with respect to lescor's thread and focus, if I may... the key to profitability in ES or any futures market is simple, easy and has been expounded upon publicly, time and time again. retail traders with modest to moderate accounts must target profitable swings that cover several index points' relative to risk stops that are 1/2, 1/3 or even 1/4 the targeted profit size. that means some method of filtering overall price direction and riding it when direction exists. that means accepting net-loss days when direction does not exist. the key to profitability in ES or any futures market is simple, easy, expounded upon time and time again... but it's a message that falls (for the most part) on deaf ears because the ears don't want to listen. The majority of futures traders want to play emini-nintendo, banging in & out of the market dozens of times daily with fantasies of scalpy profits and nil losses. So the majority of futures traders cater to their fantasies, repeatedly fail and continue to pound their heads against cement ceilings until they give up and walk away. lescor is a shining example of what profitable traders do: they have controlled loss days overshadowed by large-win days that push the week profitable more often than not. how simple is that lesson for all of us in this profession with zero exceptions... including the OP himself?
Corey, Unless mistaken, don't think I saw this answered in the thread . . . What's your opinion on fixed targets vs playing for a runner? Do you have criteria to exit a trade or do you let the market take you out based on how you manage stops? Thanks again for taking time to create a great thread when so few exist. Maybe a few other successful traders will follow your lead after this. Best. J. Scott
Austin, I appreciate your input into the matter and I would not disagree with you even if I had as many trades under my belt as you have. I am glad you summarized the gist of riding the ES horse without being kicked off. Hats off to you for providing the info.
Right now the ES is a tough, tough critter. Volatile, directional markets are inefficient: dull, sideways, low energy markets are efficient if we define the term "efficient markets" as a measure of available profit potential against risk involved. The ES in particular and emini markets in general move far enough to hit stops either side, but not far enough to reach profit objectives that create a lasting edge thru long periods intraday. In other words, they chop hard. imo the best (and possibly only) long-term solution to that for retail traders is some sort of trend filtration approach that identifies overall intraday direction. Then manage risk by scaling <i>into</i> a position in harmony with trend: 1/2 size into pullbacks aka "wholesale" entry and 1/2 size added as price moves in favor of direction bias once the first 1/2 position has stop moved to par for risk removed on that part. The overall trade management system takes advantage of any directional movement by holding full-strength leverage into that bias strength while defending against persistent chop by only taking half-strength losses on stops. Sideways chop days that go nowhere = controlled losses at the end. Any type of intraday directional swing = potential for larger relative gains riding along with market bias. Unless someone can magically transport us all back to March 29th, 2008 and live thru that ride one more time, we've got to work with what conditions exist. But the same approach works all the time in all markets without exception: seek and find directional bias when it exists and ride with full leverage. Tread thru sideways congestion with smaller losses. That includes rtm tactics catching turns from extremes AND includes straight trend swings alike. That's it for me on this topic, thread is lescor's journal and what he has to share on stocks, his trading, his results and his life's journey remains primary focus
Lescor, How many different strategies do you use during the day? Do they all contribute to bottom line equally or most profits come from one or two strategies?
I look at the daily chart but only to see if it's done something really unusual lately. Like if a stock has moved up 20% in a few days and starts selling off, I'd be wary of going long because on the daily chart it might be ready for a pullback. I also will adjust my size down if the stock has had a big increase in volatility. I don't really pay any attention to what the long term trend is.
Most of my profitable exits are either at a target or a time out. I have a hard time being patient enough to hold on for a trend to develop. More accurately, I haven't put the time in to come up with a method to hold on for a trend to develop.
It depends on the day and what opportunities come up. Most days 3 or 4. I think I've employed 7 or 8 this year at one time or another. I posted earlier the break down percentage-wise among them. This year about 70% of my total is from two strategies.
Lots of info Austin and all of it useful. I wish I could adhere to some of the points made by you. Like they say: easier said then done, at least in my case. Profitable trading!