Helmet Hermit's Trading Diary 2020 Equity futures(Single Stock) and Crude oil

hi all :cool:

was away from active day trading for a while but going to be back full time shortly and intend to track my next 1000 trades to check if i have the discipline to make a proper living off the markets. i will be posting my trades live along-with charts and reasoning as far as possible to document my progress and save a kind of look-back journal that i can re-visit to check on my strengths and weakness.

why 1000 trades? because a strategy needs to run for a decent time and long enough to go through its troughs and peaks. fine tuning strategy every 100 trades or so is not healthy in the long run. as a hybrid scalper/intra-day trader averaging about 2 trades a day is not rare and if pure scalping then 6 trades a day or more is not uncommon.
i therefore expect to cover the 1000 trades in a year agw and i will be able to formulate a proper review of my system thereby.

capital - (will decide a firm figure before trading start date - but total capital is capped to some 4 approx) - used approx because i will be using a few days to test tweak myself and the amount may reduce by the time i start trading on the 2nd of jan 2020 o_O.
stock futures - some 2.5 or so approx
comm futures - some 1.5 or so approx

in stock futures i have a stop loss of 0.4 % approx per trade ie approx 950 and the target per trade is the same. trailing stop loss is used to safeguard profits. the stock i trade has a lot size of approx 4500 so the sl in points is 0.20 paise which is reasonable for a small time scalp.

in crude i have a stop loss of nearly the same ie 0.4 % approx per trade ie approx 650 and the target per trade is the same. trailing stop loss is used to safeguard profits. the sl is 6 points which is reasonable for a small time scalp.

what is the core aspect of my trading? my whole trading set up is centered on the heiken ashi candles. i use ema's and awesome oscillator in addition.

ema's define my trend. awesome oscillator confirms the strength or bias of the ema's but heiken ashi is my final 'trigger'. any deviation and my bias by default lies with the heiken ashi whenever any divergence on signals is generated

time frame depends on existing volatility but i am always between the 1 min to 15 min chart on the lower and highest side. usually 3/5 min is my normal prowling ground.

just to give you an example my trading strategy here is a test trade i just took a few minutes back while typing this post. i let the initial spikes settle down before trading usually so i skip the first 15 minutes on open

New Bitmap Image.jpg

back-testing my strategy and making my final tweaks. no change in any values - ema's used are 20/50/200. awesome oscillator and heiken ashi are default.
those using heiken ashi on longer time frames will find my method confusing but this is only due to the shorter time frames the moves here are too small and one cannot wait for confirmation candles on heiken ashi to enter trades as it is usually done while trading the same..

on shorter time frames the momentum is to be used along-with chart patterns, channels, trend-lines, s/r's last high/low etc to enter and exit trades. we will discuss things as and when they happen.

above is a classic example of momentum scalp on the pullback. big move down (as per time frame of chart used) after which we wait for the weakness to show up, enter and exit before it reverses back into the trend by just scalping the tiny pullback.

however be very cautious and as far as possible do not take counter trend trades unless you are very sure of the scalp trade and are super quick. it is always safer to be with the trend. it is only alright if you are into pure scalping.

long enough for a intro post i guess. i will not be actively trading this month, a trade here and there to test the waters. testing myself by back checking scenarios and my possible reaction to them as a scalper to really get into the groove so to speak.

and yes, hope to learn from each one out here as my view to my own trading naturally will be strongly biased and even apparent flaws will not register no matter how big.

good day and good luck to all
why one stock ?

because we as small full time traders are limited in funds, data interpretation, experience, discipline etc. we need some kind of regular money and this need pushes us into trading the wrong stocks. by trading just one stock you have so many things for you. no biting nails watching the pre-open to select stocks. we are too small to become experts in the markets but we are not too small to become specialists. by focusing on just one stock we slowly begin to get a feel of the stock. how it reacts to support levels, how news tends to move it, what time does it tend to get volatile. the big boys trading in a stock can be predicted with some accuracy once it is observed long enough. once you are really familiar in one stock anybody coming in to trade there is partly your prey too. you have a much better idea than say the guy who noticed a good pre-open and jumped in to trade the stock you live in all day. how it spikes, when it spikes, dig the details, work hard and spend all your energy, focus mastering the nitty gritty of your only friend. it is hard work i know but easier than trying to do it for 10 stocks. what happens in the last minutes after MIS square off happens? how do the big boys react then? do they start reversing the move? does the last minutes move spill over to the next day open? does it tend to rise for a day or two and then profit booking comes in? does it happen every alternate day? does a decent pullback create panic? this gives you an idea of whether this is a trading stock or an investing stock. trading stocks react violent to pullbacks. what happens on Friday? is it being squared off as happens in a classic trading stock. there is so much to do that it is close to impossible to monitor more than one. you must make friends until you really know the terrain. having one good friend is always better than 10 acquaintances.

do you realize guys who trade nifty are in a way specialists? or bank nifty? not because they are smarter than the others. it is because they spend all their energy and focus on the one instrument. they know the small details much better than the lost mob who jump in after some news etc. which support has been tested and how the big boys reacted there, which resistance is suspect to give way. nobody knows for sure but they can read the signs and exit when the need arises much faster than the newcomers.

i have a lot of interaction with traders who trade wti and most of them just trade just that. why not nat gas i asked a few? i have no idea of how to trade it is what most of them stated. and some of these guys have been trading wti for decades, lol. if they have no idea i am sure they know what they are admitting to. why do they not do it? because they have worked tirelessly and endlessly on crude to understand it. besides like a few stated - we know wti, we are good at it. why should we risk one in the hand for the two in the bush?. i had to agree. be a specialist - it is tough but the only way to survive the markets for small time traders, at least for folks like me.

so, how do you pick a stock?

pick a volatile sector. i prefer banking. every sector in a small or big way affects it. i do not pick the leaders here as they are way too volatile. i also prefer trading stocks over the investing type. look for volumes in the stock. why volume - volume gives you volatility, liquidity and momentum. these are the main pre-requisite of a day trader. decent beta volatility on a day to day basis. i do not look for much else.

let me see how the new year goes. wish you all the best and hope a great year lies ahead for all our hard working little family out here.
trade 001 -
bob jan future buy @ 104.05, tsl 104.25 - let me see how the first trade goes. for now just one lot in. will keep the tsl adjusted accordingly as and when required.

edit - tsl triggered @ 104.45. 8 pips, not a bad trade, lol.
trade sf 002 -

bob jan fut sell @ 103.7, was a quick scalp as was testing the 200 ema on my ctf. out both lots @ 103.3.
was in 2 lots so 8 pips. good quick scalp
trade sf 003 -

bob buy 2 lots @ 103.40. 2 lots buy @ 103.05 at avg of 4 lots @ 103.225 and sold all 4 @ 103.40
bad trade that luckily managed to end up in a profit :eek:
day summary:

now on i will be doing the summary once a week. this is just an example of how i log my trades for reference

30 dec 2019 summary.png

30 dec 2019 trades.png

30 dec 2019 trade details.png

30 dec 2019 graph.png
Crude is a buy on my set up. But will wait for pit open to decide. May jump in if Jan lot breaks 4435 or so. A bit unsure yet. No real pullbacks to enter at this stage which makes the trade a bit unclear. Let the big boys shine the light before entering.
Trade cl 001-
Took a micro scalp at 4335 and exited at 4338, 3 lots. Breakout did not happen so exited at pause. Net 600, not bad for a start.
If no clarity may skip. Will now wait for us open to decide.

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