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E-Mini S&P 500 Q&A

Q: I bought your e-book "Day Trading E-Mini S&P 500" in 2012. Are there any changes or updates to original text due to market character changes, higher volatility etc. since last 10 years?  A: YES, THE BOOK HAS BEEN UPDATED BUT CHANGES ARE MINOR.


I have some questions especially to the concept of 2 timeframes - 5-minute and 1-minute charts:

1. Q: Are these 2 timeframes adequate for today's trading?  A: YES ADEQUATE
Q: In higher volatility I tried to trade by means of 30-second chart instead of 1-minute chart. Do you consider this as reasonable? A: NO, THERE IS NO NEED TO USE SUCH SHORT TIMEFRAMES

Q: 30-second chart generates sometimes false signals. Do you recommend this short timeframe? A: NO NOT AT ALL. YOU NEED ENOUGH MOVEMENT TO MAKE MONEY—HARD TO DO WITH 30-SECOND CHARTS, If so, under what conditions?

2. Q: Do you have some "strategy" to switch between various couples of timeframes? A: NO, STRATEGY For example if ATR(20) < 6.0, I will use the 5-minute and 1-minute charts; if ATR(20) > 6.0, I will use the 3-minute and 30-second charts; and if ATR(20) > 10, I will not trade.

Q: Do you recommend to switch between the timeframes (e.g. on daily basis), or is it better to use only one couple of timeframes? A: ONE COUPLE IS ENOUGH. ALSO, TRY DOING EVERYTHING WITHOUT SWITCHING TIMEFRAMES.

3. Q: How to use the setting of my stop-loss and profit-target in high volatility? For example, yesterday was the max. ATR(20) about 15.0 points, but it is not suitable to have such high stop-loss and profit-target. Do you have some advice for these situations? A: YES! DON'T TRADE IF VOLATILITY IS TOO HIGH. Actually, I use 4.0 points (16 ticks).



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Thursday, 25 April 2024

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.