Spydertrader's Jack Hershey Futures Trading Journal

This afternoon I mis-identified a number of FTT’s. The ones I did get right were immediately followed by a reversal FTT. Roughly approximating where I reasonably would have entered and exited would have resulted in small losses at best. I can’t help but think these small losses would multiply rapidly.

Is my experience today primarily due to being a bit unusual with the long weekend and FOMC or is it more likely a significant lack of skill or something else I'm missing. I know Spyder has demonstrated an abililty to make $$$ only with FTT’s.

At this point I have two screaming voices in my head; on one side is the voice of reason telling me to be patient and trust I will get this at some point – the other voice isn’t so nice

I have attached my final chart for the day, thanks in advance for any comments. Jack, if you're looking in, I'd appreciate your input.

 

I dont think its even neccesary to enter on the ftt bar itself although it would be nice to be able to do so. Most of the time I trade the BO rather than the ftt itself. You dont really sacrifice too much by doing this.

 

Here are the KEY turning points i noticed today.

Also

If you add a 3 period simple moving average to you Volume charts you can see the turns a lot easier.

http://charts.dacharts.com/2007-01-03/Joab40.png

 

ok, is this FTT? on YM 5m

 

Although today's FOMC minutes resulted in some dramatic price action, I have seen similar frequent small losses on a regular basis. The prinicple of the FTT is solid enough but the practicalities of its use in real time are an entirely different matter. The problem lies with (a) identifying the FTT in the first place and (b) taking the correct action after entering each trade. This boils down to identifying a subsequent FTT, FBO or BO correctly and in a timely manner i.e. before small losses set in.

With hindsight, price, volume and channels seem to be sufficient. However, in real time, the element of noise within the movement of price has the effect of "clouding" the identification process. A beginner is told to "hold through flaws" but we are back to identification. How does one recognise a flaw versus an FTT? Pro rata volume is perhaps the answer but this can change significantly throughout the formation of each bar and I find that decisions based upon prv in the early stages of a bar are more prone to error.

I have no doubt about the abilities of Spydertrader to use this method successfuuly and I am looking forward to progressing beyond my present difficulties.

 

You have good start on this.

A couple of tweaks will help.

What is most important is the price channels and then the B2B and R2R's will begin to show with meaning.

We will do reps on this as usual.

The point is, you have a great deal of info correct and now we will get priorities and put pieces together.

To see an FTT you need to have the channel done and projected.

I know that you know the three levels of channels. Begin to get these three on your chart and try to exclude other stuff except internal patterns in the channels.

Each level has it's FTT's. And if you have the channels in, you will see them on all three levels.

And there are the volume characteristics too. I see you notations.

These are being color coded so things relate on the channel levels and the volume level.

It may seem that I did not answer you, but this is an answer that will give you answers all the time.

It is like coming up to the brink and then doing a tweak or so and SUDDENLY it is all there.

 

Hi all,

I've been following spyder and jack for some time now, and this seems like an opportune time to jump in and get started with some of this. I have a little IRA acct just sitting at IB that I don't really touch- so let's see if I can put it to good use here. Right now I'm just working on the channels and FTTs. Trading this will come later for me. Attached is my attempt at today. All input welcome.

And a quick thanks to Spyder for the two equities journals and this one. Your patience, contribution and ability to translate for Jack is a tremendous asset for this website.

 

For the sake of clarity and consistency I have tried this approach myself but it resulted in frequent small losses due to late entry. Have you found this simple technique to be profitable?

 

I apologize for my absence today. An early morning phone call alerted me to an unforeseen change in schedule. Rather than monitor the YM and ES, I spent the day watching Barney and Tele-Tubbies. The reason for the change? A new member of the family arrived early this morning (2 days early), and sis needed a sitter (Uncle Spydertrader) for her other kids. The birth went well, and Catherine Rose arrived with ten fingers, ten toes and one loud voice.

I'll play catch up and provide some commentary later this evening.

- Spydertrader

 

Congrats Uncle Spyder!