Thursday, May 21, 2009

I finally cracked the sombitch

Four Years. Yup, it took me four years.

Sorry for the lack of an update but I had a fairly interesting yesterday and had bigger things to do. As I previously had posted I was back to trading the setups I was in January and I had made small changes. My problems were (as always) my risk was fairly large and my reward was limited by the Keltner Channels as I was typically getting in above the midline. To top it all off I still could not quantify why some of my trades worked so well and others failed and stopped almost instantly.

Yesterday I cracked it. No really... I know I always say I have great ideas and its works and yada yada... I sound like a damn broken record half the time but I really did break the little bastard. The one setup i've been staring at and obsessing over for over four years now since my mentor first taught it to me. My mentor had always told me that our entries were best when momentum was with you. Until now I had tried everything to try and quantify when I had momentum with me and had failed. I was barking up the wrong tree to say the least. The answer is so much more simple and elegant.

I'm now getting in on entries where the markets are really moving in my favor and the profits are coming quickly. Most entries take little or no heat. My losses on average are under a point and are typically between 2-3 ticks. On occasion I will catch a loss for 1.25 or something but its never that big. And why is this? I'm getting in when there is extreme momentum in the market. Now this wouldn't mean much if I kept averaging my 3-4 tick "wins" and I would continue down the path to inevitable failure sooner than later. But my wins are 2-5 points on average.

Yesterday for example I netted 6 ES points on three trades, today i'm up +5.5 on two trades, and +4 in the NQ on one trade. There are only a couple a day (I like that) and they are SOLID more often than not. I can't tell you how relived I am and excited to know that I finally figured out the riddle.

I know I sound like bullshit. Hell I feel like its bullshit when I type this. But the truth of the matter is that I finally quantified the secret to making it work for me. Admittedly these gains have been on sim and I know that counts for shit but these entries were real. They were there, I took them, and I managed them perfectly. No interpretation. No Bullshit.

I can't believe how simple it is and how I could've been so blind. Honestly... Next week I will make more money than I ever had before on this blog. Period. No really, I will.

The entries from thus far today...

Enjoy the long weekend (I know its only Thursday). For the first time in years I think I really will. I just feel like a weight has been lifted, that all the hard work and obsessive hours have finally paid off. Is it too soon to celebrate? Probably. I haven't truly proved anything to anyone just yet and I realize that. But i'm going to starting Tuesday. So please check back to see if my claims are worth anything.


daytrader233 said...

LOL Great post! You've got awesome spirit kid. You're gonna do just fine. Congrats on the discovery.

Michael said...

That's great news Matt! I'm looking forward to seeing it work for you next week.

mtcx2009 said...

I know the feeling of the "lone discovery" well. Hopefully it will just work, but if it does not, don't give up on the idea or trying to make it work better. Also, give it some time to play out one way or the other before moving on or tweaking indicators.

E-Mini Player said...

Congrats bud! Looking forward to seein you kick some serious ass next week!

Scalpwiz said...

Congrats! Hope this new strategy works out for you.