ER2 Leading Indicators?

Discussion in 'Index Futures' started by swcom, Oct 22, 2005.

  1. Hey Macro, would you be able to amplify what you mean by a 'hedge' trade in another account?
    #21     Oct 24, 2005

  2. yes --- equal or greater size position to what i am already holding but in the opposite direction. so if i was short 10 in my original trade and then price continues to move against me to my determined reversal point i will then have a hedge entry for say 15 contracts long in a separate account. i will hold the hedge until i then get a new short signal and try again {i cover the hedge while i am still holding the underwater original trade}. at this point i would start a new short trade all over again and if needed i would be ready to repeat the hedge process again. i have worked this method out over the years and it works well for me because i know what to do and when --- i have exact rules that i use.

    now there are times when massive buy/sell program activity is in affect and at times i will just reverse the position and run with the momentum {covering the original trade at a loss and reversing into a bigger position for the new momentum move}. this usually happens when i take a counter-trend signal and then the move takes-off again with strength -- so i am already prepared and aware as i enter the counter-trend trade that i need to be ready to reverse and follow the momentum again.

    when i enter a trade i have to know and think about what is the plan for the two possibilities. the first is that the trade goes my way and covers me out at the profit target --- now the second possibility is the trade will run against me so i have to plan for that {and even expect that possibility many times a day}. what i do for this second possibility is have a method set in place to hedge my original position if needed {once the original entry is filled the hedge entry is then parked at my determined level in a separate account ready if needed}.
    #22     Oct 24, 2005
  3. I thought thats what you meant. How is that a hedge? and why a seperate account? All you are doing is reversing your position.
    #23     Oct 25, 2005
  4. Here's my understanding of what's going on (please correct me as needed MacroEvent). I've seen similar approaches in FOREX:

    You can't be both long and short on the same instrument in the same account, hence 2 accounts, one for long, one for short. Note that he has more contracts at his reversal points. This has the effect of nullifying the other account's position and also adding in the direction that the market's going.

    You cash out the winning positions when the market reverses again and let the losing positions gain in value. You're always "in" the market this way.
    #24     Oct 25, 2005

  5. Chu gotz it man! :)

    and i also keep scalping around both positions {long and short} while i am still in them {by watching the NYSE TICK and the "market profile" s/r levels}.
    #25     Oct 25, 2005
  6. Being right is so nice, but why can't I seem to make any money???

    #26     Oct 25, 2005
  7. you will --- just keep your head down and keep running --- grind it out --- hold that ball tight as the endzone is just ahead.
    #27     Oct 25, 2005
  8. Maybe I missed something, but arent you talking about FUTURES? There's no reason to use two accounts to flip, unless you want the second acct as a backup.

    Im sure this is an advanced technique , but the genius of it escapes me.
    #28     Oct 25, 2005
  9. Using eSignal's DDE i can create a custom tick chart that will up date every second versus the eSignal NYSE tick update of every 6 seconds...

    But If you are saying that eSignal has a faster tick than the $TICK or $TiCKQ symbols then could you mention that symbol spelling for eSig?...

    i was not aware that a faster canned tick exists for eSig...?

    thanks Macro...




    If You Have The Vision We Have The Code
    #29     Oct 25, 2005

  10. No Esignal does not have a faster method for plotting/re-freshing the TICK --- i talked to them on the phone today to verify this. looks like Reuters or Bloomberg feeds {very expensive} can get the TICK out much quicker ---- they are supposed to call me tomorrow and give me their "advertised" datafeed speed for the TICK {or we could say refresh rate}. I will pass this on when they call with the answer tomorrow.
    #30     Oct 25, 2005