The transition to Futures trading

[pavilion103]

anyone got data issues? pav whats the low of the day on the sep contract?

68 now

 

[fiftyeight]

short 77

 

[pavilion103]

I was in class and missed my chance to sell one for 50 points. Hope this doesn't hurt me.

 

[fiftyeight]

Is this from last night?

Was short earlier and was stopped out to the point at 9:55ish just before the fall. I feel these near misses are what keeps chumps like me coming back, "if id only had my stop one point higher" haha

 

[pavilion103]

Is this from last night? Was short earlier and was stopped out to the point at 9:55ish just before the fall. I feel these near misses are what keeps chumps like me coming back, "if id only had my stop one point higher" haha

I got in on the first 3 min bar of the day.

If you got in at 77ish, obvious stop was 80.

I got in 99.5. Stop at BE

 

[Newt]

Sorry to hear 58. Figured you'd be in clover as it dropped.
I trailed it down too close from 69.5 and only got a point instead of 15 on offer, if its any consolation. Dropped 5pts in a second straight after stop being hit.

Something Canoz said ages ago about being happy to get 50% of a move sits in my mind. Going for every point burns you eventually. Scraped out some points later on some volatility at least.


As an aside, there often seems to be a spurt of volatility around 940am London time on the FTSE? (bit after the time I'm usually able to join in)

 

[tech/a]

Is this from last night?

Was short earlier and was stopped out to the point at 9:55ish just before the fall. I feel these near misses are what keeps chumps like me coming back, "if id only had my stop one point higher" haha

I treat Initial stops differently to B/E stops.

If my initial stop is hit it means my read of momentum in the direction I'm trading is wrong. My expectation is that I'll be good enough to get on long enough in the right direction to take my stop to B/E.

If my B/E stop is hit I wont beat myself up as 90% of the time I've set it so I can leave the screen and do something else. I will however have an expectation of where the momentum is likely to falter and if possible keep an eye on that price level.

As to wether it is better to cash out at that level or remain in place the exact answer I haven't worked on but it seems for everyone that turns back on me another continues on. (Intraday only).
I tend to close trades in less than an hr and in some cases leave while I'm asleep closing when I get up. (Before 6)

Maybe this is helpful 58

 

[fiftyeight]

short 66

Pav how did you find an entry on the first bar of the day?

Newt, yeah I have a lot of screen time before I have a better understanding exits better. I am also running tight stops initially then once in profit loosening it up slightly with the idea of re-entering if think its on. Im doing the typical newb thing and only allocating a small bit of capital (sports betting win ) and hope to grind it out with smaller wins rather than leaving trades open for bigger wins.

I like the idea of distinguishing stops differently. And as above I guess if I have to accept this will happen if I am running tight stops. I was thinking tighter stops will smooth out the equity curve while my futures capital is small.

 

[Newt]

I'm an apprentice stock trader (few years experience) but have done lots of backtesting. As a huge generalisation, stops will never improve system performance, but might keep you from going broke (reasonably important issue )

In Futures, heck it seems a lot more discretionary, but what Tech says about BE soon if you've picked momentum correctly, then giving things room to move, rings true. Gosh its hard sometimes if you stay at the screen to leave things be though and not keep trailing close

 

[fiftyeight]

Yeah not going broke is of huge importance. The longer in the game hopefully more lessons will be learnt.

Does that depend on how you define performance? Stops my reduce profit but they (if used correctly) will smooth the equity curve?

 

[Newt]

WTF. Did I just see an order for 5000 go through in a sec on the FTSE?
How is that possible?

 

[Newt]

I wonder if we're about to hit a resistance line high for the last few days and come back down at a rate of knots?
Hmmm. Trade the PA, not what I think.....

 

[fiftyeight]

What 5000 contracts or 1 contract at 5000?

 

[ThingyMajiggy]

WTF. Did I just see an order for 5000 go through in a sec on the FTSE?
How is that possible?

You'll get a lot of funny business and weird size going through for roll-over.

 

[fiftyeight]

Or I think TH has said, if you have an idea trade it. Although I can not remember what that was in reference to haha

Is there anything in particular to watch out for at rollover?

 

[tech/a]

I'm an apprentice stock trader (few years experience) but have done lots of backtesting. As a huge generalisation, stops will never improve system performance, but might keep you from going broke (reasonably important issue )

In Futures, heck it seems a lot more discretionary, but what Tech says about BE soon if you've picked momentum correctly, then giving things room to move, rings true. Gosh its hard sometimes if you stay at the screen to leave things be though and not keep trailing close

Don't know about that.
My backtests found 8- 12 % of the stock price is the sweet spot.
Shorter and your stopped out often an can bleed to death.
Longer and you introduce opportunity cost as you often get trapped
Between profit and your stop.

Discretionary trading is a whole new game.

 

[Newt]

Glimpsed 5000 lots on the DOM (not 1 @ 5000) at the time, and volume after 8pm spiked over 10000 a couple of times. Thanks Sam re turnover. Didn't think of that. Haven't actually experienced changeover too often.

BTW, currently short 6811 after giving things a chance to break trend line downwards.
Trying to be patient and not trailing closer than 2.5ATR tonight.

Actually I usually enter on an ATM strategy in NT7 with a 5pt stop loss and 10pt target as the default.
Is it possible to set an auto trailing stop once you have an ATM running, does anyone using NT know?

 

[ThingyMajiggy]

Actually I usually enter on an ATM strategy in NT7 with a 5pt stop loss and 10pt target as the default.
Is it possible to set an auto trailing stop once you have an ATM running, does anyone using NT know?

Yeah if you drop down the menu where it has "stop strategy" and select Custom, you can set it all there. I'm referring to a SuperDOM for this btw, select your ATM, then you'll see at the bottom the stop strategy for that ATM.

 

[Newt]

Thanks Sam. Will check it out.


Umm, my earlier remark about resistance for last few days was wrong sorry - had up the 60min chart for the last 2 weeks at the time when making the comment re reaching sloping down resistance.

 

[fiftyeight]

Short 13

Yeah I think I will make the switch to AMP and NT if I dont blow this money and continue on with it