Momentum Trading In the Emini

[SSI]

this is a thread for me to discuss a strategy that myself and my broker have been discussing the last couple of days........

refresh yourself on the workings of the emini, in my emini thread..

the jist of this strategy and its a form of daytrading, albeit a slower, setup..

Lets just look at yesterday as the perfect example......... and remember i am not actively trading right now but i am in a simulated trading system..

yesterday the emini was trading around the range of 1419 to 1412 for a long time, the high of the day was at 1420.25

hours went by and the range from the high of 1420.25 and the low of 1412, remained in....... guys were making money all day within this range..

our plan is to put a buy stop in the market at 1420.50 (the emini trades in increments of .25, .50, .75, .00) just over the daily high......... then we (at the same time) placed a sell limit order at 1422.50

the idea is to get "in" and get back "out" within minutes, possibly seconds.. you want both orders to be filled...........

if not, you need to exit the trade, in a short amount of time...... the trade is designed to work on momentume..

this trade yesterday would have worked to perfection.......... and it also could be bracketed on the low side as well......

if it never traded thru the high of the day, you would have never entered trade, and orders would have been cancelled at end of day...

here is what trade would have looked like yesterday..

1/10: buy one march emini sp on a buy stop, you must say buy stop, at 1420.50, place a sell limit order, you must say sell limit order, at 1422.50

you would have been in and back out in minutes, with a $100 profit -- per unit...... minus comm.........

not bad for a few minutes time..........

ill try and set them up, in this thread as they occur..........

this is merely another simple strategy to use.......

 

[SSI]

1/11

high today, 1429.50, low 1420.75, current 1428.75

we are going to place a sellstop in the market (and we must use the term, sell stop) at 1420.50

this is just under the daily low of 1420.75...

we will also place a buy limit order (and you must say -- buy limit order) at 1418.75

unless the low of the day comes out (anytime today), we will not be in this trade....... however if we hit 1420.50, we will enter into a short posistion by way of the pre-existing order.......... once entered our buy limit is also sitting there at 1418.50....... if it hits that mark,,,,,,,, meaning we have to drop 2pts after entry.......... if both occur, we will make $100 per contract traded, in hopefully a few minutes..........

if the market never trades under 1420.75 today, we will never be in.....

so you see, we can place both these orders and walk away...... if trade is engaged, the broker will call...............

if trade is not a complete success within a few minutes (about 20), we will simply exit the market with a small loss.....

this trade should work at a very high win %%%%%..

yesterday was a winner, lets see how today looks.......

ill update this thread, at end of day, or if we get in......

any ???????