Trading chop

Discussion in 'Trading' started by Ditch, Dec 6, 2002.

  1. Ditch

    Ditch

    I guess you could say the first 30 min were rather choppy. I've been looking for a method to trade during chop. On the chart you'l see the trades i took.
     
  2. dbphoenix

    dbphoenix

    What's the method?

    --Db
     
  3. Ditch

    Ditch

    As you know the problem with indicators is that they lag. I've noticed that when a macd crosse below 0 in a uptrend, that is often a good point to enter, because as a big part of the retracement has already happened. If you enter when the MACD turns positive again, you're actually being the break-out. when it's choppy this is a recipe to get burned, unless you're using big stops. So entering as i described gains a couple of points every time. the trades i took had some discretion, is was also looking for a touch of the donchian channel combined with the MACD XO
     
  4. dbphoenix

    dbphoenix

    So each entry is a counter-trend entry?

    --Db
     
  5. Ditch

    Ditch

    No, the opposite it's a entry in the direction of the trend. Hope this chart clarifies.
     
  6. Actually, the first 40 minutes was pretty good on the ES, but, since then it's been crap.
     
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  7. The last hour or so...chop, chop
     
  8. bobcathy1

    bobcathy1 Guest

    We are always "trading chop"....just some chops are longer than others. That is why it is good to scale out at the first move and if it is a short chop, the worst you will do is break even when you hit your stop. But if it is a long chop, you will be in there from the start of the move.
     
  9. Hmmmm...never thought about it like that...hehe
     
  10. Ditch

    Ditch

    a trailing stop could work well also. right now im experimenting with pulling it up to 0 very fast, keep it relative loose till 10 pts and from there keep it very tight again. This causes you to be stopped often if the initial move hesitates, but i don't care about. this way your percentage if losing trades goes down considerably.
     
    #10     Dec 6, 2002