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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