The answer to the question is definitely "YES"! But there are trends and there are trends.
I have stressed the importance to Kiki and everyone reading this blog, including reminders to myself of only trading one time frame. One of the reasons for this is because every timeframe has it's own trend. The daily trend could be down but your 5 tick range bar trend for the time being can be up. The same for any other intraday timeframe.
So for me, the trend is the trend of the chart I am looking at. I have tried the multi-timeframe approach and it only confused me. There are too many conflicting indications and by the time everything lined up, the move was usually over.
The best inside out trades for me are pullbacks in the direction of the trend, leaning on support if possible. Many of the setups are based on this. Everyone can find them with some work.
The starting point is defining the trend. The simplest definition is that the trend is in the direction of the 33EMA. It's a stronger trend if the 99EMA is in the same direction. If the two EMAs are separating then it's stronger still.
If the 45CCI is above or below zero that is another indication. If the 45CCI is going up or coming down through plus or minus 100 that is another.
Once we have our trend, Kiki and I look for a pullback and then wait for order flow and momentum to resume in the direction of my trend. Bang! We pull the trigger and manage the trade.
These inside out trend trades are the highest percentage trades I have found. Some people just trade to the first logical scale out point, all in and all out, and then look for the next trade. Its a matter of style or risk tolerance. If you shoot for smaller but more certain profits then to earn the same amount your size needs to be greater and therefore the risk per trade (not per contract) is higher. Everything is a trade off. On the other hand, if you scale out of part and can get to breakeven on the rest then you have free exposure, as Pete Steidlmayer called it. For my part, I do a mixture of both depending upon market volatility. If there is reasonable volatility and I read the order flow correctly I can get more than the first scale, risk free.
Next week I will be in Australia on family business and will probably be posting trades of the Hang Seng Futures. I'll have to wear a safety belt because that market is on steroids if it's anything like it was before.
Well, what an anticlimax today was. The market didn't give us too much today. But that's trading. I remember standing in the pit BSing with the guys that the market was dead and we would never make money again. And then all hell broke loose and we were happy again.
These inside out trend trades are the highest percentage trades I have found. Some people just trade to the first logical scale out point, all in and all out, and then look for the next trade. Its a matter of style or risk tolerance. If you shoot for smaller but more certain profits then to earn the same amount your size needs to be greater and therefore the risk per trade (not per contract) is higher. Everything is a trade off. On the other hand, if you scale out of part and can get to breakeven on the rest then you have free exposure, as Pete Steidlmayer called it. For my part, I do a mixture of both depending upon market volatility. If there is reasonable volatility and I read the order flow correctly I can get more than the first scale, risk free.
Next week I will be in Australia on family business and will probably be posting trades of the Hang Seng Futures. I'll have to wear a safety belt because that market is on steroids if it's anything like it was before.
Well, what an anticlimax today was. The market didn't give us too much today. But that's trading. I remember standing in the pit BSing with the guys that the market was dead and we would never make money again. And then all hell broke loose and we were happy again.
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