torero

Has anyone use Camarilla with success? Don't know much about it and want to learn more about it.

sorry I won't make it today. A friend's baby was just born yesterday, so I'll be in the hospital visiting her. I'll be there Monday. Good luck.

Two books I learned money management is Elder's "Trading for a living" and Van Tharp's "Trade your way to financial freedom". There are chapters that explain about money management but the summary is this: only risk the maximum of 2% of your account on each trade. Say, you have $10,000. Your stop loss for next trade is $200 max. Then you're down to 9000, now your stop loss is now $180. This method also imposes position sizing limit. Over time, if your account decreases the risk is reduced as well. Theoretically you can trade into infinity but in real life this is not possible. But the upside you get is this: you spread your bets (number of trades) out longer. This will increase your chance of survival (longer you stay in the game, the higher your chance of making it). 2nd is discipline. As much as the word sound, it's hard than anyone think. Even if you lose, discipline should be your priority. If you enforce it religiously you're half-way there. Keep in mind that this comes with a positive expectancy (this is explained in details in Van Tharp's book as well), probabilities of making profits over time in your strategy/methods. I'm sure there are others here have different approach to money management but I use this one. The important thing is find money management that fit your personality (your maximum threshold before you get a nervous breakdown). This means how much money can you tolerate losing on each trade without losing your cool and objectivity? Or how much maximum drawdown (consecutive losses) can you handle before you lose complete control. If you can answer this question, it's easier to find your style of money management. I daytrade because I can't stay the entire session (6.5 hrs is alot of hours of constant concentration for me). Also because I can't stand losing a large amount because of overnight surprises even if there are more upside is greater than downside. It's a trade-off I have to live with to save my sanity.

Ant, I see two different MPs on the following, I use ER2Z06 AND @ER2.D For ER2Z06 I set the custom session to 8:30-3:15pm (exchange time). For @ER2.D I set to "regular session" I get two different results. Not sure which one is appropriate but neigther showed the numbers close to the mypivots site.

I watch the volume for exhaustion along with S/R. I use equivolume chart for that. The best indication of continuation after seeing a divergence reversal is seeing higher high and higher low until it stops making higher highs/higher lows. I use force index because it's vollume based, momentum is price-based. I use force index for opening while momentum is for daily charts possible reversals. Here's an example. Many times divergence don't work because price doesn't confirm it, meaning it prices need to go in the direction of the indicated direction for the trade to work. Confirmation is key. I don't watch the clock although I'm aware of the possibility of its influence. The clock has more influence in the afternoon IMO, around 2pm.

I had it target at 550 from the symmetrical triangle breakout. Purely technical analysis point of view.

I didn't see this before. I'll be there tomorrow if anything is there.

I guess there are different ways to calculate MP so no idea which one is the real one. Oh well.

Here's what I have for last 4 days, anything wrong here?

Ok, I'll check it again. I used the 30min without overnight data (pit hours only). Soultrader, are you using Ant's MP also?

TinGull and Soultrader, got a question, I saw on your chart had a POC of 768.5 but couldn't find it in my chart yesterday. What timeframe do you have your MP on? 30 minutes is the standard frame right? I'm using Ant's MP on Tradestation and didn't see it near 768.5.

It all comes back to price action and chart reading. Many cannot differentiate between a trend, strong trend, weak trend, or trendless ranges. Understand these differences requires chart reading skills. So if they can't identify the differences, there lies the problems for indicators. Indicators works but only when the market is optimal for them. I've tested many trading systems based on indicators alone or combined, the results are not decent enough to even take it to the next level, no matter how much optimization is tested (changing the indicator parameters), win/loss ratio is between 20-40% (40% is considered good if the avg win is at least 2x the avg loss). These work best in daily or higher but practically everything works better in daily or higher timeframes. Incorporate price recognition logic increases the percentage because the entry and exit execution is more precise.

Anyone thinking about trading forex please check this forum before even opening an account. The Non-Dealing Desk Forum - Savvy Traders Want to Know - Powered by vBulletin I'm not trying to hype this site but it has serious discussion on forex and brokers. It clears up the industry's shady side of business. And it IS POSSIBLE to get 1 pip spread and to get to real SPOT MARKET. Deciding on a broker paramount!!!! Buyer BEWARE!

Why go to middleman when you get to the source itself? Most indicators are based on price. Understand price action first then you can understand when and when not to use indicators because from price, you know how indicator behaves and why. An analogy, if you understand Spanish and someone is speaking to you in Spanish, would you get an interpreter in and have him interpret to you what he says or would you just listen to him directly?

Trading style comes from knowing where your maximum point of stress and emotion are at and where you relaxed and unemotional. This comes from mainly knowing how large a loss you're willing to take on each trade. Case in point, some people can handle $1000 stop loss while others can only stand losing a maximum of $100. Know this helps you define what timeframe and market you feel comfortable trading. 2nd is people can sit and watch their position rise for days on end while others need to cash as soon as they hit a profit (this is trend followers but scalpers or counter-trend traders). The other factors are your lifestyle, if you're a fulltime trader who can sit in front of the market all day or an end-of-day trader while you have other businesses elsewhere. But knowing your "uncle" point is key to find your trading style.

I agree with Ant. One thing I also do is look for momentum or force index divergence from price for reversals in the first 30 minutes of trading since we don't know if the market has a trend already or not. Works quite well.

Yes, especially after submitting a reply, seems to hang. I have to stop and reload the page to get it back.

Yes, I many traders use pivots for cues as well, daily, weekly and monthly. There are reliable along with other tools I use, fibs and patterns.

Yes, I use MP for ER2 as well but since I'm still learning MP, I use it as a support resistance for volume confirmation for now and works quite well. The best I've seen from using MP is POC, market seems to know it is there. I've seen it stop dead on that spot and reverse. But I'd recommend you watching it yourself as this is just my own observation and tell me if you see what I see. Many traders use 50 lots that would use 100 for ES. But on trendy pace periods, I see good number of 10 lotters.

TS has a matrix window similar to NinjaTrader DOM windows, that comes with MP for the day. You can make single-click sell/buy order on any price levels on that windows, very slick. But true that execution and order servers sometimes are not as reliable as others. I recommend NinjaTrader for daytrading (even scalping too), it links with many other brokerages out there but it's not free.

Used to trade the ES, YM and NQ. NQ had little liquidity, erratic. YM was good there were time with 2-3 tick jumps as well, trends much better than ES. ES was just too much for me, trends very little, at least if it does, it's not enough to stay on it. Russell trends nicely and orderly once it finds directly or settled from opening. But even the opening sometimes can go straight up or straight down (this happened last few days) 10 pts easily.

ant. Excellent work and contribution! I've been very interested in using this but didn't know TS had one until I found this forum. Thanks very much!

Have you tried ER2? I trade this Russell exclusively and about 2-3 trades a day. I find it trends better than ES or YM. The liquidity is good I think, slippage is 1 tick and 2 if it's very busy like Fed news. 1 tick =$10. Of course there are day that are dead but the range on the dead days are 5 points but usually you can see 15-20 pts range.

You have a good start already with these indicators. The only missing element is chart reading and that requires time. Problems with indicators is that too many people over-rely on them for signals and confirmations. Price has to confirm signals, not the other way around. I trade on patterns, and these changes constantly, so signals come and go but judgement comes from understanding price action. My #1 advice is learn money management first! This will keep you in the game for a good while until you are settled or found your own system. Learn and build a sound money management and the other parts like indicators and methods will help you build your own system.

soultrader, In MP theory, the 1st hr range is where the floor trader set the range, do you look for breakouts from this range?