20200226
Short 2 RTY 1681.0, 1681.5, -1.4, +1.0
Short 1 NQ 8990.0, -2.25
Short 2 NQ 9000.0, 9000.0, -0.,0, -2.25
Short 1 NQ 9010.0, -2.25
Short 2 NQ 9014.5, 9014.5, +10.0, +35.0
Total RTY -0.4
Total NQ +38.25
There are a number of useful 'tricks' for entering positions in volatile futures markets. Using the combination of the algorithm Serial Sequent and something we borrowed elsewhere called the Rule of Alternation, a simple stop order placed against the prevailing trend as it reaches the appointed extremes can sweep you into a position as the market snaps back into itself. The quick placement then of a break-even stop-loss order, and you're set to exploit the market's natural tendency for elasticity.
Another trick is the use of limit orders as the market is climaxing into extremes, placed on or next to 'whole' numbers in the index contract. I find this works especially well in the NQ, although today, it failed me with short sale entries at 8990.0, 9000.0 and 9010.0 ....datz a spicey meatball !!
Sometimes, like today, the Rule of Alt is not in play, and instead, the final thrusting fractal of an initial price trend after the opening simply stretches through expected climax zones one pop after another. The more final climax to this kind of moves usually comes after the 'tell' of a resurgence. That is, just when you think a retracement has taken hold, a surprising resurgence of the climax sends price into another bar or two where it would seem early scalp entries are themselves the fuel to push the trend further along. When this, and the very handy momentum tool we call True Trend signal a more final climax, one of the best tricks for fading the trend is something long known to traders as 'end-of-bar'. Why do you suppose price reacts so dramatically to the end of a final time bar once its clock has ticked out its life? Ninjatrader has a tool for this. It's a simple sweeping second hand indicator, easily placed within view on your chart, that eats itself up like the way Cheshire Cat disappears behind its own tail, in Alice in Wonderland, each time it makes a full turn of the clock.
Our new trading sotware, tentatively called the SuperChartDOM, due out in a few months, adds another button to the array of its Custom ChartTrader Panel called EndOfBar. When clicked, it delays placing its market order to Sell or Buy to the end of the current bar chart you are trading from, in the adjacent contract window. I used just such a tool to enter my last set of NQ shorts today, fading the initial price surge following the bullish open. That reversal produced a 90 point drop in the NQ, which I only managed to bite my tongue for 35 points of, but was enough to garner my First Frame goal in early action for the 3rd day in row of this amazing stock index volatility. Good trading to all....
