Are these the same stocks and futures that they couldn't get rid of fast enough yesterday. Gotta laugh
Maybe the good ole' days are coming back. Waited for a small pullback to get long this morning and it never came. In hindsite, should've put buy and sell stops above and below the 30-min bar in anticipation of the 10:00a.m. news. Anybody do this on news days?
It might work, it migh not. Sometimes the price wiggles up and down to catch people who do what you are suggesting. Classic example: greenman days. News move usually b/w 5-10 ES pts. So for say, a 30-min bar of 5 pts you get 1:1/2:1 risk reward not rich enough for me. I'm not saying you can't make money with your "butterfly" strategy, it just isn't as easy as it sounds you have to tinker with the strategy.
I know those Greenman days well. Those are official vacation days for me in the future. Last one caught me with 4 ES contracts going the wrong direction.
One strategy I've thought of trying is to place stops on either end, but also limit order stops (with a wide limit range) a few points away to take the quick profit automatically. I've noticed placing orders manually on those quick moves is tough due to extreme lag. Of course this would make your r/r 1:1 or less, but you'd have a high probability of getting in and out.
me too - i take greenie days off, although i will sometimes trade the open... lateky, just not playing has been a better strategy. the market will be there the day after greenie has shut his piehole. what's the hurry? p.s. - i got caught massively short on BOTH "unscheduled" rate cuts in 2001. just the risk of trading, but a good reminder for me to have trailing stops!