Forex Trading by a Futures Pit Trader

Discussion in 'Journals' started by futuresRX, Dec 26, 2007.

  1. its not the instrument, basically when entries and exits(stops) are placed within drift...or noise of price action, your almost guaranteed a loss.

    I use drift to my advantage, I place trades within the noise and let the chaotic orderflow hit both sides of the trade entry/exit.

    scalping is different, it has a inherent edge, its grind work since, its dependent on orderflow and relationships with pit brokers, if your not in with the pit brokers, you wont eat.

    the pit brokers will hit boths sides of the scalp and can feed you.
    #11     Dec 26, 2007
  2. I am currently short the dollar, with a hedge going long against EUR (small, however). I am long GBP and JPY, and they're working in my favor.
    #12     Dec 26, 2007
  3. Which is how people with $500 accounts thinking they can hit it big with 200:1 leverage fail.

    What kind of leverage do you use? I'm currently at 26% of my available margin, staying under 50 at all times.
    #13     Dec 26, 2007
  4. I'm very overcapitalized..

    trades will sit sometimes for extended periods of time, as long as it fits in with macro analysis.

    the entry and exits are within the macro analysis/'doubt' wave structure. Meaning waves are created because a portion of the market participants don't agree with the other portion.

    those waves will hit both sides of the entry and exit.
    #14     Dec 26, 2007
  5. 2ez


    #15     Dec 26, 2007
  6. Currently short the euro at 1.4501, doesn't seem to catching that much upside crossing 1.45.
    #16     Dec 26, 2007
  7. futuresRX

    Cool journal you have going. Are you going to strictly be sticking to forex? Will there be any livestock trades you make?

    Good Trading
    #17     Dec 26, 2007
  8. I am a pit trader at the CME, mainly trade Lean Hogs and sometimes do some cattle spreads. With that I usually don't hold anything overnight, but I might sometimes most some trades here if I am doing them electronically that day.

    Was right on with the EUR trade, never made it past 1.4509 today and closed my positions at around 1.4494 today (see below for precise amounts). I now have a short USD/JPY position on, which unfortunately is rising most likely due to the carry trade. Might have to cover that at a loss, but I'll wait and see.
    #18     Dec 26, 2007
  9. Currently am short USD/JPY, short EUR, and long AUD.

    Also, I made up for the earlier loss, and now have a $50 profit on the account for the first day. Glad to see I didn't take a loss!
    #19     Dec 26, 2007
  10. Okay, closed my EUR/GBP short at 0.7300, 12 pip gain.

    Still long AUD/USD (gain) and short USD/JPY (loss).

    Account is up $605.10 to date.

    Thought I would also post some of my current calendar spreads in Lean Hogs and Feeders that I have going. I put these on every few months to gain some additional profit from my pit trading.

    First attachment is the first page with lean hog spreads and first part of the feeder spreads. The second page has the rest of the feeder spreads.
    #20     Dec 26, 2007