ES (Futures) - Today

Today I practice traded the ESU8 real time.

From 6 am MST to 12:40 pm MST, here are the following trades on 1 contract:

1. Profit: 1266 - 1274; UP (+8 points)
2. Profit: 1274 - 1269; DOWN (+5 points)
3. Profit: 1269 - 1272; UP (+3 points)
4. Profit: 1272 - 1270; DOWN (+2 points)
5. Profit: 1269 - 1271; UP (+2 points)
6. Profit: 1271 - 1266; DOWN (+5 points)
7. Profit: 1266 - 1267.50; UP (+1.5 points)
8. Profit: 1267.50 - 1253; DOWN (+14.50 points)
9. Profit: 1253 - 1254; UP (+1 point)
10. Profit: 1254 - 1245; DOWN (+9 points)
11. Profit: 1245 - 1246; UP (+1 point)
12. Profit: 1246 - 1244; DOWN (+2 points)
13. Cost: 1246 - 1245; UP (-1 point)
14. Cost: 1243 - 1245; DOWN (-2 points)
15. Profit: 1244 - 1246; UP (+2 points)
16. Profit: 1246 - 1243; DOWN (+3 points)
17. Profit: 1244 - 1253; UP (+9 points)
18. Cost: 1253 - 1254; DOWN (-1 point)
19. Profit: 1254 - 1262; UP (+8 points)
20. Profit: 1261 - 1252.50; DOWN (+8.5 points)

1 point = $50 (ES)
1 tick = $12.50 (ES)
4 ticks = 1 point (ES)

Here I have 80.5 points (or 322 ticks) = $4025.

It costs me $500/contract margin on the ES at my broker.

Commissions for 20 trades = $3.99 x 20 = $79.80

Net profit = $4025 - 79.80 = $3945.20

Amount used at risk = $500 for 1 contract.

$3945.20/$500 = 789% ROI

One of my super trader friends told me it's impossible to get 80 points on the ES in a day. I guess I'm magic. He says it doesn't count unless it's real money. He says I need to go to doing this with real money. Okay, if I can get most of this week with similar results like this, I will go to live real money next week.
3 Responses
  1. Debbie Davis Says:

    Hi Doris,
    This is really interesting. What chart time parameter do you mainly use, and what type of stop do you use? When trading futures, I always get stopped out, so I think my stops are too close, but I haven't been able to figure out what works the best. Thanks!

  2. Doris Says:

    Hi Debbie,

    I was using John Carter's way and was periodically doing 2-3 contracts employing his method, but I kept getting stopped out, too.

    I was complaining about it to my trading coach and he asked me if I was trading my trading strategy. No, I was not.

    Basically I was doing more a scalping thing and was doing it very poorly.

    The timeframe I use is 3 min., usually using 1 min. to get into the trade. However, I will look at higher timeframes like 15, 60 min., as well as daily, weekly, monthly to get an overall picture.

    You have to be able to stomach the stops being further back. Since I'm more a pattern or trend trader, I basically set my stop just outside of the trend.

    Take note that the trends are VERY short. I apply the same thought processes, they are just in different timeframes.

    I have my indicators and when they are triggered for an entry, I take it quickly. Similarly for an exit. There are times I've had to go to the bathroom, and even take my kids to camp so I was away from the computer.

    For an up position @ 1250, if I see support at let's say 1247, I'll place my stop at somewhere in the range of 1245.50-1246. Just depends on how I feel intuitively about what is going on. And let's say I see my target at 1265. I will probably set a sell at 1263.50 or 1264. This is for if I walk away from the computer.

    If I'm sitting there and it really begins moving through 1260 up, I'll bring my stop (the cost) up to about 1256, giving it 4 points or about 16 ticks to move around. It still gives me a profit, just not as much. As it gets closer to my target, I'll begin moving my stock (cost) further up and may move my other stop up a tick if it looks like it's going to be hit.

    Often if the move is that big, I may not move the upper stop (profit) and just let it take me out.

    Basially I keep my stop far enough back based upon what the chart is telling me so I do not get stopped out. That's how I would play options trading, and found it works better for me in futures, otherwise, I'm stopped out a lot at big costs.

    However, you do have to note that if you get stopped out (cost), that your cost can be quite big. When I did step away from the computer to take the kids to camp, I did have a nice profit and understood that if I came back and I got stopped out against me, I would've given back all my profits and maybe even some on top of that, but I was willing to risk that and this time, it paid off.

    Normally, I would not do that. Let's say if I wasn't up that much, I would've bypassed the trade and waited until I got home.

    Trade the pattern, not the account. Does that makes sense?

  3. Debbie Davis Says:

    Thanks Doris. Yes your answer totally makes sense. I find that stops are your friend, but if they're too tight you're constantly being taken out of good trades. I was trying to place my stops one tick from the most recent retracement and often got stopped out unless the market was really moving strongly.

Amazon Store