Jun 142016

As a background, back in Feb 2016 I had written a blog post in a member’s journal about how I’ve evolved in my approach to trading. Another member added a summary of the post to her journal for reference which got me thinking that maybe I could record a video of a trade to give an example of the concepts from the forum discussions. The result is the unedited video below. This is a real and live trade I took in one of my Interactive Brokers accounts. The audio was done in real-time. To keep things simple, I traded 1 ES contract which removes decisions about scaling in and out (and how ‘big’ or ‘small’ I trade). Also, I used (or stumbled around with) the native IB Booktrader so there’s no focus on 3rd party execution software (e.g. Jigsaw or Ninja or MD Trader).

Market context… End of the trading day, the day before a FOMC announcement. Price had already worked it’s ATR(5) and has been ranging and quiet. Range days rarely turn into trend days without some change in trader expectations. Given the last employment report, the Fed is unlikely to be hawkish, and thus unlikely to trigger a bearish selloff. If the bears can retest the LOD which aligns with the low frame, it’s a decent place to take a shot at a trade if there’s enough time left in the day…

It turned out to be a pretty good example trade because there was target and stop management, a “blind” entry using a default OCO target and stop, order flow reading, price action, reading intraday support and resistance, using the VWAP, using the day frame, and using trendlines; all wrapped up in a 15 minute trade… Also, notice how I’m always thinking about what the market might do and what I’ll do in response. Enjoy. 🙂


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