The option to this is to trade a portfolio of futures and add a swing method. I am experimenting with a ES plus Russell , NQ, and YM and it has helped improve profitability. The Russell tends to trend better and also has lag and magnifies the effect so you can go short both ES and ER2 at same time and improve performance. My experience so far indicates ER2 to be better suited to swing trading.
High daily ranges are not necessary to day trade. Even in reduced ranges such as today, It was possible to simply sell every time it reached about 977 -977 1/2, and buy in the area of 974-975 providing multiple opportunities with relatively low risk ratios. I believe it is a fallacy to equte high daily ranges with profit opportunities. I agree that if the method employed is a trend based method, then days like today will always be non days or bad days, but where method allows for differences in type of day to accomodate the many consolidation days that occur with limited range, then this opens up many more profit opportunities while not necessarily increasing risk. Best Natalie
Would kill for a 1 point a day average. My best ES system averages 0.5 pts a day over the last 7 years. Only problem is, it doesn't trade often enough to keep me interested Still looking for that 1 point a day system with more action. I also find it hard to believe people are averaging much higher than that, using systems which do NOT have an liquidity issues. I'm sure ES scalpers easily beat 1 point a day, but they cant do it with a ton of contracts. peace axeman
I don't trade the S&P E-Mini contract and really don't know anything about trading futures, but find this discussion on making 1 point per day interesting. My question is does making 1 point per day in the ES equate to making 10 points per day trading a $100 stock? (Assuming an ES price of 1000) It doesn't seem like my calculation is accurate.
Actually, figuring this out on a percentage basis, 1 point from the ES is a 0.1% return (based on a price of 1000) so equating that to a $100 stock would mean making 10 cents trading the $100 stock-does this make more sense?
Any system or indicator which can be programmed in the macro languages of typical trading platforms CANNOT be profitable. If its found in a book or a magazine and can be desribed in a brief article it will not work. The types of easy relationships these sytems use (if close of bar A is 10% below some momentum indicator, then enter at the next bar etc....etc...) get arbed out of existence very quickly. The market is designed to crush mechanical traders who are obligated to trade set-up XYZ in a certain way. Anyone who earns 1 point a day average is going to get taken out by volatility. The few AI based trading systems which are in real use employ advanced techniques and are constantly updated by full time developers.
How true. Sometimes trading opportunity has been measured be estimating the total number of handles travelled in a day, not the H/L. Of course this figure is fractal and can vary depending on how small your timeframe is.