Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

Wednesday 5/13/09, +10 ES

+10, woohoo!

Today took patience.  The amount of consolidation/chop was insane.  But I stuck with my signals and my rules, and took four trades.  One small loser, one small winner, and two nice winners for a total of 10 points, all before lunch.  Too bad it was on sim!  But I am testing a lot of new stuff lately, and rules and wisdom say stick to sim when doing so.



The DoubleMA helped provide some re-entries today with great result.  Look for price to penetrate the MA, but your other indicators (including the DoubleMA itself) all still say the trend has not reversed.  As soon as you get the indication it was a fake out, jump on it with a re-entry.


Nothing works every time.  So always be prepared to get out if it is going against you.  Usually if it does go against you, it happens in the first bar or two so be vigilent and just get out if it doesn't look good.  Take a small loss, then get back in later or wait for the next setup.


If you've got huge balls and a big bank roll you can always try to short from the high of the bar, the ECO2 will usually turn at the top of the movement giving you an idea, or you can look at the CCI for extreme run ups.  You are taking a bigger risk so I would expect you to hang on for bigger rewards, or it isn't worth it.  Just keep a real tight stop incase the run up doesn't stop, and it turns into a true reversal.

Mike

4 comments:

Anonymous said...

hey mike i left a request on ninjatrader fourms for you in the link you provided about the updated eco2 i need help with my frama indicator trying to get up and down and sideways colors dont have a clue about writing script... sam

Big Mike said...

Sam,

I don't remember seeing your post but will look again as soon as I can.

But, honestly I have no time to write custom code for you on the color bars, I don't have enough time to get all my own projects done! lol.

However, it is not as hard as it seems, the best way to learn is review indicators which already have the multi-color in there.

I'll add this to my list of things to blog about (multi-color plots), so as a last resort, you can wait for me to address it in that blog.

Mike

Anonymous said...

can you add KAMA to your list of MAs, thanks.

Big Mike said...

I released the new DoubleMA and ChannelThis today. You can download from my blog.

I tried adding KAMA a few days ago, I couldn't get it to really be beneficial due to how fast it scales up/down with its settings.

Mike

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