Jake BernsteinMarket Mastery Series II (MMS II)
www.jakebernstein.com
Profits from Process and SelectivitySaturday 22 September 2012Saturday 22 September 2012
Session 7 Spike resistance and support continued My HFT experiment: update
Fi di d t di t iti Finding and trading opportunities 30 MBO Trades : Review of each day P/L Divergence Buy Setups and Triggers in Process Trades for the Last Week: How they turned outy Trades for the Coming Week: What I see by the Rules Sep Seasonals and Oct Seasonals Thursday – Friday Euro - Outcome and Trade this Week Friday Monday Gold Trade Friday-Monday Gold Trade
© 2012 by Jake Bernstein 800-678-5253 831-430-0600
Saturday 22 September 2012Session 7Session 7
Spike resistance and support continued My HFT experiment: update My HFT experiment: update Finding and trading opportunities 30 MBO Trades : Review of each day P/L Divergence Buy Setups and Triggers in Process Divergence Buy Setups and Triggers in Process Trades for the Last Week: How they turned out Trades for the Coming Week: What I see by the Rules Sep Seasonals and Oct Seasonals Thursday – Friday Euro - Outcome and Trade this Week Friday-Monday Gold Trade
Last two sessions: goals Summarize methods and procedures Provide clear and objective examples Pick trades in advance and follow through Respond to questionsp q Address trading behavior issues Emphasize focus and selection process Emphasize focus and selection process Clarify details of implementation
Are we on track for our goals?To simplify the seemingly complex (Y)To FOCUS on process and procedure (Y)Th DECISION MAKNG (Y)The DECISION-MAKNG process (Y)How to IMPLEMENT (Y)How to ORGANIZE (Y)How to ORGANIZE (Y)How much time to spend each day (Y)Roadblocks (Y)( )Trade by trade REVIEW and PREVIEW (Y)Stocks, futures, spreads (Y)
Methods, systems, process MAC Swing trade MAC Swing trade 30 MBO
Seasonals Seasonals Shorter term spreads (< 40 days) why 8OC GAPS (primarily in stocks) MD Fri-Mon Gold Thurs – Fri Euro FX
My trading list – futures
Soybeans (meal or oil) ES1 (30 mbo) ES1 (30 mbo) TBonds or TNotes (10)
E ro A s$ or Canada$ (DX) Euro, Aus$ or Canada$ (DX) Gold (full or mini) Sugar LC or LH Cocoa Crude oil (full or mini)Crude oil (full or mini)
I received numerous questions about my I received numerous questions about my “spike support” and “spike resistance” concept – primarily about how and when toconcept – primarily about how and when to use it.
Here is a synopsis and a few more examples Here is a synopsis and a few more examples
Definition and conceptual overview What is spike resistance? “Cellular memory” the why The low of a high price bar serves as
resistance when prices turn higher 6 bar filter The entire bar can pose resistancee e t e ba ca pose es sta ce Successive closings above spike resistance
tends to be very bullish – works better fortends to be very bullish works better for buys - why
Vice-versa for spike support Vice versa for spike support Examples
Where many see great opportunity and Where many see great opportunity and profits I see a great opportunity to do the opposite to make a profit where many seeopposite to make a profit…where many see catastrophe and have fear I see the opportunity to profit and I call up myopportunity to profit and I call up my courage…ONLY triggers will turn opportunity into action and enhance courageg
JB
Fi di t itiFinding opportunities
The love / hate syndrome in markets The love / hate syndrome in markets Two classic examples courtesy Zuck last week This week they hate QCOR Why? How to find out but who cares? How did we find it? Filters on Genesis Nasdaq list of largest gainers / losers
I always ask “what do I know”I always ask what do I know as opposed to “what do I think
h f i h”or assume or hope for or wish”
What did I know or not knowBi d li (I id b k t ) Big decline on news (I avoid bankruptcy news)
Massive selling and panic HUGE volume spike (over 2000%) HUGE volume spike (over 2000%) That with HFT and electronic trading markets moves faster
than ever To capture an intraday bounce or more I would need very
short term intraday chart1 i i id l f f t d t t d t f t 1 min is ideal for fast moves and most traders are not fast enough so my main competition is the HFT but we do different things so I’m not concerned g
I chose 1 min (my usual choice in such cases) CAN USE tick charts as well
I saw no MACD or MOM divergence I saw no MACD or MOM divergence So I have to use 2 other tools
8OC and / or MAC 8OC and / or MAC I also know that I do not want to be a seller I will only take buy signals to enter day trades Let’s look at a few charts
$4 780 44 start; then 11 858 this week $14 463 HFT$4,780.44 start; then 11,858 this week $14,463 HFT
30 i b k t ES130 min breakout ES1
I had a request to show 30 mbo trades using I had a request to show 30 mbo trades using 3 unitsA di l ill l k t th t t d Accordingly we will look at that today
“The 30 minute breakout doesn’t seem to be ki ll tl I thi d t thworking very well recently. Is this due to the
fact the volume and volatility are so low? “
F i M G ldFri-Mon Gold
Weekly GC Mac up Weekly GC Mac up Buy Fri open (Thurs afternoon) Stop and PT1 10 bar largest range day If loss Fri on close exit all If profit exit 1 Exit 1 Mon open (Sun afternoon)p ( ) Last position 75%TS BES and/or exit on
closeclose
I rarely get mad…I have a long fuse but sometimes a 4 letter word appealsbut sometimes a 4 letter word appeals to me…
“Hey Jake your Friday Monday gold trade Hey Jake your Friday-Monday gold trade really sucked big time this week. It came back way fast from the high and I only madeback way fast from the high and I only made a few hundred bucks on it. You need to figure out a better way to get out at the highfigure out a better way to get out at the high of moves like this one dude. Very disappointing…”pp g
(Name and initials turned over to the Taliban)
Mentoring appointment interviewhttp://www comtrade1 com/letter/ http://www.comtrade1.com/letter/
MMS sessions are recorded
I can be reached at 800-678-5253 or 831-430-0600 Email me if you have questions: jake@trade-futures com [email protected] Best of trading Jake Bernstein
© 2012 by Jake Bernsteinwww.trade-futures.com 800-678-5253 * 831-430-0600