Wednesday, 2 September 2015

DAX Trades this Morning

I was asked by a prospective student to show what trading can be done in a two and a half hour period trading just one lot so I thought I'd make it public. I started trading the DAX on the open and traded for two and a half hours with a coffee break part way through. The chart shows all the actual trades executed using real money and I've also added pictures showing the trades in my log and my P&L. The charts are MultiCharts.net and the log is from NinjaTrader. The trades were executed using my Context-Trader add-in and a scalping trading plan that I created.

 
 
 
 
The result was a profit of 812.50 euros (about $US900) less commission. If you look at the trades you'll see a number of double downs followed by scratches. This resulted in no losing sequences although a leg of the double down had a loss that was offset by the profit on the second leg.

This is fairly typical of this very short term trading plan. It can be done with increased size. I'll be trading the DAX afternoon U.S. RTH session for another 2 hours with my usual size.

Tuesday, 1 September 2015

ContextTrader: Scalping

Lots of opportunities in these volatile markets. Today's short video is a scalp trade with a 1 lot DAX that earns 100 euros jobbing in and out using my programmed buttons in ContextTrader. It was the second trade of the day. I have various context programmed into the buttons. I am watching a bar chart with indicators for context as well as my split Market Profile chart. I then arm the buttons to take trades in the context I want using order flow. This trade is one from a scalping trading plan. Its a 1 lot trade so that you can see what can be achieved with just 1 lot. The red/green button at the top of the chart allows me to change size on the fly.

The trading plan reflected in the video is trading just 1 contract in the DAX can produce many trades every day with targets of from 100 euros to 300 euros, again depending on context. I devised this trading plan for a student. DAX is a great market with a 2500 day trade margin it can produce 100% a day using the Context-Trader buttons and this trading plan. There is no magic although the trading plan requires the Context-Trader buttons to execute it correctly.

Wednesday, 26 August 2015

Catching the Tradeable Highs and Lows

Its worth learning how to correctly split MPs as the splits reveal the real support and resistance. The S&R in today's DAX is a typical example. Then you've only got to find a way to hold the trade long enough. Scaling out is a good way.

Friday, 31 July 2015

Intra Day Volatility Equals opportunity

Intra-day volatility in the stock indices is very high. Lots of action. Although increased volatility can be more difficult, what I do is to focus on outside in trades - fade the fast moves. This gives lots of trades every session.

The downside of this approach is that when the market goes into trend day mode - and it can switch part way during a session - I need to only fade the moves opposite to the trend, trading only those that pullback enough. Trading shallow pullbacks means it takes longer to discover I am wrong - bigger risk and the balance between risk and reward may not meet my standards.

Tuesday, 21 July 2015

Summertime

Gershwin's "Summertime" is a great song. This recording by Billie Holiday is a wonderful example.

Summertime is well and truly here but it brings lots of opportunities. One thing that happens when the markets gets quieter is that I may have to reduce the size of the bars I trade and make my entries more aggressive. I just get the trade on ad then decide whether I want to keep it or not. Trade location is even more important than usual when its quieter. Having a good trade location means that I can usually scratch a trade if I think I'm wrong.


Monday, 13 July 2015

My eBook is Here!

Today I posted my eBook: Trading Order Flow in a Market Profile Context. You can start reading the eBook by clicking the tab: The eBook at the top of this page.

I will also be posting recorded live trades using my methodology and charts starting soon. I'll Tweet when these are posted to the ElectronicLocal YouTube channel.


Monday, 22 June 2015

Sell that Resistance - ES

Its groundhog day most days in the markets. I have my trading pictures and when they appear in the live markets and are confirmed by order flow I just have to pull the trigger. Selling that blue line resistance was revealed by MP. There was a double resistance here - the blue line and the VAH of that distribution. It was the order flow that showed me which one to sell.


 I'm just finishing tidying up all the typos in the book so if you want to follow my methodology you will have a roadmap.