How do you expect to take any real size in a trade if you are waiting for the "safest" entry? You do realize that at these moments that you are looking for, you will find the liquidity will be very poor. How are you going to compensate for this problem?
Hey coolweb I was just wondering how many contract do u trade per day and what is your profit target and what is your account size u r using i am a newbie so just learning and taking notes from ET pll and what are your profit target per month
But isn't efficient/successful trading a matter of waiting for the right entry always? Could you elaborate more on your statement? Thanks.
Yes, but when the entry is so good and there is very little doubt the move will take place and go in a certain direction (intraday and with a very tight stop like Coolweb is always looking for), there usually isnt too much liquidity to take advantage of the move. You sacrifice being able to take a sizable position for an almost perfect entry. Dont get me wrong, successful trading IS about waiting for the right setups and then being agressive when you see them, my only criticism of Coolwebs idea is he is severly underestimating just how rare it is to be able to fully size in to a trade and expect to make sizable gains with such a tight stop. The markets girate too much for this. There are those few and far between trades that do setup this way, but most of the time, the markets will whip first. If you are holding 100 contracts or 40k shares of a stock, whatever the case may be, a tight stop may prevent losses but may also not be enough breathing room to let the stock/or market make its move. Plus with taking size comes the risk of taking huge losses which is a whole nother issue altogether. Just curious how Coolweb expects to overcome this.....if he wants to make 20k days like he is striving for.
Hello, Even in low volatility areas for contracts per tick liquidity are usually: MININUM: ES: 200 contracts on bid/ask per tick YM: 20 contracts on bid/ask per tick NQ: 50+ contracts on bid/ask per tick per tick so lets say you are trying to buy 100 contracts its done in one shot on ES (massive liquidity) everywhere. anytime. up to 200 contracts. with NQ you can buy per tick 1696.00 (50 contracts) 1696.50 (50 contracts) I also have scale in methods where I double contracts at each failed tests. And also break scale in, where once breakout is broken, contracts can be bought in. , but to give you a sense of liquidity there is at least 3 ways you can keep adding contracts with low risk. Right now, I only do the first entry and break scale in entry. In fact usually the start of the trend, there is massive liquidity. Unless you are trading 500 million+ Anything under 10-20 million is fine. 10 million is around 222 contracts ES (which flies around in time & sales every 45 seconds almostwith no change in price) I don't count by the total numbers anymore since its bad trading thinking its worse to lose $12.50 per tick compared to $5 per tick on YM but if you think about it the rewards are 2x , just as the risk is 2x , I count by the tick counts, so stops 3 ticks target 30 ticks scale in 4 ticks after profit target 1/2 15 ticks after. etc etc.. contract size is just a ++ leverage once the strategy is proven and well. Important thing is how many ticks you take home with the lowest risk.
watch volume 3 min. coolweb forgot yesterday, must be the turkey. watch daily. coolweb didn't forget but ZzzZzzz sleeping less entries "Reviewing 2 of the trades (-1 tick) yesterday, both of them should not have been done because of bad volume action beforehand" basically waste of my time. Has to be the turkey. I'm a volume freak, how do you forget to watch volume is beyond me. In business one has to filter out 100s of business opportunities to put your precious small time in the few that is worth your time/effort with the biggest market avaliable (customers). Just like in trading, one has to filter out the bad trades so his time is spent efficiently on the trades that should matter instead of churning. Filter filter filter. But not over filter.
No swing trading at all today as I said earlier, below low short , if not (random price action for me) Now I get time to do something else. We will be in chop zone next few days, I can trade chop I'll see.
Today was a SPECTACULAR day. I only paper traded but had some new edges added into my style: I'll let you guys on a little insight of the discretionary/automatic TRADER. coolweb: some ideas coolweb: i was paper trading today coolweb: discoverd some new shit coolweb: coded that baby in tradestation coolweb: fucking awesome BB: what's that? coolweb: added in some volume analysis with my coolweb: signals BB: volume, sounds good coolweb: you know BB coolweb: ist like this coolweb: trading is sort of like driving a car coolweb: if you are driving shitty car, you have to deal with shift stick , non-automatic windows where you got to curl up coolweb: all that bs coolweb: while you are driving the car coolweb: which causes you coolweb: to be not as quick coolweb: you know? coolweb: but if you are driving a good car coolweb: you have everything automatic coolweb: it tells you coolweb: anti locks breaks coolweb: it tells you, we are on cruise control coolweb: when you press up, the windows goes up automatically coolweb: less shit to think about coolweb: you just worry about your driving BB: yup BB: understand coolweb: you know, so like in tradestation coolweb: i ain't doing anything like special coolweb: i'm just adding in extra notices coolweb: "volume is low" coolweb: "volume is high - caution" coolweb: simple shit coolweb: but if you look back the charts coolweb: how fucking insanely accurate it is , maybe like 80% coolweb: thats the difference. coolweb: you can't tell usually at the very moment sometimes. coolweb: cause price moves fast man coolweb: 10 seconds get in or you are not in at all coolweb: to analysize twenty things is sometimes impossible coolweb: BB: yup, cool stuff, very good idea coolweb: you are going to see coolweb: a much better trader coolweb: from me coolweb: in the next week coolweb: coolweb: or this week coolweb: REFINEMENT IS THE KEY! BB: BB checking dictionary wtf refinement is BB: ok gotcha mr earl