I have to leave for a lunch engagement. This is a trade I took this morning. I was waiting for a TR to evolve and it did so as a broad TR. So, I shorted 3 contracts in the top 1/3 and covered on a move to the middle of the TR capturing 27.5 points on each contract for a total of 82.5 points X $20.00 = ???? I had to leave for my lunch engagement before YouTube finished uploading and processing the video showing this trade so I will actually be posting this video after I get back from lunch. Anyway, 3 legs up and down, more than 20 bars in duration from the beginning of the TR (opening bar in this case). It was quite broad and one could make dinero on the legs if they had a mind to. Anyway, gotta run may make another trade or two in the afternoon if I make it back in time to do so. I am partial to trading what many call noise however, I will also trade trends in the form of spikes and channels but usually less often. I really like scalping TRs because they are areas where buyers and sellers are more or less balanced out. Some scalpers like volatility. That is fine. I will at times trade that too. A lot can be made quickly in volatility. The flip side is a lot can also be lost very quickly in volatility and risks are greater as it requires wider SLs, usually. OK I am back from lunch and so here is the video. This is the only trad I took on this video. I may have time for another one as it is 1:49 but I can't stay much longer because I now have to go and pick up and A/C shroud for my rv A/C.
Here is a quick trade in the NQ this morning. Gotta get Motorhome ready to leave KY. Might be able to get off one more trade before leaving this morning. This should show why I will average down and when. In this case in a mini bear channel especially when the previous bars show me who has the upper hand i.e. the bears or the bulls. I didn't double down I just average down or averaged in if you wish to call it that with the same size. Initial size was 3 contracts. Then I added 3 more short when it moved against me as it neared the top of the mini channel and then exited all six contracts on a move towards the middle of the mini bear channel. To maintain a high win rate it is generally better not to get greedy. I can always initiate another trade should it continue in my favor.
Stopped at a rest area just before the close of the RTHs. Took one quick 6 contract trade short and covered on the same bar in last few minutes of the RTHs.
Well we made it back to our abode when not on the road. Got here late last night bone tired. This morning I decided to trade the micro NQ (MNQ). This is an example of trading with small size if I were to trade from a small account. Each point is $2.00. The idea is not go over 1 point position size of the E-mini NQ which is 20.00 point. So, it takes 10 contracts of the MNQ to make 1 contract of the E-mini NQ. Therefore, including averaging down or scaling in I don't want to surpass more than 10 MNQ contracts this morning in this trade video. On my last trade I did bump up to 9 total MNQ contracts then exited all 9 with a profit. The first entry was 1 contract, then I doubled down on that and added 2 MNQ contracts for a total of three. As it moved against me I then doubled down again by adding 6 more MNQ contracts so I had a total of 9 contract. The other trades were all just 1 MNQ contract trades. First was long 1c and exit with a profit, second was long 1c and exit with a profit, third was short 1c and exit with a profit. So, four trades in total all winners extracting 185 points out of MNQ in about 1 hour and 15 minutes or so. That in dollars means 185X2.00 per point. Sorry the video is a little over 27 minutes long. I did try and stop and start several times but all together it still added up to just under 28 min long. So I guess only the really interested will watch the entire thing with my comments as the trades were going down live. I suggest for mor info that you do watch it as it shows my thinking and reaction to the market live. One thing I want to drive home. I refer TR techniques and grabbing quick scalps as opposed to waiting (usually several bars) for price to go back to the bottom or top of the TR after my entry. The way I see this is if I hold for that to happen I miss out on three things; locking in profits, FOT (frequency of trades), and compounding. And I can always get back in if price continues in my favor. I like high win rate and FOT. I am simply a scalper which I define as 1 to 8 points in the ES. Of course that scalp size increases when trading the NQ or MNQ. I am just trying to show that the techniques work on ES NQ and YM or their micro equivalents. I may not trade the YM right now but the techniques I use for the other two indexes also apply to YM. OK here is the video. I now will go back to the charts to see what has happened as I typed this up and processed the video to YouTube.
Ok I took a 5th trade in top of TR. Faded the top. It was a 1c trade for 11 points. So, now up 196 points for the session trading MNQ. All trades are winners locking in profits. I must have forgotten to turn the video back on showing the exit of that 5th trade but here is a the video and the screenshot afterwards showing the exit for 11 points. o You may ask why didn't you grab anymore after locking in profits on that 4th leg as it went on down or on that 5th leg as it went on back up? Well, I was processing videos and writing post up with explanations and doing errands for the wife..LOL. Screen shot:
Aloha volpri! Thank you so much for sharing your trading method with ET and for making videos. You've gone above and beyond what almost anyone here does and your transparency is nearly unmatched. Another big mahalo! Please check you private message