The transition to Futures trading

[skc]

Yes, I have to pay handsomely for the way I trade in interest costs & occasional slippage & all the other unique market maker tricks.

Yes, I think to take my trading to the next level of return I will need to move to futures.

Just not quite yet.

I will add real market DOM information to my trading, as this will help me transition to the SPI.

Making an informed decision is the most important.

BTW, keep an eye on IG's share price and earning announcements. The code is IGG:LN. It's one way to help manage your counterparty risk.

 

[peter2]

Canoz:
Will you please stick to your MP value levels, POC and spread stuff and don't mention the simple stuff that works every day and certainly don't mention that as well as the previous days' H/L it works with the daily regional sessions as well. The MM's frequently try to trap the unwary at the start of the UK session by their head fakes at the Asian session H/L.

 

[CanOz]

Peter...is this better?

Same period with all the MP and VWAP Stuff.....

 

[peter2]

Absolutely, the more indicators the more confusion. Where are all those volume peaks at the side?

That green chart is one of the clearest charts you've ever posted.

 

[peter2]

Canoz: Obviously I like your post #1880 and totally agree with it. People get sucked into looking at and trading the indicators rather than price action at significant price levels like yesterday's H/L.

Today's bull trap pin bar at yesterday's high in the spot USDJPY chart. Does this happen often enough to make it worth studying? Hell yeah.



Yes, those lines are moving averages (white = 50hr EMA, light blue 100hr EMA ).
Obviously the price is in an hourly down trend (plus 4hr trend is down) and this setup is going with the larger TF trend, so trail the exit stop, take the +3R result.

Feeling pleased with the session's work. I check out the conversations on ASF and there's Canoz with a clean chart eek suggesting the same trade setup I just pulled off. He's a genius.

What's going to happen at the start of the UK session? Which market will the trap be set?

 

[CanOz]

Well, there are a couple approaching some interesting levels, the 6E and the 6S, the Euro and the Swissy...

Let me clear some junk off my charts here...hmmm, lets see now, here we go...1 minute

 

[CanOz]

The 6E is making some new recent lows here...looking at the 60m. There are some levels we might see tested later.....but i guess the Asian session lows might get a look at 1.3543-1.3545

The 6S has a couple of Asian session levels to test...

 

[peter2]

My thoughts about the 6E are the same. Price is not far away from a huge level (1.3500) that will be watched all over the world.

I try not to jump the gun before the session starts or trade the first 5min of a session. At this time of the year there is a dead zone that exists after the ASX closes and until an hour before the LSE opens. Low volume periods are ideal retail trader trap times. MMs and bucket shops the world over work it hard during these periods.

No significant news this evening (always check this out). Especially you Barney as you have been surprised by some recent price spikes lately.

 

[tech/a]

My thoughts about the 6E are the same. Price is not far away from a huge level (1.3500) that will be watched all over the world.

I try not to jump the gun before the session starts or trade the first 5min of a session. At this time of the year there is a dead zone that exists after the ASX closes and until an hour before the LSE opens. Low volume periods are ideal retail trader trap times. MMs and bucket shops the world over work it hard during these periods.

No significant news this evening (always check this out). Especially you Barney as you have been surprised by some recent price spikes lately.

How do they work "these" times with volumes as low as 30/100 in a 3 min timeframe
When normal volume is over 800 contracts?

 

[barney]

No significant news this evening (always check this out). Especially you Barney as you have been surprised by some recent price spikes lately.

Cheers Pete ...... Just another of my bad habits ..... Being aware of the news but guilty of not making a mental note of the times on the charts etc. I will improve

 

[beachlife]

Well I thought I should put my money where my mouth is and give these indexes a go with 10 cfd's to see if the spread would be a problem. It wasnt. Yesterday was probably a fluke so I thought I should try again just now to be sure. Probably not in the league of the 'real traders' but good enough for this retail cfd wannabee trader.

View attachment 56616

 

[tech/a]

6405 what you guys looking at?

Looking for test of 6437/27
DAX 62/26

Ahh There it is!

 

[beachlife]

Well I thought I should put my money where my mouth is and give these indexes a go with 10 cfd's to see if the spread would be a problem. It wasnt. Yesterday was probably a fluke so I thought I should try again just now to be sure. Probably not in the league of the 'real traders' but good enough for this retail cfd wannabee trader.

View attachment 56616

View attachment 56618

Try first attachment again

 

[MichaelD]

View attachment 56616

The fill prices shown here interest me greatly. Not a single one is actually at the level you asked for. Mostly, they improve your position slightly.

Why so?

I would never see such favourable fills with my trading. I mostly get exact fills. Occasionally I get negative slippage. Never do I get positive slippage.

Thanks for sharing this screen capture - I for one am EXTREMELY interested in discussing it.


On Topic: I think tonight's US price action is going to set the scene going forwards from here once and for all and put an end to this whipsawing. Either we are going down a long way via the elevator shaft or we will once and for all start climbing the stairs again. Personally I like making money via the elevator shaft better than the stairs, but whatever will be, will be.

There's no bad news or reports of doom and gloom in the UK or the US as far as I can see. I guess it's the elevator shaft, then.

[note: all commentary is for my amusement only. I trade price action exclusively & do not predict which direction the market will move with my actual positions. Price goes down - sell. Price goes up - buy. Full stop.]

 

[MichaelD]

What just happened then?
Taking out all the shorts?
Is it going to crash down now?

The blame has been pointed at a "fat finger" at HSBC.

http://uk.finance.yahoo.com/news/hsbc-fat-finger-not-enough-191743045.html

 

[cynic]

Try first attachment again

View attachment 56623

Those small financing credits you're getting would be for short positions. Be aware that the interest charges for long positions are considerably higher!

Also note, that debits in lieu of dividends are applied to short positions (credits in lieu for long). Credits/debits in lieu of dividends will normally coincide with a corresponding change in the cfd pricing, so this might not be too much of an issue.

 

[pavilion103]

Not too sure about this trade.
I ended up making 20 points.
I never take ones like this.
Unedited personal notes on chart.
Not sure if a stupid trade.
Just a few things that lined up.
Not one in my playbook.

The actual reason I even considered this is because:
I was looking to take a long because it was at yesterday's low but I just could not make a case for it. It looked so weak. So I thought 'OK I'll take a short'.
Usually when they break. They break. I think maybe it was a bit of an all or nothing.

 

[pavilion103]

Looking for feedback on that trade when people get time.

Honest feedback appreciated.

 

[MichaelD]

Not too sure about this trade.
I ended up making 20 points.
I never take ones like this.
Unedited personal notes on chart.
Not sure if a stupid trade.
Just a few things that lined up.
Not one in my playbook.

The actual reason I even considered this is because:
I was looking to take a long because it was at yesterday's low but I just could not make a case for it. It looked so weak. So I thought 'OK I'll take a short'.
Usually when they break. They break. I think maybe it was a bit of an all or nothing.

Bad trade. Even worse that you made a profit. Here's why.

"I never take ones like this." "Not sure if a stupid trade." "Not one in my playbook."

Answered your own question. You're even anxious for confirmation from us that "you done good, son".

This was not a trade. This was a punt that made money.

Why did you trade? Hungry to put one on?


FWIW, this sort of move is where most of my $ come from but it's the pyramiding on the way down that does it, not the punt on the entry.

 

[Ves]

Bad trade. Even worse that you made a profit. Here's why.

"I never take ones like this." "Not sure if a stupid trade." "Not one in my playbook."

Answered your own question. You're even anxious for confirmation from us that "you done good, son".
.

Are you so sure? All of the statements that you are quoting sound like they are from the emotional thought process from the right side of the brain.

The logical thought process would look at the chart and see that it is sloping towards down towards the right side of the screen. So what's the problem of shorting a down trend?

Psycho-analysis can be framed in any context you want it to be, in other words.

You remarked earlier in this thread, Michael, that you often did the opposite of what your emotions told you, so what's the difference here?

My main point is that Pav, you can only provide us with some general statements, that we can match to our pre-conceptions of you as a trader or person, but they're not really accurate enough for us to make the decision for you.... only you can know whether it was the right trade for your approach / system.