Tuesday, 30 August 2011

Trading the emini ES

The ES can be a great tool for earning, say 4 points per contract per day. This would be a $200/day gross earning which could be easily scaled up with size to just about any size that a human could stand trading manually with his own money.

There are lots of traders out there with this modest daily target. I'm pretty sure I've written about this before from a number of points of view. This time I want to talk about catching only the first pullback after the turn in the swings. By limiting yourself to this first pullback you can usually catch that first big pop and not get caught in what happens after the market gets oversold or overbought.

Catching that point is like a tennis player catching the ball right at the top of its bounce when its almost stationary.

I have a Flo algo that does that for me but I can either use a fixed first scale out point as my target in fully auto mode or, what I prefer, I can manually manage my exits by scaling out to maximise my profit.

BUT, if I was going for 4 ES points a day, I would be all in and all out and do it twice a day.


  1. Tom,

    How do you quantify a 'turn' - after the mas have crossed? Or is something else involved?


  2. Anon 19:32, For me, mkt is in an uptrend when bigCCI > 0 and EMAs are sloping upwards. The turn is when that process has just completed or almost completed. Op for down of course.