Eminis: multi positioning?

[clylbw]

Hi,

I wonder if it is possible to profit from both the trend and the pullback in Eminis.

Suppose I have a position in the direction of a trend when a potentially profitable pullback begins. While I do not wish to liquidate my current trend-following position, I want to profit from the pullback. Is there a way to do so? How can I account for the increased risk?

Thanks indeed.

 

[ardhill]

I wonder if it is possible to profit from both the trend and the pullback in Eminis.

Suppose I have a position in the direction of a trend when a potentially profitable pullback begins. While I do not wish to liquidate my current trend-following position, I want to profit from the pullback.

Two separate accounts maybe?

If you don't want to liquidate your position, you could open a short term position on another account for the pullback. Depending on the size of the position taken, you could either hedge against the pullback with your second account (same position size), or profit if you took a position larger than your longer term 'trend' position.

All ot that is of course assuming that you trade the move correctly (not a comment about your trading ability).

 

[clylbw]

Thank indeed.

I suppose a separate account can solve the problem, but then there is the additional fee and management.

Maybe options can be used for my purpose within a single account, but they are just too complicated for me.

 

[donaldduke]

Just some thing that poped into my head while reading , dont know workable it is:

If you are trading a liquid market like ES (not YM) you could use next quaeters contract!

You maybe able to do this with YM too if you are swing trading.

 

[clylbw]

Thanks, donaldduke.

No, I am afraid I trade the less liquid contracts, so using next-quarter ones is not always applicable.

 

[options]

My personal preference would be to swing with an sb for the longer moves and scalp/play for the shorter moves with another co. I used IB for the scalping and steal 4 free for the longer dow. Given that you don't need a lot of money for either account, it's quite the ideal set up.
The sb was chosen for the longer term run because of the tax situation.
Only thing is you quite often find yourself going the same way when scalp hunting and it turns into a longer trade than originally planned!

And yes DD's right. You can use diff month contracts.



#posts crossed. sorry C. That's a dangerous game you play with the less liquid contracts.

 

[clylbw]

Thank options.

That's a dangerous game you play with the less liquid contracts.

Yes, indeed.