clearly this QE driven market, is causing historical moves in
the market, I was stopped out my last ES contact early morning.
I did enter another another ES short based on the 15 min chart
getting too far from the 9 EMA as you can see on the candlestick on
the attached chart, I'm not sure how much room I'm going to
give it, just playing by ear. I know that eventually price
will close back below the 8 SMA, so I may just scale in at spots
when I see opportunities.
Clearly this QE fueled market has caused historic moves in the
market, those were pretty strong stats, but again, the trade how I
scanned technically doesn't have a stop, you close out when price
closes below the 8 MA which eventually has to happen, and everyone
of them in the past took 4 - 5 days to close, so I suppose
technically it's still following history from a time frame
perspective, but NOT from the max draw down perspective of course
as the draw max draw down on this one exceeds all the past ones.
Ugh annoying...
on SPX cash the max draw down is 636 so far on this trade based
on 100K, the previous max draw down was -393 as you can see from
the second image
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clearly this QE driven market,
Exhaustion Statistics follow up
Posted by matt on 21st of Nov 2014 at 09:55 am
clearly this QE driven market, is causing historical moves in the market, I was stopped out my last ES contact early morning.
I did enter another another ES short based on the 15 min chart getting too far from the 9 EMA as you can see on the candlestick on the attached chart, I'm not sure how much room I'm going to give it, just playing by ear. I know that eventually price will close back below the 8 SMA, so I may just scale in at spots when I see opportunities.
Clearly this QE fueled market has caused historic moves in the market, those were pretty strong stats, but again, the trade how I scanned technically doesn't have a stop, you close out when price closes below the 8 MA which eventually has to happen, and everyone of them in the past took 4 - 5 days to close, so I suppose technically it's still following history from a time frame perspective, but NOT from the max draw down perspective of course as the draw max draw down on this one exceeds all the past ones. Ugh annoying...
on SPX cash the max draw down is 636 so far on this trade based on 100K, the previous max draw down was -393 as you can see from the second image