If markets trend only 30% of the time intraday...

Discussion in 'Strategy Building' started by Starting Over, Sep 22, 2011.

  1. I want to stick with the ES because of the scalability, among other things. I feel if I can profit with 1 contract, I can use a similar strategy to profit with 100 contracts.
     
    #11     Sep 23, 2011
  2. If you believe that it only trends 30% then just use wide stops and small targets. Risk will be more than reward but you will be right 70% of the time.
     
    #12     Sep 23, 2011
  3. If markets trend only 30% of the time then you should be sitting on your hands 70% of the time.
     
    #13     Sep 23, 2011
  4. gtor514

    gtor514

    This helped me. I started by coming up with some statistics on how much a particular instrument moves per 1 day, 2 days, 5, days, etc.

    During trends these statistics can be used to...

    1.) exit and take profits
    2.) re-enter during the retracements.

    Like wise these statistics can be used during range markets to avoid buying too close to the top and selling to close to the bottom on any given day.

    Link these statistics to volatility and you will have better edge especially if you are going to be limited to trading just the morning after the open.
     
    #14     Sep 24, 2011
  5. Thanks for the response. I'm assuming you're calculating the average daily range or ATR? I'm actually considering employing such a tactic in my trading arsenal.
     
    #15     Sep 24, 2011