The transition to Futures trading

[tech/a]

Its not a matter of accepting it its just reality of trading a thin order book. If someone throws out a 1000 lot sweep order, which is a weekly event on the Seng, you will be luck to get filled 120 ticks past your stop trigger. I've seen a few 350 tick sweeps . If you are going to trade it for long enough you will be hit by them soon enough.... if not often..

My R amount is..... whatever it takes... I don't really use hard stops.

Yes understand.
I didn't think you used a stop now.

 

[pavilion103]

A couple of small losses and then this active trade. Might look to exit soon.

Price was in a triangle making lower highs.

Got in as price pushed up to around 6695.5 with a stop 6699.

3.5 risk.

 

[tech/a]

A couple of small losses and then this active trade. Might look to exit soon.

Price was in a triangle making lower highs.

Got in as price pushed up to around 6695.5 with a stop 6699.

3.5 risk.

View attachment 56298

Hope you held this PAV

 

[pavilion103]

I got out around 6680 area because I was going to bed.

Maybe should have left the stop in place and let it run over night. Would have been a nice 40 point move. Instead only got 15 and will have to look for a re-entry tonight if one presents.

I should have followed my instincts because
a) That chart looked bearish when I got in and then it took off
b) There was nothing to suggest it would move higher again.

Ah well.

Good setup with 3.5 point risk.

Next time will probably look to hold.

 

[pavilion103]

Not holding these moves has probably been my biggest detriment so far.

I see this as something that can be very easily addressed and fixed.

I don't see it as psychology of being afraid to hold, but rather poor decision making. If the decision is made PRIOR to the trade then all that needs to be done is stop to BE (or relevant pivot high/low) and set and forget.

I'm really happy at how many good RR trades I am identifying.


It's not difficult to see why the potential of futures trading is so exciting.
Even for a 40 point move like this = $700+ profit.
Do that 2 or 3 times a week and it's close to $2,000.
Trade multiple contracts and it may be up over $5,000.

Identifying (and riding) nice moves like this allows for a number of 3-5 point losses (not to mention all the BEs) when the trade doesn't work out as planned.



I'll be on tonight looking for a short.

 

[pavilion103]

Wait a minute...

I just realised that price did push back up after I went to bed.
If I held I would have been taken out at the pivot high anyway.

I guess it does raise the question of when to get out for a 10,15,20 point profit and when to hold.
My thinking is
1) support resistance
2) a reason to get out (e.g. huge volume, test etc).

In this instance there was some small support around 6670 (which is what I identified last night), but not hugely significant and I would have been just as happy to have held in hindsight.


Another crack at it tonight!

 

[tech/a]

Wait a minute...

I just realised that price did push back up after I went to bed.
If I held I would have been taken out at the pivot high anyway.

I guess it does raise the question of when to get out for a 10,15,20 point profit and when to hold.
My thinking is
1) support resistance
2) a reason to get out (e.g. huge volume, test etc).

In this instance there was some small support around 6670 (which is what I identified last night), but not hugely significant and I would have been just as happy to have held in hindsight.


Another crack at it tonight!

Conditional orders are good for this if you need to set --go to bed and SLEEP!

 

[pavilion103]

With IB do you have to set this up PRIOR to executing the original trade?

I.e. With an entry, a stop and a profit taking order?

 

[tech/a]

With IB do you have to set this up PRIOR to executing the original trade?

I.e. With an entry, a stop and a profit taking order?

Yes I've Private mailed you.

 

[CanOz]

Yes I've Private mailed you.

This is something that I've wanted to do another video on, bracket orders. Is this what you are using Tech?

 

[ThingyMajiggy]

Can you explain to me why that is bearish? You mention that is has lower highs, but it also has higher lows? What makes that triangle a bearish indicator? Looks like it could go either way to me?

 

[pavilion103]

Can you explain to me why that is bearish? You mention that is has lower highs, but it also has higher lows? What makes that triangle a bearish indicator? Looks like it could go either way to me?

Agree.

I'm analysing it in the context of the market.
The high of the day was around 6704.
Recent days saw resistance around 6710-6725.
Would require a lot of force to push through.
Not much upside potential for a short term setup.
Downside - bottom of range around 6670 offers good RR for 3 point risk.
Plus the added potential that if it did break it could easily go to 6625.

On it's own, the pattern isn't outstandingly bearish.

 

[tech/a]

This is something that I've wanted to do another video on, bracket orders. Is this what you are using Tech?

Yes

 

[tech/a]

Can you explain to me why that is bearish? You mention that is has lower highs, but it also has higher lows? What makes that triangle a bearish indicator? Looks like it could go either way to me?

The top of the range was 710 ish.
Resistance held. If the top was taken out I expected a spike as Shorts closed.
So The triangle I would have seen as bearish.---a continuation of the resistance.
I was asleep!

My view.

 

[ThingyMajiggy]

The top of the range was 710 ish.
Resistance held. If the top was taken out I expected a spike as Shorts closed.
So The triangle I would have seen as bearish.---a continuation of the resistance.
I was asleep!

My view.

Makes sense Can't see the top of the range in the screenshot

 

[Caveroute]

The top of the range was 710 ish.
Resistance held. If the top was taken out I expected a spike as Shorts closed.
So The triangle I would have seen as bearish.---a continuation of the resistance.
I was asleep!

My view.

Uhm, forgetting the triangle for the minute.

The short is off a trend line that's part of a spike and channel pattern.

The trend channel line is clearly marked and the move ends there, with a wedge [several concurrent wedges in fact] and a strong bull reversal bar.

You then get 2 legged measured move to the resistance at top of the range at ~6710, give or take.

Followed by another TL break, lower high retest and off we go southwards at a clear l2, lower high.

My view.

 

[tech/a]

My view

A good one.

Glad I'm short!

 

[CanOz]

With IB do you have to set this up PRIOR to executing the original trade?

I.e. With an entry, a stop and a profit taking order?

Try this Pav...Will start a new Thread on IB Vids too.

[video=youtube_share;7hYDZXymRwc]http://youtu.be/7hYDZXymRwc[/video]

 

[pavilion103]

Try this Pav...Will start a new Thread on IB Vids too. Video Link: http://youtu.be/7hYDZXymRwc

I'll check it out. Thanks

 

[Caveroute]

Hitler Parodies - Adolf Hitler scalping Euro-Bund Futures, Order Flow .....

If your offended by bad language / dark humour then please skip this.


https://www.youtube.com/watch?v=ypZb9bgLKBA