April 5, 2011
- in Uncategorized by schooloftrade
Can we trade the E-mini ES with this day trading strategy?
How do we trade the e-mini ES with this method?
– Can we trade it? Yes.
– Is it different? Kinda.
o ES = HIGH VOLUME
o Tape reading is different
o Pace of Tape Indicator is different
o Trade Management is different
– Anything similar?
o Same patterns
o Same entry rules
o Same exit rules
o The auto trader can trade it
– Any high-volume market will use these same comparisons
o High Volume = ES, 6E, Notes, Bonds, FESX
o Low Volume = Crude, Gold, TF, 6A
– What specific changes do I need to make?
o Trend lines on a more liquid market will be more sloppy. Beware trading around trend lines even MORE with a high volume market
o Big round numbers will take more to break, more to get away from them b/c the volume is so much higher
o Breakouts will be harder to take because we need MORE VOLUME to spark a decent breakout
o Swing highs/lows are the same
o Enough room = same
o Trigger Slope = even MORE important for the more liquid markets b/c you don’t want to trade in the middle of a sideways range on the higher vol markets
o Momentum = same
o Size and Speed are the BIGGEST DIFFERNCE
§ Size = big money
§ Crude Oil Filter = 5 contracts
§ ES Filter = 50-100 contracts
§ Block = 100 contracts
§ I need 2x the big money I would need before
§ I need to see MORE PEOPLE to move the market around LESS
§ Speed = the rate of the orders coming into the market
§ Use a different chart template when loading the ES Pace of Tape
o Another big difference is the daily trading ranges
§ Crude oil futures will move around with a wide trading range
§ ES e-mini will not, its too liquid. Every time price drops there are plenty of buyers ready to go.
§ We’re not going to get those HUGE, fast runners
§ The ES takes more time for the market to get going.
§ You will not get the big easy runners like we do with gold, crude, Russell, etc.
§ The GOOD thing is that the ES can handle ANY contract size, and it’s a slower pace which is certainly good fit for many of our client.
o Which timeframes will we use on the ES?
o 8range, 13, 21, 34, 55, 89range charts
o We are trying to get the ES moving in a long term direction
o Use the slower timeframe on the trade management chart if you’re trying to swing trade this. (377 tick trade management chart)
Trend Lines: drawn by hand?
– They can be added automatically
– They can be added by hand
– I believe in doing this by hand
– There is an auto trend line indicator available for download
– Use global drawing objects to make those trend lines appear on ALL my charts.
