enjoy reading all your quotes. Good luck with the trading.

Reply With Quote
The following user says Thank You to Medge91 for this post:
 
(login for full post details)
  #29 (permalink)
Langley
 
Experience: Intermediate
Platform: IB
Trading: Futures
 
Posts: 225 since Mar 2020
Thanks: 256 given, 192 received


Mich62 View Post
US AM session trading recap

Good afternoon one and all,

I managed to stay out of the open rotation and waited for a range to establish.

Trade 1: Sideways trading meaning sell VAH/high range and buy VAL/low range. Just scalping in the range for 10t (till the market shows direction).

Missed the long entry on the first PB (on 30s) after the breakout.

Trade 2: Long 2nd PB/BOPB (1 bar PB). Was late with my entry, looks more like a breakout trade. Stopped for -8t.

Trade 3: Long BOF/CPB for -5t, closed too early. Was with-trend and should have give it some more room (at least till the low).

Trade 4: Re-entry long BOF/CPB, closed at target 1 / high (also YVAH) for 9t. Target 2 was ONH (Pre-High) and target 3 was YH. Had only one contract on. Best solid trade of the day. Nice PB, BOF low on prior bar and YVPOC support.

Was writing notes for this post and missed the run to ONH. It's difficult to trade and make notes. Still trying to find my way combining trading & posting.

Trade 5: Long PB to IBH for a test of ONH/YH. Closed, no follow through, for -2t.

Trade 6: Short on rejection high for mean reversion to vpoc. Stopped on test high for -22t (2x -11).

Trade 7: Long again for a test ONH & YH. Hold on to my long (trend is up!) and let it go against me. Disaster strikes.

Trade 8: Long scale-in on a PB to YVAH (still with-trend!). Thought YVPOC would offer support (and trend would resume after testing YVPOC) but price went straight through it to visit the next level, VAL. Closed it at Mid-Range / VAL for 2x -44 & 2x -24 = -136t (-34pts).

Total for the day -152t.


200604_US_AM_session_trading_recap



I think the micro is a great instrument to try things out without doing too much damage to the bankroll but it also can cause overtrading and taking on too much risk (just like sim-trading). I've got to keep it in check. So, done for today. I think I've played enough. Things aren't going that well, so quit for the day.

On a more positive note, I think I've learned a lesson or two (once again). And that's all what counts. We are here to learn. And losing (the right way) is one thing we need to learn before we can be a winner. Back on the horse again tomorrow. Take care.

This had been me lately too. Love the PTJ pic!!!!

Sent using the futures.io mobile app

Reply With Quote
The following user says Thank You to Sandpaddict for this post:
 
(login for full post details)
  #30 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 512 received


200605 US RTH session trading recap

Did I follow my rules? If not, where did I violate them and what should I do (or pay attention to) the next time? If yes, was it profitable? If profitable, is there anything I could have done better? If not profitable, is there anything I should/can change?

Trade 1: Long 30s PB for -16t.

Trade 2: Re-entry long PB for -10t. MFE=10. Didn't scalp the 10t but hold on for a bigger move. "Buy towards ONH, 15m channel line!, 3200 round number" I wrote in my pre-market notes.

> Trade 1 & 2 review: In hindsight they were not optimal entries on a pullback (PB) although it seemed so at the time on the 30s (price was above the developing VAH & held above ONH). Entry was near the Keltner channel and a little far from ema20 on the 3m, so due to pullback (or some more consolidation). I was probably a little bit eager to catch the breakout to the moon. I should have paid more attention to the 3m and try to enter at or near the ema20. The 2nd trade was stopped on the PB to the 3m ema20 which would have been a perfect long entry point (and a BOF on the 30s!).


200605_US_RTH_session_1_2

(trade 1 & 2)

Trade 3: Short high range for -8t. MFE=4.

> Trade 3 review: Market seemed to have lost his temper and is going sideways (ranging) so I gave up the idea of a breakout trend continuation and opted for a range day which was one of the scenario's. Price stalled at the high so went short with a tight 8t stop just outside the range. No follow through and stopped on breakout.

Trade 4: Long BO for 12t. MAE=3.

> Trade 4 review: There was demand in the background (at 10.39 ET) and the breakout was on good volume so instantly went long for a ride to the moon. "Buy towards ONH, 15m channel line!, 3200 round number" my plan told me. So what did I do? I took it off for 12t. Ha, that's in the pocket. You won't go broke taking a profit. I guess it was my scalping instinct or monkey mind, whatever (in fact it is called the disposition effect). Price hit 3200 in 26 minutes. I feel a cold shower moment nearing.

Trade 5: Long 3m PB (near ema20) and 30s BOF/low range for 8t.

> Trade 5 review: This is a good 2-leg PB with-trend entry on the 3m and a BOF on the 30s (with tight stop). Just took 8t at 30s swing high. Just in time, there was no follow through.

Trade 6: Short PB for -3t & -7t.

Trade 7: Re-entry short PB for -8t & -10t.

> Trade 6 & 7 review: Went short on a pullback after a move down (target IBH). The market is still bullish. The pullback was too short and I should have expected it to go some further, so entry was too early. Besides the entry too early I went short against strong buying at the swing low. Not smart. Down -28t.

Trade 8: Short PB/BOF for 2x -5t.

> Trade 8 review: Went short on a BOF (after PB) and clear rejecting of range high. Market pushed up one more time, took me out, and went south.

Trade 9: Re-entry short PB/BOF for 10t & 1t (MFE=5)

> Trade 9 review: Went immediately short again & scaled-in 1x on a pullback (on a winner this time). Closed at swing low, possible support.

Trade 10: Short PB continuation for -19t (MFE=4) & -22t

> Trade 10 review: Market sold-off heavy (or so it seemed). Went short 2x on an impulse in the middle of a range. Forgot every rule and before I knew it I was down 41t.

By now I realised the market was consolidating (a little too late) and so I took a break (and cold shower) for an hour and half (the break that is, not the cold shower).

15.11 ET, back for the last hour.

Trade 11: Long BOF for -7t

> Trade 11 review: Price was near support. Went long for a mean reversion (MR) trade to the VPOC. Stopped for -7t.

Trade 12: Re-entry long BOF for -3t. MFE=8.

> Trade 12 review: Long again on a re-entry. Market went 8t my way and came down again. Stopped for -3t.

Trade 13: Re-entry long BOF for BE. MFE=14.

> Trade 13 review: Strong buying at the low. Went long again (3rd attempt). Market went my way for 14t. Now I will let my winner run but am not going to let it turn into a loser so I raised my stop to BE. Stop was hit, price turned and went straight up to VPOC at 3199. Well, I'll be damned. I guess I pulled up my stop too early.

Trade 14: Short 30s PB/Bear Flag for -12t. MFE=0. Target >40t at 3181.50 (VAL).

> Trade 14 review: The move up (which I clearly missed) was a nice test of the VPOC and a nice pullback (3m) without continuation to the upside. So I decided to wait for a signal to go short with target VAL at 3181.50. Short on 30s PB/Bear Flag. Stopped out for -12t.

Trade 15: Re-entry short for 9t. MFE=20! Target approximately 40t at 3181.50 (VAL). Target hit 2.5 min after exit.

> Trade 15 review: Market went my way for 20t! Now I will let my winner run but am not going to let it turn into a loser so I raised my stop to BE. Market makes a double bottom and prints a wide bull bar. I hit the close button for 9t profit (of the 20t). Price turned and went straight down to VAL at 3181.50. Well, I'll be damned, for the 2nd time. I guess I should have left my stop at BE.


200605_US_RTH_session_11-15

(trades 11-15)

Total income after a day hard work (12h): -95t. Have a nice weekend!

Attached Thumbnails
Click image for larger version

Name:	200605_US_RTH_session_trading_recap.png
Views:	70
Size:	55.4 KB
ID:	300940  
Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to Mich62 for this post:


futures io Trading Community Trading Journals > Diary of a simple price action trader


August 31, 2020


Upcoming Webinars and Events
 

Technical Analysis Workshop w/NinjaTrader

Oct 27
 

Bookmap

Oct TBD
 

SharkIndicators

Oct TBD
 

Carley Garner

Oct TBD
 

Ironbeam

Oct TBD
 

Zytrade

Oct TBD
 

GruttePier

Oct TBD
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts