I suggest gauging volatility not just as an intuitive measure by looking at the chart, but also use measures such as the VIX Futures contract.
It’s hard to measure the validity of a method if sizes are changed over the same method.
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Thank you to anyone who has participated.
Feel free to help one another, and I’ll see you at the next webinar.
Matt Z
Optimus Futures
PS. I will announce the winners next week.
Great webinar today Matt and thanks for having me!
This helps with a few things, let’s say it’s even micro lots. When you’re not trading you are not participating, which is much needed throughout the session. But when you get into a trade, even a micro lot, your mentality changes and you see different things and pay attention to “managing the trade”.
Furthermore, if you have the flexibility to scale in vs a trader who only has a 1 lot and one click, it could drastically change the outcome of the trade and mentality on the trader.
Example: Two traders want to get long at 3820. They both buy at that price, the non scaling trader buys his only lot. The scaling trader buys 5 micro lots, so half of a 1 lot. The price goes down to a solid support range, but it’s already down to 3818. The single lot trader is down a full two points, $100.
The scaling trader is only down $50, but now he sees support is holding and decides to add his other 5 micros. Now his average price is 3819 while the 1 lot trader is still long at 3820. Price only has to go up half for the scaling trader to break even but a full two points for the 1 lot trader.
To make matters worse, let’s say they were both right just different entries, the market eventually moves to 3830, 10 point move.
However, because price traded down so close to the support line, the 1 lot trader experienced more fear as he was risking more and let’s say he puked his position. He sees the market rally and now he is caught in the mind battle of being “right” but wrong and has a loss.
That’s just one example of the many things that can happen, but those small things built up over time can seriously affect the mindset of anyone.
One thing to help with this very much is ALWAYS tracking your trades and analyzing the data. MyFxBook is free and does a good job or Matt has recommended EdgeWonk for trade tracking.
When you properly sort through your data you may come up with something like this:
Here’s sample data I took from a trade account and filtered through it in order to really dive into what trades had better odds, what made the most, the least, etc.
By always monitoring this YOUR personal track record will become a database of information that can provide invaluable information you may not be able to see on the surface.
The ES swipes like crazy sometimes! I suggest activating DOM and also cluster charts so you can watch order flow.
When you stare at it long enough you can start to see individual traders manipulating the market, or trying to push it down to buy when the sellers puke. Simply put, pattern recognition, yet the most complex unpredictable pattern on earth lol.
Order flow does help me a ton though.
Take a look at my dashboard and let me know if you have questions on setting it up!
Good afternoon Ben, I like your settings. Saw your video on youtube which i like. As you know i am just using the Optimus Flow software. . You would do me a great pleasure helping me setting up the Volume charts. I believe that volume a good no lagging indicator compare with other indicators. Thank you for your help.
Hi @Emile_Beijl Please start a thread here Optimus Flow - Optimus Futures Trading Community and call it “How to Set Up Volume Charts”. @Mod-JakeM and @Ben_M will help.
Matt Z
Optimus Futures
Thank you Matt, I will do. Enjoy your weekend.
Hi Emile,
Here is a video on how to quickly setup your cluster charts!
Let me know if you have any questions.
Hey Matt, they’re not really my ideas although I have tweaked them to fit my style. For futures, the first method is good old footprint chart imbalances using OptimusFlow so it’s easy to see entry and stop levels. For stocks I use Oliver Velez’s ideas on candlestick patterns. The other method is based on Steve Kalayjian’s ideas on trends, reversals and my favorite, buy and sell divergences using price action, MACD and Stochastics. I wrote indicators in ThinkorSwim that give me triggers and trade details then I just take the trade. That’s the easy part. Since 85% of trading is psychological, that’s the real challenge and I’m still, and probably always will be, a work in progress. Cheers
You know I thought about this for a minute and its funny I think I equate this to I think the military gent was Kevin. when he said men go out to master everything… so true
I think I will stick to a single script and not squeeze every single trend and move, its no point… get in and get out. – Thx! D. (Damien)
Thank you Ben, i will take a look at it. If i have questions , i will let you know. Have a good weekend and keep in touch with the Dutch. gr.
Sounds good!
Have a good weekend as well and I’ll look out for any posts!
Yes, I take different sizes for my setup and strategy, however, I risk 15% off my account on every trade. My setup has 3 parts, a signal that tells me when to trade, tells me when to take loss/profit, and how many contracts based on volatility. So based on my stop loss I’m “risking” 15% but with vol sometimes I have to trade 2 MES and sometimes 1 ES.
It doesn’t really affect my trading, I just follow my black and white rules with an algo.
