Quote from fred1:
sell es short when it shoots up 10 or 15 points and turns or stops and macd or such signals turn.
trailing stop limit, leave and win about 80% of trades anything from 4-40 points. sounds easy and obvious. all it requires is discipline.
it could also be automated.
not to start a fight on a sunday morning but here goes...
1. just b/c es (or any instrument for that matter) goes up a lot very fast and temporarily stalls doesn't mean it will reverse. there's nothing wrong w/ betting on a reversal just keep a tight stop.
2. i agree that the win rate is high but it's the small % that will blow you up.
3. 4-40 points? where is this range coming from? you could drive a rosie o donnell size truck through that.
4. i agree you need discipline - but you shouldn't have discipline in a strategy that doesn't have a edge.
5. re automation - that's good where possible but see caveat in point 4.