Anyone scalping the FTSE Futures??

lurkalot said:
ftse following the same pattern around 5500. Momentum wants to turn though. I think we could have more spikes from the algo traders, so wide stop losses may be needed.
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Disagree. Sorry :( . I'll take the closer stops. I lose less. What is a wider stop for you?
 
There was a mini-breakout in the first part of the hour, which made me enter.

Now, we are tackling a second breakout area. I'm hoping thatr I can hold my long trade.
 
On 3M chart there is a row of tops, starting after 0800, that I am using as support.

DC, if you were long, how much below that support area would you put a stop? This stop business is always a puzzle. I guess it is a pain level, which is why I don't like big ones.

Moved stop to 5515
 
Last edited:
Splitlink said:
On 3M chart there is a row of tops, starting after 0800, that I am using as support.

DC, if you were long, how much below that support area would you put a stop? This stop business is always a puzzle. I guess it is a pain level, which is why I don't like big ones.

Moved stop to 5515
Click to expand...

I try to follow a 2% rule. ie, if my stop gets taken out, it will cost me no more than 2% of my account equity. That means on a typical £10,000 trading account, 2 contracts at 10 points would cost £200 (2%) Targets must be at least double the stop, preferably 5%
check this out Mechanical Trading Systems - Money Management 1
 
Splitlink said:
On 3M chart there is a row of tops, starting after 0800, that I am using as support.

DC, if you were long, how much below that support area would you put a stop? This stop business is always a puzzle. I guess it is a pain level, which is why I don't like big ones.

Moved stop to 5515
Click to expand...

Hi split
not sure Im the one to ask about stops as I dont use fixed stops
but heres my thoughts given the price action upto 10am if I want to go long I would take the pre and post 9am lows and would want a stop at least 10 points below those and I would want to enter around 50% of the move so an entry 507 would be fine and would give slightly better than 1:1 RR
as you say there was a row of tops forming @5520 I would be looking for this to break by at least 20 points or go through and double bounce off the 5520 then a stop would be 5510 area
 
Hey DC.. any more thoughts from you on the target for a next leg down?

I had 5426 .. but the more I look at it I wonder is 4589 the number?
 
dc2000 said:
Hi split
not sure Im the one to ask about stops as I dont use fixed stops
but heres my thoughts given the price action upto 10am if I want to go long I would take the pre and post 9am lows and would want a stop at least 10 points below those and I would want to enter around 50% of the move so an entry 507 would be fine and would give slightly better than 1:1 RR
as you say there was a row of tops forming @5520 I would be looking for this to break by at least 20 points or go through and double bounce off the 5520 then a stop would be 5510 area
Click to expand...

Thanks. I got windy and took profit, first.

I'm away from Footsie, at present. I'm getting too old to do two things at once,
 
supernovered said:
Hi DJ/DC,

I'm just about to start ploughing through the Taylor Trading Technique book. Looking through articles written by other traders on Taylors book (e.g. Linda Bradford Raschke) it is suggested that some chapters be skipped and some aspects of the method be changed.

Do you guys recommend reading the whole book and applying as is, or are you just drawing from certain parts of the book and/or only using some aspects of the described method?

Thanks for your thoughts.
Click to expand...


The way I set about learning this technique was ,
1) Read the TTT book
2) Read the George Angell book Sniper Trading (he covers Taylor in the book)
3) Create your own book by downloading the OHLC numbers from your charting package into excel and use the equations George gives you.
4) You will then have the basis for doing all sorts of fancy analysis
5) You will then realise that the levels dont work as well as you would like so you have to do some tweeking to get the formulas to work for you , through trial and error. The most important ones are the typical penetration and violation levels, also avergae rally and decline numbers
6) Read Linda's work


Now.. what you will find is that there appears to be 2 schools of thought,
the first is that you stick with a simple pattern of buy day , sell day and short sell day .. the second is that you can make more helpful patterns through constructs such as buy day, sell day, sell day , short sell day, buy day. There are also always differences between what one trader calls a buy day and another calls a buy day.. so some will say today was the buy day, others will say it was yesterday. This can be confusing.. but they are only ever one day in difference between them. The important thing is to get a grip of the concept in your head and use the patterns as you see them to map put a route of how price will get from A to B over the period of a week.

I have large posters on my wall with the four major patterns Linda talks of and I use these to help me mentally think through which patttern we might be in this week. As the week unfolds you can then adjust your thinking depending on price action.

Hope this helps.

DJ
 
DaddyJohn said:
I have large posters on my wall with the four major patterns Linda talks of and I use these to help me mentally think through which patttern we might be in this week. As the week unfolds you can then adjust your thinking depending on price action.

Hope this helps.

DJ
Click to expand...

An excellent post DJ

personally I would have had posters of Linda rather than patterns or pippa
 
dont know about you but ftse is flatlining across the page working off its overbought

looks like it might all come together about 1:30
 
DaddyJohn said:
The way I set about learning this technique was ,
1) Read the TTT book
2) Read the George Angell book Sniper Trading (he covers Taylor in the book)
3) Create your own book by downloading the OHLC numbers from your charting package into excel and use the equations George gives you.
4) You will then have the basis for doing all sorts of fancy analysis
5) You will then realise that the levels dont work as well as you would like so you have to do some tweeking to get the formulas to work for you , through trial and error. The most important ones are the typical penetration and violation levels, also avergae rally and decline numbers
6) Read Linda's work


Now.. what you will find is that there appears to be 2 schools of thought,
the first is that you stick with a simple pattern of buy day , sell day and short sell day .. the second is that you can make more helpful patterns through constructs such as buy day, sell day, sell day , short sell day, buy day. There are also always differences between what one trader calls a buy day and another calls a buy day.. so some will say today was the buy day, others will say it was yesterday. This can be confusing.. but they are only ever one day in difference between them. The important thing is to get a grip of the concept in your head and use the patterns as you see them to map put a route of how price will get from A to B over the period of a week.

I have large posters on my wall with the four major patterns Linda talks of and I use these to help me mentally think through which patttern we might be in this week. As the week unfolds you can then adjust your thinking depending on price action.

Hope this helps.

DJ
Click to expand...

Many thanks for your comments DJ - very helpful. (y) (Thanks also to DC for his comments yesterday).

I shall be on to a certain well know internet book seller asap for some Christmas reading. As regards Linda Raschke's work, I've read one or two articles of her website and on forums - is there any specific book/article you would recommend?

BTW, hows the 1 minute chart cold turkey going - have you been tempted into just one wee look?:p

Thanks again.
 
supernovered said:
Many thanks for your comments DJ - very helpful. (y) (Thanks also to DC for his comments yesterday).

I shall be on to a certain well know internet book seller asap for some Christmas reading. As regards Linda Raschke's work, I've read one or two articles of her website and on forums - is there any specific book/article you would recommend?

BTW, hows the 1 minute chart cold turkey going - have you been tempted into just one wee look?:p

Thanks again.
Click to expand...

no .. not at all...(y)
 
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