Smacking the ER2

Discussion in 'Journals' started by jessop, Sep 6, 2005.

  1. Jessop -- sent you a PM -- have an idea that may help your trading the er2.
    #21     Sep 8, 2005
  2. jessop, nice journal. Good luck in your trading.

    Writing your singals and pointing them on the chart just for this journal must consume a lot of your time.

    Unless you were discussing the rationale behind particular signals, I don't think anyone could offer useful feedback (other than "just take all signals!").

    So, if you're after just posting trades entry/exit, you could post here a screenshot of Ninja's "Performance Manager" (cropping out the parts you consider "private") and save yourself the time.

    You could also take all the signals in the Simulator and see how it works.

    Finally, since you use retail account and commissions, you could try to focus on fewer trades and stay for longer moves, if your method allows it (i.e. not micro-scalp for a few ticks in ER; just my 2 cents)
    #22     Sep 8, 2005
  3. Don't waste your time with simulators - if you are going to go bankrupt, it's best to do so as early as possible.

    Oddly enough, simulators and paper trading are really helpful the more field experience one has I think ...

    It's of almost zero (and possibly negative) value as a learn to trade tool.
    #23     Sep 8, 2005
  4. jessop



    Thanks for the feedback.

    I write up the charts and text for my own daily log anyway - so its nothing more than a copy and paste each day.

    The charts work well for me in motivation terms because they show me very graphically how much of the signalled moves I'm really profiting from.

    You make a good point re: fewer trades and staying in moves for longer - because that is the general plan - however, I seem to be getting a few more signals than ideal when the oil price flips the markets around. For example S4, S5, S6, S7 yesterday.

    #24     Sep 9, 2005
  5. jessop


    T S,

    I agree that Sim trading has a certain time and place in any trading education.

    But now is not that time for me - I can bang out 2-4 pts Sim trading but struggle to scrape together a positive day when live.

    Its now time to put my money where my mouth is and conquer those fears.

    Thanks for the feedback.
    #25     Sep 9, 2005
  6. thruline



    I certainly understand the emotions you're describing; these must be near-universal issues for traders everywhere.

    Two suggestions that have been helpful to me:

    You seem to be on the right side of the move most of the time. Once you take a position, put a stop in and walk away from that trading screen for at least a minute or two. Come back. Market's still there, isn't it? Maybe it's moving in your favor, looks to have more legs on the move. Move your stop up if you want and walk away. Manage your emotions away from that screen.

    Go back. Repeat until exit point is hit.

    If you don't have a concrete exit point, create one. I like keltner bands and take at least partial profits on first touch of opposite band. There are as many concrete exit strategies as there are traders. The point is to have one and use it. But, no one can do that planted in front of a screen that has become a trigger for out-of-control emotions; so you have to break that pattern. You start to hold your good trades longer and build some confidence, that screen may become a trigger for those pleasant feelings that go with following your plan.

    Some of my best trades have happened when I wasn't looking.

    But our demons conspire.... ;-)

    #26     Sep 9, 2005
  7. jessop



    You make some excellent points and I am realising that I need to spend proportionally more time on my exit strategy than on constantly researching reviewing entries/signals to death....

    I find that if the trade doesn't move in my favour straight away that's when the fear demons in my head start the finger hovering over the close button.

    I will try the walk away technique - sounds a good idea.

    My 'end game plan' for exits with multiple contracts:

    Start with stop -0.6 pts from entry
    After 0.5 pts in profit move stop to -0.2pt from entry
    After 1pt in profit - close 1 contract & move stop for the rest to b/e +0.1
    Manage the 2/3's of contracts to the 3 exit signals I have - calmly watch for the optimal exit !!

    Current exit plan with 1 contract:

    Start with stop -0.6 pts from entry
    After 0.5 pts in profit move stop to -0.2pt from entry
    Manage the contract to the 3 exit signals I have - but usually take anything just over 1pt.

    Had a nice trade today - where I actually held for just over 2 pts ..... anyway many thanks for the feedback Thru
    #27     Sep 9, 2005
  8. jessop


    Better morning thanks to S4 – poor afternoon – I should have had lunch at 7pm - still hypnotised by the oil price too much

    S1 (L) – Entry 14:53 (677.6) - actually left trade alone - it didn’t break thru resistance at 678.30 – then came back and hit my reduced stop at 677.5

    S2 (L) – failed to take signal

    S3 (S) – failed to take signal – worried about b/out above 679.10 resistance

    S4 (L) – Entry at 16:09 (678.2) – almost exited three times with the oil price reactions and 679.1 resistance – exited slightly early at 16:50 (680.50) – exit signal was at 17:02

    S5 (S) – Failed to take signal - Lunch

    S6 (L) – Failed to take signal – Lunch

    S7 (S) – Failed to take signal

    S8 (S) – Failed to take signal

    S9 (L) – Failed to take signal

    Marginal continuation trade (L) – 19:32 (680.7) stopped 680 – ran straight into S10

    S10 (S) – Failed to take signal – still in marginal trade

    S11 (S) – Entry 20:08 (680.5) – entry on S11 – got exit signal when the market exhibited too much strength in one of data feeds & closed at 680.6

    S12 (L) – Failed to take signal

    Entries - 3 out of 12 & one non-signal trade
    Exits – two ok – two stopped out
    Points today +1.4pts (not including comms)

    Onwards and upwards…..
    #28     Sep 9, 2005
  9. ozzy


    Your signals look decent (a little too frequent at times). Why not just automate everything and take the human component out of the picture?
    #29     Sep 9, 2005
  10. When you are trading for a few ticks, commissions do add up.

    You might want to check out WR2 (Russell 2000 on Eurex) and WR1 (Russell 1000 on Eurex, instead of RUI, the Russell 1000 on Globex).

    If the price is there, which is often the case (and sometimes even better), you get to keep the difference in exchange fees.

    IB breaks out the exchange fees and passes it thru exactly as it is.

    Russell on CME/Globex costs $2.28 a round turn.
    Russell on Eurex costs only $1.00 a round turn.

    That $1.28 can add up to thousands over the course of the year.

    If you trade enough, a membership on Eurex US costs nothing, but reduces your Russell round turns to 10 cents! Then you save $2.18 per round turn.
    #30     Sep 9, 2005