| RESULTS FOR DAY | |
|---|---|
| Contracts: | 1 |
| Net $P/L: | 134 |
| Wins: | 1 |
| Losses: | 0 |
| Win%: | 100 |
| Avg$Win: | 134 |
| Avg$Loss: | 0 |
20 hours ago
Tuesday, October 6, 2009
Going Long
1:45pm CDT - I'm shaking things up and going long - Longer timeframe charts that is! No more trading off 3-tick range charts, 1 min. charts and 5 min. charts. 30 min. will be my new timeframe and primary trading chart. I know this won't solve my personal demons and issues but it can't hurt. The main benefits I see is that it will limit overtrading as I do not intend to do much trading intrabar and it will help me see the bigger picture and hold winners longer. The main negative is that stops need to be bigger. We shall see... 1 short trade this afternoon:
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Long time ago I have found out that the only thing a bigger timeframe will do (at least for me) is to delay the true result of trading. Put it this way if one trades a hourly chart it will take 6 time more to find out if he can trade or not that if he would use a 10 minute chart. The reality is that if one removes the time axis of 2 charts one on 10 minute and other on 1 hour and then shows those two charts to other person that other person will never know wich chart is which because they look the same. Increasing time frame will not solve anything or at least that is my opinion.
ReplyDeletewell said but who know higher tf maybe more agreeable with him, time will tell.
ReplyDeleteI think you are going the right direction, MBA. There is a lot of chop on the ES sometimes, and the longer time frames will filter some of it, so that you don't overtrade (I have done it). In the case of the ES, trading more is not necessarily better.
ReplyDeleteI would suggest you to look at other types of price bars, like the Renko bars, Volume bars or even Range bars. I have been trading with the Renko bars with some success, but since last week, I started trading with an auto trader and the Renko bars don't work as well with it (because of the way they move, and it affects my fills), so I am looking at the using the Range bars. I really like them both, because they give me the real direction of the daily swings most of the time. In my case, I might have 1-5 trades daily. I am using either the 4 tick Renkos or the 8 tick Range bars. These two are very similar in their dynamics. I close all trades at 1:00 PM pacific.
Happy trading!
Jorge
Thanks for comments.
ReplyDeletePaul, I mostly agree but you have to factor in commission costs too. Trading less for bigger moves will reduce the percentage of gross P/L I give back to my broker - In theory at least.
Jorge, I've been using 3-tick constant range charts a lot lately. It's been years since I've toyed with Renko. Maybe I'll dust off those charts and have a look.
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ReplyDeleteSwitching the time frame is no solution at all. It helps you to get a better idea of the big picture but unless you don't have a valid trading strategy and the necessary discipline to execute you will not have more success. Now you use 30min but I am pretty sure you keep changing timeframes and "strategies" like you did in the past.
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