Useful things I've found on the Net.

Nine,

Re your post 21, from FTS8 onwards.

This is the method I’m trying to perfect at the moment (although I ‘discovered’ the method independently as a modification of another method) . I reckon it’s the best approach for scalping. However, I don’t refer to volume - holding a position for seconds, if possible, I don’t think it strictly relevant (however, if someone can convince me otherwise I’ll certainly listen); and I have no need for technical indicators - their lagging nature would undermine the immediacy of the method.

There is one point of yours with which I would disagree regarding this method: “warning against going to too short a timeframe”. To illustrate why, please refer to the attachment in the second pot - tyhe one haere is incorrect.

The charts are for Friday’s CBOT 10-year future. The upper is a 1-minute time-frame, the lower a 10-tick time-frame. 1, 2, 3 and 4 show high/low points (I’ll use only these – it’s sufficient).

Here are the times of the highs/lows. The first figures are for the 1-minute chart, followed by the times for the 10-tick chart. The figures in brackets are from a 5-minute chart simply to provide a broader perspective.

1. 18:31, 18:30 (18:35)
2. 18:45, 18:44 (18:45)
3. 18:48, 18:48 (same time on the 5-min but the bar is a down-bar compared to an up-bar for 1-min and tick)
4. 19:05, 19:04 (19:05).

Is 1-minute significant? Of course it is (5-minutes is an infinity).

I think the greater the time-frame, the greater the risk. Assume you have a buy (sell) signal and you open a position; your entry price should be as close to the high (low) of the high(low) bar as possible, but not at the high (low) as this level would invalidate the high (low) bar as a buy (sell) signal (you won’t know if a bar is a high or low until the following bar).

Your stop is above (below) the high (low) bar. Therefore, the further away from the high (low) where the position is opened, the greater the potential loss to the stop point. And as price can rise/fall over, eg 1-minute (bar), then logically it can rise/fall by a greater degree over 5-minutes (bar)and the further away your stop.

Each instrument has a unique optimal time for generating signals. As shown, the 10-year note is 10 ticks which is also (strangely) the optimum for the 5- and 2-year notes. For comparison, Eurex’s Bund (10-year) is 25 ticks, Bobl (5-year) is 10-15 ticks, and Schatz (2-year) is 25 ticks. However, I think it’s important to occasionally adjust (check daily) these periods to reflect any change in underlying volatility (the same also applies to moving averages, for example – a 5- and 15-minute ma may work fine one day but if the underlying becomes more volatile 3- and 13-minute may be more suitable).

Are there any weakness? Only my own – not closing some losing positions quick enough (but I’m improving).

Any comments welcome.

Grant.

Problems re attachment. Be patient.

This should do it. Apologies for quality

Grant.

Hi Grant.

i think the point nine was making was that newbies would be better looking at higher time frames as there will be less noise and there will be more time to identify and act on possible setups...

personally i find that 2 t/f's are best as per elder as multiples of 5. i have 5m and 1m.

also indicators don't have to be lagging. divergence between an indicator and the instrument is preemptive, no?

had a look at the bund looks pretty good for the shorter t/f don't have the 10 year t note on my platform unfortunately as this would probably be my preference .

cheers bd.

trading day by day by chick goslin his methods are very similar to those being discussed here.

Intelligent Futures Trading - Trading Day by Day - Chick Goslin

as is lbr grail...

Linda Bradford Raschke - LBR Group

personally i think the 3/10 /16 is great.

lbr stuff

some dow charts from last week

Brutus,

Thanks for the pdf's - will read those this weekend.

I only subscribed to CBOT Friday so it is too early to make comparisons with Eurex's fixed-income. However, will be interesting to see how this develops.

Grant.