NQ Traders

[cuttshot 11]

So over the past few weeks I have really been getting hooked on the NQ. This market seems to move great on a daily basis. I'm in the process of doing an extended backtest to see how well it holds up in different market conditions.

 

I'm curious if anyone has traded the NQ for an extended period of time. If so, does it seem to be a streaky market over time? From what I have seen going back a few months it has held up nicely over an extended period of time. I have been leaning towards looking at range charts. At the moment the candidates are a range of 1 or 2.

 

Any input from NQ traders would be appreciated. I would be interested to hear what other ranges, tick intervals, or time frames that traders are using on this market.

 

Cuttshot

[jajuanm2 10]

I been trading NQ for a while now. I use volume charts, and the speed of the chart will depend on the trader. I like 2500 & 8500 constant volume chart sfor NQ. It's not anything magic with those numbers, they just fits the number of setups I'm looking for each day which is around 3-4. Also I trade for 10-20 points at a time. If you want scalp, then you probably should look at 500 -1k constant volume chart.s In short, I traded Es for about 4 years and YM for about 2 years and I like NQ the best. You just have to add 3 NQ contracts to equal the same dollar amount in 1 TF contract which is another good market. NQ is a very fast market.

[cuttshot 11]

thanks jajuanm2. I will have to look into those volume charts. Have you found consistent price action over time? The begining of 2010 was very choppy on the index futures. How did the NQ hold up? I haven't had a chance to work back that far in my testing.

[jajuanm2 10]

NQ, like the other markets bounces off of support and resistance levels each day. A couple days a week you get a trend day. The key is to know where the key support and resistance levels are and to manage the trades based on that information. Try to get in near support and reduce size or close the trade near resistance. Once price get above the resistance, you can always add more size or reenter. Are you swing trading or day trading?

 

thanks jajuanm2. I will have to look into those volume charts. Have you found consistent price action over time? The begining of 2010 was very choppy on the index futures. How did the NQ hold up? I haven't had a chance to work back that far in my testing.

[WorldTrader 10]

I have a good NQ scalp strategy. I use a range bar of 1 and go for about 3 points on the NQ. It trades well. Both Thursday and Friday I got 6 points and was done. Not too bad considering that Friday started out slow. I will have to look at the CVB Charts and see if I can use it as a filter or maybe some way to trail.

[jajuanm2 10]

Nice trading! Set a goal fo rputting together a good week, once you reach that then your next goal is a good month, then quarter. Hence, consistency will be the key, you have to focus on ways to execute with precision consistently without thinking about money. Once you do that you can just add contracts.

 

I have a good NQ scalp strategy. I use a range bar of 1 and go for about 3 points on the NQ. It trades well. Both Thursday and Friday I got 6 points and was done. Not too bad considering that Friday started out slow. I will have to look at the CVB Charts and see if I can use it as a filter or maybe some way to trail.

[Tiobingo 10]

Jajuanm2, that is very good advice. Setting goals is key to success. Moving the account forward incrementally. I have traded the NQ for quite some time with a variety of strategies, most of them in the 4 to 8 point range. Currently I use a 2 point range bar and have had very good results. My trades of late are in the 7 point range, give or take. I find that a trailing stop works well too and I could catch some larger moves on most sessions. It's a great market, for sure.

 

I'm going to look at your longer term volume charts too. I like that idea. I think its smart to go for fewer trades to keep the trade costs down, if you can hit a reasonable winning percentage. Thanks..

[cuttshot 11]

Jajuanm2,

 

I am using a scalping strategy at the moment. I'm using a range chart of 1 going for 3.5 points on a target. Your longer term charts are on my list of things to look at. Had 3 trades on the NQ today all for winners. Took a partial winner on one of them so total for the day was 9 points. The NQ continues to be a hot market to trade. With the Russell products rebalancing this week the NQ is my index future of choice.

[jajuanm2 10]

Nice trading ! There was some good movement in NQ today. The range was about 50 points total.

 

Jajuanm2,

 

I am using a scalping strategy at the moment. I'm using a range chart of 1 going for 3.5 points on a target. Your longer term charts are on my list of things to look at. Had 3 trades on the NQ today all for winners. Took a partial winner on one of them so total for the day was 9 points. The NQ continues to be a hot market to trade. With the Russell products rebalancing this week the NQ is my index future of choice.

[cuttshot 11]

I know I'm starting to sound like a broken record here but NQ had another great day. 3 more winners for be and 30 ticks of profit. Just off to a great start this week. Tomorrow could be a little difficult with the interest rate statement tomorrow afternoon. I'm leaning towards taking the day off from the index futures.

[AmCan1 10]

That's great Cuttshot. For me, the 2 point range was not as effective. Last week it was on fire. So far this week, it's slowed down a bit.

[cuttshot 11]

amcan that would make sense. we just haven't seen the big extended moves yet this week. We are just kind of bouncing back and forth (atleast during the morning session). The 1 range is more of a scalping strategy so it can catch the quick moves. Have been trading it with 6 contracts and have run into a few issues getting fills. Thats my main concern at the moment.

[AmCan1 10]

The 1 Range looked great again today. The 2 range bar just didn't have enough juice in it to make it happen although there was one good short right around the open. Looks like the 1 range had a real good day though. FOMC is always hard. I found trading today to be quite tricky.

[jajuanm2 10]

The volume will start to dry up after the first two hours for all equities index during the summer months. Gets worst in July and August. That could explain your fill issue.

 

amcan that would make sense. we just haven't seen the big extended moves yet this week. We are just kind of bouncing back and forth (atleast during the morning session). The 1 range is more of a scalping strategy so it can catch the quick moves. Have been trading it with 6 contracts and have run into a few issues getting fills. Thats my main concern at the moment.

[cuttshot 11]

Yeah thats very true jajuanm. With the 1 range I'm typically able to get done within the first 30-60 minutes when things are active. We just aren't seeing the powerful moves through targets this week. I have had a lot of trades give a quick tough of my target and that doesn't always guarantee a full fill.

 

System did great again today considering it was fed day. 3 wins and 1 loss for a positive 17 ticks.

[avalanch 10]

jajuanm2 - i've been using both cvb and range bar charts lately - trading both the nq and the tf. i'm curious re what cvb settings you use for the tf. thanks in advance for your input

[AmCan1 10]

Avalanch, perhaps I'm dense but what are cvb bars? Cuttshot, you've inspired me to take a closer look at the 1 range vs. the 2. The 2 has been great and I still like the fact that you can get a steady 7 point trade. The trade costs make up 1/2 the percentage per trade than the 1 range, which is good. But I like the dodge and dart idea of the 1 range too. Gonna check it out.

[avalanch 10]

cvb - constant volume or constant volume bar chart - see jajuanm2 post at the beginning of the thread

[AmCan1 10]

Oh of course.. Dah.. Is a constant volume chart the same as a share bar chart? I know what volume charts are but just never heard it referred to as a constant volume chart.

[avalanch 10]

Sorry, I'm not familiar with 'share bar' chart

[jajuanm2 10]

Tradestation calls constant volume bar charts "share bars" . It's the same thing.

[AmCan1 10]

A share bar chart is just another name for volume chart. So I guess what confused me is the term constant volume bar chart. I was wondering if it were just three different ways to describe the same kind of chart or if there is an actual difference between a volume chart (sharebar chart) and a constant volume bar chart. :doh:

[scalper4 10]

What interval settings are you using with the 1 point range bars

[cuttshot 11]

1 Range, 1 tick interval

[scalper4 10]

thanks I will have a look at this