Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thanks for your comment. I took many more trades in the past when I had smaller targets which were mainly 40 tick target and 40 tick stop. On that type of trade, there seems to be many opportunities during a session. There are, however, many days where the market conditions are either choppy or overly volatile and it's not always easy to initially be able to read the price action. What would happen is I would have many good winning days but also several days where I would hit my max daily loss limit. This resulted in only being slightly profitable at the end of many months.
Since I wanted to see if I could improve that, I have been trying a different risk/reward ratio of 100 tick targets and 50 tick stop losses. This change has reduced my trading frequency since there are less 100 tick target moves then 40 tick trades. This means I wait for setups that are at certain levels and that I feel have room to run at least 100 ticks. This alone helps me not overtrade. Since you said you are only going for 20 ticks, it is much easier to take too many trades and get caught up in "noisy" moves.
Also, I have found that there are certain time periods where price is more likely to make a sizable push. I call them Hotzone times and they generally occur as follows: 9:40-9:50 am est, 10:16-10:25 am est, 10:35-10:45 am est, 11:00-11:10 am est and 11:17-11:25 am est. I try to limit my trades to around those time periods since that is when things can happen. Perhaps if you scroll through a few months of charts during the European session, you might see some time brackets that tend to make "pushes".
So, I generally am done by 12pm est and start at 9:30 am est. However, sometimes in the afternoon I will set some price alerts that give audible signals when they are hit. I will then scan my charts and if I like something enough, I will take an afternoon trade.
I found your comment regarding "10:16-10:25 am est, 10:35-10:45 am est," interesting.
I've always paid attention to the 10:15 to 10:45 ET time period, watching for a Counter Trend move to develop,
("Counter Trend" being Counter to the direction established off the RTH Open)
They don't always materialize, (as in the following screenshot) but often times they do.
CL Post NYMEX Close (2021-05-19_15-25-16-ET)
Trade well,
Botts
R.I.P. John Bottomley (Botts), 1956-2022.
Please visit this thread for more information.
In relation to trying out Lancelottrader's 100 tick strategy, I took this trade yesterday the 20th. I have company and only had a few minutes to turn on the PC just a couple of minutes after the 6:30 news. There was tight consolidation in the European session. and price kept banging up against the 13250 level earlier. After the news, price broke to the upside. As soon as it retraced down to the 8ma on the 10 sec. chart, I went long with a 17 tick stop. I just didn't feel that it needed a wide stop on this trade. I trailed price once it started rocketing by placing stop just below the low of each new level. I was stopped out at 99 ticks. Shut down after that and made breakfast for the company.
The attached chart is an adaptation of Lancelottrader's TrendGraber. I seem to be more drawn to the 5-10 second chart vs. the 5 range. Maybe one day!
It was great to pocket some change before breakfast.
Thank you! Slight correction about the chart. It is a 10 sec. chart with an 8 SMA (10sec), an 8 SMA (based on a 1 minute chart) and a 10SMA (based on a 5 minute chart).
When price came back down to the 8SMA (1 minute), that was my "get ready" location.