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E-Mini S&P 500 Q&A

Q: I bought your e-book "Day Trading E-Mini S&P 500" in 2012. Are there any changes or updates to original text due to market character changes, higher volatility etc. since last 10 years?  A: YES, THE BOOK HAS BEEN UPDATED BUT CHANGES ARE MINOR.

I have some questions especially to the concept of 2 timeframes - 5-minute and 1-minute charts:

1. Q: Are these 2 timeframes adequate for today's trading?  A: YES ADEQUATE
Q: In higher volatility I tried to trade by means of 30-second chart instead of 1-minute chart. Do you consider this as reasonable? A: NO, THERE IS NO NEED TO USE SUCH SHORT TIMEFRAMES

Q: 30-second chart generates sometimes false signals. Do you recommend this short timeframe? A: NO NOT AT ALL. YOU NEED ENOUGH MOVEMENT TO MAKE MONEY—HARD TO DO WITH 30-SECOND CHARTS, If so, under what conditions?

2. Q: Do you have some "strategy" to switch between various couples of timeframes? A: NO, STRATEGY For example if ATR(20) < 6.0, I will use the 5-minute and 1-minute charts; if ATR(20) > 6.0, I will use the 3-minute and 30-second charts; and if ATR(20) > 10, I will not trade.

Q: Do you recommend to switch between the timeframes (e.g. on daily basis), or is it better to use only one couple of timeframes? A: ONE COUPLE IS ENOUGH. ALSO, TRY DOING EVERYTHING WITHOUT SWITCHING TIMEFRAMES.

3. Q: How to use the setting of my stop-loss and profit-target in high volatility? For example, yesterday was the max. ATR(20) about 15.0 points, but it is not suitable to have such high stop-loss and profit-target. Do you have some advice for these situations? A: YES! DON'T TRADE IF VOLATILITY IS TOO HIGH. Actually, I use 4.0 points (16 ticks).

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Thursday, 25 April 2024

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