Trading Rules

Discussion in 'Trading' started by Spectre2007, Feb 3, 2018.

  1. /ES - can be any derivative

    Chart
    240 tick
    180 EMA (low)
    200 EMA (low)
    Previous Day Hi Lo Close
    Previous Close (large horizontal line drawn)
    Trendlines 240 tick chart
    Larger timeframe Trendlines
    Price pattern recognition/repetition

    1) 9:30 10:30 price average calculation
    2) Is price above or below opening range
    3) Is the last EMA crossover implied bearish or bullish
    4) Impending news events
    5) Look for breaks of trendlines or support and resistance
    6) Wait for retrace, initiate position in conjunction with EMA, opening range implications
    7) Always use predefined stoploss (Every trade needs a stop loss entered.)
    8) Look for lunch time mean reversion
    9) Look for post lunch time trend resumption
    10) Look for bounce or violation of previous days highs lows.

    The above will keep your chances for survival higher.
     
    tommcginnis, Chris Mac and Handle123 like this.
  2. If your looking to play mean reversion, wait for failure at daily high and proximity to long term high. (Mean reversion on longer timeframe)

    Or failure at long term low and prev day low..
     
    tommcginnis likes this.
  3. Handle123

    Handle123

    Well thought out, but newbies won't think much of it as this takes study and knowledge to understand your list took years of watching the screen. Thank you Sir, I wish more of older traders gave more like you just posted.
     
    tommcginnis and Spectre2007 like this.
  4. To understand the nuances of the above it took years of screen time. It may look simple but it’s not. It’s quite mentally challenging to trade tick charts. Every time I violate any of the above rules, it always decreases probability of a good outcome. It takes a extreme amount of discipline to follow the above.
     
  5. Real live trading rules -- from a real live trader -- maybe in response to a real live (if newborn) market?

    This market just keeps getting better and better. :D




    ("Nice post, Spectre!"):)
     
  6. Scenario 1:

    Price is below OR
    Last EMA crossover bearish
    Price is at intermediate term highs
    Price has created downward progression with a retracement, the retracement itself has created a tick trendline. The retracement progresses up to tick resistance(previous tick peak), the tick trendline breaks:

    Action: Enter short with stop loss
     
  7. So basically you could workout all the permutations of the conditions above and create plan of action or more importantly a plan to do nothing if signals conflict.


    If price is in the middle of a intermediate term range, the only guidance you have is intermediate term trendline or support resistance. Price loves to travel from intermediate term high and low. It loves to range trade.
     
  8. volpri

    volpri

    Only 70%to 80% of time....
     
  9. If it’s a highly emotional volatile day going in. All you need is a set of EMAs on a tick chart. If price is expected to cover a tremendous amount of ground. The EMA crossovers are minimal compared to a slow day. Price just keeps going in one direction.
     
  10. Seriously? EMA crossovers on a tick chart?
    No offense. I’ve enjoyed many of your posts, but on this one, I can’t think of a more guaranteed path to failure.
     
    #10     Feb 4, 2018