The transition to Futures trading

[pavilion103]

No good

 

[MichaelD]

Dull overnight for me. Interesting pre-open and open.

The long position carried over from 1pm yesterday eventually closed on a trailing stop for +15.

The pre-open showed a remarkable 92% selling (i.e. fading). Accordingly, I went long, and indeed that's how the open played out. Unfortunately I didn't screen cap this sentiment for posterity.

I wasn't quick enough to get in at the lowest level of the bounce. That's dotted green on the chart. By the time I got the order ticket on screen the price had moved beyond my desired low risk entry point, so I let it go.

The exit was on the same bar as the pyramid entry as it shot up and then down for +45.

Re-entry long as indicated - that position is currently percolating & I'm set up to go short if price falls away. [Update: Trailing stop added as price went up whilst typing this.]

Overall, my reading of this is we are going through a "fear of missing out" on the surprise bull run along with short stops being taken out on the way up.

 

[pavilion103]

For me a small profit so far this week following my biggest week last week.

I've taken great initial setups each night, had good open profit and given back a lot of it.

Last week I identified as a great time to short, and it was. Some big moves that I was able to capture.

This week I haven't adapted my trading to conditions the way that I should have.
I've seen 60-70 points total open profit (2 contracts) on multiple days fade to 20 and 30.

Need to respect S/R levels better.
When the trending market is there - hammer it.
When the market isn't trending so well - take my 2 contracts x 30 point winners for the night (60 total).


I'm glad that these lessons can be learnt while losing open profit rather than incurring losses each night.

 

[CanOz]

Sometimes its best to sit and wait, like last night, the stops were run well and truly after the news came out but before the US opened....

 

[5oclock]

Sometimes its best to sit and wait, like last night, the stops were run well and truly after the news came out but before the US opened....

++1

 

[MichaelD]

had good open profit and given back a lot of it.

It is illuminating to see everyone's differing, profitable styles here.

I personally hate giving back open profits and so run a tight trailing stop once a trade becomes profitable.

 

[5oclock]

Michael D, any idea how frequently IG Client sentiment is updated ?

 

[pavilion103]

It is illuminating to see everyone's differing, profitable styles here. I personally hate giving back open profits and so run a tight trailing stop once a trade becomes profitable.

One certain rare opportunities I want to trail loosely but on a whole I agree.

My whole strategy is based around riding out the initial pullbacks and consolidation between 15-20 points profit and then looking to exit or trail tight around 30-40 points.

 

[MichaelD]

Michael D, any idea how frequently IG Client sentiment is updated ?

Hourly.

 

[MichaelD]

My whole strategy is based around riding out the initial pullbacks and consolidation between 15-20 points profit and then looking to exit or trail tight around 30-40 points.

Actually sounds very similar to me - lots of breathing room to begin with but then clamp down tightly.

 

[pavilion103]

I figure 2 or 3 contracts x a 30-40 point move is far better than trying to go for a 60 point move which is infrequent, and giving back most of it.

Most of my trades come from a setup at the initial high or low and I don't have to think too much after that (most times ).

For where I'm at 60-80 points in a night is a good night (with 2 contracts). If I can get 2 or 3 of those nights a week then that's a really good week.

That's the plan

 

[barney]

Took 2 short near open at 6533.5.
No stuffing around tonight.
Rode out the spike back up.
Now to manage the trade.

Pav, When you "rode the spike", how loose were you running your stop? I notice in the past you have been very cautious with your stop position. Holding 2 positions with a market showing potential to move quickly against you seems a different personality to the "regular" Pav? Just curious as to how much pain you were prepared to absorb had it gone wrong. Cheers.

 

[pavilion103]

Had the stops originally at 40.5
Then when I held firm as it spiked back I had the stops at 37.5 for a total risk of 8 points.

I didn't want to risk the whole 7 points on each (I think it was).

So in answer I moved my stop from the initial one of 40.5 and held it at 37.5 and was willing to cop 8 points loss if it hit 37.5.

 

[pavilion103]

From an initial high at the start of the day I prefer to "back" my setup rather than second guessing in the very initial stages. If it takes me out it does.

Then when it pushed below like last night I move my stop to where I think is reasonably good from a technical point of view. Often I'll do break even. If technically it's better 1 or 2 points away from that I'll do that.

Then when that test fails I'll look at how to manage the trade. Then it will be trail above pivots and then look to take profit at 30-40 points if it shows signs if weakness or is at support/resistance.

 

[barney]

Had the stops originally at 40.5
Then when I held firm as it spiked back I had the stops at 37.5 for a total risk of 8 points.

I didn't want to risk the whole 7 points on each (I think it was).

So in answer I moved my stop from the initial one of 40.5 and held it at 37.5 and was willing to cop 8 points loss if it hit 37.5.

All good .... I was looking at my AxiTrader chart and noticed the FTSE had spiked to 6545.25 and I thought you had gone Maverick all of a sudden ....... ( I can only afford Bucket shop data)

 

[pavilion103]

All good .... I was looking at my AxiTrader chart and noticed the FTSE had spiked to 6545.25 and I thought you had gone Maverick all of a sudden ....... ( I can only afford Bucket shop data)

Haha, if I ever do that, I'll give you the password to my account and you can change it for me so I can never trade again (but don't take my money

This will help mate.

My trade(s) from last night

 

[barney]

Haha, if I ever do that, I'll give you the password to my account and you can change it for me so I can never trade again (but don't take my money

This will help mate.

My trade(s) from last night

View attachment 57659

Ah, that makes more sense now ...... So you actually took your position after the spike turned, not during (like I do lol)

I can see now why you were happy with your efforts ..... nicely done

 

[pavilion103]

I want to know a little more about those multi-chart options for IB that someone was talking about.

Does anyone have any screen shots?

 

[pavilion103]

Deja vu around this level as open again.
I think after holding at 6500 again I favour the long side slightly.
But will see how action plays out.

 

[MichaelD]

Whilst I don't pay all that much heed to "classic" chart patterns, I couldn't help but notice this magnificent example of a double top which has just formed on my chart.

Will it lead to price going down as instructed by the chartists, or will the market go in the opposite direction, just to annoy them...?

Stay tuned, for the next instalment of - As The Chart Turns.