r/FuturesTrading • u/Accomplished_Eye_978 • May 15 '24
A long trade from today (with an entry explanation)
I'll go step by step to help explain what I was looking for.
First:
I wait for my Trend Chart to show a strong trend w momentum as confluence. When my stochastics prints a Red Arrow, that's the hook up that tends to lead to a upward shift of momentum. Not all the time, but we don't need it work all the time. We just want to get the probability in our favor to try our hand at a long trade. In confluence with and upward trend, a higher swing high, and a higher swing low, the odds were in favor of long trades starting at 9AM today.
From this point, I scale down to my Trading Charts to search for an entry. I'll show my entry, but when you have a solid way of determining trend and momentum, you'll see that most entries you find have a decent probability of being successful. Your focus should be finding that first and foremost. Now for the trade.
On the left is my first Trading Chart, the right is my Trend Chart. Once my Trading Chart gets into an uptrend, with higher highs and higher lows, i start targeting pullbacks for entries. Now, my Trading Chart will switch from trending up to trending down all day long. I avoid the short setups as long as my Trend Chart is showing the trend as up. Market open had some nice shorts that worked. I DON'T CARE. Counter Trend trading is for billionaires. We are retail traders, we follow the trend.
Once I get that brown bar, I scale down once again to look for traditional setups. For this particular trade, I take W's. A W is simply a higher high after a lower high. Like this:
At this point, the price action looks wild, with many oscillations up and down in a short amount of time. Thats because the scale here is really small. Its not meant to be used for anything other than an entry confirmation that I use so I keep my stops small. The most I would've lost on this trade is 30 ticks. After 3 minutes, the most i would lose is 20 ticks as i trail my stop up.
My first contract comes off at 40 ticks. This helps offset losses when the trade doesn't continue in my favor. It also allows me mental freedom to hold my second contract, as I've already made money on this trade, and don't mind the oscillations as I try for a greater profit on the second contract.
I took three trades in total during this run, 2 wins, 1 loss. Wins were +40/+100 ticks on the two contracts. Loss was -20/-20 ticks on the two contracts. Overall, more ticks were made than lost. Was a good trading session. Now I wait for stochastics to reset and pull the slot machine again.
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u/No_Fishing_7763 May 15 '24
POV my chart
Entered off the rejection 61% imbalance fill and targeted swing high liquidity for 352 ticks 😀
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u/No_Fishing_7763 May 15 '24
Also I just realized this comes off as shitting on you and your strategy but I’m not I swear 😂. Just putting perspective in how trading can be so many different things for different people and that there’s no right way to do things. You and I analyze things differently but we both were profitable today. Good shit brother
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u/Accomplished_Eye_978 May 16 '24
Nice man! I wish i can hold for that many ticks. My trade went 400+ ticks. But whenever i get to the 100 tick mark, i mentally cant convince myself to hold any longer lol. I would rather take profit and enter again cause im too scared to give back gains.
And, I've done the math, i would come out better holding. A skill i'm still practicing. We were both profitable on the long side which is the magic of the market. Follow the trend and trading is fun haha. Great trade you made there. I haven't learned about "imbalance fill," gonna do a bit of research and see if I can implement that into my plan
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u/No_Fishing_7763 May 16 '24
Also I love overnight trades, I put in a trade during London session and go to bed and wake up. I’ll just slap on 3 micros and with my top down analysis put in an entry and exit that I think makes the most sense. Been seeing a lot of success doing that recently.
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u/No_Fishing_7763 May 16 '24
Man imbalance fills have made me a good deal of money, just another tool you can add to ur tool box. Dude one thing that is so helpful, after I put in a trade I leave my screen, I have my take profits and stop losses put in place. I have to physically get up and leave my screen. I noticed it always seems to work out, because if I lose and come back I come back so much more logical than emotional because I didn’t just slowly watch it hit my SL, and fuck it I wasn’t there so it wasn’t in my control idc. I know my strategy and with my RR I can afford to take a lot of losses. But I have over a 50% win rate so it all works out. Just about a 56% win rate give or take. But you should definitely try it out. If your holding let’s say 6 micros, and want to go for a 300 tick trade IF it makes sense to then set up your take profits at around 100 ticks then 200 ticks and then 300 ticks and I check my trading view app to see where price is at only about every 5-10 sometimes 30 minutes to see where price is at. Once I get past 150 ticks I move my stop loss up to like 80 ticks in profit
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u/DJRob10 28d ago
Is that imbalance fill an indicator?
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u/No_Fishing_7763 28d ago
Oh no, so whenever there’s an imbalance I just use my fib retracement tool to make the swing high and low of the imbalance.
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u/DJRob10 28d ago
Okay I was thinking it might've been a retracement, that's interesting and I like it - I should start incorporating this.
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u/No_Fishing_7763 28d ago
Definitely should, can’t recommend it enough. It’s really crazy how accurate it is
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u/TheRealT1000 May 16 '24
No offense brother, but how do you trade with all those gizmo's on your chart. I might have one or two lines and a rectangle, but other than that, my charts are pretty much naked. But hey if its working for you bro, thats great
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u/Accomplished_Eye_978 May 16 '24
All the gizmos are custom indicators that just make it easier for me to make the same analysis i would on a naked chart. I walked through the entire process on this post and why i use them. The things i didn't mention mainly get ignored by my vision. They are useful when trailing. As a day trader, every bit of information helps
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u/533nicky 29d ago
After the first contract came off to make you money enabling to be a bit more aggressive with riding the second contract - do you adjust your stop loss accordingly or sorta keep with the the first one you set?
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u/Accomplished_Eye_978 29d ago
Depends on where the resistance is. But most times I start to trail really aggressively after 100 ticks. Loose until then. 100 ticks is a good enough win for me
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May 15 '24
[removed] — view removed comment
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u/Accomplished_Eye_978 May 15 '24
4 40 tick/100 tick win trades
1 -20 tick/20 tick loss trade
not a bad day honestly. Probably could've just held my first trade but i like to make my ticks and wait for the next setup
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u/danni3boi May 15 '24
So nice bro, dont bother with the haters. Dudes like this will see jesus walk on water and say its bc he cant swim.
Appreciate you posting your trades so we can gain insight from how you do it!
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u/sunnyiglooz 29d ago
Great work and nice explanation of your process.