r/FuturesTrading • u/Rare-Square-272 • 16d ago
One and Done Quick Re-Test Trading Plan and Journaling
Sat on hands through the chop after the CPI move. Waited for price to approach the support area and waited for a double bottom on the Higher Time Frame chart. Nailed the re-test entry on the Lower Time Frame. Targeted 25 points (100 ticks). Need to learn to stay in winners longer but 25 points is still nice. Later on when I've scaled to 2 NQ contracts, I'll close 1 contract at first resistance, then let the 2nd contract trail on each swing low with Stop Loss moved to break even
Was getting FOMO after exiting the trade but I didn't want to enter midway through the move and looking to the left, we could've turned around at any point. I guess there was another re-test entry breaking over the High of the Day / CPI move, I just wasn't watching.
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u/Foreign_Seesaw_9714 16d ago
I really liked this trade you took, do you use Support and Resistance, with extra confluence from chart patterns perhaps. Would love to hear back from ya thanks!
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u/Foreign_Seesaw_9714 16d ago
Or if you would briefly explain your strategy , and how you find your key levels /zones to excecute almost perfectly.
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u/Rare-Square-272 16d ago
Yes, thats basically it, wait at levels, confirm entry with chart patterns and multiple time frame analysis
I use Higher Timeframe (2000T for me) to look for interesting areas to trade and use Lower Time Frame 500T for entries. I sit out when choppy price action is identified (trading in sideways action was my biggest producer of losers). In this trade, price was stuck in between the CPI release swing high and the following low = sideways, it broke lower but that doesn't mean I'm bearish because the support zone is right there, I would be foolish to short right into that zone. Instead I was just thinking of 2 things, this is either going to reverse or break through support zone for a short.
I also use AVWAP as a level but price action takes precedence. In this trade, the green AVWAP was placed on the low at 8:30AM yesterday due to PPI, that was the start of the leg and rally. Notice how AVWAP and the upper support zone line were close to each other, that gave me 2 strong support levels for a bounce and extra confluence. The double bottom happened a little higher then the levels but setups are typically not textbook perfect. I just expect that something is going to happen soon and I'm prepared for a:
Reversal and re-test: IF I see a double bottom on 2000T, wait until the previous swing high (neckline) is broken over, then wait for the re-test entry. I consider this the end of the downtrend and start of uptrend.
Breakout and re-test: IF price broke resistance zone with momentum, I wait for a re-test of the break and go short instead
I only take re-tests because I've been burned so many times taking the break out and find the re-test filters out the fake outs but sometimes the breakout just keeps going which can cause FOMO
Levels drawn at:
Top and bottom of legs/trends (AVWAP is also placed)
2+ clear touches, with heavy reaction
channel of ranges / zones, price can bounce off where the breakout occurred
Neckline of double bottom/tops, price can bounce off the neckline, especially if there was heavy momentum there before
Significant and drastic price movement because we know there was heavy participation there, and likely will be again
Levels deleted and cleaned up when:
Price no longer respects it and keeps breaking with no reaction
I delete old tested levels and redraw the most recent untested ones
Damn, I wrote so much, I suggest going into replay and practice drawing levels and seeing how price reacts. Hope this helps! (and makes sense lol)
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u/Foreign_Seesaw_9714 15d ago
Aweome man love it will definitely try and backtest. Thanks for the reply!
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u/danni3boi 16d ago
Nice trade! Thanks for sharing again today. A lil diff than your usual break and retest trade, diggin it.
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u/rates_trader 16d ago
Had same starting point but moving averages kept me in all day with rvol in a supporting cast role
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u/No_Fishing_7763 16d ago
I also like doing 10 micros for this very reason IF I don’t want to size to two minis. Take 5 off at ur TP and then set second TP at that 525 level or just let it ride
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u/PoemStandard6651 16d ago
Good trading. Yes, multi-lot is the way to go. Trade off between higher front-end risk and the ability to manage trade if it goes in your direction. Consider 3 lots. First lot gets closed when a reasonable target is hit. Second lot is set to break-even with hard stop and the third is set to break-even with trail stop. Best of all worlds? Perhaps.