20130312
Short 2 NQ 2802.25, 2801.5, +2.0, -2.0
Short 2 TF 938.1, 938.1, +0.5, -0.7
Short 2 NQ 2804.25, 2804.25, +2.0, +4.75
Short 1 YM 14396, -5
Short 2 TF 939.0, 939.1, +1.2, +0.5
Short 1 YM 14407, +15
Total YM +10
Total NQ +6.75
Total TF +1.5
Although the separate index contracts can tell you a lot about the trend via their divergence or convergence to a common trend, they nonetheless must be traded separately. Today was a perfect example at the highs of how each could top out at different times, and short entries taken separately as the signals occurred. Using a plan that partials out of the 1st contract in order to pay for the 2nd can keep you out of trouble when the initial leg and faux trend wants another leg up to stop out the shorts and gather in fresh longs. The net result should be about break even on entry signals that fail to produce a turn. Have patience. Stay with your plan, and when the next set of signals appear, re enter the position, using the same strategy. Eventually, the signals stick and the second contract provides a good payoff. Then when the 2nd trend direction sets in, more likely the true trend, you can measure the inflection levels where to take exit profits, and through which to re enter the shorts for greater extensions. Have a plan, and trade the plan.
