Here is the way i daytrade the Emini-YM

Hi guys and girls, since i know how difficult it was for me to start daytrading for a living and make a good living out of it i though i should share my system with the rest of you guys and hopefully some of you new fellow daytraders could use this for your advantage.

First i must stress that if u dont have dicipline and dont follow a strict plan you will not
be able to use this system or anyother system for that matter. Daytrading is 90% in your head and rest is having a simple and robust system that you are comfortable with.

Other thing is that you need sound moneymanegmant otherwise you could easly blow you account and it will be a emotionel rollercoster that will make u chass and revenge trade and fogg up you jugdment .

SO here is goes, what i use is 4 charts with different timeframes:

1: 144tick chart with a 89exponential moving average and a 15exponential moving
average and slow stochastics and macd.

2:3min chart with 20exponential moving avererage and slow stochastics

3:10min chart with 20exponential moving average with slow stochastics

4:30Min chart with 20exponential moving average with slow stochastics


I find this to be a pretty simple and easy to understand plan, i belive that making things to complicated just confusses you and you will eventually just get tired and not pay attention and u will do something stupid and loss ur money.

Before i start trading i look at my 10 min and 30min charts to see if there are any strong up or downtrends so i dont start with going against any strongs trends.

Rules are as follow if i wanna go long:
Look at 30min slow stochastics and see if its pusing up or down.
Look at 10min slow stochastic and see if its pusing up or down
Then look at my 3min slow stochastics and see if its pusing up or long, if its pushing down i will wait for it to cycle and go up, i always want for a minimum have 10min and 3min stochs on my side, if not i will not take the trade, now that 10min and 3min stoch is on myside and pushing up i then look at my 1min chart and see if the stoch is on my side, if not i wait for it to turn around and then wait for the macd to comfirm and i go long. But another thing is that the price needs to cross the 89exponential ma on the 1min chart, if it dont go above i will not go long. You can also go long or short using this methode without waiting for the price to cross the 89expon ma, but then u will not have a good place to set a stop in my opinion, i ususaly have stops around 20-27 ticks tops,and when price crosses the 89expon i put my stop right under the 15expon on the 1min chart, that always follows the price closly, i also use it to trail if the trade is pushing higher. The other thing i also look for is, the following , i dont want any of the 20expon moving averageson the 3min and 10min and 30min to be to close to my entry,what i mean is if i enter a trade at 10300 and i see that the 20expon on the 3min is 10 ticks above i will not take the trade, i might consider putting the buy stop right above that insteda, i always prefer to have zero or little support above where i wanna go long or oposite of i was short.


I always trade 3 contracts and have 3 profit targets that i have programed in my infinity platform. I take first profit at +10 and second at +15 and last +25.When second target is hit i always take my stop and move it closer to closest support area and keep moving it up as support follows price.I know some mightsay that +10+15+25 is to little profit but this is working well for me, and buy going out in 3 stages u also lower ur risk, the longer u are in a trade the more risk there is.

For each 5000 in your account u can trade 1 contract, thats my recommendation, if u want to do it lower risk u can try 1 contrackt per 10000 in your account, it all depends how much u want to take, never risk more then 2% of your account in each trade, otherwise ur losses will get you emotionel and u will start making mistakes.

I usualy do around 4-5 trades like these and end up with around 150+- to 350+- all depenidng on if i only get 2 targets and scracth the last, i hardly get stopped and those times i do get stopped is cause i dont pay attention to my rules and entrer to early or to late.Been using this systemfor around 4 months and havent had a loosing day so far and still going strong.Just increasing my contrakt size as my account grow and use the same method with just more cars.And i would thing that most would look at this as a scalp method and i agree i guess.

I have also included a picture of my screen setup and hopefully it will make things clearer, i am not that good at explaining things so if there is something unclear will try
to explain better, please come with comments good or bad.Constructive comments are appritated.




With kind regards
Bashir Naimy
Norway

Btw, i am using Sierracharts and it cost me around 25usd pr month and it got EVERYTHING imaginable, and works like a charm, for those like me that dont like to spend a fortune on charting programs that cost way to much

Bashir. Many thanks for laying out your system.

Very, very simple system. And simple works best. Few things to look at and few things to remember.

Before anyone starts asking. Yes it will work on anything else, whatever you trade.

(I hate those dumb questions. 'I only trade the Norwegian blat against the dutch drogbat on tuesdays, will it work on that?' If not, how can I mess about with it to get it to work properly and give 20,000 blats per trade? PS. I only want to hold trade for 5 mins on my tea break. If not and trade goes against me can you tell me a method where I can hold for 2 months or so. Do you think Spanish stops will work okay on this system?)

Again thanks for posting your method.

Hi options, thank you for you kind reply, more then happy to share whatever i have learned, the most importing thing i have learned is to have a strict plan and stick to it, and besides...simple is best.The more indicators on would use the more redflags could one person see to, and u will most likely just sit there and watch all the trades pass u buy cause some indicator was not inline with the rest, its very rarly that all indicators are in line, if that was the case one person would only trade once a week or so

More then happy to answear questions, so dont be shy

bnaimy said:

Hi options, thank you for you kind reply, more then happy to share whatever i have learned, the most importing thing i have learned is to have a strict plan and stick to it, and besides...simple is best.The more indicators on would use the more redflags could one person see to, and u will most likely just sit there and watch all the trades pass u buy cause some indicator was not inline with the rest, its very rarly that all indicators are in line, if that was the case one person would only trade once a week or so

More then happy to answear questions, so dont be shy

Click to expand...

Now that is the best post I have ever read on T2W

We do have quite similar styles. But I only have 2 charts showing. My main trading chart and a smaller chart top left with a longer time frame. Dependent on what you put on the chart, you don't need to see what a monthly chart is doing!

Yes. I am inherently a scalper. I was taught on ftse futures.
I am not adverse to holding a trade for as long as it is yielding a profit. I would love to hold a trade for 5 years or so then cash it. But this is not me. Best I did (so far) is to hold a trade for a year.

When you use 250 point stops (Trade was doing well and was trades money) and still get taken out it still hurts. More miffy when only days before 50 point stops were fine!

More importantly I prefer to get done early. I will still sit at the computer and check charts, but the longer the day goes on the longer it becomes more risky for me.

A lot of people say you can't make money daytrading over a long period of time.

These people should get out more and not voice an opinion over something they clearly have a biased opinion about, and maybe only a smattering of first hand knowledge.
Just because they can't make consistent money at it does not mean that it cannot be done.

Firstly, to make consistent money in the market you have to know yourself. There is no time limit on finding this out. There is also no time limit on adapting yourself to suit conditions you wish to trade in. Hopefully when people discover this they have some money left to start making a profit from a harsh mistress.

Thanks for sharing your experience Option, what i have reliazed is that there are bigger profits to be had buy doing scalps the holding for a long time, cause you can trade the marked both ways severel times a day and maybe the marked closed up 70 points but u managed to squizze 150 ticks out of it, thats the power of scalping.And i agree with you that there is not any need to have to large timeframes cause u will be out of any trade long before those timeframes gives u anything u can use to scalp, and also that the longer the day gets the easyer it is to not pay attention and make mistakes, if u meet ur daily goal then either scale down on the contracts and just trade small lots if u HAVE to trade, that way even if u get stoppped a few times u will not give all your profits back. And those who talk about that making money in the long term is not possible are people who tryed trading and though it was easy money and gave up to easly after blowing up their account or it was to demanding.

Daytrading in my opinion a very demanding profession, and i treat is an profession and not as a gamble, if i wanna gamble i would rather go to a casino and get my hearth beating there. It demands alot of time and effort and will put your mind to the test, like any profession it takes time and effort to succed. Anothing that is favoring scalping is that u always take ur profits quick and take whatever the marked gives and at the same time u lower ur risk right away.THose who hold for long will alot of times see a trade go in their favor and then after alittlebit it would go against them and they would be stopped, if they had scalped ,they would be out with a profit. Its just simple math, there is more chop and up and down then smooth uptrends in the futures markeds,so scalping is favored.

I think the biggest mistake most traders that fail think of trading as a simple and easy money that anyone can do, if they had only done their research and done trades on a simulator for a few months they would learn the profesion and not risk their capital at he same time, buy the time most new traders find something that work they dont have any capital left and they give it up.

What i can say NOW is that trading is actualy easy , when u know how to controll your emotions and have some sort of a solid plan and stick to it, dont have to be any spectaculer or complicated.And as always have a sound money managment.The goal for every trader should be to get a steady equity curv and grow steadly, greatness comes with repetition.There is no such thing as making millions after a few month, but give it a few year and u will be alot closer to that million.

Its a shame that new traders do come on with the right idea that is is easy to trade, BUT ONLY AFTER U HAVE GAINED THE SKILLS TO CONTROLL YOUR EMOTIONS and HAVE A SOUND MONEY MANAGMENT AND A PLAN U STICK TO.


Enough rant from me
You all have a wonderfull weekend

With kind regards
Bashir Naimy
Norway

Thanks for posting this bnaimy.

Dumb question time (sorry options!)

You refer seperately to a 144tick chart, then a minute chart. Further, you refer to a 89 and 15ema of this chart.

I presume you meen 15 and 89 of the tick, not minute?


Thanks in advance,

UTB

Any specific reason you trade the YM and not ES?
Is is the margin rate or do you feel more comfortable with the Dow?
Just starting out in trading and am trying to find my way.
thanks

the blades said:

Thanks for posting this bnaimy.

Dumb question time (sorry options!)

You refer seperately to a 144tick chart, then a minute chart. Further, you refer to a 89 and 15ema of this chart.

I presume you meen 15 and 89 of the tick, not minute?


Thanks in advance,

UTB

Click to expand...

Hi blades, sorry about the confussion, i wrote something wrong there.
There is no 1min chart, what i was trying to refer to was the 144tick chart.

On a 144tick chart i have a 89exponentioal moving average and a 15exponential ma.
And one the 10min and 30 min and 3min charts i have only 20exponetial moving averages to show me places of resistance and support.So what you though was 100% right.

Sorry again for the confusion, but the trading method have been working very well for me,my hitrate with this is almost 95%. The only times i get stopped is when i am not following the rules and not paying attention to all the charts and get glued to one chart.

With regards
bashir naimy

jimbob42 said:

Any specific reason you trade the YM and not ES?
Is is the margin rate or do you feel more comfortable with the Dow?
Just starting out in trading and am trying to find my way.
thanks

Click to expand...

Hi Jimbob42, i trade the YM cause of the margin rate.Other thing is that i need
make my psycology strong enough to handle the bigger losses that could be had in
the ES.Each ES is worth more and,so profits are higher but then again gains are higher.

But i would recooment new traders to start with YM, its easyer to learn and not blow ur account with. I highly recommend u find a broker that can provide a simulator account that u can test ur stategy with, no point in risking money to test things out in realtime.

Just something from my own experience, but just start out slow with small size and work your way up, and always use stops and have a solid plan, and stick to it. THats the best advice i can give you, If u can do that,then u will become the 10%-5% that makes it in this proffession.

With regards
Bashir Naimy

Hi Bashir

Another silly question I'm afraid:

Any times of day you prefer to trade this? Any times you stay out?

Just wondering - if you live in Norway, then there is obviously a time discrepancy.

thanks for the clarification Bashir.

A further question if I may - typically, how long are you in each trade and how many trade opportunities per day are there?

UTB

How long have you been following this methodology ?

What's your average return & what are the drawdowns ?

Thanks for the info.
Have been using a simulator for a month or two to find one that I can easly work with. The concept of trading seems basic but the emotional part, when your own money is on the table, is where it can get exciting.
Not going into this business to get rich but if in time I can pull a few $s out from time to time I'd be happy

Thanks and I enjoy your posts

Gumping said:

Hi Bashir

Another silly question I'm afraid:

Any times of day you prefer to trade this? Any times you stay out?

Just wondering - if you live in Norway, then there is obviously a time discrepancy.

Click to expand...

Hi Gumping, i trade when the markeds open usa time 09:30 and until 15:30 usa time.
SO i am basicly trading in marked hours, i dont trade after close or before.

SO basicly that means for me that i am sitting and trading from Norwegian time 15:30 until 21:30.

With regards
Bashir Naimy

the blades said:

thanks for the clarification Bashir.

A further question if I may - typically, how long are you in each trade and how many trade opportunities per day are there?

UTB

Click to expand...

Hi blades, glad to answear any of ur questions. I have usualy around 3-4 trades opportunities pr day. Weird thing is that its very stable , almost always 3-4 trades.
But that is enough for me since i trade 3 contracts and take nice profits, Because of recent volotily i have increaded my stop to around 30-35 tick, and my 3 profit targets for the 3 cars are , +15 +25 +45 = 85 ticks = 425 usd. pr 3car trade. I am risking around 450 as usualy. My hit ratio is very high, so this is a good level for me.

How long i am in a trade really depends on the
marked, but usual i am in the marked everywhere from 2min from 10mins,sometimes when marked is very volotile i can be out withing 1min.


With kind regards
Bashir Naimy

pedro01 said:

How long have you been following this methodology ?

What's your average return & what are the drawdowns ?

Click to expand...

Hi pedro,i dont have any average return, i have my fixed targets and i usualy get em most of the time. I get for each trade where i trade 3 cars is 425 dollors. SO u can say that average return pr.trade is 425 and i have around 3-4 trades pr day.

When it come to drawdown it all depends on your moneymanagment, i never risk more then 2% of my capital at each trade.I never risk more then 450 usd pr trade, higher risk would make it above 2% and that i dont like and my moneymanagment will not allow.


SO if i really wanna take a trade i rather use fewer cars and put a higher stop, if the marked is asking for that.

I have been using this method for around 4 months now and i have not had a negative day yett, most of the time i have 3 good trades, and 1 trade that i take partial profits with, so my average gain pr day is around 1200 something.

My plan so far is that i just keep doing this and build my account size and put on more contracts as my captial allows it.Disipline is what helps me keeep my goal,its easy to get carryed away and overleverage.


I hope that answer your question.

Btw,this is my fulltime job,so i am very risk advert.Dont like risk, if i want action i would rather go to the casino. Trading is borring and should be borring , the day it gets exciting then u will defently loose its like anyother job.So the thing is that u should treat it as a business.

With kind regards
Bashir Naimy

Hello Bashir , thank you for sharing your strategy , I have a question that might sound dumb , but my charting software does not give me 144 ticks charts only minutes is there a way to substitute the minutes or is the tick chart very important ?
Thanks in advance
Sonia