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 10,111 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)
  #1 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

Good day one and all,

I thought I would join the June Journal Challenge contest and start a journal to participate in Big Mike's donation to help the poor people of Ecuador in these hard and uncertain times.

If I would end up by the first three journals chosen I would like to, if possible, sell the $500 SharkIndicators store credit to the highest bidder here on FIO. The money will go directly to Big Mike's organization 'Oasis Americas' to help the people of Ecuador. I feel I am behind because I must compete with older journals who have a lot of posts already. But anyway, so be it.

I also would like to donate 50% of the profits (if any) made by the end of the month. I wonder if it makes any difference (psychologically) when you trade for something or someone else as opposed to trading just for your own gain.

Besides participation in Big Mike's charity donations my objectives of the journal are:
1. to receive feed back.
2. to see if I will make better entries & exits (with less over-trading) now going on record.
3. to test and see if I have an edge (with a positive trading expectancy).
4. to identify areas for improvement (be it technical or psychological).
5. to see if a low(er) leveraged instrument like the Micro-ES can provide for an (extra) income.
6. to hopefully present something which you, the reader, can add to your methodology and thereby contribute to the community.
7. to learn from the experience of journaling in public.

Next post I will go into the method I will use.

Visit my futures io Trade Journal Reply With Quote
The following 12 users say Thank You to Mich62 for this post:

Can you help answer these questions
from other members on futures io?
MulitCharts: Limit Order converted to MIT
Platforms and Indicators
Plotting a subchart in a strategy
EasyLanguage Programming
Add Label help
ThinkOrSwim
Sending an ACH from BoA to GFF Brokers
Brokers
Zig Zag UTC for Ninjatrader 8 or alternative?
NinjaTrader
 
 
(login for full post details)
  #2 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

My main trading objective is to capitalize on intraday price movements in the e-mini S&P 500 (ES) futures.

METHOD
I will trade two Micro-ES (MES) contracts on a live account during the EU-session (AM & PM) and US-session (AM & PM). Times presented are Central European Time (UTC+2, ET+6).

Remark: Due to seasonality June may be a slow month. The SPY closed 42% of the months higher than it opened from 2007 to 2019. So may be it pays to be a bear in June but I will let the price action tell.

My tactic is to trade plain and simple based on: a) structure, b) price levels, c) momentum and d) volume using e) six straightforward setups.

Ad A) Structure: is price trending (higher highs/lows, lower lows/highs) or ranging (within last swing low/high or high/low)?

Ad B) Levels: do they act as support or resistance?
The levels to watch are:
- High, Low and Close of the previous day (ETH+RTH).
- Overnight High and Low.
- Open, High and Low of the trading day (RTH).
- Major Swing Levels.
- Range Highs & Lows.
- Volume Point of Control, Value Area High and Value Area Low of the previous day (RTH).
- Initial Balance, Volume Point of Control, Value Area High and Value Area Low of the trading day (RTH).

Besides for entries levels are also used for target points.

Ad C) Momentum: what is the force of the movement and what is the result? Momentum is made visible with a Keltner channel (2.5, EMA(20)) and the 310 Oscillator (Fast Line (FL) Oscillator = SMA(3)-SMA(10). Slow Line (SL) = a 16-period SMA of the oscillator).

Ad D) Volume: is quantity traded and expresses effort (which can be compared to the result). Volume is made visible vertical per bar and horizontal per price (Volume Profile) (and sometimes per swing/wave volume).

Ad E) The setups are:
- Pullback (PB): price retrieves (to ema20) after swing up/down.
- Complex Pullback (CPB): 2- or 3-leg Pullback (also abc correction, this is a PB on a Higher Time Frame).
- Trend Reversal (TR): Price stalls and reverses after a trend. Possible a kind of accumulation/distribution on a Lower Time Frame.
- Breakout Failure (BOF): Price breaks a level but is unable to follow through and the price level is rejected.
- Breakout Pullback (BOPB): Price breaks a level and pulls back to find support/resistance at the breakout level.
- Test (TST): a level is approached and tested but there is no real attempt to break the level.

I use time based charts:
- 60m, 30m, 15m for structure and levels.
- 3m, 1m are the main trading charts (with levels, momentum and volume).
- 30s, 20s, 10s (depending on volatility) for timing and detail price action.

I will sometimes also take a look at the 120m, 240m & the daily chart.

Every day I will journal/post my charts with entries/exits taken and technical analysis and more importantly psychological analysis.

I will not post the results until the end of the month because win or loss in the short term is meaningless. When testing a method one needs to look at a big enough sample.

There is lots and lots more to say but I think that along the way of the journal the application of the method will become more clear. Okay, it's time now to buckle up.

Visit my futures io Trade Journal Reply With Quote
The following 7 users say Thank You to Mich62 for this post:
 
(login for full post details)
  #3 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received


EU AM session trading recap

Today is a bank holiday in the EU so I will watch the price action and will trade only when there is good movement. Normally I would watch the FDAX and FESX for confirmation but these are closed today.

I don't want to clutter up the charts too much so I will annotate the setups on the chart and will add additional comments in the post. I am not sure this works okay but we will see.


200601_MES_1m_EU_AM_trading_recap



Trade 1) Market is in an uptrend and ranging. Bought the low of the range, a breakout failure (BOF) and closed the trade mid-range as I didn't expect it to return to the upper side. One has got to trust his setups.

Trade 2) Was too late to trade the Breakout Pullback (BOPB). Decent breakout of the range with shallow pullback. When you see a move like this you (that is my monkey brain) want to be in it but I think it's difficult to find a good entry spot and often the market turns around just after you enter so I am not going to chase it. Get in at the start or else only on a good pullback. There will be more opportunities. Just keep calm and don't forget to breath.

Trade 3) Market is consolidating (in a range), breaks out and pulls back (BOPB). I didn't like the location on the 3m chart (between ema20 and lower Keltner band) so scratched the trade.


200601_MES_3m_EU_AM_trading_recap


Going to have lunch and see what the US has to offer later on.

Visit my futures io Trade Journal Reply With Quote
The following 3 users say Thank You to Mich62 for this post:
 
(login for full post details)
  #4 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

US AM session trading recap


200601_MES_1m_US_AM_trading_recap



Trade 1: Long on a pullback after the first swing up. The clue is to wait patiently for a signal, this time the rejection of lower prices with a down and an up bar on high volume (=demand on the 30s chart). I've got to be careful because the market is in a range (15m) and in an area where supply came in during the overnight session (EU morning, 04.09 ET). So took one contract off at a High Volume Node (HVN) and the other one at the swing high for 20t total. Market went up without much conviction, Shortening of the Thrust (SOT) and a lot of bar overlap. Seems the market is looking to fill the gap with Friday's close but it's not in a hurry.

Below details of the trade on the 30s chart.


200601_MES_30s_US_AM_1



Lunch time now, dinner for me

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #5 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

I am going to wrap it up for the day. Did no more trades in the afternoon, so three trades in total for today.

Market opened in yesterday's (Friday's) range near valua area high. Did one trade in the morning on a pullback and missed the next breakout failure (BOF) for a gap play and test of Friday's High. Also missed the next BOF. But I am all right with that. Did not chase the market and didn't go on tilt or trying to force trades. Played on the save side but I guess that's what it is all about. I am not going for the big swings but instead focus on consistency. Was a busy (and long) day with the posting. Looking forward to tomorrow.

200601_MES_3m_US_PM_session_trading_recap

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #6 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

EU AM session trading recap

I missed the BOF low range (2x). Still early in the session, EU just opened.

Trade 1: Long on a pullback. Closed at swing high for 10t. Entry was a little early.

Missed the pullback (1st cross long) for a test of YH.

Trade 2: Short for a reversal (mean reversion) for -4t. (would be a BOF May 28th swing high)

Trade 3: Re-entry short for -2t. Don't fight the trend.

Trade 4: Long complex pullback (bull flag) for 6t. (also breakout pullback to test May 28th swing high)

ES is strong. Missed the bull flag (complex pullback) breakout but went long the FDAX, which was lagging behind, for a catch up with ES. Closed for 25 points.

Total 10t MES & 50t FDAX.

I looked at 15m (May 28th swing high, therefore the shorts), 3m, 1m and 30s (tape reading) charts but don't think it will do any good to post them all so I will limit it to the 3m.


200602_EU_AM_session_trading_recap



Lunch time.

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #7 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

200602 US AM session trading recap

The market yesterday closed up for 7 straight days. Today it opened outside yesterday's value and range near prior week/month's high.

Price went down to YC (gap close) and VPOC. Found support and rallied above prior week/month's high to overnight's (ON) VPOC (and ON double top swing high) before stalling and selling off. Round noon price is in a range hovering around VPOC.

Trade 1) Short on BOPB for 5t.

Trade 2) Short BOPB/BOF (LTF) for -5t.

Trade 3) Long PB for -1t. Scratched too early. Target Open.

Trade 4) Long PB for 17t. Good long on 1st PB after a swing up. Made use of the liquidity provided by the HOD breakout buyers and the buy stop orders from the shorts to close the position. Not important with 2 lots but I will need that liquidity soon when I am grown up and trade thousands of lots

Trade 5) Long Mean Reversion (MR) to VPOC. Closed BE after VPOC shift (and consolidation).

Total 16t.

All scalp trades. Will I ever be able to wait patiently for a reversal and sit the whole swing out from high to low or low to high? Do I need to?


200602_US_AM_session_trading_recap



Dinner time

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #8 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

200602 US PM session trading recap

Trade 1) Short PB/TST at prior week/month's swing high resistance. Closed for -3t.

Trade 2) Re-entry closed for -3t. Was too early and should have waited for the failed breakout (BOF) which came shorlty thereafter.

Trade 3) Short again for 7t. Closed too early, should have taken profit at HVN below (VPOC later) for an extra 6t.

So two early entries (and exits) and one good entry but early exit for a total of 1t. Could it be I am a little bit impatient?

I think I call it a day for now.

Total for the day: 27t (and 25 points in the fdax).


200602_US_RTH_session_trading_recap



There is some tension in trading and knowing you are going to have it published. It's still a little early to say if that's more positive or more negative. Also the posting requires quite some work interfering with trading. It's better to do it after market close but for me that is 22.15 PM and by then I am behind the screen for almost 14 hours (with breaks when, of course, often the best opportunities occur). So, that's it for today folks. Take care.

#

Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #9 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received

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.

Visit my futures io Trade Journal Reply With Quote
The following 6 users say Thank You to Mich62 for this post:
 
(login for full post details)
  #10 (permalink)
Netherlands
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: IB, NinjaTrader Brokerage
Trading: Futures
 
Mich62's Avatar
 
Posts: 302 since May 2012
Thanks: 312 given, 513 received


EU AM session trading recap

Trade 1) Long BOF for 6t. Target is upper range. It's easy to get annoyed on an early exit and remorse about the $$ you left on the table but I've got to remain calm and composed.

Trade 2) Short BOF (or upthrust for Wyckoffians) for -1t. When price is not going my way I will close it (most of the time depending on the context). I can always re-enter but need to keep my losses small. And don't forget the trend is up.

Trade 3) Short BOF (re-enter) for 4t. Asia swing high could be support and it was. Market tested the high once more and I missed the breakdown writing this post.


200603_EU_AM_session_trading_recap



From one of the oldest books on speculation "Confusion de Confusiones" by Joseph de la Vega 1688:
"Take every gain without showing remorse about missed profits, because an eel may escape sooner than you think. It is wise to enjoy that which is possible without hoping for the continuance of a favorable conjuncture and the persistence of good luck".

Visit my futures io Trade Journal Reply With Quote
The following user says 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