Friday, December 24, 2010

Patience pays off!

I am long ES at 1250. All day I had 2 orders in, one on the ES and one on the TF (@784.30). I got these price levels by using Person's (of John Person fame) pivots which is my favourite type of pivot to use. So now I will probably set a tight stop and sit tight with this trade and let the seasonal factors take me through to the New Year. I hoping for a monster first couple of trading days in January (historically realized vols on the first 2 days is almost double the average trading day realised vol - last year was no exception and it was to the upside). A repeat of that performance from last year and I will be looking to close. Either way I will sit tight. I was a bit more conservative with the TF trade on the entry and that was why I set the entry price at S2 instead of S1 like I did with the ES. Reasons are that the TF is more leveraged than the ES (1 point move on 1 contract equals $100 whereas the ES is $50). Both futures bounced off the pivots perfectly which is why I use pivots to trade the futures. (I will post screenshots later). 

2 comments:

  1. Hi MC I'm using traditional pivots for forex, short term though (intraday)
    I may trial PPP for this and see how they go. Also, is TOS any good for forex? I thought maybe you have experience in this.
    Cheers
    dP

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  2. TOS is good enough for me to trade forex but I've not trialled other stuff so I don't really have something to measure against. Their platform has come a long way since the old days and they are continually trying to improve it for the directional type traders.

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