Showing posts with label CCI. Show all posts
Showing posts with label CCI. Show all posts

Tuesday, June 1, 2010

More Examples of my Trading Style


Just another Explanation of my trading.
Step 1. Acc/Dist on Volume breaks below Support: ENTER CORE SHORT POSITION

A. First Trade: Clearly 50 period CCI is well below -100 and 5 period just peaks around 100 forming V: ENTER SHORT POSITION (Targeting 6 ticks with 5-6 tick Stop Loss)
B. Repeat
C. Woodie and LONG CCI starting indicate end of Downtrend, Might consider getting in if your aggressive. It's up to you. I would have closed out core position, but still taking a short position with half the typical size.
D. Clearly Downtrend still stay: Take another Short Trade (Target 6 ticks- same 5-6 tick stop loss)
E&G. Repeat of C. But more pronounced, I would not have taken this trade.
F. With such high volume, and quick 4 quick successful trades already: You might want to take another Short position (I'd suggest half of your typical size)
H. CCI and Woodie confirms end of Downtrend. Close out Core position if your still holding onto it.

My Emini Scalping Strategy


Just wanted to share with everyone what my E-mini Scalping strategy looks like. It sounds like a lot of steps and indicators to keep track of, but actually its fairly simple and mechanical, and it is exactly what I tweet about live when I trade Emini's.

Chart Setup- I usually use a 512 tick chart, but 333, 1600 tick will work as well.
I myself like to use the 1600 tick and 512 tick at the same time. When looking for Step 1 setup, I will like to see both charts to confirm Step 1 before getting into the trade.

Step 1. (Setup) Looks for breakouts of support/resistance or breakouts of uptrend or downtrend on Acc/Dist of volume as my way of keeping on top of market breadth. Dependent on Break down or up, I will take a core position, usually half of what I would trade on subsequent trades.
Step 2. (Entry) Using a Double CCI. 50 period and 5 Period. I look for the 50 Period CCI to stay above 100 if we're looking for a Long positions and the 5 Period to make a sharp quick move below and then cross above the -100; forming a V shape. (see chart). We initiate a Long Position on the formation of the V shape on the 5 period CCI. This forms a very high probability Quick trade usually good for at least a Point and half (6-7 ticks) while allowing for a very tight stop loss (I usually use 5-6 ticks).
Vice Versa from break downward from Step 1. Short Half position Initially on breakout. Look for 50 period CCI to stay below -100 and the 5 period CCI to cross below the 100 forming a V shape to enter full Short Position.
Step 3. From most of the breakouts from Step 1 we can see 2-3 trades on average. Repeat on every V shape from the 5 period CCI, as long as the 50 period stays above 100 and vice versa for Short.
Step 4. Exit initial core trade once the Long CCI falls below the 100 for long positions or above -100 on short postions. I've also used the Woodie CCI before for this purpose before (I've included it in the chart to show)

These trades will allow for very short term scalping with very high probability. You can play around with different time frames for different products, like Euro Futures, Mini Dow. Also you can use almost any oscillator, RSI, Stochastics, instead of the CCI.

Because these are relative short term, your looking at very zoomed in charts. I highly suggest either having a larger time frame chart on the side, or follow other traders on Twitter to keep track of the big picture, like VPOC's, pivot points, 200 day MA's.