The bar setup has nothing to do with your trade parameters. You can trade a 2 bar divergence on a 3 range chart or a 250 range chart. I you are entering the trade looking for a 125 ticks target then 1 or 2 ticks slippage is nothing. If your target is 4 ticks, then 1 tick slippage is 1/4 of your profit. I trade 6 or 8 tick targets, and I do not accept any slippage on my entries. You have to go with a stop/limit order, if it is not filled, then wait for the next trade.
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Just wondering what instrument you have been trading with these e mini sniper people .. 6E ?; I see you mention the TF in your bio; I have had no success with ES as seems too range bound for my taste and I suspect too many computer systems chasing it; so, using a mixture of other ideas from other rooms that have paid for over the years, and my own indicators have gotten used to TF with some success; also YM; I do find that sort of getting to "know your trading instrument" is almost as important as your indicators and methology; this one interests me as by all accounts is clear and simple; however am a little loath to switch to the 6E. Also as I am a "reads the manual" type of person interested in getting their manual to ponder over; is it well written and clear...??
Also are you still as enthusiastic about it...?? and profitable..??
I think the ES works quite well for some people. I think it depends on your technique. I see people from the group I trade in that pull a couple points most days. I personally haven't had too much luck with it, but not invested more than a month or two trading it.
I Looked at trades for the past month using the indicator I wrote to capture their rule set, and it doesn't look too bad, it gets about 45% win ratio using a 2/1 reward/risk, fixed 5 tick stop, 10 tick target, trading 6E 3Range HeikenAshi, 8:00am to 4:00pm EST. Those numbers would make it a winning strategy theoretically. As this is an indicator, there is no accounting for fills, slippage, etc. Let's hope it's not a fluke.
I am kinda surprised actually! But, I am using a fixed mechanical trade management, different then what the authors do, cause I fall in the mechanical trading camp - 'That's just the way I roll' I actually experienced the same with my own scalping system which consistently teetered between break even and losing, using a 1/1 reward/risk ratio. I became profitable overnight by biting the bullet and going for a 2:1 fixed reward/risk ratio. It wasn't easy, that meant I had to stay in trades for 90 seconds rather then 45 seconds
I think the authors also say you can scratch an active trade, if one of their indicators reaches the opposite cycling extreme, which I did not program. That supposedly would reduce the number of losers or size of losers, but this theory only works when applied to just losing trades in hindsight, as people tend to do. In reality that tactic will also scratch a good number of trades that would have been winners.
Maybe some of you 'discretionary' guys can discretion your way around this method and turn it into an 80% win ratio . Sorry, I can't resist taking a shot at the discretionary guys now and then .
Last edited by monpere; January 14th, 2011 at 01:47 AM.
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Yeah, that is why I bought their system, after watching the youtube videos. Since they had a special sale at the time for $99, I decided to buy it just to check it out. But hey, as a vendor, are you gonna put up video on you tube where you loose 10 trades out of 12? No, you are gonna be an expert cherry picker. The videos on youtube appear sporadically, maybe they only record the 1 or 2 better days they have every month. Even the clock on the wall that doesn't work tells the correct time at least twice a day
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