Day Trading & Forex Forum

mechanicaldaytrader

This is posted almost realtime -- reversal was at 12:27 pm ET on the Mini Dow. Hold on for the downstroke, if it turns into a sweet trade (great), if it goes back into a bullish trading range, you would close the short, reverse and go long, expecting higher highs.

After you initiate a reversal (short) after exiting, use the current Orange line value at the time of your entry -as your stop loss (+1 tick) - let's keep it simple!

Since we're in a bear market, probability - wise this will likely be a decent 40 to 80 point downtrend. That's what makes Futures fun! nothing is guaranteed but the upside can be great!


The Mechanical Day Trader

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mechanicaldaytrader

Absence of higher highs (over a period of a certain time) signify the end of the Uptrend that started at market open and had gained in excess of 100 Mini Dow Points. Traders that take the second short can likely expect a 40 to 80 point move down if a downtrend occurs. If the market stays in a trading range, a 15 to 20 profit is taken on the first contract, on 2nd and 3rd contracts traders hold out for a downtrend, otherwise a exit is taken at breakeven or a small profit.

The Mechanical Day Trader

EDIT: Market stayed in Trading Range, reversed at coequal Blue Cycle Lows (always a buy signal) - traders reversed and were long for the higher highs @ 12:25 Chicago. Market went from 11470 to 11500 in twenty minutes; Since you're still in a trading range, you took profits at 11500 on your first contract and are suspicous about staying in longer on your multiple contracts.

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mechanicaldaytrader

@ 1400 ET I am done for the day regarding market commentary. -- Market has retraced a 4 day high, likely trading range or lower lows the rest of the day...

Regards,

The Mechanical Day Trader

mechanicaldaytrader

@ 1405 a pretty sell signal is printed ; -- there is the FOMC announcement at 14:10 (I forgot) or or so; wise to exit the market before the FOMC announcement or put a large stop o your long trade then exit at the higher high.

Good trading and have a great day !

Regards,

The Mechanical Day Trader

Mr.J-Arthur

Ikeno-this trader has 20% drawdowns? Too large. @ 20% it only takes 5 trades to blowup.

Mechanical-sounds like you traded the market nearly perfectly today. I missed the first trade because my stop was TOO TIGHT. And I swear the first trade is the best, because usually you can expect 50-100 pts minimum on the upside or downside.

mechanicaldaytrader

yeah buddy! you can't hesitate on the first trade; they usually use one of the "typical" institutional stops or the recent overnight stop as a reversal stop.

I could have gotten another 100 points out of the FOMC annc, but ya gotta play sometime in Palm Beach County..perfect summer weather today.

The Mechanical Day Trader



Good Trading!

new_trader

@ 20% it only takes 5 trades to blowup?

Only 5 trades?

Mr.J-Arthur, can you show me how this is calculated?...I think there may be something wrong with my maths..

__________________
"It always pays a man to be right at the right time."
-Jesse Livermore

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N.B: Most of my views, advice and opinions are based on short-term trading.
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PKFFW

You know it really annoys me when someone states their own personal opinion(usuallly wrong too) as the definition and then argues from that definition claiming all others are wrong.

Sorry to be the bearer of bad news MDT but your opinion on what is and isn't trading really doesn't mean diddly squat to the actual definition of trading.

Trading is the buying and selling of a product(eg: an emini contract), generally with the intention of securing a profit from the short term movement in the price of the product.

The definition of trading has nothing whatsoever to do with how much you risk compared to how much you expect to gain. It(broadly speaking) has little to do with how long you hold the product for. It has nothing to with having the confidence or not to "stick with your trade". All that is only your personal opinion as to what you personally consider to be trading.

I don't normally agree with much of what n_t has to say but in this case he is absolutely correct when he points out that Warren Buffet would not consider what you do to be trading. Does that mean you are not trading?

And btw, posting a bunch of trades and market commentary that really have nothing to do with the thread is a very transparent way of drumming up business for your other site. So why not just keep that to the thread you started.

Cheers,
PKFFW