The transition to Futures trading

[CanOz]

All day today I've been testing a new data feed from IQFeed, trying to resolve my connectivity issues once and for all.

I was showing my wife a few ins and outs of the DOM while GC was in pit open and i noticed that the bids and offers were really screwed up, so i switched off the IQFeed and waited for my broker feed to kick in....it wouldn't take over so i manually asked it to disconnect....then NT Told me i still had an open position...ON MY LIVE ACCOUNT....I'm thinking "WHAT FARKING LIVE POSITION?????????"

The GC pit opens and GC shoots up 7 points...

I switch over to account view, by this time I've gone white as a sheet and my wife is asking me..."Whats Wrong?"

I said..."I've got a live trade open here somehow"

I look at the P/L...Its June Gold:1zhelp:....then i look again...Its positive....several thousand dollars positive

Moral of the story, always start in simulation mode if you are testing connectivity.

CanOz

 

[chops_a_must]

Well done on your random entry system.

 

[pavilion103]

I hadn't even logged on to my futures since my last posts. I'd put it to the back of my mind.

My interested was re-sparked when I caught up with Tech. I couldn't pass up the opportunity to ask him a bunch of questions about it. These related more to macro conditions and taking a position trade in one of the major futures indexes.

Putting position trades aside for the minute, the volatility wide ranging days in the FTSE (as well as the SPI) have been very noticeable. I'm thinking that maybe these could present some good intraday opportunities also. With the FTSE running 2% on some days, there may be the opportunity to get a good run.

I'm just thinking out loud at the moment....

One vital part of the strategy that I've been working on with Tech on our portfolio (and is important in relation to futures) is getting the trade to breakeven. I'm going to really focus on this quick movement of stops to breakeven and see if I can get some good runs, while reducing the risk where possible.

I'm not 100% sure how many trades I'll take if any but this idea interests me.

I took a position trade yesterday, a short and have my stop at breakeven. I may be stopped out here but that's ok. I feel very comfortable knowing that I won't lose on this trade.

Risk management is my number one focus here.

As I said, just thinking aloud at the moment but thinking with the current volatility it could present some good opportunities. I'll post if I decide to do anything......

 

[pavilion103]

This is the one that I got in yesterday (short). This is only today's chart.

I have come so close to being stopped out multiple times!!! (see the green line at 6644)

Entry 6644
Initial stop 6680 (about $580 risk)

Current stop moved to BE - 6644 late yesterday

Currently 6618.5

 

[CanOz]

Interesting Pav, how did you go through the GDP announcement?

 

[pavilion103]

I didn't add another position but....

Below is a trade setup. This is the type of thing I'm looking for intraday (see circled in purple)

Pivot point reversal on ultra high volume right near a persisting resistance area.
Entry 6622 (below reversal bar)
Stop 6627 (above reversal bar)

Very low risk of only 5 points - $80 risk.

I'd be looking to move stop to BE asap

 

[pavilion103]

Interesting Pav, how did you go through the GDP announcement?

I was just glad that there was a fall after that!

On three separate up-moves, the FTSE got within 7 points of my stop!

I guess the good thing about moving the stop to breakeven is that I can be without stress no matter what happens. I can walk away from it and check it later if I want. If I make some money good, if I'm stopped out well no loss.

 

[pavilion103]

This one has broken lower nicely.

Now the stop would be at least at breakeven. I would probably even move it down a little bit more to the orange line.

So far so good. But most importantly risk eliminated quickly.

 

[pavilion103]

One more before I go to bed.

Looking in the context of my position trade yesterday:

Price is now at a solid support level. Volume has increased. Will it find some support here?

You would think that a break downward through this level would be significant.

 

[pavilion103]

I couldn't not post this. Similar to the previous pivot point reversal but at significant support.

I didn't post this in real time, but a good setup nonetheless.

Once again my position trade in danger of being taken out!

 

[CanOz]

Your FTSE has put in a nice little bullish wedge Pav, be interesting to see if it plays out or its a pattern fail.

CanOz

 

[pavilion103]

Your FTSE has put in a nice little bullish wedge Pav, be interesting to see if it plays out or its a pattern fail.

CanOz

I'm looking to see if it pushes towards the highs. Not sure how much life it has left but if its looking toppy I'll aim for another low risk short position trade.
Not too bullish atm

 

[pavilion103]

Well as I've stated in this thread and others threads, as the market started to look toppy, my main focus was to profit from the FTSE futures in a down market.

I hadn't planned to get into Futures trading so quickly but with the opportunities on the table it was hard to resist. As per much of my VSA education, I began hounding Tech/a with emails and questions. And I credit much of my early learning in the futures to him. Whether it is him (or sometimes others on the forum), I believe in modelling as such an effective way to speed up my education.

On the first leg down in the FTSE I was a little frustrated. I got into one trade and out at break-even. A good lesson in risk management. Maybe a little cautious however and I was stopped out of my trade by only 10 ticks, after aggressively moving my stop, which cost me about $4,500.
In the meantime I've been watching the FTSE many evenings and taking smaller positions with some (but little) success. I've learnt ALOT.

This is my second attempt at a short position trade on the FTSE. I woke up this morning and saw what I thought looked bearish and I took a trade at 9:30am this morning (in a thinly traded market).

I won't go into specifics because I don't want to get in trouble but my initial risk was about 106 ticks (over $1,600), which is a lot for me considering in my ASX portfolio I risk $200 per trade.

Fortunately things moved in my favour quickly and I'm about 60-70 ticks up. I've moved my stop up to the green area on the chart (above the high of today's bar) which is a maximum about $300 loss. So I've reduced the risk quickly. The stop might not be as technically sound as my original one but I feel much more comfortable with the level of risk. If I get stopped, I get stopped.

 

[pavilion103]

On the left is a 5 minute chart.
On the right is the hourly chart of the past 2 weeks. (not the low on 13th June, it may not be easy going below this).

 

[CanOz]

Whilst the EU markets feel pretty short at the moment, the rally's aren't getting bought up yet...

 

[pavilion103]

We'll see how it plays out.

For me it's about getting a decent entry and managing risk and then most of my job is done.

I can't control what the markets do, but I'll be barracking for the short side

 

[CanOz]

Sure, you seem to want to be fairly mechanical about it and that's cool. But the edge in intra-day trading, as TH has pointed out, is your brain.

CanOz

 

[pavilion103]

I'll listen and I'll learn.

I'm out for an 80 point profit today.

New short setup in place.

Very happy with today.

 

[tech/a]

I'll listen and I'll learn.

I'm out for an 80 point profit today.

New short setup in place.

Very happy with today.

Thought you kept the first one live---

We both were filled and I still have the first!
What a clever Dick---err Duck.

 

[Trembling Hand]

Thought you kept the first one live---

We both were filled and I still have the first!
What a clever Dick---err Duck.

You have her on a string. Time to open the shoulders (flappers?).