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walterw

The Chimp`s new "Futures Scalps"

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Ok... for the sake of keeping things more organized I will start this new thread of a possible new graphic context where some very nice futures scalps can be taken...

 

I am a futures scalper myself, thats my full time profesion... if someone is interested a little more on my background presented here on TL you may want to check this threads :

 

 

http://www.traderslaboratory.com/forums/f34/the-flip-trade-support-and-resistance-1714.html

 

http://www.traderslaboratory.com/forums/f34/the-super-coil-break-trade-1802.html

 

http://www.traderslaboratory.com/forums/f34/the-lazy-trade-1942.html

 

http://www.traderslaboratory.com/forums/f34/the-false-break-trade-1994.html

 

http://www.traderslaboratory.com/forums/f34/momentum-vs-non-momentum-1763.html

 

I do trade fixed daily targets... that changes from time to time... actually I am making U$50 per /day contract on YM, wich is equivalent to 10 ticks net..

 

Once target met, I call the day... go to research... actually forex... or happy hour...

 

What I am about to present here I DO NOT trade live YET... as it doesnt form part of my "formal" trading aproach... if eventually I really like it, I will trade it live...

 

This will be the first time that I bring something from my forex research to the futures arena... so far I had been trading very independently on futures related to the forex research...

 

Obviously there are a lot of philosofy on my trading that its there...

 

Thanks to the translation of Bruce`s work into NT (Ninjatrader) and some other key indicators that Sparrow coded, I tried today a little bit of some concepts translations into futures using NT... they look nice...

 

let me talk first about concepts... I will prepare some cofee first... cheers Walter.

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Concepts... when you trade you must trade concepts...

 

Concepts are above any chart, indicator, time frame, instrument or subjective opinion...

 

You are not trading an indicator, but yes the concept... the indicator its just showing you, in an easy understandable way the concept you are trading...

 

So its not about becoming indicatorist, but more conceptist ( in my personal language :\ )

 

So whats the concept the chimp fulls always arround ? well he likes the idea of centrifugal and centripetal action... the axis is the average of all price action, and it would not be axis nor average if it wouldnt have comes and goes in a rejection/refreshing fashion...

 

If you add to that the fact that the market is formed by cycles and that he takes little brakes on each move... then you have a very simple centrifugal morfology to start from :

 

attachment.php?attachmentid=3855&stc=1&d=1194315037

 

with that said you have the basic premise to elaborate on a "scalper" centrifugal concept... the scalper wants to play "each" one of this "sub cyles" that happen inside a larger move as its moving outwards from the axis :

 

attachment.php?attachmentid=3856&stc=1&d=1194315037

 

 

So what info we need to put together our centrifugal concept on the real world :

 

_Direction of the large move

_Perception of the pauses and continuations (Pullbacks and entries)

 

thats where optimization may come into place whehn I recognize the fact that advanced indicators can give you an edge on detecting this concepts more easy...

 

For the Centripetal concept, we have a phenomena called exhaustion, where the market wants to get back to the axis...

 

attachment.php?attachmentid=3857&stc=1&d=1194315801

 

He starts showing signs that the bigger cycle is making an inflection back to the axis, and my strategy now is to play on that new direction...

 

You have to be open-minded... cant get enthusist only with one particular direction, because it will change...

 

comes and goes, every other day... over and over again... thats it...

 

How can we see that... well check my previous threads and you will see "one" way to see it... now on this new thread I will present "another" way to see it... but basicly the market is one, its the same thing... just diferent tools to see the same thing... something similar is happening on the forex research, there are a variety of ways to see the same thing...

 

basicly I believe in confort for trading, you have to enjoy it and feel confortable, some good smooth music behind... little stress , pure joy... the way you see this concepts can be many... find the best that suits you...

 

I will present here "another one"... nothing new really... just "another one"... cheers Walter.

1.thumb.png.8c0547bfd7b67805092a47fa88985ae3.png

2.thumb.png.1749b3d7465ef64cfd14d6b019ffa1db.png

3.thumb.png.7fc72dd41b7afbf5094b2041649c32ab.png

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So for this new simple way of looking the same market I will use my classic 22Tick time frame on YM (miniDow) futures... only that chart, no need for larger time frames... (this is scalping)...

 

 

So let me present this menu of the info we need to extract out of a chart :

 

_Large direction

 

_Subcycles

 

_Timing Entry triggers

 

_Exhaustion hints

 

With that four things you are in bussiness...

 

This four things can be detected more easy with certain type of tools... I love interaction... if someone grasped after reading all this how it works each component of this menu... first he has evolved on market reading... second he may be ready to find optimized ways to read this same information...

 

I like so far the optimization of this one... didnt expect to do this work as I am on an old solid cadillac on my futures trading, but it sounds nice a little innovation...

 

on next post I start with "Large Direction"... cheers Walter.

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"Large Direction" jejejej :rofl: :rofl: :haha: :haha:

 

almost a joke... I call on my scalping a "Large Direction" one that may last 10 minutes ¡¡ but still its the large direction ¡¡ because I trade the subcycles inside that "large directions" that some times dont get to 1 min of duration...

 

so this is scalping... not suited for everybody...

 

So Large Direction on this case will be presented very clearly by our "rainbow" indicator created out of vma`s... I just put two colors into it as I am only interested on the base magenta line and see momentum developments on the rest of the red area...

 

attachment.php?attachmentid=3858&stc=1&d=1194318125

 

attachment.php?attachmentid=3859&stc=1&d=1194318125

 

So even a kid can tell you on that chart where the large direction is going... very graphical, if we are above/below magenta axis band we are going up or down...

 

Nice thing with this rainbow is the momentum readings, when he expands its a healthy momentum, he becomes small, very low momentum (cycle conditions)... I recomend this series of videos on momentum discernment using rainbows http://www.traderslaboratory.com/forums/24/walter-s-forex-vma-trend-scalps-2558-3.html as it explains how momentum works and how you can read it thru the rainbow...

 

so thats how we define our "Large Direction" ... cheers Walter.

5aa70e1ac0958_largedirection1.thumb.png.3fc8366e8b21c99e7d6cc227d8158109.png

5aa70e1ad0872_largedirection2.thumb.png.6e8f4e9d4180342f63410197d136fbee.png

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Now I need to see the "Sub-Cycles"... the one I will actually trade... my bussiness... you gotta love them, have to become their friends, look them with love, buy them ice-cream... never get mad with them, they are your friends, they feed you...

 

So a nice way to see this is thru a line that defines the price action, smoothing down all the noise from the bars and at the same time its still a leading line... here I get out of vma research to my (insider research on hull averages )

 

This line will tell us whats happening on the development of the sub cycles... in a cristal clear way...

 

So let see here :

 

attachment.php?attachmentid=3860&stc=1&d=1194319551

 

attachment.php?attachmentid=3861&stc=1&d=1194319551

 

attachment.php?attachmentid=3862&stc=1&d=1194319551

 

attachment.php?attachmentid=3863&stc=1&d=1194319551

 

attachment.php?attachmentid=3864&stc=1&d=1194319551

 

attachment.php?attachmentid=3865&stc=1&d=1194319551

 

So its clear the subcycles inside a Large Direction move... you can clearly see the pullbacks and continuations with this lines...

 

On this case I am using a hull average 4 and a sma 4 of this hull... very simple, very powerfull... cheers Walter.

5aa70e1add75d_subcylces1.thumb.png.4ddd2f5cb6b26bf1c7e3002a5bae70ac.png

5aa70e1aee186_subcycles1b.thumb.png.b557a83ade05e0545116d0edb27c85ae.png

5aa70e1b01a30_subcyles2.thumb.png.0ad5fc1eac0d74dd3d0b8083c34984cf.png

5aa70e1b0cdd2_subcyles2b.thumb.png.ff92c53ebe606349107bba00d54d88a6.png

5aa70e1b14e53_subcycles3.thumb.png.ea49f4cca409dbd5f6058fcf4c421edb.png

5aa70e1b1f80e_subcycles3b.thumb.png.487a2a89f0a5b1dd5cf77ff959efba96.png

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So now that we know the "Large Direction" and the "Subcycles", we need to see our "Timing Entry Triggers" the one that tells me , now press the mouse button... it will NEVER be perfect, but has to be optimized...

 

So on this case the same lines that tell us the "Subcycles", will be also used in a quite efective way for our "Timing Entry Trigger"....

 

The Hull 4 and its signal sma 4 when they crossover they give an entry signal... this way we can make our timing on the price pane and not with an oscillator.. (something new for me, as I normally time with cci)...

 

attachment.php?attachmentid=3867&stc=1&d=1194322413

 

attachment.php?attachmentid=3868&stc=1&d=1194322413

 

 

attachment.php?attachmentid=3869&stc=1&d=1194322413

 

i compared this signals with the oscillator, very similar... the edge is simplicity here...

 

If you look some of this examples here you will see some cases where there was a lot of whipsaws... well take the first one, then if you didnt get stoped with the chimps universal stop system http://www.traderslaboratory.com/forums/f24/chimp-s-universal-stop-system-2754.html should you be glad...

 

Thats the very simple way of timing the entries on this scalping aproach... cheers Walter.

5aa70e1b33a1b_timingentrytriggers1.thumb.png.6839f72df9ff91508b8edccf113c91d9.png

5aa70e1b4037b_timingentrytriggers2.thumb.png.5947ea5f80da55d9550eb752cd787686.png

5aa70e1b4828a_timingentrytriggers3.thumb.png.9fed8ff2bc1ec0d9d7c2a7ef56901caf.png

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Ok so now we want to see on our chart a fourth component that could amplify the perception of Exhaustion... "Exhaustion Hints"

 

One way is thru divergence... it may be tricky, but diverging rave tops are nice to call for centripetal refreshing setups of M`s types... this is counter trend, you must understand that on great momentum conditions they are agresive... still is one of my favourites setups once you get used to it... not suited for newbies... so this must be practiced a lot before any live tading..

 

The market is somehow far from the axis and its making an M type pattern where it can be ( lazy, equall or false break ) :

 

attachment.php?attachmentid=3871&stc=1&d=1194323939

 

and on that extremes a divergence from an oscillator may come handy to confirm the "potential" exhaustion...

 

 

attachment.php?attachmentid=3872&stc=1&d=1194324317

 

One nice classic oscillator for this can be the Chaikin Oscillator as it is a Macd of the Accumulation/Distribution line... so its not a macd of price itself but of price and volume making it more robust... there are many other oscillator for this as well...

 

so here some charts of this type of situations :

 

attachment.php?attachmentid=3873&stc=1&d=1194325115

 

attachment.php?attachmentid=3874&stc=1&d=1194325115

 

attachment.php?attachmentid=3875&stc=1&d=1194325115

 

it is an agresive type of setup... you look for m`s and get more confident with the divergence... cheers Walter.

5aa70e1b56ddb_monextreme.thumb.png.f379273fee643cc95581b2a845199f43.png

5aa70e1b5f19e_monextremedivergence.thumb.png.cde31e382261edf445c32ac3b5243035.png

5aa70e1b6739f_divergence1.thumb.png.f5da7b1e79b913a14ed5956e9d8d8bc3.png

5aa70e1b7261f_divergence2.thumb.png.ad6f167b2d54694a4f1b1d7e104920eb.png

5aa70e1b7907d_divergence3.thumb.jpg.877f00a5f2ffed190cb1676e63144f81.jpg

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The spirit of this trade its to shoot for a few ticks... nothing more than that... it is not intended to stay for any super move, thought there will be.. they are not your bussiness... this is scalping...

 

If you look carefully to the subcycle charts I use for example with the green arrows, you will notice that the arrows normally have an average size... that average size should be your target on any trade... you will also notice some few exceptions of super moves... for that you must understand that they do not form part of your trading getting the entire moves (at least on this scalping aproach)... thats why I use daily targets, its an excellent way to control greed... so let me do some videos on this... cheers Walter.

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Walter

For the benefit of people coming from forex who have not traded YM before..

What is the "pip margin" for YM?

 

 

Hi Bruce ¡¡... Ym margin varies from broker to broker, some may ask more than a thousand per contract, other 500, other less than 500...

 

the minimum fluctuation in ym is the last unit, that represents 5 dollars...

 

key here is low comisions for round trip... cheers Walter.

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The market is somehow far from the axis and its making an M type pattern where it can be ( lazy, equal or false break ) and on that extremes a divergence from an oscillator may come handy to confirm the "potential" exhaustion...

 

One nice classic oscillator for this can be the Chaikin Oscillator as it is a Macd of the Accumulation/Distribution line... so its not a macd of price itself but of price and volume making it more robust... there are many other oscillator for this as well...

 

it is an aggressive type of setup... you look for m`s and get more confident with the divergence... cheers Walter.

 

Beautiful charts Walter; and very clean description of the concept.:thumbs up::thumbs up::thumbs up:

 

And Twiggs money flow, as you certainly know, is even better than Chaikin Osc.

 

Now if this is a good signal to enter a trade, it is also a good signal to exit the previous (taken in the opposite direction).

 

cheers. keep up the nice research.

 

Unicorn.

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Hi Walter,

 

Thanks for this thread. It is very close to the way I trade, but your entries seem tighter. I have not been able to figure out how to import the template to NT....I am fairly new to NT. Could you give some advice for NT or, if possible, give the indicator parameters for TradeStation (longtime user).

 

Thanks again!

 

Jim

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Beautiful charts Walter; and very clean description of the concept.:thumbs up::thumbs up::thumbs up:

 

And Twiggs money flow, as you certainly know, is even better than Chaikin Osc.

 

Now if this is a good signal to enter a trade, it is also a good signal to exit the previous (taken in the opposite direction).

 

cheers. keep up the nice research.

 

Unicorn.

 

Unicorn, I will like to see your Twiggs there... how it works... this oscillators on the divergence setup (counter), can be used to time normally on a 0 line cross type entry... can be more of a solid signal to the refresh side... cheers Walter.

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Hi Walter,

 

Thanks for this thread. It is very close to the way I trade, but your entries seem tighter. I have not been able to figure out how to import the template to NT....I am fairly new to NT. Could you give some advice for NT or, if possible, give the indicator parameters for TradeStation (longtime user).

 

Thanks again!

 

Jim

 

Welcome aboard Jim ¡¡... cheers Walter.

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Right here goes for TS users, I've attached 4 indicators in total so you can follow along. I've coded up the Rainbow so it's the same as Unicorn's code and it is what Walter is using on this thread:

 

Chaikin Oscillator

 

Used the Built-in TS Indicator and just modified the Color and added a Histogram so it look like the one Walter is using.

 

attachment.php?attachmentid=3889&stc=1&d=1194388664

 

MA's3

 

Hull MA with the Simple MA attached to it and an option to plot an EMA if required. Also added a "Vary Color" option so the Hull MA will change color if it's above or below the SMA.

 

attachment.php?attachmentid=3890&stc=1&d=1194388664

 

 

MA-Directional Paint Bar's

 

Just something I wanted to add, as personally, I like it to be as easily visual as possible. So this paints bars as to whether the Hull MA is above or below the SMA. (ps. If you do use these, make sure you insert them onto your chart BEFORE the Rainbow.)

 

attachment.php?attachmentid=3891&stc=1&d=1194388664

 

VMARainbow

 

I've added a color choice into this so you can change the color of the main rainbow in one easy go. ( if you wanted to )

 

attachment.php?attachmentid=3892&stc=1&d=1194388828

 

Hope this helps

 

Blu-Ray

5aa70e1bd56a7_PBsOff.png.a0f4b211a75f31e3b17d15cd8ede9e3b.png

ColouredHull.png.1dc9eea8d75881feea0e3b81103d650d.png

5aa70e1be0cfc_PBsOn.png.819700210d04a50013bfadaa4a023751.png

RainbowColor.png.a11abec76cfa9dcef00ecf013d287767.png

CHAIKIN OSCILLATOR.ELD

MA'S3.ELD

MA'S-DIRECTIONAL.ELD

VMARAINBOW.ELD

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Now let me present you guys another variation of this...

 

This variation its more near to my normal timing methodology with cci, wich I am too used to trade and really dont feel the need to change it as it has been giving me permanent stable results over time...

 

Now on the price pane I had been experimenting a three line type chimp thing... similar to this method here http://www.traderslaboratory.com/forums/f24/the-chimp-s-forex-trades-2698.html and a little rainbow fusion for some nice momentum readings... looks like this :

 

 

attachment.php?attachmentid=3898&stc=1&d=1194392904

 

the three lines have a net and refresh trend relationship between them, calling for centrifugal and centripetal setups...

 

on next post some examples... cheers Walter.

variation.thumb.png.dccfe0a2e1526841df11286f49439cc0.png

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If you guys go thru some of my futures threads I posted links on the first post of this thread, you will get familiarized with my timing method using cci for my live trading...

 

Basicly I enter trades with the +-50 level crosses and exit on 0 line cross.. very simple, very effective...

 

On this case I would be looking a "setuping" with the visual context of the vma research and use some old traditional timing sistem...

 

here are some examples on how I would take this scalp trades :

 

attachment.php?attachmentid=3899&stc=1&d=1194394056

 

 

attachment.php?attachmentid=3900&stc=1&d=1194394056

 

I hope I dont confuse anybody.... the chimp has a costume of showing lots of alternatives, that may help you find your "confort" graphic context...

 

SOME QUESTIONS I WOULD LIKE TO HAVE SOME FEEDBACK HERE :

 

can you see the SAME concepts behind this variations ? do you notice that the chimp may show you a lot of diferent visual context alternatives but he shows you the same concepts always ?

 

 

 

cheers Walter.

5aa70e1c0b511_example1.thumb.png.702dbbec4ab934246f39703548e1b983.png

5aa70e1c15293_example2.thumb.png.8e57aa4d09c44944b8cd06429faa5e49.png

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Hi Walter,

 

Thank you, thank you......This just keeps getting better and better.

 

Why the yellow MA on the CCI? It seems to interfere with the simplicity of the entry/exit triggers for me.

 

I trade primarily the ES. Have you looked at this on anything other than YM?

 

Jim

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Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. 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    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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