1. You trade each 5 minute bar, some times you take trades while the bar is forming and not at bar close ? yes, especially if it is a tight TR or tight support and resistance levels within a trading range or even within a trend. Such behavior I see as limit order markets. It is too hard to use stop entry orders because most the time you get filled price has already reached the support or resistance area. In broader TRs or broader channels I can us stop entry or even market orders and have enough of the move left to capture a scalp. It is a losing strategy to try and scalp with stop entry orders in tight area..small bars.. and slow moving markets. So therefore I do not always wait for the close to make an entry. 2. You are aiming at 6 points on NQ (24 ticks), betting on price will probe back and forward (bears and bulls going and up and down), and taking these scalps and price moves back and forward as the 5 minute bar is forming? Yes, that is the idea. Every bar regardless of TF has probes back and forth. You can see those probes on a 5m chart better by dialing to a 1m or 2m chart. 3. When you add on or average in, you are not adding at a fixed tick distance, you are treating each add on as an independent reason per the PA to add on, correct? For example, by default, you are not adding on every 10 ticks away from the previous add on, correct? No set point to add on but generally it will be around 1/2 the distance of the average bar or even the distance of an average bar expecting a probe back up or down. I would guess that is a challenge for programing an algo because you like need precise points or levels to enter in on a new trade. Try 1/2 distance of the average size bar as an addon point or new entry point. You might play around with it as the full range move of an average size bar before adding on (averaging down points) or new long entries in a down trend such as Fridays second video. While I mistakenly called it adding on in that video that is not what I was actually doing. I was not averaging down per each buy but instead making new long entries and exits in a down trend while awaiting for a deeper probe back up to get me out of earlier bigger draw down long entries. Picking up crumbs to hopefully end up with a loaf of bread.
Hello volpri, In my opinion, programming day trading strategies/systems is a complete and utterly waste of time. Price Action does not work for algo trading systems. Building Algo Trading Systems it the most dumbest thing in the world to do! The only hope to get rich in trading the ES and NQ is to guess trade how you are doing, which I agree with you.
Hello volpri, Every time I tried to average down, it works sometimes and I make money. But then there are days like Friday, I go to the poor house begging for crumbs and water after I take a BIG loss. Them damn trading ranges are a PAIN in my ASS. I went long on those 3 arrows and loss after average in. You do a very a good job at making PA works how you trade. Very good job to you!! No offense to what you are doing, that averaging into losing trades its just a bit hard, IMO. It is hard because even after you average in lets say 10 contracts, and PnL comes to break even, you have to make decision to hold those contracts for more money or scalp out. BUT after a BIG loss, the mental ALWAYS wants to hold them 10 contracts for about 100 ticks to get that BIG loss back. There just has to be an easier way to trade these darn trading ranges.
Good Afteroon p0box4, SMH, here you go! Stay out of Grown Folks business. FYI, you will never know how much I make a month trading
Hello volpri, No , please do not think about programming PA trading methods and techniques. It is too challenging for 1 person and will cost you WAY too much time and money and it still will not work. Please keep trading PA discretionary how you are doing it now. Much easier this way.
What was your reasoning for going long at those arrows? What prompted you to do so? Where were your exits from your long positions on that chart?
Try trading wedges and micro wedges/nested wedges in TRs that appear to be forming the first two hours of RTHs. That may be all you need to put you over the top. If you have Brooks videos re-listen again to every video on wedges. Understand what they are as a wedge does not always look like a wedge. Once good at it you can try them in most any environment. TRs or not. If you are considering averaging down always start small. The smallest size, In the last video I think I pulled over 300 points in minutes trading this chart you show which is the same chart I used to make the video. I started with 1c it went against me added 1. Then double that position size to 6c and then exited 4cs then 1c then 1 contract. Just practice this a lot on a SIM to where it becomes second nature.
Or try trading ii patterns which are just triangles on a smaller TF. Price will break either north or south from the apex 50% chance in either direction. Then in most case will retrace back and test the apex then make the real move either north or south. I sometimes wait for the retrace to trade it back to the apex. Or if at bottom of a TR I may make three trades. Initial BO of triangle. Retrace. And finally real BO trade. That is also a wedge bottom down to that highlighted yellow circle on the 5m chart and the wedge bottom is down at the bottom of the larger context i.e. a TR. If you look for the wedge you can see it even though it looks like a tight channel. Red lines. Three pushes down. Look at the ii pattern on 5m chart. Now look at same price action area but on 1m chart. See the triangle and how I would trade it. Three scalps!