How to Day Trade the YM

[randini 10]

I've been trading the DOW since 1998. After years & going all electronic, here's the best approach for taking points during intra-day ranges.

Some rules to remember. There are no "hard highs & lows". Don't try to define tops & bottoms. There is just a "range". The market will not go straight up or down. It will always range. It travels in 5 to 10 to 20 to 30 & so on ranges. We base all trades on 5 minute bars ONLY. Notice the point move from highs to lows of 5 min. bars in these point increments.

These ranges vary depending on the time of day. Early = larger, mid-day = narrow, late day = larger (ranges)

So here is the format. You need an account that will handle at least 5 to 10 lots. There is a small margin for day trading. Never carry overnight. Never put all of your lots at 1 entry. Trade the range.

You will need a 4 level pivot calculation. Take 1 or 2 trending 5 minute bars. Trending 5 minute bars are determined by H, L & CLOSE. If it opens low & goes up & closes higher it's an up trend 5 minutes. Enter you PC numbers. You will have a pivot & 4 levels of support & resistance.

So if it's an up bar trend, buy 1 at the pivot, another at S1, S2 , S3, & S4 (if it goes that far) Very rarely will a range trade outside of the level 4 numbers. It will trade between them. Having multiple entry numbers will without failure give you an "average" number so you can take profits. Your risk is outside the 4th level number of that PC CALCULATION.

I risk no more than 10 points past the 4th level number. RARELY will you be able to show me a range that went that far.

A tip strategy to "cheat" and make even more $$$ with what we call cheating number entries.

Let us suppose you bought the pivot of the up trend calculation. Let's suppose your next entry was going to be S1. Instead of buying S1 right on the number, I will cheat & buy 2 points below it. That gives me a better average. In other words I bought it "lower" (average)

I continue this approach if it decides to range even lower. Only I increase my average entry. So S1 I go 2 under, S2 I go 3 under, S3 I go 4 under & S4 I go 5 under. My risk is 10 points outside of S4.

So you say "I can't risk that much". Then you don't need to trade. Simple as that.

You have to give the market room to range. Room to breath.

You will lose your a$$ by picking "hard" numbers & not giving it room to range.

The moral of the story is SPREAD YOUR ENTRIES & TRADE THE RANGE.

 

ps........this is free info. Don't be a dumbA$$.

Edited March 24, 2013 by randini
spelling

[onesmith 10]

randini,

 

Your posts are extremely helpful. Thanks. I hope my thanks encourages you.

 

The motives and aspirations of other members isn't always clear even after studying them but suffice it to say they are going to do what they do regardless of what you do because that's the path they are on. It shouldn't have any affect on you. Carry on. I want to hear more of your ideas. It's a refreshing change from the norm.

 

 

  randini said:

I've been trading the DOW since 1998. After years & going all electronic, here's the best approach for taking points during intra-day ranges.

Some rules to remember. There are no "hard highs & lows". Don't try to define tops & bottoms. There is just a "range". The market will not go straight up or down. It will always range. It travels in 5 to 10 to 20 to 30 & so on ranges. We base all trades on 5 minute bars ONLY. Notice the point move from highs to lows of 5 min. bars in these point increments.

These ranges vary depending on the time of day. Early = larger, mid-day = narrow, late day = larger (ranges)

So here is the format. You need an account that will handle at least 5 to 10 lots. There is a small margin for day trading. Never carry overnight. Never put all of your lots at 1 entry. Trade the range.

You will need a 4 level pivot calculation. Take 1 or 2 trending 5 minute bars. Trending 5 minute bars are determined by H, L & CLOSE. If it opens low & goes up & closes higher it's an up trend 5 minutes. Enter you PC numbers. You will have a pivot & 4 levels of support & resistance.

So if it's an up bar trend, buy 1 at the pivot, another at S1, S2 , S3, & S4 (if it goes that far) Very rarely will a range trade outside of the level 4 numbers. It will trade between them. Having multiple entry numbers will without failure give you an "average" number so you can take profits. Your risk is outside the 4th level number of that PC CALCULATION.

I risk no more than 10 points past the 4th level number. RARELY will you be able to show me a range that went that far.

A tip strategy to "cheat" and make even more $$$ with what we call cheating number entries.

Let us suppose you bought the pivot of the up trend calculation. Let's suppose your next entry was going to be S1. Instead of buying S1 right on the number, I will cheat & buy 2 points below it. That gives me a better average. In other words I bought it "lower" (average)

I continue this approach if it decides to range even lower. Only I increase my average entry. So S1 I go 2 under, S2 I go 3 under, S3 I go 4 under & S4 I go 5 under. My risk is 10 points outside of S4.

So you say "I can't risk that much". Then you don't need to trade. Simple as that.

You have to give the market room to range. Room to breath.

You will lose your a$$ by picking "hard" numbers & not giving it room to range.

The moral of the story is SPREAD YOUR ENTRIES & TRADE THE RANGE.

 

ps........this is free info. Don't be a dumbA$$.

[sophsoph 10]

To Randini:

 

Ok, so what's you point?

Do you feel good bragging about your trading? Feel like a big man? That you can trade while most people lose their shirts.

 

Perhaps I am wrong. Perhaps you want to help people. If so then I expect to see a lot more than a 1 post (eg. more examples, charts, entries, exits, trades that lost)

 

Otherwise don't waste people's time.

[mikeandy 10]

sophsoph

 

are you serious. why would you say that to someone trying to be helpful? Or are you one of those who sit back and wait for somebody else to do all the work?

[onesmith 10]

randini,

 

I think you will like the thread linked to below. His trading style is almost identical to yours.

 

http://www.traderslaboratory.com/forums/technical-analysis/16226-how-i-trade-if-price-random.html