After two consecutive days of losing money trying to trade U.S. index CFDs, I think I've learned at least four important lessons: First, attempting to scalp the major U.S. indices is extremely labor intensive. One cannot relax for a single second. For example, after working diligently to manage a $164.14 gain from a DJIND long position trading using a position size of 0.05 lots, I was immediately handed a $425.88 loss buy a single candlestick as the index suddenly turned around and headed the other way. Second, optimizing one's chances of avoiding costly reversals like the one just mentioned (given the characteristics and nature on index futures price action) is going to require entering and exiting positions pretty much at the top and bottom of any given intraday trend. But, even this is not going to be foolproof due to the dramatic and radical nature of so many index futures changes in sentiment. Third, identifying the tops and bottom of intraday trends might be best accomplished using a 23-minute baseline as confirmed by the consensus moving averages AND/OR the eight- and/or two-day temporal support or resistance level. And finally, if I were to begin live trading index futures CFDs (which I can presently do only in demo mode since it is not legally permitted in the USA), I would have to do so at the exclusion of trading foreign currency pairs, at least on the same platform, seeing as how the performance results of the former dwarfs that of the latter to such a degree as to render it virtually imperceptible on a line graph.
So then, based on the statements made in Post #50, every dollar of change in the Nasdaq will translate to $4.00 of profit or loss in NADEX knock-outs; every dollar of change in the S&P 500 will translate to $10.00 of profit or loss; and every dollar of change in the DOW will translated to one dollar of change on the NADEX knock-out platform. This means that, unless I am mistaken, this $8.66 us30 trade would have been worth 33310.65 - 33301.99 = $8.66... This $18.11 nas100 trade would have been worth 13180.27 - 13162.12 = (18.11 × 4) = $72.44... And this $1.31 spx500 trade would have been worth 4134.89 - 4133.58 = ($1.31 × 10) = $13.10...
Friday | August 12, 2022 | 12:10 AM PST Well, my Hugo's Way demo account is no more. So, I guess in the end, my system failed the ultimate test! It was doing fine from July 25th to August 1st, but I was covering old territory (i.e., day trading Forex). And when an interested party expressed the desire to see its performance via myfxbook or collective2 rather than this thread, confirming what I already knew Numerical Price Prediction was capable of, no longer seemed to have as much purpose for me. Also, trading the U.S. indices for a few minutes to an hour each day, as I started to do toward the end, was not a big problem for me and seemed to be a potential money maker. But, stretching it out beyond that was a big money loser for two reasons: First, I'm still more-or-less on the go, and the indexes reverse direction far too often for me to leave positions open while I'm switching from one location to another. Yet, so many opportunities would be lost during the interim that trading at all would no longer have even been worth it to me. Consequently, I should not try day trading the indices until and unless I can "hole up" in the same location hour after hour, which just ain't the case right now. Second… Wait, I guess that's really the main reason. If I had another, I forgot what it was. So then, this journal did not last very long, did it? And like Al, I'm just another chump who's never proven his profitability.
A positive outcome stemming from having blown up my Hugo's Way demo account trying to day trade U.S. indices without being glued to my laptop the way I needed to be was that I ended up enhancing my charts for tracking reversals in the Forex market (and for any other financial instrument as well)...
If this had been Friday, I would have cleaned up BIG TIME! After the initial hour and twenty minutes of craziness, both the Nasdaq and the S&P did nothing but climb straight up... This would not have been good in the long run however, because then I would have been fooled into thinking it would always be this easy, which Thursday clearly disproved.