Kiki: The Next Stage

Kiki has been doing very well. She is CP but still finding exits after the first scale inconsistent. Her win rate is slowly increasing too.

It's now time to start stripping off some of the indicators. This next stage of her progress into a top class trader who can live off trading any market anywhere will be even more exciting than the previous stage.

Kiki has been trading for more than 6 months live and has had enough so called "screen time" to try and move to the next stage. This will be a big challenge, mainly because financially, it will be a step back until the benefits start to kick in and her daily average profit per contract increases. We have to focus more on the Range Bars, how they relate to each other and how long they take to form. The volume delta remains the same.

Many of the indicators showed similar things from different points of view. Removing them one by one from the chart is what we will do, making sure that Kiki still "sees" the picture. This needs more intervention from me as we will go back to a daily replay of the day's trades after the market has closed and discuss "would'a, should'a, could'a".

FloBot Update: We are still in the testing and tweaking phase. Not ready for anyone to see it live yet even with all the disclaimers and caveats about it being only an educational and testing display. There are two issues at the moment: Back testing the current version has shown an annual profit per contract of about $US32,000 on the ES with a draw down of less than $US2,300 per contract. The issue is there is still one losing month out of the 12 and I am still trying to quantify the effect in live trading of missing an entry due to lack of overlap of range bars.

The point we want to get to with Kiki's discretionary trading is my trading chart below. It has just the 33EMA, Volume Delta and smoothed Cumulative Volume Delta. Market Profile, of course, stays for the context. I have marked my setups on the chart. The process remains the same, "get the trade on and manage it". I am not married to any trade and quickly cut a position, even for a tick profit or loss, if I see the market action or order flow weakening.

I was long the ES just before the Greek Moody news, scaled out the first piece and got stopped out the balance at the low after the news, missed the long after that too. There was a big gap in the 6E as the Euro was hit in the cash, and both markets looked shell-shocked for a while after that so I went for my afternoon espresso. Then just one more trade.

Order Flow part 2 will be the post for tomorrow!