McGrainTrader
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Howdy folks,
First time writer, long time reader. I'm excited to get some ideas from anyone (newbie to pro) and to share what I've learned.
Quick backround 4 ya. I started trading the grains (Soybeans, Wheat, Corn) 14 months ago and I am just barely over break even. I am a Day Trader/Scalper type until I can get the margin and tolerence for swings and positions.
I am just now discovering/developing what I hope to be a good system. Of the 3 main grain markets, this system is meant for the Soybeans which I trade the most (Wheat is a dog and Corn is almost too liquid), but I imagine it could be used with most instruments out there. Here it is so far:
1. I develop a bias based on Day, Hour & 30 min Trends. I look at Divergence with the MACD and RSI that can signal trend reversal, aswell as Hidden Divergence that can signal Trend Continuation. Also, with the grains it's important to have an understanding of the fundamentals...although with the way these funds bully the markets it almost seems irrelevant these days
2. At the open I am looking to trade a breakout (in the direction of my bias) of the 1 min bar chart. But there are a few different ways I look at doing it:
A.) I will put an SL entry order at the brkt point of the 1st complete 1min bar. If filled I will add 1 cent (4 ticks) against or with my direction (whichever comes first) and my out is 2 cents against my average or the opposite brkt of the 1st bar (whichever comes first). This is my least favorite way of doing it, but worth taking because of morning momentum.
B.) I prefer getting an inside bar and trading that breakout with the other side being the cover.
C.) Whenever I can I try to enter as close to my out as possible and anticipate the breakout while minimizing my risk. If the brkt happens it simply confirms I stay in the trade.
My rule on profit is take the 1st 4 cent gain for half my position with a 3 cent Trailer or 8 cent take on the the other half.
Here's a hypothetical example of my ideal trade (bias is long)... 1st bar: High-900.00 Low- 884.00, 2nd bar: High-889.00 Low-887.00...I have an inside bar now, my bias is long so my out is now 886.75 (one tick below the 2nd bar low) I want to enter as close to that as possible. 3rd bar now and I get long at 887.25, I put a SM Sell Order at 886.75 and a SL Buy order to add to my position at 889.25 (that's the long brkt of the inside bar). 4th min bar now and we got a little rally, I've added to my position. Rally continues over the High of the 1st bar confirming my trade. My avg is 888.25 and my out is 886.75, within my tolerence. I take 1/2 off the table at 901.25 making 4 cents profit. I have a 3 cent trailing stop on the other half that is now sitting at a scratch (889.25 cause market is now 902.25). BOOM! the shorts run for cover and we get a 10 cent rally! Im out at 907.25 cause I have to take the 1st 8 cents on the second half. Left a little on the table but followed the rules...that's what most important RIGHT!?
OK...anyone please ADD, SUBTRACT, CRITICIZE, ASK ME STUFF, SHARE THOUGHTS:smart:...I am not a pro but my desire is up to the task, I 've done plenty of suffering and taking things personally...it's time for me to become a trader. My idea of that is to trade a system and leave my ego at the door.
Much love,
McGT
PS Any grain traders out there?
First time writer, long time reader. I'm excited to get some ideas from anyone (newbie to pro) and to share what I've learned.
Quick backround 4 ya. I started trading the grains (Soybeans, Wheat, Corn) 14 months ago and I am just barely over break even. I am a Day Trader/Scalper type until I can get the margin and tolerence for swings and positions.
I am just now discovering/developing what I hope to be a good system. Of the 3 main grain markets, this system is meant for the Soybeans which I trade the most (Wheat is a dog and Corn is almost too liquid), but I imagine it could be used with most instruments out there. Here it is so far:
1. I develop a bias based on Day, Hour & 30 min Trends. I look at Divergence with the MACD and RSI that can signal trend reversal, aswell as Hidden Divergence that can signal Trend Continuation. Also, with the grains it's important to have an understanding of the fundamentals...although with the way these funds bully the markets it almost seems irrelevant these days
2. At the open I am looking to trade a breakout (in the direction of my bias) of the 1 min bar chart. But there are a few different ways I look at doing it:
A.) I will put an SL entry order at the brkt point of the 1st complete 1min bar. If filled I will add 1 cent (4 ticks) against or with my direction (whichever comes first) and my out is 2 cents against my average or the opposite brkt of the 1st bar (whichever comes first). This is my least favorite way of doing it, but worth taking because of morning momentum.
B.) I prefer getting an inside bar and trading that breakout with the other side being the cover.
C.) Whenever I can I try to enter as close to my out as possible and anticipate the breakout while minimizing my risk. If the brkt happens it simply confirms I stay in the trade.
My rule on profit is take the 1st 4 cent gain for half my position with a 3 cent Trailer or 8 cent take on the the other half.
Here's a hypothetical example of my ideal trade (bias is long)... 1st bar: High-900.00 Low- 884.00, 2nd bar: High-889.00 Low-887.00...I have an inside bar now, my bias is long so my out is now 886.75 (one tick below the 2nd bar low) I want to enter as close to that as possible. 3rd bar now and I get long at 887.25, I put a SM Sell Order at 886.75 and a SL Buy order to add to my position at 889.25 (that's the long brkt of the inside bar). 4th min bar now and we got a little rally, I've added to my position. Rally continues over the High of the 1st bar confirming my trade. My avg is 888.25 and my out is 886.75, within my tolerence. I take 1/2 off the table at 901.25 making 4 cents profit. I have a 3 cent trailing stop on the other half that is now sitting at a scratch (889.25 cause market is now 902.25). BOOM! the shorts run for cover and we get a 10 cent rally! Im out at 907.25 cause I have to take the 1st 8 cents on the second half. Left a little on the table but followed the rules...that's what most important RIGHT!?
OK...anyone please ADD, SUBTRACT, CRITICIZE, ASK ME STUFF, SHARE THOUGHTS:smart:...I am not a pro but my desire is up to the task, I 've done plenty of suffering and taking things personally...it's time for me to become a trader. My idea of that is to trade a system and leave my ego at the door.
Much love,
McGT
PS Any grain traders out there?
