DAX – 3min TS3 long

Hi Everybody,

After the last few posts on the ES, you may think that this is all too much hard work, well as you all know about the Cyclical Nature of Trading, you will know that sometimes trading can be hard, but conversely sometimes it can be a lot more straightforward

For example, this TS3 buy on the 3min Dax that has just been stopped out for a very nice +4.7R Profit (ignoring slippage and commission)

This was using the standard trade management guidelines and as the larger degree trend was up, the trade was a lot easier to mange. As soon as the STF strength band was exceeded, you swap to the ATRStop. This allowed the trade to run up.

Thanks, Steve

ES 3min – Advanced look

As outlined in the post below, the Advanced Trader, knowing that this TS3 long was against the larger degree 15min trend (at the time) should have first moved their stops to break-even quicker, using the 100% initial risk level. Then secondly been quicker to bank profits. The ATRStop is for running trades, and this usually only happens when you are “with” the larger degree trend. Trades “against” the larger degree trend usually are small and as such should be exited quickly. “Cut and run” if you like.........

The result, a slightly larger +2.8R Profit at the first projected profit target.

Thanks, Steve

ES 3min – dilemma con’t

As you can see, the 15min ES Chart had reached DP resistance and had started to decline, so (at the time) the larger degree trend had looked to have reversed down. So should you now consider buys on the shorter 3 and 5min Charts ?

Well, as I have said before, what I suggest is that if you are a newer trader then No, trades against the larger degree trend should be avoided. But if you are more experienced, then you can consider them, but as you know they are against the larger degree trend, then you should look to protect them more aggressively, by moving stops to break-even quicker (100% initial risk level). So it all depends on how confident or experienced you are. But either way, you can make an informed choice as you have a better idea of what the larger degree trend is doing.

Thanks, Steve

ES 3min – dilemma

Hi Everybody,

I received a very good question for a user yesterday and that was whether to take trades against a bounce of the larger degree DP or not. The TS3 buy on the 3min ES yesterday was a perfect example of this.

As you can see, this was a good looking TS3 Buy, which resulted in a +1.9R Profit using the standard trade management guidelines (ATRStop used as STF was strong). But the question was whether this should have been taken at all because the 15min chart was reversing off DP resistance, please see the next post.

Thanks

Steve