All my core setups are based on the 5min chart, but 90% of my entries are based on a cross-reference to the 1min chart. I do not fight the 5min price action framework. That doesn't mean I don't take counter-trend trades. I do, but only under very specific conditions that are based on the 5min price action. I would recommend Volman's book on scalping if you're interested in trading solely off a 1min chart. His course will keep you out of trouble in this time frame.
but if your setup is on the 5 minute, like say a break out pullback to the ema for example, why would you need to jump to the minute chart, why not just take the signal right off the 5 minute? how is the minute chart helping you in that case?
I don't "need" to, but I've devised particular methods of trading that make good utility of the 1min chart. I'm not sharing ALL my trading secrets I'm done with my day's work (analyzed a new potential setup) and wish everyone a fantastic rest of their weekend and a profitable week of trading ahead!
I personally trade CL long term- very long term intuitively. Has worked out well for me. The E-mini is strictly proprietary computerized based on a system developed in 2000. Trading of T Bond just started recently with NO alteration to the system. Surprisingly it works equal to the S&P. Thanks, Tom Baldwin. We are averaging about 32 ticks/day without the overnight (soon to trade those hours additionally from a yacht in south of France. Jokingly I suggested naming it "Customers Yacht." LOL. Doubt I will return to west coast ever. Woody
so my next question for whenever you feel like posting agian.. how do you go about researching a potential setup. you define the setup and then what? what do you go over like 1000 charts or something??
Couldn't find the exact interview but the boss of Geneva Trading (http://www.geneva-trading.com/) once said that if you couldn't trade for break even after 3 months then you'd probably never make it. Have to agree.
I like the way it went right past the OP. Why it did is easy to say. The OP wants to make money. What if he would do what nodoji suggests? I mean, she suggests that he begin to learn. All learners need a reference they can "trust". Trust means blindly follow on ET. How thick does a 20ma have to be to get in the way of space, shapes or movement? A half inch might do it.
I agree with NoDoji to some extent, but.. Trading is psychologically hard because it is uncertain. All you can do is get better at statistics and math that goes with it. Once you have that model you need to be able to mentally accept that this model will have drawdowns and to prepare for the distribution of returns and negative periods that ensue. Most traders either don't have a model or enough statistics to prepare them for the drawdowns they will inevitably run into, and those that do are often not mentally prepared for them. When the bad spells happen, they think they're loosers and want to quit. This is especially true if a new model is developed (and a strategy based on it) and you hit a negative period first time going live, like the first month. Traders need to understand that you really need to trade a strategy for a year in order to have enough statistical significance on wether it works or not. Hopefully, you wouldn't have done something catastrophic enough to go bankrupt by then. If this mental hurdle is accepted, trading with a good model can really be satisfying. It took me a lot of time to prepare for my drawdowns and I wimped out a few times, i admit. But every time, especially with my newer stuff, the equity curve rebounded and outperformed the markets on a risk adjusted basis. I won't say i'm a good trader until i have at least 5 years of track record, and maybe not even then. Any line of work we do as humans with an ego, requires a confirmation feedback that we are doing a good job. If you're a medical intern, you don't care so much about the pay as when a doctor tells you you did a good job, etc. As a trader, there is nobody there to tell you that for a very long time, and that is tough. That's another reason not everyone can make it. I personally live in my statistical models and have pictures of them printed and stuck on my wall. They're the only friends that can tell you "you're doing good" when times are tough. If anyone doesn't understand the root of this problem, which is market unpredictability, then he either believes that humans are completely predictable or is an idiot or both. I also agree with NoDoji that this trending counter-trending system can be applied with ease but most people on ET seem to trade like 3 or 4 instruments. I've seen models with systems such as the one posted by NoDoji (similar) put in a portfolio do significantly better than a lot of hedge funds. How? Diversification. I would never trade less than 30 underlyings and corresponding systems. I prefer 60 at least. For that you need capital, at least 100k and you're stuck with stocks. Whoever trades futures with less than 2M is a fool in my book (spreads might be ok). Diversify enough, learn about creating portfolios that are not equal-weight (use volatility, correlation matrices, etc) and even with the simple trending systems if you trade all asset classes you will get good risk adjusted returns. So while there are a lot of hurdles for the retail trader stemming from a limited capital, it's not impossible at all I assure you.