what are the enry rules for the last entry. 1. do u enter on 3 rd bar or 2nd bar close. whats the target and stop for emini sp 500. will be good to see if it works for s&p.... u did not have stchs on last charts so dont know how u entered trade...did u enter on 14.59 bar close
B, The different alternatives for entry are discussed throughout the journal. In this case since it was just a simulation I basically estimated based on price action, not an exact simulation by any means. However, it's a good exercise to do so without a single indicator, the results will surprise you. In fact, you must be able to do so without a single indicator as the key to the strategy is HH HL LL LH not some oscillator. Of course you need to be realistic, when it reverses, it was a stop, don't cheat when doing so. The goal is to mimic the entries in real time. I used to do this countless times with multiple instruments, it definitely improves your skills on following price action and spotting the chop. Anek
Enjoying the helpful discussion so far. I wonder if switching to ES at this time would be much better than YM, considering the noise that just came into this game. Be careful out there everybody: http://futurepathtrading.com/content/view/362/69/
Have you ever taken the time to determine what happens to price, once you've been stopped out? Maybe you'd be better off hitting the REVERSE button rather than the EXIT button. After all, the market is telling you you're on the wrong side.
Thanks for the link. When the ES becomes jumpy the YM is definitely not in tranquility. In fact, in my studies I found the ES to be more "trendy". No conclusions yet, soon though... Anek
Alpine, I have not done enough studies to determine that but if I had to take a wild guess I would say there are more chances of choppy action developing before a new trend. If the chances favor choppy action vs a complete reversal the chop could most probably chop your head off :eek: Good question for a complete study though, point dully noted. Anek
Duly, not dully, sorry about that ES has been uptrending in a calmly fashion in afterhours. Watching carefully on 500 share bars. Little rest for tomorrow and off we go.... Anek
I have studied this in depth and your thoughts are correct. Reversing almost always ends up getting stopped out at a loss, as directional momentum is fading at that point. Best to wait until price shows you once again which way it wants to go before re-entering. st
If I may, Anec, note tradestation does not build constant volume charts correctly. Search "constant volume charts/bars" here on ET for more information. For you tick users, also note that Globex began aggregating tick data some time ago, so you are not looking at true tick by tick data any longer. You should ask yourself which of that data you are willing to omit from your chart when using fast tick settings and are reading OCHL on each bar as your set up for entry/exit. For those who asked about my volume chart, I first began using constant volume when Ensign implemented it into their program. I would switch back to tick charts and then compare them to the CV charts. In the end, I decided on CV and re-trained my brain to read them. At that point I didn't truly understand why I liked CV better, I just knew the price action seemed clearer to me. It wasn't until I later came across a "Proflogic" thread here on ET and learned that he was the moving force behind these volume bars and the reasoning that the light bulb went off. To everyone, in my opinion, if your charting program doesn't offer true constant volume bars, I would use one that did. To not use a tool that is available for no other reason that "my charting doesn't provide it" is not a professional mindset. If you have used them and decided they were not for you, that is another matter, but I fail to see how that could be using an open mind. In summary, tick data is no longer valid, time charts were your grandfathers charts (what does time have to do with price intraday?), range bars do not show true price action, HA distorts price and goes against the theory of using price action as your set ups. No suggestions , just something for you to ponder, and as always, your mileage may vary. Do your own homework! st
IMO, let price take you out; as long as price is making HH,HL, or vice versa, stay in the trade with stop placed slightly above the high bar of your entry swing H/L. At the next swing H/L place stop just above/below that swing and so on. The first conflicting swing is the exit. You will only get a slice out of the middle of the run with this method, but you will almost always catch those huge moves like we had Friday afternoon and get several good moves in between, depending on the range. st