Friday, 21 October 2011

Friday On My Mind, Again

I was itching for the DAX to open this morning as I wanted to sell the Fib trade. I did, I did. Getting these on the open can be very rewarding sometimes. My size in the DAX means I have to scale out in 1's as the liquidity, especially at 7 am London time, is not brilliant, often only 4 or 5 a side. In this case I got only part filled with a 2 lot so my trade management was quite restricted. Like a duel where you only had two bullets, not like in the American West where Colt invented the Six Gun. You could do a lot more damage with a Six Gun.

In any case, this morning I had only two bullets. I covered the first for 100 Euro profit and the second half way up the first green candle. I was really pleased after the lows were rejected as demonstrated by the hanging man candle (buying tail).

The DAX is a great contract if you want a volatile market outside American RTH, but deep pockets are a pre-requisite. My 5.5 point range bars take a lot of the noise out. I've tried a lot of range bar settings but have never found a better one than that which was recommended by a trader in Australia over a decade ago. Thanks Frank! I spend a bit of money on my own education and I always learn something new. I'm good at taking something someone has shown me and turning it into something else that makes me money.

Anyway, my two lot trade turn out to be managed correctly. Had I had a larger position, I would still have held the last third until about the 17th bar and covered at the 33 EMA as the market was in a definite uptrend as per the CCI and EMAs. This was an outside in trade for a quick profit to take advantage of the imbalance when the market opened.

I just loved the Easybeats in the 60's.

BTW, there is a new link to the indicators I use. It's located towards the top right column of the blog.


  1. I used to look forward to the weekends. Now not so much, crazy how I can lose my edge in only 2 days. Happy closing the week green though after a really bad start. I’m glad I learned those lessons in sim. You don’t know what you don’t know.

  2. Hi Tom,

    Thank you for posting the new link. Do you happen to have them for NinjaTrader too? If not could you post a pic with the settings? I'm particularly interested on the "EL Order Flow Metric". Thank you.