Quick trading strategy

http://tinypic.com/view.php?pic=1073tr8&s=8#.U-aNDGNnDts

 

First of all, I do realize that not everyone of us can afford to trade live with a huge contract. But after many trials, I have found that this works well for me with a quick 2-tick target on the table using 4 range chart. My goal is just about 500 dollars a day and I turn off the computer and walk away. Obviously, you can shoot for 1 point or more but I like the idea of getting in and out quickly.

I am sharing this with you guys but at the same time, I am also learning from all of you for improvements and ideas and helpful advices.

 

1. After market opening, signal A was generated. It happened to be aligned with the rest of the indicators that I circled in black. But this signal wasn't taken due to the fact that the ATM indicator was still in the RED. I use this indicator as an over all trend. If all the signals align for a SELL but the ATM indicator is still in the BLUE then the signal is considered INVALID and vice versa, if all the signals align for a BUY but the ATM indicator is still in the RED, then the signal is invalid as well. In short, DON'T GO AGAINST THE TREND!

 

2. As for signal B. It aligned with the EminiTargeter indicator for a SELL. But if you guys notice, it didn't align with the other 2 indicators (123Trend & Sniper). For that, be patient and wait until all turn red and quickly enter the market at market price. As you guys can see, it was a winning signal.

 

3. Signal C matched all other indicators for a BUY. But as above, even though it was aligned with everyone onboard, still, look at the ATM indicator, it was in the red. And so I waited patiently until ATM turned blue and I entered the market for a quick few ticks.

 

4. Signal D for a SELL was IGNORED. You guessed it already. It matched the EminiTargeter but not the other two. Not only that, the over all ATM was still in the blue.

 

5. Signal E was also IGNORE. Everything aligned with each other except for the Sniper indicator. What you want to look for is to have all of them aligning with one another. Only to put the odds in your favor.

 

6. Signal F was for a SELL. Again, everything lined up with one another. It was too, a winning trade for a quick few ticks.

 

7. Signal G was generated for a BUY. It didn't line up with the 123Trend & Sniper and overall ATM indicators. Wait for everything to line up in blue and enter the market. It was too, a winning trade.

 

8. And so on and so on...with H...

 

 

Of course, this isn't a holy grail or perfect in any way or shape or form. Hence, with all of your expertise and knowledge, I do hope that you guys can optimize it and make it perfect. Thank you so much for your time and your help. Sincerely.

Thanks for your effort Ninja_on_da_roof. Could you explain in detail ho to set the inds ? Thanks in advance.

Nice set up. I have tried many times for these elusive 2 ticks, but it's worth noting that with range charts, it may be hard to get the fills. It looks clean on the historical charts, but on real time, some of these bars form in seconds. Thanks for the post.

I will try to record a live video using this method for us all to dissect and study. In hope, we can all make some money this Monday coming up. In the mean time, here are all the indicators needed.

https://[email protected]/file/tjk9g0 (KPMedium)

https://[email protected]/file/ir5lbz (ATM)

https://[email protected]/file/gr2iek (123Trend)

https://[email protected]/file/ekp0jk (SniperTargeter)

https://[email protected]/file/ash2hf (SniperBidAsk)

Do try it tomorrow on demo and see how it works out for you guys. Thank you.

Laser, just import them into your Ninjatrader platform and open them up on your charts. Thank you.

Ninja on the roof

I salute you- you shared your strategy ; setup and the thinking behind it.

Now its time for all of us to test it and decide whether it fits our trading style.

Keep it up and good luck.

My humble 2 cents opinion- not sure if 4 range is good for the ES- i would rather use a 2-1 renko spectrum with bigger targets but will definitely check it out.

Take care and thanks again.

Traderbeauty-Jane

ninja_on_da_roof,

Thank you for posting your strategy!

 

You always enter with a market order?

What stop size in ticks do you use when entered the trade?

@ninja_on_da_roof,

 

This looks like an easy method to automate because the rules are strict with no discretion. I assume your trading this with real money, right? If so, what is your win rate?

Hi Yamantaka & atd,

At this point, I am still trying to perfect the strategy. That is why I have it here so we all can take a look and see if we can perfect it. Granted that there is no such thing as a holy grail. Ultimately, I think it is all up to individual as how much capital you have in your account and how much you are willing to handle the drawbacks. As far as for the ratio when it comes to target and stop, I know you guys already know it is impossible to have a tight stop loss with ES. Market will just stop you out left and right up the zing zang. Gotta give it enough room to move up and down and so the question is, how much room? As of for now, since I only target for a quick 2 ticks, I would get out of a trade after the 3rd bar closes and the trade isn't going anywhere. Same as for the when to get in after the original signal, if I sit there and wait for the ATM to show up and I see that 3 bars have already generated from the original, I would not enter. Obviously, it isn't perfect. This is where you guys come in. Hopefully, you guys can automate it. Thank you.

Hi Yamantaka & atd,

At this point, I am still trying to perfect the strategy. That is why I have it here so we all can take a look and see if we can perfect it. Granted that there is no such thing as a holy grail. Ultimately, I think it is all up to individual as how much capital you have in your account and how much you are willing to handle the drawbacks. As far as for the ratio when it comes to target and stop, I know you guys already know it is impossible to have a tight stop loss with ES. Market will just stop you out left and right up the zing zang. Gotta give it enough room to move up and down and so the question is, how much room? As of for now, since I only target for a quick 2 ticks, I would get out of a trade after the 3rd bar closes and the trade isn't going anywhere. Same as for the when to get in after the original signal, if I sit there and wait for the ATM to show up and I see that 3 bars have already generated from the original, I would not enter. Obviously, it isn't perfect. This is where you guys come in. Hopefully, you guys can automate it. Thank you.

3 bars is 12 ticks of risk, correct?

@ninja_on_da_roof

TY for sharing your ideas and your work!

It would be nice to see that video you mention doing of your live trading.

Thanks again.

Bump....anyone have a look at this?

To me, it appears to have many false positives!

Lisa,

Its been working very well for me with a target of 2 ticks. As long as you follow the rules. As of for now. I have a target of a 2 tick and a stop at 6. Yes, the ratio is off but with ES, and as this method for me is a quick ambush strategy, I don't think it is possible to have it the way you desire. Thanks.

And as I forgot to mention, it would help to go into the SuperDom to change your order to single click. This way, you can execute your order quickly enough for this method. Thanks.

And as I forgot to mention, it would help to go into the SuperDom to change your order to single click. This way, you can execute your order quickly enough for this method. Thanks.

 

Would you mind doing a video of how you trade it?

 

Thanks again.

@ninja_on_da_roof

 

What am I missing on the chart?

 

http://www.anony.ws/i/2014/08/15/ES09-14-4Range-8.14.2014-22.19.33.png

YOu got everything on the chart!

View My Video

I am still learning from recording my screen. Please forgive the mess.

Anyway, first signal was a BUY according the KP indicator. It is to me, as a "get ready" signal. Look at the ATM indicator. It was still in the RED and the rest of the indicators weren't aligned for a BUY signal yet. So, we waited until the ATM turned BLUE and we QUICKLY entered the market for a quick 2 ticks.

View My Video

The second signal was a SELL from the KP indicator. Again, followed the rules, wait for everything to turn RED and entered the market QUICKLY.

As much as I try to stay far away from multiple indicators, this method intrigues me but two things are real challenges. First, risk 6 ticks to make 2 requires almost 90%+ win rate to be long term profitable with commissions and second, how to avoid false positive signals. Throw in the fact that you have to act very quickly when things align would almost mandate trading this automatically.

Been there you have to win at least 8 ticks and more to make a discretionary trading system profitable this stratgy

is worthlesss ,because of the 2 tick target---dont put too much effort into it.

its not gonna work in real trading..

remember everytime you enter the market you at at risk , the thing is to make the most of a trade ..

 

just my opinion

ninja_on_da_roof, could you send your template?

Thanks

I cant stress enough to people that day trades the main root in daytrading is the ORDERFLOW not osilators they are derived from order flow ,focus on the time and sales preferably agregated time and sales you need to learn to READ it focus on that ..

 

Next is the support and resistance you need to learn how to draw if you are lazy about this and want to make daytrading your source of income youre gonna learn the hard way,,No short cut here pal..

theres tons of technical traders out there... Remember that everybody trade on minute charts renko, volume 60 minutes traders on all timeframes so theres alot of confusion there the only place traders AGREE is on support and resistance .

 

I personally use a 2000 tick chart with 20 days loaded no indicators here just your drawing tools ,learn how to draw channels and horizontal lines ,DONT ignore what im telling you all the persons who read this post ...

Look for days back where market has bounced many times draw a horizontal line and watch it then look for channels you can use global draw to place those lines on the renko chart you trade off.

Use at least 2 monitors .

 

Then you can make templates of your main trading chart look cool!! add moving averages ,atrs etc..

In this days the hfts really try to play hot hands with us try using a no smaller than 4 renko hybrid or bigger or other type of bar as theres alot of noise in the market the wicks really absorb that noise and keeps you on the trade a little longer sometimes you have be alittle brave to stay in a trade ...

 

I hope this small tutorial will keep you on track for the newbies that are starting or the struggling trader in the past i didnt believe what i wrote but i learned the hard way and still learning this has become part of my life ..

Please dont focus on osilators they just take away screen space completely wothles stuff.

 

have a nice weekend

@misalto:

 

WOW, thank you for bringing us back to reality!!!

 

I cant stress enough to people that day trades the main root in daytrading is the ORDERFLOW not osilators they are derived from order flow ,focus on the time and sales preferably agregated time and sales you need to learn to READ it focus on that ..

 

Next is the support and resistance you need to learn how to draw if you are lazy about this and want to make daytrading your source of income youre gonna learn the hard way,,No short cut here pal..

theres tons of technical traders out there... Remember that everybody trade on minute charts renko, volume 60 minutes traders on all timeframes so theres alot of confusion there the only place traders AGREE is on support and resistance .

 

I personally use a 2000 tick chart with 20 days loaded no indicators here just your drawing tools ,learn how to draw channels and horizontal lines ,DONT ignore what im telling you all the persons who read this post ...

Look for days back where market has bounced many times draw a horizontal line and watch it then look for channels you can use global draw to place those lines on the renko chart you trade off.

Use at least 2 monitors .

 

Then you can make templates of your main trading chart look cool!! add moving averages ,atrs etc..

In this days the hfts really try to play hot hands with us try using a no smaller than 4 renko hybrid or bigger or other type of bar as theres alot of noise in the market the wicks really absorb that noise and keeps you on the trade a little longer sometimes you have be alittle brave to stay in a trade ...

 

I hope this small tutorial will keep you on track for the newbies that are starting or the struggling trader in the past i didnt believe what i wrote but i learned the hard way and still learning this has become part of my life ..

Please dont focus on osilators they just take away screen space completely wothles stuff.

 

have a nice weekend

@misalto:

 

Also, if I might add:

 

DO print out each trade (chart), and analyze it at the end of the day. Make notes on it; emotional state, positive and negative parts of the trade. GRADE yourself on EACH TRADE!! Create a binder and maintain each trade. Go back and refresh your your memory of each trade!! Doing this will reinforce your positive trades, causing you to be a more discipline trader!!