Days of Stopping Out Question

[cd173]

Hello Futures Traders

Does anyone have a policy of 'calling it quits' on loss making days. On scalping the DAX I have a rather crude method of 3 lossing trades in a row, which is roughly £100 (6 points or so as I'm at early stages) on 1 contract. History appears to be teaching me that these are the days I should stay away On days when I start with good trades I generally continue to do so, but on loss days it's down hill from there.

It's obviously psychological on my part, but appreciate any thoughts out there

Thanks

 

[qaza]

You have a 2 pt stop on the dax future ?

Where do you take profits ?

 

[cd173]

Hi Qaza

Do you consider that too large or too small. i think it might be a bit on the small side, but so far it's ok. I take profits with a trail stop of a couple of points. So if the move is 5 points I'll come out with around 3.

 

[qaza]

5 pts is not a move, its just noise

 

[qaza]

scalping is a serious topic but the scalpers that I've known never worked with a set stop loss

they tended to trade on their "feel" and would rather reverse than stop

 

[cd173]

Qaza

Agreed it's not much, but may I ask which time frame you use, as I get plenty of signals thru the course of the trading day on a 1min chart.......possibly the problem.............2min chart today does give a clearer picture. Trades generally last only a minute or 2, sometimes seconds.

Cheers

 

[qaza]

I use a 1 min chart to trade dax and I find that ok for short term trading

I try to avoid scalping................. altho most of my trades are scalps cos I am not patient enuf.

Do you trade long anfd short when scalping or do you stick to one side ?

 

[cd173]

Hi Qaza

I use stochastics + a confirming signal for entry. I find I have to be v quick once the confirming signal comes, otherwise I miss the entry. I go long and short. I use Buttontrader for the speed factor. It also has a reverse facility on it, but I'm no way near that good!!!
Yes, patience or lack of plays IMO to big a factor in my results. If I held on, I'd make more.

Enjoyed DAX up to around 8.20am then lost until around 8.40am due to signals but no movement (should have checked volume ). 2min chart today looked to give better results and a clearer picture.

May I ask what type of system you use?

Perhaps I'm over trading........

Cheers

 

[qaza]

well thats the problem with indicators like stochastics, they give signals when the mkt goes nowhere

I could'nt imagine scalping with indicators........... I only look at the price action, even volume is totally unimportant.

My system is really about what I think the mkt is doing and is the result of watching the charts unfold

 

[cd173]

When the market trends I find the signals work very well, but sidesways movements are a disaster. Yes, agreed price action is the key, but I find the signals work for me....if the market decides to move..

 

[qaza]

But you must have had some good signals after 0845 this morning ?

 

[cd173]

Qaza

Yes, some good signals after 8.40am ish. see the attached mess of a chart :cheesy:

You can see where it all went wrong for me!

 

[SOCRATES]

But this is a quietly long market, surely.

 

[qaza]

cd

I'm not smart enuf to understand what your signals are telling you but when I watched really good scalpers they would always be selling at the offer price and buying at the bid.

Its like a market maker, if you are selling at the offer and buying at the bid then if there is sufficient noise , which means that you can buy/sell frequently you should make money, hope that makes sense.

If your signals are reliable then why not try to apply them to a 5 min chart and let em run a bit.

 

[cd173]

Yes, quite right. From what I understand the DAX will generally follow the trend after the first hour's range. So, if it breaks the high of the first hour, go long and vice versa short. I don't short if the market is trending upwards. Although many times you could scalp a couple of points.

If you see the 2min chart attached, you'll see it gave a much clearer picture with fewer signals.....so maybe there's a solution to overtrading!

As I said before I suffer from impatience/nerves so I more often than not exit too early!

 

[cd173]

Hi qaza

Just missed your post. Perhaps scalping is the wrong term to use...more like v short term trade. Occasionally I do get inside the bid/ask...but not often enough for a large amount of orders. If the market moves I find Stochs good for short term reversibles.

Yes, good point about 5min, comments welcomed with regards to 2min chart!

Must learn to sit on hands though!!!

 

[qaza]

But this is a quietly long market, surely.

Socrates,

If you were day trading the dax, would you stay long at this pt. or go long or go short here ?

We've been trading sideways for over 2 hours

 

[qaza]

cd

glad you made the point about v short term trading

afraid I suffer from the same sickness.......................... its not really scalping its simply taking profits too soon

 

[BBB]

Good thread.

As to the earlier point - I too tend to throw in the towel if it's not my day - 2 losing trades in a row for me.

As for the indicies, I think they're all in a funk now. Small ranges etc, no real trends developing. Try other markets - FX futures? Fixed income futures (especially if scalping is your thing.)

Anyway, dont let me stop you 2 getting on with it....

 

[SOCRATES]

Fireworks are expected. It all depends on whether they are deliverd dry or wet.

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SATURDAY 3 rd JULY, 2004. ANNOUNCEMENT

Many of you are asking where the chart is :~

The chart to the above is to be found in No Indicators,
post No 751 # kndly provided by Dr Bungle of Denmark,
at my request that anyone step forward to provide a chart .
This guarantees impartiality.
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