Thursday, October 31, 2013

Hallowen Special!!!

Today I had time to trade the combine. Trade plan for CL was a high probability of a rotation day between 9680-9690 high back to 9620-9605 lows. So fade the extremes.

Trade#1 - Was a scalp to the low but got a -6 tk, forgot the open was 1 minute after entry. When I noticed this I kept stop at a volume cluster and buyer started lifting the offer right out the gate. It did hit scalp target so my focus was a reversal back to weekly VAH 85-90 area.

Trade#2 - Long with target to VAH, but trailers got stopped for +20tks.

EOD- Pretty much was a rotational day. I should have time tomorrow for my combine account. Skipped this Tues/Wed. So stay tuned for tomorrow.

Combine Adjustments

When starting the combine, I used an all in all out money management. Versus keeping a runner as I do with my personal account. And so far I like it with a 2-1 R&R. It's less damage to me mentally. I've had trades up 28tks and hit my +2 BE on my runners.

But I did keep the size the same (2lots). This size is my comfort zone. Since the current strategy I enter via stop orders with 70% percent of trades getting 1tk of slippage.

Wednesday, October 30, 2013

Risk to Reward

I often read and hear about different perspectives on this topic. On one extreme we have scalpers and on the other we have position trading.

My opinion at least at this stage of my development is "why scalp" if your a retail trader. If trading is a business and 1 lot is your product. Risk at 10 ticks (100 dollar product) and your reward is less then 10 ticks. You won't be in business for long.

But on the other side I can see a scalpers POV. It may have to do with there psychology more then having a high win ratio. Taking heat on a positive trade churns my stomach. And for many this plays tricks on your trading plan. But it's part of business.


Price- We all know price is king. Price structure is our momentum tool. Fine tuned with orderflow.

Value- Trend is a cousin more then a friend. I'm referring to trend being relative to perceived value by market participates.  There no such a thing as chop. Auction Market Theory tells us that the market is in a rotation (balance) or trend (imbalance). Identifying these supply/demand area is key and the blueprint to my trading plan.

Time- The market being the arena for buyers and sellers. There's going to be that human element. Time of day and looking at areas that is taught when you first started trading. Prime example which I recently added to my charts and put to practice was moving averages. But only in context with value.

TST combine

The way the combine is structured is a great way for a trader to evaluate themselves. The great thing about the market is that you learn something new everyday either about yourself or the market participates. Plan a trade and trade the plan.

Tuesday, October 29, 2013

Almost There!!!!

Starting to post my progress with my results so far for the TST Combine. Difficult trading 2 accounts (tst/personal). But doing this for possible mentoring in the future. Most stuff out there don't dare take this step. What's better then learning from someone who has proven themselves by passing the combine.