Here is the way i daytrade the Emini-YM

[davidnorman]

He's said that the +10 if fixed, it's part of the order you put in, sell at +10/+30.
Once you fill your order, no need to do anything.
If you followed the rules and got in at the proper price, the buy (or sell when bearish) is all you do, exit is automated. Or so it should be if you use a good tradertool.

It makes things easier on the mind when you can just fire-and-forget. If you know the charts say BUY, just buy and don't worry about the outcome. Let the order play out, have a coffee ;-).

Only thing is, Bashir says he doesn't use trailing-stop, so he probably does a manual stop change after the +10 is sold. I only papertrade still, but i use the trailing-stop to move up 14 (to -6) after +10. When price hits +20, stop is moved up 14 again to +8. So even if the +30 is never hit, if +20 is, the second contract is sold at +8.

Do I understand this correctly once everything is correct for a buy you would take a position with a 20 point stop loss and then sell it at +10 points gain..(assuming i only trade 1 position...as i have said earlier i am using ig index and betting the min of £2 per point on FTSE) .... is this not bad money management ie risking 40 point loss for a 10point gain...

Sorry if I am being Dim about this....

Regards

Dave

 

[the blades]

Do I understand this correctly once everything is correct for a buy you would take a position with a 20 point stop loss and then sell it at +10 points gain..(assuming i only trade 1 position...as i have said earlier i am using ig index and betting the min of £2 per point on FTSE) .... is this not bad money management ie risking 40 point loss for a 10point gain...

Sorry if I am being Dim about this....

Regards

Dave

Eyup Dave,

Yes, it would be poor MM if you only took one position that way. The suggestion is to take 2 positions, and the target of the 2nd gives you a R/R of 1/1.

I'd also consider not fixing your second target, but trailing the stop. A few big gains will be made along the way, that will cover lots of small losses. It will reduce your win% mind, and be harder to trade emotionally.

UTB

 

[vit007]

Hellow everybody. I find that 5, 5 for slow stochastic warks better than 10,3 and also when it goes flat you can use RSI for direction.
what do you think?
Vit.

 

[bnaimy]

Do I understand this correctly once everything is correct for a buy you would take a position with a 20 point stop loss and then sell it at +10 points gain..(assuming i only trade 1 position...as i have said earlier i am using ig index and betting the min of £2 per point on FTSE) .... is this not bad money management ie risking 40 point loss for a 10point gain...

Sorry if I am being Dim about this....

Regards

Dave

Hi David, if you are only trading 1 contract then i suggest you use a 20ticks stop and take profit at +15 OR +20, most of the time u will get those targets pretty easy,but choose what you fell comfy with, i would choose a 20tick target.


The +10 +30 targets are only if you are trading 2 contracts, and i highly recommend you do that, because that will give you a big egde, its pretty hard to make good money with just 1 contract, and you will not be that flexible and with 1 contracts there is always risk hanging over you.Let me explain.

If you do 2 contracts and you have 20tick stops, that means u are risking a tottal of 40ticks right.But when you sell your first contracts at +10 and thats a target you get pretty fast, when that first contracts is sold, you then move your stoploss loss from 20ticks to -7 ticks.Thats means you you stop is not only 7 ticks.And now your risk is ZERO.

Let me explain:

1:Sell 1 conttract at +10 ,and your stop is 20tick(now u have 10tick on profit)
2:Now after selling first contract your stop is moved to 7ticks behind entry.
3:If your second target is hit you get a tottal of 40ticks (10+30=40 ticks)

4:In the case if the second target is not reached and you get stopped out on the
last contract at 7, thats means you dident loose any money at all, because you allready had +10 on that first contract and now that you get stoppped out you lost only 7 ticks,
10-7 is =3, and then take those 3 ticks and minus commission withc is 2 ticks, you are still left with 1 ticks. SO evne if that was a failed trade, you did no loose anything and you got 1 tick :smart:

What i like about this is that, when your first target is hit you are basicly risk free, and you are no longer emotional and you can relax and see what the marked does, and if it goes against you, then you dont care, if it gives you your target, then thats just great

If this was 1 contract, and imagine it was 3 ticks away from your profit and then it goes against you and stops you out, so u are in risk all the time until ur target gets hit.

I hope this explains it got enough :?:

With kind regards
Bashir Naimy

 

[smoodi]

Hey Bashir

Havent beenon the forum for about a week when i last posted page 29.....now upto page 61....amazing. Have stopped with the spreads and applied for account with Open e cry and getting used to their platform( free charts ...which give me all required by ure system and feed) and trading a demo account. Allow me to set bracket orders and run a trailing stop and trade from the chart if i want. I am really starting to get the hang of this now.
I just want to say I remember you saying something which has stood me in good stead......never go long when 1 min below 89ema and short when above the 89ema. It seems like a productive ema imho.
Just an observation......u are dead right about volatility. Have to be ultra cautious but some great runs if on the right side of the trade.
I did notice but might be wrong ...i tried this method on a forex platform with EUR/USD for a few days and volatility much less and it was quite productive. Maybe anyone who has experience of trading both YM ES and the currencies can confirm or refute this volatility observation.

Lastly i look back at my charts and the price history and often wonder why did i not take a small side trade over a longer time frame and just let it run with a generous trailing stop loss (ie 30 or 60 min chart ..open and close on crossing or recrossing the 100 ema.)Obviously difficult in a tight range bound market......but in a wide range and volatile market

Lastly I am still working on the impulse to trade frequently and be patient till the market comes to me with everyting lining up as it should.

Keep up the great example

With much thanks

Shay

 

[bnaimy]

Hellow everybody. I find that 5, 5 for slow stochastic warks better than 10,3 and also when it goes flat you can use RSI for direction.
what do you think?
Vit.

I just tryed those settings you mentioned with slow stochastics, it only increases your lagg by a large percentage,starting to combine rsi with stochastics only adds more things to look at and only creates more confussion.I would suggest keeping things at a minimum, adding more indicators will only creates confussion.Unless you build a system from the groun up, but i have allready tryed countless indicators and my conclussion is that, its not a good idea to combine more then 2 oscillators.

But do give it a try, if that works for you.But i would be carefull with using RSI as a addition.

What i sugggest VIT, is that you use whilder's moving average on the slow stochastics, i belive that is what you are trying to archive.It will smooth things alot more.

WIth kind regards
Bashir Naimy
With regards
Bashir Naimy

 

[bnaimy]

Hey Bashir

Havent beenon the forum for about a week when i last posted page 29.....now upto page 61....amazing. Have stopped with the spreads and applied for account with Open e cry and getting used to their platform( free charts ...which give me all required by ure system and feed) and trading a demo account. Allow me to set bracket orders and run a trailing stop and trade from the chart if i want. I am really starting to get the hang of this now.
I just want to say I remember you saying something which has stood me in good stead......never go long when 1 min below 89ema and short when above the 89ema. It seems like a productive ema imho.
Just an observation......u are dead right about volatility. Have to be ultra cautious but some great runs if on the right side of the trade.
I did notice but might be wrong ...i tried this method on a forex platform with EUR/USD for a few days and volatility much less and it was quite productive. Maybe anyone who has experience of trading both YM ES and the currencies can confirm or refute this volatility observation.

Lastly i look back at my charts and the price history and often wonder why did i not take a small side trade over a longer time frame and just let it run with a generous trailing stop loss (ie 30 or 60 min chart ..open and close on crossing or recrossing the 100 ema.)Obviously difficult in a tight range bound market......but in a wide range and volatile market

Lastly I am still working on the impulse to trade frequently and be patient till the market comes to me with everyting lining up as it should.

Keep up the great example

With much thanks

Shay

HI shay, good to hear from you and that you are doing good.

I dont know if you are using it this or not but i highly suggest you use Whilder's moving average as a moving averagetype inthe slow stochastics on all timeframes.

It will smooth things alot more ,and keep you in a trade for longer periode.THe problem withthe normal simple moving average in the slow stochastics, it was to sensetive to price movement.

I tryed it first then whent back to the simple again, but after more testing i am now back to using whilder's moving average, and my results are more stable and i seems to make me stay away from marginal and fake pullbacks.

Try it out and see how you like it, just remember to have it on all the timeframes, and while testing dont have the old stoschastics version also, that will only confuss,thats what i dide and that rreally messed it up.


I have attached a picture, where the first stochastics on each chart is a slow stochastics with whilders moving average added to it.And the second stochastics on each chart is a slow stoschastics with simple moving average.

If u notice the whilders is alot smoother and the two lines will not cross to often and make u scared.


With kind regards
Bashir Naimy

 

[smoodi]

Thanks Bashir

I will give it a try....it does look a lot smoother and is definitely needed on the OEC platform as slow stochs seem very sensitive and jerky.

Shay

 

[vit007]

I guess on different platform slow stochastic will perform differently even you have the same settings. On my thinkorswim chart slow st.10 3 3 70 30 looks very different from yours. I have Whilders RSI and MA but nothing for slow sochastik.
Does Anybody who use thinkorswim have the same problems?
Vit
Best things in life are for free.

 

[WillemDrees]

I guess on different platform slow stochastic will perform differently even you have the same settings. On my thinkorswim chart slow st.10 3 3 70 30 looks very different from yours. I have Whilders RSI and MA but nothing for slow sochastik.
Does Anybody who use thinkorswim have the same problems?
Vit
Best things in life are for free.

Wouldn't be surprised if different platform give different results. Have no experience with thinkorswim, though.
But now we're on the subject, perhaps some comparative responses in this thread (or a separate one) about different platforms in regards to Bashir's system.
I'm papertrading at Global Futures with their Strategyrunner platform.
I like Strategyrunner a lot, with it's automated exits.
They offer excellent rates and 500$ to even 300$ margins on the e-minis, minimum deposit is about $2000.
The charting of strategyrunner doens't offer al the options needed for the system, so i havent decided yet. I would like to have some hard to get info with regards to charting/broker/margins/minimun deposits. So if anyone like to offer info that would be great.

 

[bnaimy]

Wouldn't be surprised if different platform give different results. Have no experience with thinkorswim, though.
But now we're on the subject, perhaps some comparative responses in this thread (or a separate one) about different platforms in regards to Bashir's system.
I'm papertrading at Global Futures with their Strategyrunner platform.
I like Strategyrunner a lot, with it's automated exits.
They offer excellent rates and 500$ to even 300$ margins on the e-minis, minimum deposit is about $2000.
The charting of strategyrunner doens't offer al the options needed for the system, so i havent decided yet. I would like to have some hard to get info with regards to charting/broker/margins/minimun deposits. So if anyone like to offer info that would be great.

Here are the rates what infinity futures have, please see attached file.
They have very competative rates, in my opinion.

When it comes to charting, i highly recommend you use sierrachart, i dont understand why people pay severel hundred for a software that dont really give them anything extra.

Sierracharts give you a endless list of indicators and everything imaginable, and i personaly only pay 26 usd pr month now, and thats dirt cheap.And the datafeed you can get for them for a additional fee or just get it directly from the trading platform, and that is 100% free.

I am sure the other expensive charts have alot of eyecandy, but i would rather choose funktionaltity rather then eyepopping candy

Sierra Chart - Financial Market Charting and Trading Software

With kind regards
Bashir Naimy

 

[frankW]

I guess on different platform slow stochastic will perform differently even you have the same settings. On my thinkorswim chart slow st.10 3 3 70 30 looks very different from yours. I have Whilders RSI and MA but nothing for slow sochastik.
Does Anybody who use thinkorswim have the same problems?
Vit
Best things in life are for free.

Try 3 10 3 70 30

frank

 

[WillemDrees]

Thanks Bashir,
I had already checked out SC as you've mentioned them before.
On their site i couldn't find info on all the platforms that work with SC.
Are u using SC next to the platform from Infinity, or is it integrated, in the sense that you can trade from the charts or see the buys on the charts? Not very usefull that though.
Infinity looks to be very good.
OpenECry gets a lot of good reviews also.

 

[bnaimy]

Thanks Bashir,
I had already checked out SC as you've mentioned them before.
On their site i couldn't find info on all the platforms that work with SC.
Are u using SC next to the platform from Infinity, or is it integrated, in the sense that you can trade from the charts or see the buys on the charts? Not very usefull that though.
Infinity looks to be very good.
OpenECry gets a lot of good reviews also.

Hi WillemDrees, here is the link where you can see what they support.

Sierra Chart - Supported Data and Trade Services

I am using SC next to my platform and i can even trade it directly from the charts but i dont find that usefull as you mentioned.But the livedate the SC used it gets directly from my infinity platform.

SC also support OpenECry,so u will get the live datafeed from OpenEcry and SC will use that , so ur datafeed will be for free.

With kind regards
Bashir Naimy

With kind regards
Bashir Naimy

 

[elis58]

thanks bashir for your great help for all of us traders, your willing to share and help is amazing :clover:

i would like to understand more clearly about your exact entery after the retracement (for short entery ) to the 15 ema. are you waiting for the price to touch the ma line and immetiatly enter the trade with market order ?, are you waiting to see if the price didn't break the ma line and go against you to the next ma or do you wait that it will start to go down . couse i see many time actualy the price go throwh the 15 ema and would make you stop out.

are you looking at the ES while you trading the YM ? do you find it helpping? maybe one market is leading the other so you have a clue about the next move.

one more thing does anybody use tradestation and know how to change the stoc. ma to whilders ma ?

thank you again , you are great !

 

[bnaimy]

thanks bashir for your great help for all of us traders, your willing to share and help is amazing :clover:

i would like to understand more clearly about your exact entery after the retracement (for short entery ) to the 15 ema. are you waiting for the price to touch the ma line and immetiatly enter the trade with market order ?, are you waiting to see if the price didn't break the ma line and go against you to the next ma or do you wait that it will start to go down . couse i see many time actualy the price go throwh the 15 ema and would make you stop out.

are you looking at the ES while you trading the YM ? do you find it helpping? maybe one market is leading the other so you have a clue about the next move.

one more thing does anybody use tradestation and know how to change the stoc. ma to whilders ma ?

thank you again , you are great !

Hi elis, more then happy to answer your question.

The rules for going short is this, when 10min charts stochastics is going down and 30mincharts stochsaticsis also going down and price is below all support(let me know if havent watchd the video , that will explain what i mean with that), i then expect price to do a pullback to the 15expon ma, and i am expecting the that price level to hold so i am allready ready with a sell limit or i just go marked when price reached the 15expon ma, but i dont short when it hits it exactly the line, i short it 4-5 ticks below that line.That way i am sure i wwill get that trade, cause it does not always go all the way to the 15expon ma.

But there are times when you need to be carefull,if only the 10min charts stochastics is down but 30min chart stochastics is going up, and then 3min charts stochastics is going up, then do a pullback to the 50expon ma,then the 15expon usualy dont hold.

But if 10min stoch is down and 30min stoch is up but 3min stoch is going down, then u do the pullback to the 15exxpon ma.

But as a general rule, even if sometimes the 10min stoch is down and 30min stoch is down, but the 3min stoch is very oversold and about to cross back up, then wait for the 3min stoch to go up and when it shows a indication of weaknes(lines getting closer and crossing) then go short, but always keep an eye on the 10min, if that is now going up while you are waiting for your pullback then u cant take that trade.

I do have a chart of the ES, that i look at times, reason i use it sometimes is that, when price reaches importent techincal levels i try to be carefull, and wait for that to level to broken or hold, i dont want to be in a trade when price on the ES is right at a very very importnet level.But if u follow the rules, then that should not be a issue, its just nice to know what is going in the marked ,and why things are going up or low.



I hope this makes sense, if not let me know and i will try to explain in more detaljes.

With regards
Bashir Naimy

 

[santana55]

I guess on different platform slow stochastic will perform differently even you have the same settings. On my thinkorswim chart slow st.10 3 3 70 30 looks very different from yours. I have Whilders RSI and MA but nothing for slow sochastik.
Does Anybody who use thinkorswim have the same problems?
Vit
Best things in life are for free.

Yes, I have been using TOS and see the same issue. You can apply an exponential moving average instead apparently and get a similar result to the simple MA with Wilder's smoothing added.

 

[jimbo99x]

Hi Bashir


Have you used the system in quieter normal times like we used to have, which surely will come back?

Best
Tony

 

[davidnorman]

Hi David, if you are only trading 1 contract then i suggest you use a 20ticks stop and take profit at +15 OR +20, most of the time u will get those targets pretty easy,but choose what you fell comfy with, i would choose a 20tick target.


The +10 +30 targets are only if you are trading 2 contracts, and i highly recommend you do that, because that will give you a big egde, its pretty hard to make good money with just 1 contract, and you will not be that flexible and with 1 contracts there is always risk hanging over you.Let me explain.

If you do 2 contracts and you have 20tick stops, that means u are risking a tottal of 40ticks right.But when you sell your first contracts at +10 and thats a target you get pretty fast, when that first contracts is sold, you then move your stoploss loss from 20ticks to -7 ticks.Thats means you you stop is not only 7 ticks.And now your risk is ZERO.

Let me explain:

1:Sell 1 conttract at +10 ,and your stop is 20tick(now u have 10tick on profit)
2:Now after selling first contract your stop is moved to 7ticks behind entry.
3:If your second target is hit you get a tottal of 40ticks (10+30=40 ticks)

4:In the case if the second target is not reached and you get stopped out on the
last contract at 7, thats means you dident loose any money at all, because you allready had +10 on that first contract and now that you get stoppped out you lost only 7 ticks,
10-7 is =3, and then take those 3 ticks and minus commission withc is 2 ticks, you are still left with 1 ticks. SO evne if that was a failed trade, you did no loose anything and you got 1 tick :smart:

What i like about this is that, when your first target is hit you are basicly risk free, and you are no longer emotional and you can relax and see what the marked does, and if it goes against you, then you dont care, if it gives you your target, then thats just great

If this was 1 contract, and imagine it was 3 ticks away from your profit and then it goes against you and stops you out, so u are in risk all the time until ur target gets hit.

I hope this explains it got enough :?:

With kind regards
Bashir Naimy

Hi Bashir

That was a very clear description of what you do on the exit...really get that now many many thanks....I will have a long look at this and I will let you know. Will probably put some more capital into my trading account so i am not risking more than 2% each trade...

One other question would the DOW Future Daily be a similar product on the IG Index platform that you acually trade..

Thanks again for all your help and support

Dave

 

[davidnorman]

Eyup Dave,

Yes, it would be poor MM if you only took one position that way. The suggestion is to take 2 positions, and the target of the 2nd gives you a R/R of 1/1.

I'd also consider not fixing your second target, but trailing the stop. A few big gains will be made along the way, that will cover lots of small losses. It will reduce your win% mind, and be harder to trade emotionally.

UTB

Hi Thanks for that between your answer and Bashir's I think I have it nailed....Do you trade the FTSE by any chance and if so how do you find his system on it..

Regards

Dave