Trading NQ Using PA Only

Discussion in 'Journals' started by eminitrader007, Jun 11, 2009.

  1. Here is how I trade NQ. This is a long only strategy.

    Stop Loss : 2 pts.
    Target: 8-9 points.

    Set-up:

    1 Min chart and 5 Min Chart with 4 period High-Low Price Channel.

    Entry:

    Step 1: Price needs to go below 4 P low.
    Step 2: Wait till you get a bar that does not make a new low.
    Step 3: Price needs to go below the previous low from Step 1 and has to be a down bar.
    Step 4: Wait till you get a bar that does not make a new low.

    Step 5: Look at the 5 min chart and make sure that the low from step 4 is above the 4 P low on the 5 min chart.

    Once all the conditions are met buy at 0.5 above the low from Step 4.

    Stop Loss: 2 points

    Target: Low of 5 min chart + 10 points.

    Trailing Stop: Once price goes above the high on the 5 min chart, your stop will be the low of 5 min chart.

    Here is an example. This is from yesterday and it is the June contract.

    [​IMG]

    All times are CST.

    Step 1: At 13:24, the low is lower than the previous 4 P low. Next 2 bars make a lower low. The low is 1477.25.
    Step 2: At 13:27, price DOES NOT make a lower low.
    Step 3: At 13:31, the low (1476.75) is below the previous low (1477.25) from Step 1 and the bar is a down bar.
    Step 4: At 13:32, the price DOES NOT make a new low.

    Step 5: Now let's look at the 5 Min chart and make sure that the low 1476.75 is above the 4 P low.

    [​IMG]

    Step 5 Contd: The current low is 1476.25 which is lower than our low of 1476.75. This is our entry signal.

    Buy-limit 1477.25
    Stop: 1475.25
    Target: Current 4 P low (1476.25+10) = 1486.25

    The chart below shows what the market did.

    [​IMG]

    There were 2 set-ups this morning. The first one was at 8:28 CST and the second one was at 12:16 CST and both were profitable.
     
  2. Long 78.25
    Stop 76.25
    Target 87.75
     
  3. Stopped out....great way to start this journal.
     
  4. L 73
    S 71
    T 81.25

    If I get stopped out on this one I'm done for the day.

    Edit:

    Stop moved to 72
     
  5. No break-even stop along the way?
     
  6. Once it goes above the 4 P high on 5 minute...I'll use a trailing stop.
     
  7. Use of trailing stop which is the 4P low on 5 min chart. It's 72.5 currently.

    Edit: TS 73.25
     
  8. Out at 73.25....trailing stop.

    +.25 which basically covered the commissions. Since this was not a loser I'll try one more time.
     
  9. L 76.25
    S 75
    T 85

    Edit:

    TS 75.5

    Edit: TS 76.25
     
  10. Almost there...

    Edit...

    Sold at 85.
     
    #10     Jun 12, 2009