Thursday, August 13, 2009

Trades for 08/13/2009

Hello Traders,

No trades today! If you follow me on Twitter you know why. But if you don't, my daughter had a doctor's appointment at 9am and I didn't send her to daycare after. So I was in and out periodically throughout the day, doing a few tweets and watching cartoons. Its a shame I didn't trade because there were some great setups! The rule is no trading with kids around, so I stuck by it.

Lets talk about the new chart!
Its from our good friend The Wizard at Big Mike's Trading Blog . I had it running all day to grab live data. looking it over, it gave some decent entries that I'm really excited about. The rules for entering and exiting are on the forum so go check it out. Here is the gist though, when the fast SMI line crosses the Slow SMI line take a trade with the trend. pretty simple right? Maybe...

I'm going to go over some of the setups produced today. I marked them on the chart. The Arrows are entries and the 'T's' are exits.

The first one was a long at 1000.75 and flat at 1008.75 (marked with a "T"). Nice 8 point move right!
The next one was Short at 1008.00 and flat at 1006. Good for a quick two point scalp and helpful in setting up a great divergence (marked by the sloping white lines).
The Divergence played out well, giving another short at 1008.75. This one was good for 5 points! exit 1003.75
The last trade was a long at 1005.50. Its still running but I would be getting flat here in AH at 10012.50 so we will count that 7 points.
So 22 points total or $1100 in profit in one day.

So what do we say, Freaking super right! No, not really, ha! These things look easy in hindsight. Trading this thing live is another story. You have to have a keen eye to recognize the support and resistance levels. Also it just so happened we had a volatile day. Lets say we had a choppy day like yesterday, where we zoomed up at the open and chopped around there until the Fed announcement. What would have happened? I lost 28 ticks yesterday if you remember (I sure do). So caution is advised before just jumping in with both feet.

Another point: The original chart setups actually did better than this one! Mostly because it gave entries a little earlier and got you out of trades quicker too. The conclusion, this setup lags a bit. Now that is not necessarily bad. It might be less likely to get you into a false signal. In my opinion, we have to be in a pretty decent move to get those two SMI lines crossing.

EDIT: Wiz sayz use a 380tick chart for entries kids! I'll be checking this out further in the meantime keep reading!

So, here is what I'm going to do. Give this chart a chance tomorrow and trade it with one contract. I'm still up on the week, although a small amount, and I'm not really in the mood to blow it. Now if I make $1100 then I'll obviously be buying everyone in Pittsburgh drinks! So lets see how it goes, follow me on twitter You don't even need twitter to see the updates, just open it in your browser. Visit big mike's blog to download the chart and templates for Ninja Trader and you can follow along. Have a nice night everyone


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