Just saw your post, so it's in basis points, so I'm still not sure about the $ value between each grid line
Here's a trick I can show you. Right click on the chart, Pointer tools, Currency: CQG can automatically use the tick-values to tell you the dollar value of the distance traveled. When you select Currency, draw a line from from 80.940 to 80.930; Notice the little number 104.20 this is actually using Aussie dollar. So you know a distance of one bar gets you ~$104 We know the tick-value of the 10yr bond is ~$51 (DV01 = $101) so we know roughly a bar on the chart is about 1 basis point
I just love this post...well said s0mmi! I've been doing "high probability/low frequency" trades with treasuries-gold-natural gas for many many years now, it's the only way in my opinion. Traders like Buy1Sell2 will never believe a post like this...whatever. I can tell s0mmi has legit knowledge in the trading game...listen up newbies! I especially like "volatility will move around"...I've had to become a volatility specialist over the years to stay in the game.
You only know what YOU know! Trying to preach to others as if bond trading is the only way to make money..well..shows exactly what you really know Have you ever heard of "the unknown unknowns" !
Bond trading definitely isn't the only way to make money. My point was high probability/low frequency trading is the best approach...in my opinion. Whatever instrument works best...I think nat.gas is the best volatility out there. Sure, there are profitable traders in every kind of style out there, but I would only teach high probability/low frequency trading to people I care about.
Ok..fair reply..can you briefly explain how high probability is linked to volatility..as by its nature.. volatility implies higher risk and possible large drawdowns if trades are held for a prolonged period..maybe I am picking you up wrong..but you can easily put me right.
I'm strictly a day trader (except for retirement investments) that would classify myself as a swing scalper. The highest probability setups need enough movement to make an entry worthwhile...nat.gas is best for me. Basically, I need a certain degree of that movement happening. I agree, prolonged holding periods combined with higher volatility increases risk, but not necessarily for day trading. I'm not a breakout trader (at least not purposely) or a spread trader, not even a reversion trader. I've just learned where to anticipate the beginning of strong movement and that's why highly probable setups I use always require certain price action to confirm entry.
So.. correct me if I am wrong..what you are really saying is that you have perfected your timing of entries and exits.. primarily in natural gas futures..that enables you to place low risk trades..with a high probability of attaining a positive risk/reward ratio with a set no. of trades..which yields consistent profits on a daily basis?
First of all, I wouldn't say on a daily basis...remember low frequency. Just because I exit trades before the end of the day (day trader) doesn't mean the setups show up every day. I've had 2-3 setups each week since July. Too many of these setups have taken max. time (I want out at a certain time of day) and have led to a wash or small cost to exit, this can be common...summer volatility is definitely here. I get the felling you're trying to set me up...how about you and your story. You tell me why your called MrScalper?
No..not at all..just wondering what you have found to be the most important thing in relation to making money..to me..it is all about timing. I used to think.. foolishly..that I could scalp the ES effectively..but quickly learned it is a waste of time..and money! The problem with scalping is too many trades..the more trades you do in one day..the more costs you run up..and the more you risk losing money. I have found it is much better to trade less and wait for the best setups..which..is the same as perfecting your timing of entries and exits. What do you think of buying bonds for income.. government or corporate..do you have any experience with same?