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The transition to Futures trading

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The old support and resistance trick......oldest trick in the book ( quote from agent 86 Max Smart)
 
My recent melt down inspired me to write an EA to take me out of the equation and also keep trading while the US is open. I gave it a run live for the first time last night. It made $690 in a $1000 test account. The trailing stop is going to need some tweeking for when the volatility dies down, but it caught the big moves, so a promising start.



Got $800 from my own trading. A good night but didnt make the most of the big moves because I am less aggressive after my recent disaster.
 

BEACH, sounds to me that your less aggressive approach is working nicely, hind sight is all BS, and no point in worrying about not getting the last cent from the market.
 
Some people wonder how using the depth to execute trades and read the order flow is any better than using a chart. Well let me try and show you the way i now trade the DAX, after a lengthy period of practise on both the DAX and the HHI.

Say for example i feel that 10100 is a level, resistance if you like, and overall i feel the context of the market is leaning to the downside, from technical or whatever reasons....

I watch how the market attracts buyers or sellers at that area, on the depth. As the price tries to push through i need to decide who is winning at some stage and then make an offer of 1 contract at the highest inside offer...i may not get filled, but likely i will or i can move my limit order down 1 to try and get a fill. So say i get a fill at 10099, so i'm short 1 contract. I then go and try to find a level that i think the market might accelerate down further, possibly from a stop run where longs will bail. I place several more stop limit orders there to get filled if I'm right.

This gives me a little core position to work around, over 10100 and I'm out around 10110. Otherwise I'm in and adding to positions as it goes my way, and sometimes instead of adding on a breakout, I'll add on a pullback similar to the way i entered. The idea is i want to get the best price i can, take as little heat as possible and if I'm wrong keep my losses very very small.

The DOM lets you get very accurate with this.

My trading has evolved to this from:

1.Taking 1 contract on a breakout from the chart
2.Taking multiples on a breakout from the chart - all in scale out
3.Taking multiple contracts on a pullback from the chart - all in scale out
4.Finally, establishing a single contract position, adding if it goes my way, taking profit and adding contracts depending on what the market is doing within the context and structure.

This is a much less risky way of trading, my average loss is much less and my average win is far greater...my win/loss ration is less than 50% most days. I am much more active in the market and brokerage is higher.
 

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I'm showing a gap on the FTSE today, same as the dax...
 

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Took 2 short near open at 6533.5.
No stuffing around tonight.
Rode out the spike back up.
Now to manage the trade.
 
MichaelD said:
I've been facing the other way since about 1pm.

Ain't trading grand!
Click to expand...

The FTSE has been offer the whole session so far...

The DAX has been bid, offer and bid again....I'm now -1.5 points net with 200 Eur of commissions....time to go make dinner and call it a night ... lol

Should have napped a little longer...rotational day
 
pavilion103 said:
Closed one 6503.
Click to expand...



How can the SPI and the FTSE be going in opposite directions at the same time? (Genuine question here, as I would have thought there would have been arbitrage bots taking advantage of such discrepancies).

Looking at these two snapshots over the same time frames and it's obvious why you're short...but also obvious why I'm long.
 

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Wow. Interesting!

Second position now trailed above the pivot high of 6525.5.

Locked in

Trade 1 - 30 points (closed)
Trade 2 - 8 points (open)

Think I will turn it off if I get taken out of this one.

38 will do me.
 
pavilion103 said:
Wow. Interesting!

Second position now trailed above the pivot high of 6525.5.

Locked in

Trade 1 - 30 points (closed)
Trade 2 - 8 points (open)

Think I will turn it off if I get taken out of this one.

38 will do me.
Click to expand...

lol...I'm still in my last one, missed me by a point...
 
CanOz said:
I then go and try to find a level that i think the market might accelerate down further, possibly from a stop run where longs will bail. I place several more stop limit orders there to get filled if I'm right.
Click to expand...

Thanks for sharing Can. I've always liked the idea of adding to your position as it moves in your favor and new entries appear. But I've never heard of setting them in advance at places you expect price to accelerate in your direction.

I think I need to learn DOM on the DAX. I've been watching the FTSE since it's a nice $/tick size to trade, but these inside the bid/offer (white) quotes are really messing with me.

I could learn to trade the bobl, which would make some sense since I'm still subscribed to the jigsaw trading room. But I like thin markets and learning to trade the bobl seems so far removed from what I've learned so far.
 
While we're talking DOM...

I saw this on the FTSE this evening. I don't often see such a large order sitting there.



In this case the order actually held, price moved up away from it and eventually the order started trailing along behind the inside bid as price moved up.

But is that normal? In my very short time watching, I've never seen an order that big before, but I've seen other large orders and they seem to end up getting tested (and they usually get quickly pulled). Is the market generally more inclined to test size, or run from it?
 

It was a little difficult to articulate it...trying to put together a little video about it too...Never seem to get the best example that's easy to see what i'm talking about...
 

It happens quite frequently but not as much as it did last year. Sometimes it wants a fill and sometimes they pull it, usually after they fill the orders on the other side. Use the settings and highlight anything over 75....

Most oft he time on the DAX now they just thicken up several levels, creating an imbalance that's easy to see on the strength meters...most of the time if they're thickening up the bids or offers, they're working the other side....
 
This could easily break long but if it doesn't here is my final setup of the night. Prepared to risk 9 in this spot if the high holds.

If it breaks long then goodnight



That chart saved weird. Sorry.
 
Churn and burn until the news is out now....:burn:
 
pavilion103 said:
This could easily break long but if it doesn't here is my final setup of the night. Prepared to risk 9 in this spot if the high holds.

If it breaks long then goodnight

View attachment 57654

That chart saved weird. Sorry.
Click to expand...

I had 6530 as resistance on my chart and it looks good for a short to me... so I reckon you're as good as stopped. :
 
Lone Wolf said:
I had 6530 as resistance on my chart and it looks good for a short to me... so I reckon you're as good as stopped. :
Click to expand...

I'd better close out now then lol

Wanted to take a limit order at 6527 for only 3.5 point risk, but missed the fill

Wide risk at the moment, but a high RR area for a short and these setups are part of my plan so willing to take it.

I've traded well tonight. The best I've traded I reckon.

Hopefully it leads to one more really good trade! But if not all good.
 
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