Anyone day trade index futures or Etf's on time frames that are greater than (or equal to) 30 mins? I've spent a lot of time trying to figure out smaller time frames but am coming to the realization that less is more. In terms of number of trades, anyways. Seems like expanding time frames out a bit can help smooth out the noise somewhat. Wondering what traders out there day trade but using these longer time frames?
When trading larger time frames, spread and commission have less of an impact on your bottom line. It gives you more time to process position size , exact entry ect. You may be rushed to chase the market if you are trying to catch the market after a valid signal on smaller time frames. I personally like taking 15min+ signals the best. I'll still take 5 min signals but I must act swiftly to get my desired entry price and the commission takes a bigger chunk out of my bottom line in percentage terms. Over trading on smaller Time frames can be very detrimental unless your "edge" is already clearly beating the houses advantage . One disadvantage I can think of is having to hold overnight if I get a signal on a larger TF. A fear of mine is a big news event hitting over the 15 min maintenance period or weekend. I try to unload as much of my position as I can so that I just have a very small percentage of my total account left for the "runner" in such instances. Good topic. ZR1
For currency futures, I trade the 30/60 min time frames using 10-15 min frames for entries/exits, spotting divergences( and looking at spot forex chart for daily pivot areas. It has paid off very well for me. For trading the ES, I typically use the 15-30min timeframe( using daily and intraday pivot areas). Works very well for me here also. .........my 2cents
Thanks for the responses guys. I think I've spent a lot of time focusing on the smaller picture but recently had a few epiphanies while lining up some higher time frames and think this may be the way to go for me. I think that there is a preconceived notion that day trading needs to be done on one minute or 5 minute charts only but there is 6 1/2 hours in the day so why not look a bit higher? Good discussion so far
Fah Q, the problem with looking at just the higher time frame is you tend to miss clues, or shall we say "signals" about impending major moves. By keeping a side eye on the smaller time frames you can alot of sometimes get an earlier buy/sell signal and a more precise entry/exit as the major move is about to unfold. practice, practice, PRACTICE...
You're dead on about that, SB4Me. I guess I didn't mean to say that I wouldn't also look at smaller time frames. Just that I used to only focus on them and, taking a step back, I've made some deeper connections lately. It's all about practice, no doubt!
I think anytime frame is OK as long as it suits your personality. Blondes are hot but so are brunettes. In the end you need to be comfortable with your set-up. Having said that I think fewer traders are good in the long run at scalping minute charts versus swing trading the higher timeframes.
General trading experience is always necessary to succeed. The more the better, as we all know. However, when we talk about success in a specific market, I suspect there is an inverse relationship between length of experience in that market and length of time frame being traded. For example, if you are trading a 1 or 5 min. chart, you better have been staring at that particular market for years before you hope to make money. OTOH, if you're trading an hourly or daily chart, you probably need less experience in that SPECIFIC market. Maybe this is why, successful day traders tend to stick to just one market while swing/position traders are more likely to trade several.
If you are paying flat comms then that fucks-your-edge proportionally more on a short timeframe. Longer timeframe, same comms & slip fucks-your-edge proportionally less. - although news / informational change is an issue. If you don't have an edge then your timeframe doesn't matter. You are just a gambling moron loser. [I think I am within the Conduct Rules, whilst still making my point.]
My opinion is that longer timeframes are better even for HF trading - I used to scalp Nymex spreads using 360 minute bars, trading several thousand round turns per day. Now, they usually trend so hard that scalping isn't required or even desired in my opinion. My personal thought was that the longer timeframe incorporated broader resolution in terms of market action into my viewpoint on a market's price action behavior. My two cents.