Robert H
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Content Count
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Joined
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Days Won
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Posts posted by Robert H
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Make sure 'include in scale' is unchecked for every study except Price.
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David, it takes a lot of practice to plan a trade in real-time (especially in the first 30 minutes of the market open). At least a month and hundreds of attempts until you develop a process that works for you. Once you get good at planning and managing the trade, you will be able to do it faster and faster each time. Like muscle memory of sorts. Here is what works for me:
Prerequisites
1. Stock is in play
2. Support and resistance identified in pre-market
3. Pre-market volume and price action is tradable
4. Know the float category (low, mid, high) and how many sharesI plan to take
While watching the stock
1. Spread is manageable
2. ATR/price swings accounted for (i.e, see how much the stock ticks. Is it going up/down in 0.01 to 0.05 increments, or 0.50 to $1)
3. Price action is clean and not choppy; related to above
4. Volume is good and not dying
5. Who is in control: buyers or sellers?
6. What is the strategy/pattern that is setting up here?
7. Is the price getting extended?
Finding an entry
1. Is the entry favourable (new 1-min or 5-min high), or will it be a chase
2. Did the stock pullback yet? If not, to which level could it test and will I survive that?
3. What's the target? Is it realistic?
4. Finding a reasonable stop at a technical level
5. Calculating the risk-to-reward
6. Executing the order with conviction--no hesitation
Managing the Trade
1. Is the live price action still clean?
2. Are we making higher-highs and higher-lows, or vice versa?
3. Are there are levels or tops/bottoms that I missed before entering that have now become a factor (i.e, a moving average on the 1-minute chart)
4. Is the market providing new information that validates or invalidates my original criteria?
5. Is the Level 2 bullish, bearish or neutral?
6. Is it a good time to add more (if I scaled in initially), or should I take some profit off the table?
7. If scaling out, how much and at what levels?
8. Is the price action conducive to my original stop/target?
9. Is control between buyers and selling shifting?
10. Given the above, does it make sense to stay in the trade or exit at break-even, before stop, or before target?
I know that is a lot to process in a short amount of time, but those thoughts go through my head before and during a trade. For others, it may be much simpler or even more complex. Best of luck.
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JNPR Opening Range Breakdown/Moving Average Trend – May 2, 2018
JNPR filled the gap this morning after gaining $2 overnight. I missed the 5-min and 15-min ORBs but noticed that it was still making lower highs and lower lows with little support. At 9:50 AM I saw it lose the 50 SMA and decided to take a stab. My stop would be above the MA, at 26.25, and a target at 25.75. With an entry of 26.15, my reward-to-risk was 3.5.
At 10 AM or so, I thought that a reversal was pending since it failed to make a new low on a doji. I took some profit on the next candle and thereafter. Once the stock broke the 30-minute opening range, the bottom began to fall out. I patiently took profit at the levels I found from the daily chart and was all out once it reversed back to the PCL.
As Brendon stated above, keeping the last bit of shares until break-even can be a good habit to develop. It really paid off to let this winner run for over 3 hours!
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Great post, Abiel! Also note that it failed to make a new low two times which was a sign that bears were getting exhausted.
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Ron, I consider break-even a loss since I track my P&L before commissions on individual trades.
Anything over break-even is a win in my books (even $1).
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I've e-mailed everyone regarding T-shirt sizes. Mike R, please contact me. I wasn't able to find your contact info. Thanks.
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Still haven't decided on a venue. Thinking of Cactus Club/Joey's type establishment. We're open to any suggestions.
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ARNC Opening Range Breakdown, VWAP Chop, VWAP False Breakout, Moving Average Trend - April 30, 2018
I overtraded ARNC today and went 2/4. It was put on SSR after gapping down over the weekend. The Bears took the stock down at the Open, but it pulled back to VWAP and went sideways for about an hour. After it lost VWAP, the bleeding continued well into the afternoon.
1st Trade - ORB
After the initial dump at the open, I waited for a momentary pullback to VWAP as this is a pretty a common occurrence on ORBs. The spike came at 9:35 AM and I watched to see if it would make a new 1-min low and 5-min low at the same time. My stop would be above VWAP, and my target at 19.27. I caught an entry at 19.86 for a reward-to-risk of 2. I scaled out on the way down with the last bit covered at VWAP. Brian P took the same trade, but had a much better entry in the first few minutes (I probably sold my shares to him for the cover).
2nd/3rd Trade - VWAP False Break Outs
After it looked to have rejected VWAP, I went short again. Unfortunately I was stopped out. At this point I believe Andrew had just got out of his long position on ARNC. Immediately after stopping out, I went long hoping to get to the 20 EMA, but again was stopped out below VWAP. Both of these trades were very low reward-to-risk, 0.7 and 1.6, respectively. It was clearly chopping up and down and I was better off not trading it until it found some direction. These weren't the best trades and I ended up giving back 2/3rds of my winnings in just 10 minutes!
4th Trade - VWAP False Break Out/Moving Average Trend Trade
I am really proud of this trade because I didn't let the two prior losses deter me. As Mark Douglas says, 'every moment in the market is unique.' I saw that it was clearly losing the VWAP and that volume was coming in. I went short at 19.45 with a stop above VWAP and a target at the low of the day. The reward-to-risk was in the neighbourhood of 2.5. I covered most around the 19 level but let some ride for nearly 3 hours and covered the last bit at 18. It reversed to 18.40 afterward so that whole-dollar level ended up being strong support.
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INTC Opening Range Breakdown - April 27, 2018
INTC quickly lost the VWAP at the open and looked incredibly weak. At 9:35 AM, I went short at 55. My stop was 0.10 above VWAP at 55.25. The profit target was the MA below at 54.50 and the 54.35 level below that. The reward-to-risk was around 2.0.
About 5-10 seconds after my entry, Andrew called the same trade. I knew that the odds were in my favour! INTC quickly dropped 0.50 to the MA (where Andrew covered all), and continued down to 54.20. I held the last bit in hopes of surviving the pullback, but it spiked to VWAP and I was all out. The stock continued lower to the PCL before bouncing around.
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CASA VWAP Reversal - April 26, 2018
Here's a trade where I went against my intuition and missed a huge run. CASA sold off heavily in the first 15 minutes. Then it failed to make a new 5-minute low on a double bottom. I went long at 23.85 with a stop at the loss of the consolidation area on the 1-minute chart at 23.70. My target was the 9 EMA on 5-minute chart and VWAP above that for a reward-to-risk of 2.1.
Five minutes after having entered the trade I got cold feet. There was a 20-30 second lull in volume which caused me to chicken out and sell at break-even. Almost immediately after the stock shot up past 2 MA's and VWAP to 24.55. I watched the epic short squeeze from the sidelines like a 3rd string quarterback on Super Bowl night :(
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ACAD Bear Flag/Chase - April 25, 2018
ACAD showed up on the Turbo Break Down scanner after plunging $3 upon losing the VWAP. The volume was incredible and dragged the VWAP down with it. Considering the time of day (2 PM EST), there must have been a fresh catalyst for the drop.
I pulled up the daily chart and saw a level at 15.70. Without further thinking, I shorted at 16.35. My stop was a break of the prior consolidation at 17. The reward-to-risk was a meager 1.0.
Shortly after I entered, the stock pulled back and consolidated. I stubbornly held my ground despite the risk of a looming reversal. Luckily, it broke 10 minutes after and I began covering quite aggressively. It continued to plunge as low as 14.50 where I was able to take some more profit. My final exit was when it closed back above the 9 EMA.
Looking back on this trade, I realize my entry was terrible. This resulted in me having to survive the pullback and much unnecessary stress. A good entry would have been on the previous candle when it made a new 5-min low. Another great entry would have been 5 minutes after it consolidated on a new 5-min low. Despite being a winner, I'm not too proud of this trade.
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MU Bear Flag/Reverse ABCD - April 23, 2018
MU was a great short today but I missed the initial 5-minute ORB. At around 9:45 AM, I watched it pullback and consolidate. I focused on the 1-minute chart to see if it would make a new low at around 49.5. The stock still looked very weak and the market was also selling off. My target would be the next level down at 49, with a stop at 49.70 (high of previous candle). Reward-to-risk was around 2.5.
I entered on the new 1-minute low and MU began to plunge. I locked in some profit at 49.25 and covered more at the 49 target. My final portion was covered on the next bullish candle before break-even.
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Save the date: May 19th, 2018!
We'll finalize time and location and get back to everyone who has registered so far (9 + Andrew)
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Greg, which version of DAS are you on? Go to Help > About.
I think the DuplicateWindow feature was only added as of 5.2.0.15. You can update to the latest version by going to Tools > Auto Upgrade.
Make sure to backup your settings via Tools > Backup Settings.
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DRNA VWAP Trend Trade – April 20, 2018
DRNA showed up on the High of the Day Bull Flag Scanner during lunch hour. Andrew and others took the trade long as it popped up $3 on some sort of catalyst. I noticed that the momentum was dying at around 1 PM and checked the float. It was 52m shares, which is far from low. At around 1:30 PM, I saw it lose the VWAP and the 20 EMA in a single candle. The stock looked incredibly weak on rising volume.
I went short at 12.91 with a stop loss just above VWAP at 13.20. My target was the 50 SMA which was below $12 at the time. The reward-to-risk was greater than 3. Given the time of day and low volume, I ended up scaling out much sooner than the profit target (cautious of a random reversal). I survived the pullback and continued to cover until the 50 MA closed in.
This was one of the most stress-free trades I've ever taken as it slowly bled $1 over a 30 minute period.
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Jimmy, this is a very common problem that many of us face. At least once a week I find myself freezing like a deer in the headlights. It usually happens in the first 20 minutes when prices fluctuate wildly. There is just not enough time to manually enter a hard stop loss. I'd say I stick to my mental stop losses 90% of the time. But the 10% of the time where I don't, the outcome is usually very ugly.
I am trying to correct this bad habit through repetition. Hopefully it becomes muscle reflex given enough time. I believe the root cause is fear. We are afraid of being wrong--of losing money--so we convince ourselves that the price will come back. As Andrew mentions in his book, it is better to take the small loss than letting things spiral out of control. Commissions are cheap; you can always get back in.
Regarding slippage: usually the amount is a few pennies. Isn't this more favourable than stopping out 0.25 or 0.50 beyond your original stop loss?
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The lock only greys out the trading buttons (and prevents hotkey orders). You can still change account, share size, etc.
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SMART is IB's intelligent routing mechanism.You can read more about it here:
https://www.interactivebrokers.com/en/index.php?f=1685
Some have said that SMRTM doesn't work for simulator. SMRTL does though.
Unfortunately, there are limited resources for DAS. Our DAS FAQ probably has more information than the manual. For hotkeys, I just click-through the list of Available Commands and read the Command Tip for each.
My personal opinion is that less hotkeys are better. I keep it very basic (buy, sell, charts, etc.) to minimize the chances of making mistakes.
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Wow that is incredible! I noticed it only works with the Montage selected. Chart and watch list don't work.
We don't have image uploading enabled in the forums. You can upload to imgur.com and paste the link.
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I added April 28th as tentative date. Andrew may be traveling in May. Could everyone please update their availability? Thanks.
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Maybe us folks from the other Vancouver/PDX area will join you. You guys are only about a 5 hr drive up north.Yes, all from the Pacific Northwest are welcome to join!
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Michael, I don't think it is possible to pass a parameter (like stock symbol) into a DAS command hotkey. Wouldn't hurt to ask them directly though [email protected].
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NFLX Reverse ABCD and Double Bottom Reversal - April 17, 2018
NFLX gapped up on earnings and hit new all-time highs. Andrew traded it numerous times in the morning until noon. However, I didn't touch it as I had already hit my daily profit goal trading other stocks.
At 3 PM, I came back to my desk and saw that NFLX was selling-off badly. I thought to myself 'I'm done for the day, but this looks like a great opportunity.' I ended up taking two trades: one short and one long.
1st Trade - Reverse ABCD on the 1-minute chart
From above, NFLX had lost the 9, 20 and 50 MA's on the 5-minute chart with little resistance. I decided to wait for a pullback and see if there was continued weakness. After the pullback I went short on a new 1-min low at 335. My stop was the high of consolidation area at 335.50. I covered at the 334 level and below during the $2 drop.
2nd Trade - Double Bottom Reversal on the 1-minute chart
After closing my short position, I thought I was done for the day (this time for real). But nope, I saw a double bottom form on the 1-minute chart as it failed to make a new low on the 5-min chart. I went long at 334 with a stop below the second bottom of 333.40. The moving averages on the 5-minute chart looked like potential profit targets. NFLX rebounded and climbed back up to the MA convergence area. I managed to take profit gradually on the series of higher-highs and higher-lows. My final exit was just shy of $337 which was nearly $3 above my entry.
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DAS Simulator 12 week program
in Day Trading Basics
Posted
I expanded on The Process of Executing a Good Trade in this post.
it takes a lot of practice to plan a trade in real-time (especially in the first 30 minutes of the market). At least a month and hundreds of attempts until you develop a process that works for you. Once you get good at planning and managing the trade, you will be able to do it faster and faster each time. Like muscle memory of sorts. Here is what works for me:
Prerequisites
1. Stock is in play
2. Support and resistance identified in pre-market
3. Pre-market volume and price action is tradable
4. Know the float category (low, mid, high) and how many shares you plan to take
While watching the stock
1. Spread is manageable
2. ATR/price swings accounted for (i.e, see how much the stock ticks. Is it going up/down in 0.01 to 0.05 increments, or 0.50 to $1)
3. Price action is clean and not choppy; related to above
4. Volume is good and not dying
5. Who is control: buyers or sellers?
6. What is the strategy/pattern that is setting up here?
7. Is the price getting extended?
Finding an entry
1. Is the entry favourable (new 1-min or 5-min high), or will it be a chase
2. Did the stock pullback yet? If not, to which level will it test and will I survive that?
3. What's the target? Is it realistic?
4. Finding a reasonable stop at a technical level
5. Calculating the risk-to-reward
6. Executing the order; with conviction--no hesitation
Managing the Trade
1. Is the live price action still clean?
2. Are we making higher-highs and higher-lows, or vice versa?
3. Are there are levels or tops/bottoms that I missed before entering that have now become a factor (i.e, a moving average on the 1-minute chart)
4. Is the market providing new information that validates or invalidates my original criteria? Is the Level 2 bullish, bearish or neutral?
5. Is it a good time to add more (if you scaled in initially), or should you take some profit off the table?
6. If scaling out, how much and at what levels?
7. Is the price action conducive to my original stop/target?
8. Is control between buyers and selling shifting?
9. Given the above, does it make sense to stay in the trade or exit at break-even, before stop, or before target?
I know that is a lot to process in a short amount of time, but those thoughts go through my head during a trade. For others, it may be much simpler or even more complex.