15 minute open range scalp

Discussion in 'Strategy Building' started by DHS, Jul 27, 2007.

  1. DHS

    DHS

    I use er2 but anything is ok.

    9:30am-9:45am I note the high and low.

    I set a buy stop 1 tic above the high of the 15 min open range with a 1pt stoploss and 1pt profit target (you can let your winner run if you want, I like to take it).

    I set a sell stop 1 tic below the low of the 15 min open range with a 1pt stoploss and 1pt profit target (you can let your winner run if you want, I like to take it).

    Typically as soon as I am profitable, even 3-4 tics only, I move my stoploss to 1tic profit so no matter what I make a profit.

    Trade should last no more than 1 minute.

    Anyone here ever do this?

    6 for 6 in the past 3 days with a minimum 1tic earned and a maximum 5pts earned. Overall I took about 11pts.

    [​IMG]
     
  2. GTS

    GTS

    If you move your stop loss to +1 tick when you are +3/4 ticks above your entry then I am very surprised that you are not being stopped out. ER2 is quite jumpy at times.

    But if it works for you...
     
  3. DHS

    DHS

    Don't get me wrong, I don't always move it to +1tic so soon, usually if it goes against me a bit then back into profit I do it ASAP, but I do give it a little breathing room.

    More often than not I hit the 1pt before the 1tic.

    I'm all about making ANY profit, 1tic or 20tics, it's all good to me.

    A million dollars on a million trades :)

    Here's today's first trade. The short was 1tic only which was good since I would've been stopped out.

    [​IMG]
    (wish I held out on this one, could've doubled it)
     
  4. jj90

    jj90

    Lot of money to be made in ER2, of course the opposite also holds true. Was up $500 on it after comms, the sad part is my high of the day was $2000. I will admit I got slapped by the 3.45pm selloff.

    I notice your win ranges are around 2-3 points. How are you dealing with the whipsaw? ER2 will frequently have a 1pt whip on a given move.
     
  5. DHS

    DHS

    I typically trail my stop so as the price jumps I am quickly changing the stop to prevent it from reversing too much. However, most of the time I take the 1pt and get out. It just happened that this week there were a couple times where it ran for a couple points (2-5) and I took advantage.
     
  6. DHS

    DHS

    If anyone gives this trade system a try please let me know how it worked out for you. For the next month it'll be the only trades I do, and then I will focus on the 3PM turnaround trade, where a little while after 3PM you go the opposite of the trend from 2:30-3:00+. There is a similar move typically just after 10am as well.
     
  7. js11222

    js11222

    This is known as the opening range breakout method, an age-old technique used on the floor.

    Mark B. Fisher in his book "The Logical Trader" illustrates this as a beginning move in a longer trading sequence.
     
  8. DHS

    DHS

    JS:

    Do you know of and possibly can you summarize other moves in this sequence. I am looking to add to my arsenal since it only allows for 2 trades. If there are other techniques that can work with this that have similar win-to-loss ratios I would be very interested. Feel free to PM me or post any information you can. Thanks!
     
  9. You can do this sort of thing at times other than the open. The "opening range bar" could be the bar of the previous 15 minutes. You could think about the market "opening" for the afternoon session. A wide ranging bar might work best.
     
  10. js11222

    js11222

    I am not going to re-read Fisher's book and summarize it for you. You could buy it on Half.com used, read it and resell it there if you decide not to keep it.

    When the indices quiet down between 12 EST and 12 Central Time - because of traders going for lunch - the market often provides a good starting point similar to the opening range. It is very often a continuation move.
     
    #10     Jul 28, 2007