E-Mini Scalps

Discussion in 'Journals' started by kidPWRtrader, Oct 24, 2007.

  1. Simple title, simple plan.

    I am 19, I have been trading for 1.5 years total. I have been somewhat profitable for the last .5 years (at least I no longer bleed) in swing trading equities. My thesis is that I am better suited for a shorter time frame and due to capitlization, futures gives me a great opportunity to try something that I cant in stocks without 25 k.

    I will be recording and analyzing my trades and placing them in here at the end of the day. Hopefully I can get some feedback - the point of this journal. If not, I will continue to simply keep learning by myself. Some gratitude towards gaj, anekdoten, and nihaba... gaj has been a big help in my trading for a while and anekdoten and nihaba are helping me go to the next level.

    Anyways, without further adue, here is the trading plan:

    By the way, I will be recording my sessions and going over them over the week to see what I could have done differently. I have not yet figured out if I will post all days at once or one by one then. Will do it one way as I deem best.

    Trading Rules:
    Will examine 3 different time frames. 1 for larger picture, another for immediate trend, and another for exact entries. If a trend is particularly strong, I will use a fourth chart dropping into a smaller timeframe in order to enter a breakaway market.

    Entries: White Hammers after completion if can get in the range of the white hammer (vice versa for shorts), otherwise wait for break in trendline on wide range bar (greater than last 3 bars bodies). Must be at least a 1 : 1.5 risk to reward scenario. Always enter after the completion of the signal with limit order or during the last few remaining moments before a bar closes. After 2 bars after the signal, cancel order. Also, check out the new trend line formed and if it is broken, also cancel order.

    Exits: To the first profit target, a break of the new trendline (a close below/above it) or a wide range bar. If profits locked in, use a longer term trendline or keep putting stop underneath last low / above last high.

    Trending Criteria:

    Trend Timeframe:
    Long: Longer timeframe must have a higher high, a higher low, a higher high and as we approach a new low, we can assume that it will be the higher low and enter.

    Short: Longer timeframe must have a lower low, a lower high, a lower low, and as we approach a new high we can assume it will be a lower high and enter.

    Note, I will consider an equal low as continuation of uptrend and an equal high as continuation of downtrend. I will also apply trendline analysis when it gives me more accurate results.
  2. Have not had much time recently to start but have done an analysis of my equities live trades from 9/4 to present (except for some open positions).

    I have altered my trading style greatly since september seeing as how I no longer trade based on set price targets (even if at support/resistance). I always let price tell me when to get out. I used to enter on the break of highs/the break of lows. Now, i enter on the day following the signal.

    I know there are people that supposedly do it the way that I could not (break of low, break of high), but I need better accuracy for my psychology.

    I am not going to go through the nitty and gritty but my wins were about the same as my losses (maybe slightly more). Not important as I am changing my style.

    Here are the details of how I would have performed had I used my new system.

    6 breakeven trades
    1 win of 150, 1 win of 70, 1 win of 220, 1 win of 350
    1 loss 130, 1 loss 150

    4 total winners, 2 losers

    Net: +480

    This is on a 5000 dollar account which would represent a gain of 10% in 2 months, about what I was getting on sim for the past 3-4 months before going back into live trading. And... the summer was MUCH easier to trade, in my opinion on my time frame in equities.

    My actual trading has resulted in a loss of 50 bucks over the course of trading somewhere around 30 symbols in the past 2 months.

    My money management strategy has been scaling out, but from now on I want to attempt to scale in and try the exact same strategy I am using in futures. This will keep things simple.

    If anyone has any comments on moneymanagement strategies for swing trading with the trend on dailies I would appreciate it.

    As of now, I am long SLP and will exit on market open on monday (break of trendline and down day).

    I am short SMOD and KMGB and planning on holding.

    FHC gave me a buy signal friday. Buy limit order in @ 3.10 for 400 shares.

    You will notice from time to time I am using margin. I never risk more than 2 % of my account a trade, however, and I am only 100% long or 100% short at any given time. If I dip into margin, it's to play the other side and I believe this will actually reduce my risk while adding to my bottom line.

    Initially I will only be using 1 contract with the e-minis and won't change this until I go live and can show profitability consistently (whenever that is). With stocks, I start out with my regular position, will exit when price tells me to, and otherwise will move up my stop if it acts strongly and try to stay in based on trend lines/add on further signals.

    I have confidence in my abilities to read price action. I don't have confidence in my ability to stay out of chop.

    Here's to staying disciplined...