As far as indicators go, I can't stand stochastics as they most unreliable of all my testing. And since I rather take profit than give it all back or reverse cause of divergences, that the way I would go. I have expectation that on a divergence that lines will cross on bar I enter on with 2 tick breakout of lowest high looking to go long. However if you don't want to trade counter trend, you should be taking profit as that will work much more times to your favor that now. What most losing traders don't realize they only think profits, I trade in being able to control risk and controlling risk leads to profits. So each tick up or down and TIME has a value so either getting to target and trade going against trade the risk of not getting target risk reduces and when price going towards target risk expands. I know it sounds opposite of what everyone says, but it how I view it. So when price getting near to target the amount I am risking is expanding and target shrinking. Here is a different way I look at trading, I don't believe in until trade is closed out do I realize profits, I realize them on each tick, total you see move on each tick is real money. So if you are targeting 5.00 points and your risking 5.00 points, at some point thru testing, you have to lock in one tick, cause every tick in your favor, you are risking more money, so when price is within one tick, you could be risking 9.75 points.
You learn what kind of trader you are when you change timeframes and using same method, I did trade more of the day on five minute, using same risk of one minute and went for 50% rewards, maintained same time stop of 3Bars. It was fun, but I did not like being in front of screen so much time.
I sort of like the five minute Nasdaq, then I can concentrate more on ES, just do same color coded trades, three breakout signals and two limit area signals. You concentrate on risk and not giving it more time than rules, and if you come upon signal where it is iffy, you get it less time to stay in trade than lock in that 1-2 ticks in Nasdaq so you have enough left for cup of coffee at Starbucks. Starbucks time.
No Divergences on the 30 and 60 min timeframes, hence no trades performed. @Handle123 @Redneck @NoDoji @Buy1Sell2 @aquarian1 @Gueco @pak @slugar @zbestoch
As for myself, I find it nearly impossible to comment on someone else's trades without knowing the decision algorithm used by that individual - and you should probably keep that as much to yourself as you are able: not because you might "give away" your edge, but because you need to have confidence in your own trading plan as it develops, and you do not need goofs like me shaking you confidence by offering criticism that will likely be based on an imperfect understand of you, your goals, and your plan to achieve them. I can offer that I do like the stochastic indicator and use it for several instruments & set ups. However, I use it primarily for continuation trades rather than reversals, i.e. if price is trending up and a pullback causes an oversold stochastic reading, I will look for a with-trend long entry based on price action.
Trying to update my Data Library. So I have a list of all the ES & NQ data which is stored on my hard drive (and external HD).... I have decided to purchase more data. I have also done some shopping around for data, IQFEED vs. Kinetick vs. Esignal. E signal is the cheapest data , so I am thinking of downloading 3 years of ES and NQ data from them (since @Handle123 recommended I backtest 3000 trades ) What do you guys think? @Redneck @NoDoji @Buy1Sell2 @aquarian1 @Gueco @pak @slugar @zbestoch @dratsum What is your opinion of Esignal? I am not using this data for trading, but merely backtesting? @jharmon @volpunter @MidKnight @just21 @minmike @Trader13
zbestoch Most likely this isn't what you doing as not deep enough retracements, but often times deep retracements are divergent if you are basing it on closes instead of highs/lows.