Scalping the DAX (SIM)

[supermatt]

enjoying this thread please keep posting charts and analysis

[CanOz]

Well here is two days of stats with my DOM system. I'll post some examples of todays trades.

After a week of just watching the ES, the Dax is much easier to trade, it seems to react more to the iceburgs and the big volume. I won't take a trade unless i can see that i clearly have recent DOM activity supporting my position. This seems to have increased my win rate, and allowed me to keep a tight stop.

CanOz

[tech/a]

looks much nicer.

Are you trading discretionary with rules---"System"

[CanOz]

looks much nicer.

Are you trading discretionary with rules---"System"

Yes. Pretty simple. Wait for the price to make a big move. Just before the move if there is some obvious action on the DOM around an important level i will get alerts for icebergs or large market orders hitting the bid or offer. If i can't catch the move without a chase then i will either fade it, or wait until i can catch a move out of consolidation with the moving average. These seem to be the easier plays, the latter.

I'm taking 4 contracts on the Dax, which is not very realistic to me. Today I'm going to try TH's advice of building up a little buffer of profit with 1 contract and then up the size...its easy on the sim to trade 4 contracts to stat with but knowing my risk tolerance, i would be screaming in pain on the first pullback...

CanOz

[Joules MM1]

Well here is two days of stats with my DOM system. I'll post some examples of todays trades.

After a week of just watching the ES, the Dax is much easier to trade....
CanOz

only after "a" week? ......more watching to be done, Can

[CanOz]

only after "a" week? ......more watching to be done, Can

Oh for sure, i agree. Its just easier to see whats going on in auction on the Dax. I'm very familiar with the Dax, I've been watching it for 8 months.

My worst days on the Dax were days where it just ranges and i used to get caught in the chop. I've learned to be more patient and not trade the chop, just wait for a move and catch the second leg...


CanOz

[Joules MM1]

Oh for sure, i agree. Its just easier to see whats going on in auction on the Dax. I'm very familiar with the Dax, I've been watching it for 8 months.

My worst days on the Dax were days where it just ranges and i used to get caught in the chop. I've learned to be more patient and not trade the chop, just wait for a move and catch the second leg...


CanOz

yeah, second mouse usually gets the cheese spesh when you've taken on some of the characteristics of the other players .......you'll get the same from the ES too, just like the poms have a bunch of plays which are distinctive to them.......distant to the rapid response team on the xjo/spi

[CanOz]

I totally missed the big move today on the Dax, busy with some other things. Eventually caught the tail end of a couple of the moves for some nice profit, then instead of waiting for the market to react to the data i took another attempt long at a pullback...well the pullback was a reversal. Ended up giving back all my profit.

Should have been aware of the 5 pm data and then waited until i could see the markets reaction, it would have been obvious that the market didn't like the data and softened until the rate decision...stupid.

Back to where i started...

CanOz

[Joules MM1]

I totally missed the big move today on the Dax, busy with some other things. Eventually caught the tail end of a couple of the moves for some nice profit, then instead of waiting for the market to react to the data i took another attempt long at a pullback...well the pullback was a reversal. Ended up giving back all my profit.

Should have been aware of the 5 pm data and then waited until i could see the markets reaction, it would have been obvious that the market didn't like the data and softened until the rate decision...stupid.

Back to where i started...

CanOz

map the day out first, map all the things out that are coming that could already have price structures set up........for instance, price might be in trend and a release comes out in the thin period, then price comes back to trend later in the day, so, you need to plan that into context......what is the auction trying to achieve with this event....who's likely to be playing or do you need to step out of the auction until the release has found balance, price has come back into some 'kind' of balance.......i think that small addition to how the day is planned out makes a major diff, at least, more options, maybe better risk.......

[CanOz]

Good points Joules...because i stepped into that trend i guess it was sort of mid-step...out of sync...

Anyway, got my points back, mostly on the US open as i was at a cocktail party and missed the move after rate announcement ..fun fun.

CanOz

[CanOz]

Todays trades so far, took me all afternoon to get back to even...that's allot of bloody focus i tell ya what!

Learning, learning...

CanOz

[Trembling Hand]

CanOz why bother trading 50 times in 5 hours to get nowhere except make the broker rich and your mood when we have this market which is running all over the place?

If you want to really learn scalping in this type of market. Have a 5 lot position and work in and almost out of it. For example the DAX looks to have made a low, jump in on a 4 lot, drop a 2 lot 10 ticks higher, then try and pick the next short term low hopefully still higher than the first low, add 2 or three, repeat. So you're picking direction from the 5 or 15 chart your working the 1 min chart.

You may find scalping so often in such a large range market will leave you more shell shocked rather than with $$

[CanOz]

Yup, I'm finding I'm spending too much time in between the important levels rather than taking positions at them. The DOM is giving some good heads up on where its heavy etc., bergs, but i just need to use key areas now. I find I'm getting stuck in the noise and that's where i do all the trades. The nice winners have been at areas where a low or high has gone in.

I think i can read the DOM ok now...still a little more practice though.

So much for that last low today...

Do you ever trade the Dax?

CanOz

[Trembling Hand]

So much for that last low today...

Do you ever trade the Dax?

Yeah low smashed. Now back up.

Not really I don't trade anything else now, Honkers thats it. Good to do 6 hours max.

[CanOz]

I'm really frustrated, i think I'm getting a feel for the direction of the market and then I'm on the wrong side of it again...a pull back turns into a resumption of the DT.

CanOz

[CanOz]

By the way TH, are you using market orders or hitting the bid and lifting the offer or is it dependent on the situation?

I don't suppose you would PM me your old NT hot key setup...?

CanOz

[tech/a]

Can
Try the FTSE

Much nicer

[CanOz]

Can
Try the FTSE

Much nicer

No data subby for it, plus i do know the Dax well. Will be practicing on CL tonight, they say its similar to the DAX but a little thicker...

CanOz

[Sam Collins]

You're on sim? What are you using for a data feed, when I was trading dax, similar style to you, the biggest problem was the connection to eurex, and the speed, would do quite well for a week or two, then get destroyed when the dax teaches you a lesson or two with one of its 350 tick one way days.

[CanOz]

You're on sim? What are you using for a data feed, when I was trading dax, similar style to you, the biggest problem was the connection to Eurex, and the speed, would do quite well for a week or two, then get destroyed when the dax teaches you a lesson or two with one of its 350 tick one way days.

I'm using IB...occasionally there are issues with connectivity. I have lots of warning though as IB will start disconnecting from the EU server in the morning. Usually i just reconnect and its fine.

John Grady warns about this too, but i think it a slightly different issue....Eurex nonetheless.

CanOz