Clean Cut ES Trading.

[kimo'sabby]

The 1min chart above illustrates, what i would consider to be, normal or typical ES action within the session.

I've put two horizontal lines on the screen to highlight two breakout trades.

The first order was filled at 19:34 @ 1322.25. The strategy used was a two tick stop with a four tick target.

The second order at 20:46 @ 1324.25 didn't get filled, because i don't trade after 20:30, maybe i should change that rule.

Both orders above were buy limits, not market orders.

I've posted this to highlight the fact that trading futures can be made really simple, it doesn't have to become a rigmarole. Of course, these types of trades don't always work, as with any type of method. The hardest part of this method is the waiting.

All comments welcome. Oh and by the way, before anyone asks, i'm only trading 10 contracts at the moment.

 

[Shakone]

Do you only take them in one direction (with trend?)? Or could a break below 1321.50 have given an entry (assuming you didn't care about the 8:30 rule).

 

[kimo'sabby]

Do you only take them in one direction (with trend?)? Or could a break below 1321.50 have given an entry (assuming you didn't care about the 8:30 rule).

Preferably with the trend. After Fridays action i would not take a break below 1321.50 towards the end of the session. The reason for this is because downside breaks in that type of situation can become quite erratic and hard to nail.

 

[robster970]

Are you just trading off the chart or are you assessing the viability of the breakout to the upside using volume information as well (i.e. there had been a of volume traded around 1323 for some time and clear signs of accumulation at that level, rather than no volume around this prices, a test of 1324 and then the subsequent sell-off)?

 

[kimo'sabby]

Are you just trading off the chart or are you assessing the viability of the breakout to the upside using volume information as well (i.e. there had been a of volume traded around 1323 for some time and clear signs of accumulation at that level, rather than no volume around this prices, a test of 1324 and then the subsequent sell-off)?

Hi Robster,

Here's todays trade and the management of it. You asked if use volume, i used too, but over time you realise that you can see the volume in the PA.

 

[robster970]

Hi Robster,

Here's todays trade and the management of it. You asked if use volume, i used too, but over time you realise that you can see the volume in the PA.

I know what you mean but I just like to know how many contracts have traded at certain prices still (rather than volume traded against time).

Nice trade btw.

 

[kimo'sabby]

I know what you mean but I just like to know how many contracts have traded at certain prices still (rather than volume traded against time).

Nice trade btw.

Thanks. Just for the record, some viewers may wonder why i didn't move my stop earlier, there is a good reason for this.

The market started to turn at around 16:30, 1322.50 seemed like the obvious pivot price. Sometimes when the situation looks too obvious, and too ideal, it sucks a lot of players in immediately, and the action can become a little crazy.

So, i try to show a little patience.

 

[kimo'sabby]

Todays trade, which will be the last for this week. I've divided the shots into different TFs to hopefully give some depth and perspective. This trade, again, is based purely on price action.

 

[robster970]

I really like the simplicity of these set-ups. Is this generally how you trade (using breakouts, with trend, probably a fairly tight stop, limit orders, charts only)?

 

[kimo'sabby]

I really like the simplicity of these set-ups. Is this generally how you trade (using breakouts, with trend, probably a fairly tight stop, limit orders, charts only)?

In general, yes, but not always. I only ever use candle charts accompanied by some simple horizontal price markers. I also use different timeframes to build up a mental picture of what i think the market may want to do.

My stops and targets are fit to suit the current volatility, although the ES volatility is pretty much standard.

I don't always use limit orders, i probably use more market orders.

The set-up is simplistic in nature, very easy to spot and apply. Why make life difficult for oneself?

 

[DionysusToast]

Good stuff - but one thing...

You should consider changing your chart backgrounds - all that white is murder on the eyes...

 

[robster970]

Why make life difficult for oneself?

I've spent a lifetime trying to unwind that mentality

 

[Mike Kshemaraja]

Sometimes when the situation looks too obvious, and too ideal, it sucks a lot of players in immediately, and the action can become a little crazy.

So, i try to show a little patience.

Nice.