Nov 082010

I could only trade a few minutes of the US morning session.  I literally got home and sat down at my desk about 30 minutes after the cash open and I saw a short scalp setup and got 3 ticks.  Then I had to take my daughter to her music class so I couldn’t trade again until the last 90 minutes  I got another trade for 6 ticks.  So that makes 9 ticks total.  I traded 3 contracts total which makes $37.50 per trade.

I’m looking for improvement each week and so far I’m on track.

I don’t plan on showing the P/L & performance metrics each day.  The main thing I want to show is a few metrics for measuring profitability and how to pick a goal to focus on.

  5 Responses to “ES metrics are good”

  1. Good trading. A few questions when you have some time:

    1. Are your scalp trades still based on market profile areas (vpoc, hlv etc) ? And if so how do jyou udge that they are “scalps” ? is it because other ‘areas’ are close by so the potential move is not so great ?

    2. We’ve exhanged some comments on Big Mike’s forum on a few threads, i think. I believe you mentioned at some point about X-Trader. Are you using that to trade currently ?

    3. On a general note, you seem to have hit the hard to find ‘consistently profitable’ zone in your trading, which is something I am trying to aspire to. Just out of interest, are you all self-taught, or have you had some professional trading (say from a prop firm) in the past.


  2. Great questions again, please keep them coming!

    1 – All my day trades start with scalps. I’m now trading 2 contracts when the setup looks good, and I look for +4 ticks and then as much as possible out of the second but I don’t get greedy. If I have doubts or if it’s countertrend I enter with 1 contract and just go for 4-6 ticks. For me the key is to start small and once consistent try for a tick or two more and slowly adjust it until we get the optimal amount (which varies by setup, context, & market conditions). Yes I use MP & VP levels. I find those will pop at least a few ticks and that’s all I need to try a trade.

    2 – I use x-trader for Bund & ES. I really like it. I like the “fisher price” look to it. It’s big and makes it easy for me to see & click. Now that I’m used to it, going back to ninja I feel like I need glasses. 😉 To be completely honest I’m not sure I really need x-trader. I often use Ninja’s market replay to practice things I messed up trading live and the Ninja DOM is fine. The advantage to x-trader is when you trade a high volume you get cheaper commissions.

    3 – All self-taught. Mostly from books, free webinars, and lots of practice. How long have you been trading? My daytrading has been profitable since May and that was 2.5 years into trading most of that over 40 hours per week. Evenings, weekends, I used to dream about trading. I firmly believe in Gladwell’s 10,000 hour rule. I estimate I have about 7500 hours now.

  3. Thanks for the answers.

    On X-Trader I believe the trade counts are cumulative once they trade at the same price. The other DOMs I’ve seen show each individual size. Is that relevant to order flow analysis. I read on F71 that he uses the Infinity DOM and that shows individual sizes, which he said is more useful. Just wondered what your take on it was.

    In answer to your question, I have been seriously trading for 2-3 years. Before that I was testing and learning etc for a couple of years. Started off in US Stocks and did pretty well, but then lost some consistency and couldn’t get the same returns I was achieving before. I’m still kind of looking into it as it may just need tweaking. But recently I’ve switched more to Futures to see if I can learn that. I live in the UK, and work mornings in normal job, so I have afternoon free for the US open. Job-wise, could be leaving next year due to company scaling down. But at the moment I can trade and still have regular income which is good as it reduces the pressure a bit.

    Want to trade for a living full time, still quite a distance from that at the moment though.

    P.S My Blog is: in case you want to drop by some time.

  4. The cumulative volume is helpful because you can see what really traded versus what was pulled. That’s important for scalping. I’m entering at key levels so it’s not as important for me but I still like it. I also like the histogram. I have that on my chart as well but it’s nice to see it on the DOM.

    The problem when the volume isn’t cumulative is that if someone trades 100 lots and then someone trades 1 lot and there is a pause, on the Ninja DOM you will see 1 which is completely useless. You want to see 101. If you use a DOM without cumulative volume then you can get that information from the time & sales or a volume ladder. When scalping it’s mandatory to have it on the DOM as one has to be very quick and there isn’t time to look around. When not scalping then it’s not as important.

    I use scalping tactics to enter my trade and manage it until the first target is hit.

    FT71 uses x-trader. I’m not sure where you saw that he uses Infinity’s DOM. All professional traders use X-Trader because the commissions are much cheaper than software that caters more to the retail group such as Ninjatrader. If one is doing thousands of contracts per month then the commission savings are substantial. The Infinity DOM is pretty basic.

    I’ll check out your blog.

  5. If you trade the ES the cumulative count is very useful because it trades a lot singles very fast (algos splitting up big orders). For the FESX or FGBL Ninja is just fine. The commission is higher because NT pays patent fees to TT. You can also use CQG which is also very pro.


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