gosu

Here's my feedback: There is too much censoring and deleting of posts on this site. I'm not irked at all by the deleting of posts that I consider rather mild. I accept that as the prerogative of the owner to run the place to his standards and taste. However, I come from the view that sometimes trading personal insults is a necessary part of communicating, and there are some people who simply cannot be communicated with but only ridiculed. Apparently, that view is not condoned here. Therefore, I will exercise my prerogative as a free user and move on from this site. There are no hard feelings whatsoever, and my decision is based on the fact that time is valuable and limiting myself to just the one trading message board I started with is probably a good thing. Cheers.

My last comment was meant in response to your post, but it went into the edit of my prior post. Got too complacent from the midday lull and PM lull. Of course a lot of players are on the wrong side from yesterday and would still be short today. A squeeze into the close was on the table but I wasn't thinking clearly there.

should have paid more attention to the short covering into the close.... weekly now sets up as a reversal long...but will still play for p2 and hold the 1 contract into Sunday... would add again around 59 but nephew's account is too small to carry 2 ES into weekend..lol yeah I fucked up on fading the pm BO...got complacent, friday pm, etc....too early on the p2 swing trade and shut my own trading down too early so i missed the short covering run into the close....

exit 1 57.75..................

Add 59 1 contract..........

Ha! He just turned 5 and doesn't get an allowance yet.

Alright I am making a "call" short ES 52....1 contract in my nephew's account..lol PS. Not a day trade...will hold past today's close

I take it that you were not remiss ignoring the following comments that leave a really lousy impression of your business practices? I am quite enjoying your explanations, so please put forth your best effort on that one. This thread is better than the RTD comic strip and I would request MMS to not delete posts so quickly before people have had a chance to read them.

No, it does not mean the best way to learn is for the person to figure it out for himself. It means mere suggestions are not worth much and may even be misinterpreted and therefore worse than not suggesting anything at all. I have stated more than once previously what I consider the ideal conditions for transference and won't bother to repeat them here. In any case, there's nothing wrong with moving on if a person can't figure out how to trade for himself. I think the vast, vast majority of people struggling and searching for answers are better off moving on to something for which they are better suited.

What is there to suggest? Just don't get in his way.

Vendors are already regulated. If you have any doubt about that, look for the ubiquitous disclaimer that EVERY vendor is careful to include with all of his material. What the OP is suggesting is more restrictive regulation, perhaps similar to requiring a series 7 license for a kid fresh out of college to give financial advice and sell financial products to retirees. If the purpose is to make more jobs for regulatory agencies, that would be a fine idea. If the purpose is to protect people from their own stupidity, it wouldn't do much.

I enjoy trading but I don't think I love the markets. I can see myself learning programming some time down the line but outlining my trading approach here is not in the picture. Time is always the issue. Thus I am limited here to mostly making snide remarks and somewhat staying on topic.

You need to shut up about me going off topic because you are MR. OFF TOPIC himself. I don't have kids but that doesn't mean I can't see through bullshit complaining about kids. Just like I don't have an Italian sports car but I can see through my friend's bullshit complaining about how much it cost to get it back from the shop. Your response extolling the virtues of your kid proves my point! You like the fact of being able to pay your kid's way through expensive, out of state, private grad school. Stop your bitching and moaning and enjoy it! It's similar to my friend who LOVES the fact he can afford the maintenance costs of his baby. The last time we were out for a drive I told him to swing by Costco so I could pick up some stuff. It was a joke because I knew there was no way in hell he would risk the shopping carts. Congrats on having a great kid.

By "change the scale" do you mean changing the bar duration (e.g., 5m to 15m)? To me "scale" means the marks along the sides of the chart. My charts have price on the vertical and time on the horizontal and when I widen or narrow either scale, the lines get adjusted along with the price bars. If changing the bar duration is what you meant, my question is why would you expect your annotations on one bar duration to be unchanged when you change the bar duration? Now, if you're talking about ANGLES, that's a different story.

Tag team your way to profits. Nice.

Not to my knowledge. No doubt it is a large fund that likes to enter its own orders in the futures market to hedge its equity holdings.

Hey, I'm not here to steer people wrong. I'm not here to steer anyone right but certainly not wrong..LOL. Maybe one day I will learn programming and delve into mechanical trading just for fun. I have A LOT of ideas and I'm pretty sure they're ALL good!! Nope, that does not surprise me at all. I don't do backtests but I have been either watching or trading the indices for a long time and I know volatility is cyclical. Of course, timing is what makes money. Drop me a PM if my post helps you extract a million dollars. I will then have to revise my thinking about my time spent in this place.

Sounds to me your kid gets it fine and has the parents trained well. You might be moanin' and bitchin' but you're still paying for private grad school. I've heard a similar "complaint" many times from friends with kids in expensive private schools. I just shrug and ask why not just send them to a cheaper school? Maybe I just don't get it because I worked and borrowed my own way through school. The usual retort I get back is that I don't understand because I don't have kids. Let's just say I avoid gathering with friends who have kids. Dull doesn't begin to describe it. I know this thread is about "how to be a trader and have a family life," but it seems like it should be "how to be a trader while dealing with the wife and kids." Where is the happy family life of a trader depicted in any of the comments??

You are a wise man not to tell your wife. Sleeping on the couch can be very uncomfortable.

Different algorithms, probably targeting price and/or time and not just volume as in the case of the 75K seller on May 6. It's apparent that the 75K seller on May 6 was in more of a hurry. A footnote states that on a later date the same seller took more than 6 hours to offset its short position taken on May 6, no doubt using a different algorithm. You are right that 75,000 is not great volume. The report states that the initial selling by the algorithm was absorbed by HFTs, arbitrageurs, and other buyers. Then the HFTs began selling in concert and triggered heavy volume which fed back to the algorithm to sell even more heavily because it was targeting volume only. For me, one of the interesting take-aways from the report is that more volume does not necessarily equate to more liquidity!

Some time ago I posted a couple of docs and the link to the report you cite as recommended reading to another poster. I've studied the reports concerning the flash crash closely and am familiar with your quote. If you meant in your prior post that the order was "abnormal" in its size, I would agree and the report bears that out. However, your post stated that the order was "entered abnormally" and also went further that "the normal method would have been to enter it taking into account time and price...." Nowhere does the report state that the use of the sell algorithm itself is "abnormal." An algorithm that targets a percentage of previous volume seems rather "normal" to me.

I do not trade mechanically and I haven't read all the posts in this current discussion, but if I were to build a mechanical "system" to trade based on mean reversion, I would start from the following: Stick a 5 period EMA on the daily ES (EDIT: perhaps SPY or even the SPX itself would be a better proxy). Price always reverts to this mean value. When price gets too far "stretched" from this mean value, fade it for a "snap back" move to the EMA. I would use statistics to get an overall frequency distribution on past "stretch" levels, as well as distributions based on an additional variable or two such as seasonality, volume, bar volatility, etc. A basic system could then use the distributions to determine the statistically favorable entry for a snap back move as well as the stop loss placement.

It's unclear what you mean by the order being entered "abnormally." The large seller used a sell algorithm that was programmed to feed orders into the ES that targeted 9% of the prior minute's volume without regard to price or time. Such an algorithm doesn't strike me as "abnormal." I too have never entered a 1000 lot order. However, daily observation tells me that your statement is inaccurate. If the 1000 lot order takes liquidity, there will likely be some minor slippage depending on the time of day. For a limit order, routinely there are DOM "walls" in the thousands on both sides of the market at any given time and there is no way to know if someone is waiting in the midst with a 1000 lot order. Also consider that GLOBEX allows sizes to be "hidden" behind a smaller number.

Flip a few thousand ES contracts back and forth all day? Sure, why not? Anybody want to put up $20,000,000? I'd be happy to demonstrate. LOL.. Seriously, it's easy to see that the liquidity is there. If that is the goal for a trader TRADING HIS OWN MONEY, the puzzle to solve is how to get to that many contracts without losing one's head. It is not as straightforward as continually adding contracts as soon as more margin becomes available. Of all the people who think it's no big deal scaling up to thousands of contracts, I'm wondering how many of them have ever lost $100,000+ of THEIR OWN MONEY trading in a day? How many have lost $500K of THEIR OWN MONEY in 2 weeks? It's an interesting experience. I highly recommend it to any trader with easy dreams of scaling up big starting with a 1-lot. Just be careful who you share the experience with. A girlfriend wearing an engagement ring that "only" cost $15,000 may have a difficult time understanding. Oh and don't be surprised if you get assigned a collection agent and a field agent from the state tax department looking into your prior years' income. I realized I had made it out of the Piker League when a field agent came knocking on my door unannounced.

Thanks for fixing it. It's your choice as to where to put the extreme pace. For me, extreme pace means "unsustainable," which gets my close attention and I know I will be taking action very soon. This can be compared to fast pace which I read as "normal" at the open and has me holding usually as it pairs with dominant legs in the AM. 1120 on the 2m is "normal" and would not get my attention at all.