Trading the Gaps

[robster970]

Too big for me. Will be interesting if it does fill though.

 

[ilir.shkurti]

Short 87.5 at 9:31, both targets filled by 9:36. No time to post entry and targets separately.

 

[robster970]

Good man ilir.

 

[ilir.shkurti]

Played this one with reduced positions, simply because I was aware it was a kamikaze mission to go short on this morning, on the GDP growth that was reported. Now that I look at the chart, entry does appear to have been executed surgically, which is as far from the truth as it can get. Made a note of this in the blog this morning.

 

[robster970]

I notice you seem to do well on big gaps because you place targets for a partial gap fill. How successful is this for you?

 

[ilir.shkurti]

I have had moderate success with it.

 

[robster970]

When you say moderate ilir, do you mean that the results are mixed, do you find it an effective strategy, or do you not have enough information to ascertain this information yet?

 

[ilir.shkurti]

Results are mixed, and I not have enough data to give a reasonably assured answer. Truth is, days like this make me feel, alternatively, as a tool for having entered, or as extremely lucky; never smart about my entries.

 

[robster970]

I think I know what you mean ilir. One of the reasons I stick to < 4pts is that usually the market volatility and behaviour is a bit more predictable. I've seen with swing trading for the last 3 weeks that the mood on ES is really schizophrenic at the moment and so any large gap and inherent volatility is likely to be hard work.

I was thinking about applying the all/nothing to all size gaps as an experiment but I don't feel comfortable doing that right now. I was curious how you were getting on with a halfway house but it sounds like you have reservations like I do.

 

[ilir.shkurti]

Profit factor is way too low to do the all/nothing for all sizes.

 

[robster970]

Profit factor is way too low to do the all/nothing for all sizes.

Thanks for sharing that. Really useful.

 

[ilir.shkurti]

Do I detect sarcasm?

 

[robster970]

Do I detect sarcasm?

No - it was genuine. I won't pursue a full gap closure strategy.

If I was being sarcastic, you'd have really known it

 

[ilir.shkurti]

Short 78.50

 

[ilir.shkurti]

First target filled

 

[ilir.shkurti]

Rest of position stopped at entry

 

[ilir.shkurti]

Second trade of day, short at 80.5, as of now two first targets filled , stop 6 ticks in the money, shooting for 5pt third target

 

[ilir.shkurti]

Stopped two points in the money

 

[robster970]

I'm really, really annoyed with myself. I hesitated too long to pull the trigger and didn't take the trade today. I got disturbed about 30secs before market open and it really put me off.

 

[ilir.shkurti]

Well, you have a decent excuse. I simply slept too much.