Monday, 5 December 2011

Made to Measure

The chart below shows a trading system I use for the first couple of hours when a market starts its very active period. It could be the ES at the beginning of RTH or, as in this case, the first few hours of the DAX.

The system works off a very short periodicity. It can be manual, hybrid or fully auto. It trades the pullbacks in the direction of the trend as defined, in this case, by the CCI and the Order Flow Metric indicator. It looks for 200 Euro profit and stops at the extreme of the entry bar. I adjust the target any time I use it, to account for my perceived idea of volatility. Not too scientific but it works.

You can use other things you like to define the trend and order flow. My indicators are ones we used in the recent Workshop.

As you can see, I didn't get trapped and the results were 5 good trades. The idea is to be finished trading within the first couple of hours or so. Not always this easy but picking your market helps.

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