The transition to Futures trading

[CanOz]

In addition to news, higher time frame analysis, no one has discussed trading multiple contracts. While this requires a larger account there are advantages to scaling multiples contracts...

There are three basic ways to do this:

1.) all in all out
2.) scale in scale out
3.) all in scale out

I prefer all in , scale out and here is why...

Here is a flag pattern, with a nice rejection candle, i go long, it takes 2 contracts off at 5 ticks...reverses and takes out my 5 tick stop loss....net 0, cost is brokerage

The advantage is that trading 4 contracts i can have another one ready for a take profit at 10 ticks, and then a runner.

The disadvantage is if you don't get it right that often the full stops can hurt your average win to loss ratio.

Pretty sure most successful futures traders are trading multiples, but you need to know your market so that you can "usually" get those first 2 contracts off, MOST of the time.

CanOz

 

[Trembling Hand]

My question is how does reading volume on the open differ to reading volume during the day? as the first bar is always huge and then seems to decline. Is this distorted in terms of analyzing declining volume? Or is it still valid?

I often see people commenting on high volume bars in intraday futs contracts and just shake my head. The open is always high vol compared to the rest of the day. So if its always high vol what is unusual about it that needs special attention? IMO NOTHING! I mean thats the point of comment on high vole - its meant to be unusual. Its only needs attention if its particularly high compared to other opening bars.

Same around contract roll. That U profile on daily futs contracts should be ignored. Its not real.

 

[tech/a]

I often see people commenting on high volume bars in intraday futs contracts and just shake my head. The open is always high vol compared to the rest of the day. So if its always high vol what is unusual about it that needs special attention? IMO NOTHING! I mean thats the point of comment on high vole - its meant to be unusual. Its only needs attention if its particularly high compared to other opening bars.

Same around contract roll. That U profile on daily futs contracts should be ignored. Its not real.

All sorts of covering and position jostling same at close.

Personally I look at what happens after volume of any sort (above average) but particularly around support/resistance or as you say where it is extraordinary.
While opening volume and range is generally faded it can and does supply good indication of a directional move. ( I see you highlighted this)
The first hr or so is the best for me on the FTSE but not always free to trade it.

 

[skyQuake]

As a follow up to Canoz's post, how do most ppl here trade futs? I had thought pyramiding = ideal since liquidity is generally there.

 

[CanOz]

There are two interest rate decisions today, UK and EU...

CanOz

 

[pavilion103]

There are two interest rate decisions today, UK and EU...

CanOz

Is there a time that they are usually due out? Or could it be any time.

I really do need to get on top of this!

 

[CanOz]

Is there a time that they are usually due out? Or could it be any time.

I really do need to get on top of this!

http://www.dailyfx.com/calendar

Todays news...

 

[pavilion103]

Topping pattern on 5 min?

 

[pavilion103]

No good. Maybe waiting for the re-test of the highs would have been wise.

 

[CanOz]

No good. Maybe waiting for the re-test of the highs would have been wise.

the FTSE's been allot stronger than the DAX....

 

[CanOz]

the FTSE's been allot stronger than the DAX....

wow, Draghi's been jawboning the markets through the roof...

Hope no one was trying to fade that crap!

CanOz

 

[pavilion103]

Annoyed that I turned it off about an hour before the big breakout. Would no doubt have set a buy stop on that.

I have been much more successful buying a breakout of a right consolidation in the direction of the trend rather than the reversals. They have yielded some results but I need to be 100% focused on limiting the damage and staying in the game for big trending days!!

 

[CanOz]

Annoyed that I turned it off about an hour before the big breakout. Would no doubt have set a buy stop on that.

I have been much more successful buying a breakout of a right consolidation in the direction of the trend rather than the reversals. They have yielded some results but I need to be 100% focused on limiting the damage and staying in the game for big trending days!!

This is all news related and i don't know too many cowboys that trade this ... A thin market and a talkative central banker...what a combo

 

[payday]

A thin market and a talkative central banker...what a combo

Timed to perfection don't you think?

 

[CanOz]

Timed to perfection don't you think?

Lol...what are you saying payday?

 

[mr. jeff]

This is all news related and i don't know too many cowboys that trade this ... A thin market and a talkative central banker...what a combo

Making for a horrible choppy market I agree. I have stepped aside and am awaiting higher probability set-ups.

Set the QE policy to "Ludicrous" and strap in.

 

[pavilion103]

All a big learning experience for me. This is why I started the thread because so much I'm unaware of.

Interesting getting thoughts on the current market in previous posts.

 

[CanOz]

All a big learning experience for me. This is why I started the thread because so much I'm unaware of.

Interesting getting thoughts on the current market in previous posts.

Check your news Pav, tonight is the big one, NFPopcorn:

Unfortunately, or fortunately i should say I'll be here...sipping red wine and swapping stories with strangers.

Will be checking here for updates so please feel free to post lots of charts!

CanOz

 

[kid hustlr]

free to post lots of charts!

CanOz

I wont trade the FTSE tonight but here are some thoughts on my plans this afternoon. As always, thoughts are appreciated, otherwise I wouldn't post them!

 

[CanOz]

Guys, remember...there is no US lead as its the 4th of July hangover...also, we're entering into summer doldrums. Good time to get away from the market for a while and recharge. Don't burn yourselves out trading thin summer markets that chop around all day...

Been there, done that to death.

oh, by the way...."never short a dull market"

CanOz