Velocity Trader DAX Journal

I'm the V.P. of Trading at Velocity futures. I have been trading professionally for over 5 years. I'm going start posting my trading results to assist those of you who are trading the markets that I trade and wondering how other traders are doing in those markets.

Before I post any results I thought I would give you an overview of the way that I trade. I’m a scalper, in and out over 100 times a day. Many times I’ll be in and out of a trade in 15-30 seconds. My average hold time is probably about 3 minutes, 15 minutes is an eternity to me. The primary market I trade is the DAX. I use Trading Technologies, CQG, Bloomberg and Reuters. I don’t use any trading systems and trade mostly off feel. I watch the larger components of the DAX index, support and resistance levels, and divergences with the DJ EURO STOXX. The only technical stuff I use is a 20 period EMA on all my charts and keltner channels

 

because you said you are a scalper and make around 100 trades a day, and you work for VF, are you paying a cheaper commish? or are you paying the commish that any john doe can get, the reason why i ask this is if you are paying a cheap commish that no one outside of a firm can get means that your trades wouldn't matter to most people because if they made the same trades you did they would lose, because of the higher commish.

 

1. Get out of losers quickly. Once you feel a trade is a loser, get out!. Don't try for break even or to save a few ticks.

2. If you don't like the way a trade is acting, get out. Don't wait for it to be a loser. Scratch it and move on.

3. Be patient. Don't try to make things happen. There isn't always a trade.

4. Don't trade impulsively or emotionally.

5. Don't chase, anticipate moves.

6. Admit when you are wrong.

7. Learn to recognize winning and losing trades fast.

8. Don't call tops or bottoms ( if you do play small and have a stop). Wait for higher low, or lower high.

9. Don't add to losers. Losers average losers.

10. Discipline and control are essential to success.

11. Always no how much risk you have before you put on a trade.

 

How do you trade divergences with Eurostoxx50? And do you trade on the economic indicators (numbers)?

 

I pay the same commissions on Eurex as a regular customer. Our rates are posted on our web site. Here is the link to our commssions: www.velocityfutures.com/commisions_schedule.html

I do 20000+ contracts a month and pay the same rate as any else in our firm who does that volme.

 

Yes I play the european economic #'s.

I'll post how I play divergences later in the day. It's 20 min. until DAX the open. I still need to get a few things ready for trading.

Post any other ?'s you have I'll get to them when trading slows down of after the close

 

Hi Mark,

I'm looking forward to your journal, as I'm also a DAX scalper...although I only do about 20-30 RTs a day and only trade the first two hours (so I can get some sleep!!!). Like you I also trade mostly off of feel, but I also use pivots and historical support/resistance levels. Show us how a pro trades the DAX!!!

Warm Regards,
Peg Leg Joe

 

Hi - how many ticks profit do you aim for on most of your trades, and how far away do you place your stop?

 

Cutten,
And how far away do YOU place your stops?

 

Hi,

thanks for starting your interesting journal...

With how many lots do you feel such a style is tradable? Maybe more in the Bund/Eurostoxx futures because they tend to be more liquid than FDAX.

Do you also scale in & out?

Best
COSMIC