That was a perfect inverse h&s today good for 30 ES points easy

Discussion in 'Index Futures' started by JackMorgan, Jun 7, 2022.

  1. Overnight

    Overnight

    That is the sticky wicket though. You do not know if the day is going to trend or range on any given day at the open. You can see it only after the close. Especially in this calendar year's market where the trend has been general bear with 10% bounces between troughs. Until the FeD goes back to QE, I thing trending days will be the rarity, and we gotta' go for capturing chunks of the ranges.
     
    #31     Jun 7, 2022
    KCalhoun likes this.
  2. tiddlywinks

    tiddlywinks


    I usually confine trading to RTH. :p
     
    #32     Jun 7, 2022
  3. Man, o man. I can make you a rich man. I do this every day before the market open....I establish a loose, general, framework image in my mind of how the day's movement expectations will look like -- and when to specifically buy and sell.
    and I'm not bragging or being a troll or fake.

    This is the key with successful trading. Knowing...what to generally...expect. waiting for it, and then buying and selling at or around the ideal moments. So many people are completely just gambling, and hoping to ride a slight, random, movement wave....before getting wiped out.
     
    Last edited: Jun 7, 2022
    #33     Jun 7, 2022
  4. Overnight

    Overnight

    You should consider looking at it during the 2AM ET hour. Fun stuff can happen there when ye be sleeping. :)
     
    #34     Jun 7, 2022
  5. Overnight

    Overnight

    I do not trade RTH equities, I trade futures, which you have admitted you have no clue about. I'll pass on your offer to make me a rich man.

     
    #35     Jun 7, 2022
  6. I don't think anyone answered this question yet.

    30 points on the ES x $50/point. -> $1500/contract.

    With Interactive Brokers, I get an intraday initial margin requirement of $15,580/contract.
    -> So, he made ~9.6% on the margin he put up to be able to make the trade.

    Some people prefer to think in terms of notional value. 1 contract represents about $4150 (approx close price) x 50 = $207,500.
    -> So, he made ~0.72% against the full notional value.

    Most people would put on some leverage, but not necessarily max leverage, so the real percent return is likely somewhere between 0.7% and 9.6%.

    I have no clue what his risk management or account size are and so obviously I have no clue how many contracts he had on.

    I need a better hobby. :banghead:
     
    Last edited: Jun 7, 2022
    #36     Jun 7, 2022
  7. Pekelo

    Pekelo

    The same movement gives you 100-150% return in SPX options 1 day expiry. By the way the move was 50 points if Jack meant the right shoulder at 4110. We closed at 4160.

    Current ask at 4190 is $6.5, sell at 4160 is $15.9, expiring tomorrow. The 50 pts away 4210 ask is $2.8.
     
    Last edited: Jun 7, 2022
    #37     Jun 7, 2022
    MacBookProHo likes this.
  8. SunTrader

    SunTrader

    I don't.
     
    #38     Jun 7, 2022
  9. SunTrader

    SunTrader

    As I said previously:-

    "Practical and doable but not obviously every trading day of the year."
    ! NQ trend Days.png
    Yellow are openings on HOD/LOD. Black/red dots other trend days - many near the respective openings.
     
    #39     Jun 7, 2022
  10. Overnight

    Overnight

    He never said HE was trading through IB. His margin could have been a lot less with a different broker.

    Besides, enough with the notional thing! That just something people like KC like to brag about. That would matter only if you are looking for financial settlement at expiry.
     
    #40     Jun 7, 2022