My Trading Edge

Latest Trades

noreply@blogger.com (mytradingedge) — Thu, 23 Feb 2012 12:47:00 +0000

Telstra Fade was exited today.
NOTE: I held during the ex-dividend period, so the profit on the trade is the difference between the entry and sell prices, less the dividend. See chart below

click on image to enlarge

Entered another extension fade trade
Closed out for a point after trade rebounded - them-the-breaks!
Details in the charts below

click on images to enlarge

Fading extended uptrend: TLS

noreply@blogger.com (mytradingedge) — Fri, 17 Feb 2012 03:52:00 +0000

Fading trends is best left to extremes of ranges. Screen shot below shows how Telstra couldn't break the highs reached back in January. Price in the short term is extended to the upside (distance away from all 3 MA's) - so almost like an overstretched rubber band, has pulled back.
Entry was at the edge of price movement to skew risk-reward in my favour.
The irony in entering at the edge is you are getting into the position with very little confirmation. However by waiting for further confirmation, you typically take more heat and have to reduce your trade size to manage the risk. You also diminish the reward to risk ratio.

Click on image to enlarge

Update to Short Copper Trade: Exited due to inside level holding as per plan - see chart below

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Short Copper via ETF

noreply@blogger.com (mytradingedge) — Sun, 12 Feb 2012 00:39:00 +0000

Copper is in a bear rally phase. Using iPath's Copper ETF (JJC), I initiated short positions between $50.30 and $50.40.
The price action in Copper doesn't give many clues that it will reverse until after the event. This being the case, I entered short once JJC was well extended in the short term, as indicated by the distance price has moved above the twenty day moving average. In addition, the entry is within the rectangular price zone which is significant because:

it's where price formed the last support area within the uptrend prior to the December highs
it's where the lows which held price in it's consolidation phase occurred
it's where a minor structural high occurred which I will use to define the risk on the trade

If price retests and holds the inside support area (circled yellow) then I will exit, otherwise I will look to exit based on price moving somewhat inline with the arrows I've drawn in.

click on image to enlarge

BHP call warrants - exit flexibility

noreply@blogger.com (mytradingedge) — Fri, 03 Feb 2012 22:46:00 +0000

Trading with trend AFTER short term MA's have turned up (see this post), buying momentum dried up before price got anywhere near projected target so trade was exited early.

See chart below for further explanation and entry/exit details

Click on image to enlarge

SPI & HSI trades - improving timing using MA's

noreply@blogger.com (mytradingedge) — Thu, 02 Feb 2012 14:53:00 +0000

Today's entries into the SPI (index) via call warrants highlights my tendency to enter long trades too early. On an intraday time frame this leads to more stop-outs than necessary.
While I enter in the general area of what will become support....entering PRIOR to the shorter term MA's trending up means taking greater heat or unnecessary losses.

I managed to time the entry on the Hang Seng well with the shorter term MA's trending up.

All entries and exits noted on the charts below.

Click on images to enlarge

SPI (ASX 200 Index) Call Warrant trade completed

noreply@blogger.com (mytradingedge) — Sun, 29 Jan 2012 12:12:00 +0000

Closed out the remaining call warrants on Friday when price tested the overnight session highs.... (see 1st chart below).
If you look at the 2nd chart, you can see the supporting price evidence to remain with the call warrants; however due to time decay, it was prudent to exit. The profit margin was minimal despite having held the calls for a major part of the price move from the January lows.

Click on images to enlarge

SPI and ES trades

noreply@blogger.com (mytradingedge) — Wed, 25 Jan 2012 15:40:00 +0000

Finally added some pennies to the kitty in what has otherwise been a week of "Big Mac" profits.

Trades explained in the charts below

Click on images to enlarge

For traders - 4 core or 8 "core" CPU's?

noreply@blogger.com (mytradingedge) — Wed, 25 Jan 2012 14:55:00 +0000

The first screen shot below shows only 4 of the possible 8 CPU threads being utilised while running NinjaTrader, TWS (or your preferred trading platform) and a web browser.

The next screen shot shows most threads at work once additional applications such as screen recording software and image editing software are being used. The image below illustrates how the extra threads "spread the work load" so the CPU can operate well within its capabilities, ensuring performance isn't compromised.

In summary, most applications used for trading only maximise four cores. However, if recording and editing your live screen images or screen recordings, it's beneficial to have a CPU capable of efficiently running "multi-threaded" applications.

See this post for details of the CPU used in the examples above.

More on Hyper-threading

Nuances in short term MA's

noreply@blogger.com (mytradingedge) — Tue, 24 Jan 2012 17:25:00 +0000

In the chart below, while price repeats its behaviour moving to a zone, the relationship between price and the short term MA differs. This relationship can be used to aid both entry and exits. See chart for full explanation using a real time trade in RIO

To summarise: if price gets away from the short term MA expect some rubber band action (in opposite direction) - if price stays with short term MA - expect price to continue in direction of MA(s)

Click on image to enlarge

Friday SPI and MHI

noreply@blogger.com (mytradingedge) — Sun, 22 Jan 2012 13:40:00 +0000

Still hold out-of-the-money March call warrants on SPI index, looking for the SPI to play "catchup" with the Dow/ES at least in the short term as shown in the first chart ......the biggest problem I'm experiencing is the SPI is making strong upward moves in the night sessions (when warrants don't trade) and reversing these moves during the day session....as shown in the second chart below

Closed out a "close-to-money" call warrant position Friday, as well as taking a short trade on the Hang Seng using put options on the mini Hang Seng Futures (MHI)

Trade details marked on charts below

Click on images to enlarge

Monitor choice and set up

noreply@blogger.com (mytradingedge) — Wed, 11 Jan 2012 11:27:00 +0000

monitors that use IPS panels are suitable for off-axis viewing

For multi-monitor trading set-ups, look for monitors which combine IPS panels for the largest viewing angle with LED design for the the lowest heat output.

Arguably, the best choice currently available are the 23" and 24" UltraSharp models from Dell. Look for Dell's promotional pricing for up to 30% off the recommended price.

For optimum performance, use the settings published by TFT Central. Not only will these settings reduce eye fatigue, they will also significantly reduce heat produced by the monitors.

When calibrated as per above, the Dell U2412M 1920 x 1200 monitors will operate 24/7 at only 20 Watts, and remain almost cool to the touch

JB Hi Fi Counter Trend

noreply@blogger.com (mytradingedge) — Wed, 11 Jan 2012 11:12:00 +0000

Waited for numerous signs of confirmation before taking a position "counter trend". Also made sure that entry was "at the edge" of the current range to skew reward in my favour
See chart annotations for details

Click on image to enlarge

Follow up to QBE warrant trade

noreply@blogger.com (mytradingedge) — Wed, 04 Jan 2012 07:21:00 +0000

Exited the QBE Call Warrant Position. Certainly wasn't the boomer profit I would have preferred! Exited at highs of day, as price tested previous highs. See chart below for details

Click on image to enlarge

Quiet, Cool and No Dust! (Hardware recommendations)

noreply@blogger.com (mytradingedge) — Thu, 29 Dec 2011 23:48:00 +0000

As internal PC temperatures increase, so do component failures and system freezes. Users can also experience reductions in performance.
While it's necessary to cool internal components, the trade off is noise generated by cooling fans. In addition to drawing in air for cooling, PC fans draw in dust. Overtime, this dust builds up a thick layer on internal components, siginificantly increasing the chance of component failure.

The above issues can be overcome by:

choosing an appropriate case such as the Silverstone FT02 or Silverstone Raven 02E
replacing the CPU's stock cooler
using a single graphics card to run multiple monitors
using a high quality power supply from Seasonic/Corsair/Silverstone/Antec

The image below shows the internal layout of the Silverstone FT02 case. Everything inside the case is rotated 90°. This ensures the hard drives/sold state drives, the graphics card(s), memory and motherboard are equally serviced by three 180mm fans. Large by computer standards, these fans will operate at near silent speed, but still produce ample airflow.
Each fan has a removable dust filter which can be rinsed under the tap for cleaning.
With only one exhaust fan in the case (at the top), "positive pressure" constantly forces air out of any "air leaks", stopping dust from building up internally.

Click on image to enlarge

Side view of case with side panel removed

Also shown in the above image is a liquid cooling system (Radiator) with fans attached either side. While the stock CPU cooler blows hot air onto the motherboard, the liquid cooling system expels heat out of the case significantly reducing internal temperatures. With larger fans than stock coolers, the liquid cooler operates quietly.

The all-in-one liquid cooler is a Corsair H60 fitted with 2 x Noctua PWM fans

The graphics card is capable of running up to six monitors at 1920 x 1200

With everything rotated 90°, all of the "rear" cables are located at the top of the case and the connection points are protected by the case's top cover. The cables exit at the rear of the case in a single neat loom. See images below

click on images to enlarge


Cable connections at top of case (case cover removed)

Single loom of cables at rear of case

QBE call warrant position

noreply@blogger.com (mytradingedge) — Thu, 29 Dec 2011 21:23:00 +0000

Purchased deep-in-the-money call warrants on QBE...despite the current trend being down, there were several factors supporting the purchase. See chart below for details

Click on image to enlarge

Xeon E 1230 instead of i7 2600

noreply@blogger.com (mytradingedge) — Wed, 28 Dec 2011 22:04:00 +0000

The current range of Intel "Sandy Bridge" processors (CPU's) offer oustanding performance for their price point.
Both the Core i5 2500 and Core i7 2600 CPU's are excellent options for a trading workstation, with the 2600 offering hyperthreading for applications which are multi-threaded.
However, a trading workstation running multiple monitors will require a dedicated graphics card (GPU), making the on-board GPU's of the 2500 and 2600 CPU's redundant.
Intel's Xeon E3 1230 offers the performance of the 2600 (minus the on-board GPU) at around the cost of a 2500. The exclusion of an on-board GPU reduces the power requirements and heat emissions of the CPU, making for a more efficient alternative.

Intel Xeon E3-1230 3.2GHz (3.6GHz Turbo), Quad Core with HyperThreading, 80W TDP, ECC Memory Support, 8MB L3 Cache. Please be aware that this processor is only compatible with LGA 1155 motherboards.

Best choice for SSD

noreply@blogger.com (mytradingedge) — Wed, 28 Dec 2011 21:40:00 +0000

Migrating to a Solid State Drive (SSD) offers a dramatic increase in performance. However, despite this dramatic improvement, there are numerous models in the market which are prone to failure. Mostly, this can be attributed to the use of Sandforce Controllers.
Neither Intel or Crucial utilise Sandforce controllers, which is why both these brands are the preferred choice of PC forums. Of the two brands, the M4 series from Crucial represents the best value for money.

A 64GB drive provides enough storage space for the operating system and the most commonly used applications, including trading applications. For users who intend on also installing applications from the Adobe Suite, the 128GB model is recommended.

In both cases, it is advisable to move your personal folders (such as My Documents etc) to an additional drive, as shown here

Improved internet performance

noreply@blogger.com (mytradingedge) — Thu, 22 Dec 2011 01:09:00 +0000

While most PC motherboards include an ethernet controller on board (for connection to a modem), a simple upgrade to an Intel® 82574L Gigabit Ethernet Controller improves internet stability for connection to live trading platforms and real-time data feeds.

For PCs with a spare PCI Express (PCIe) slot

Basing Periods

noreply@blogger.com (mytradingedge) — Sun, 11 Dec 2011 02:37:00 +0000

The basing periods shown in the chart below served as the logic for a long trade. (Call options were purchased instead of the underlying due to the extreme volatility)

Click on image to enlarge

Retail mindset of trying to catch a bottom

noreply@blogger.com (mytradingedge) — Sat, 26 Nov 2011 23:40:00 +0000

Guilty of making a couple of "retail mindset" trades during the early session of ES trading Thursday. Trades identified on chart below

Click on image to enlarge

Precursor to an explosive move

noreply@blogger.com (mytradingedge) — Sat, 26 Nov 2011 23:26:00 +0000

A bunch of behaviours are often evident prior to price making an explosive move as the ES did early into Friday's session (see notes on chart)

Click on image to enlarge

Perception verses Reality

noreply@blogger.com (mytradingedge) — Mon, 21 Nov 2011 09:36:00 +0000

Became a victim of trading based on my expectation....
As Mondays are often big trend days, I shorted the index via warrants expecting the market to continue with its downward move. Fortunately, stops minimise the impact of a poor trading decision.

Held a short position on RIO over the weekend which was closed out early in the session capturing a reasonable down move.

Trade logic and entries/exits marked below

Click on charts to enlarge

Friday trades

noreply@blogger.com (mytradingedge) — Sun, 20 Nov 2011 09:49:00 +0000

Trade logic and entries/exits marked on charts

click to enlarge

Short trades in NCM - ideal verses non-ideal price structure

noreply@blogger.com (mytradingedge) — Tue, 15 Nov 2011 10:29:00 +0000

Too focused on a longer term resistance level, on Monday I chewed up commissions with multiple entries and re-entries fading the highs of the day. I was caught in the congested price action.
It wasn't obvious too me while using a range chart, however it is easily recognisable on the tick chart as pictured below. By contrast, today's price action provided much cleaner trade opportunities as noted on the chart.

click on chart to enlarge

RIO Nov 10

noreply@blogger.com (mytradingedge) — Thu, 10 Nov 2011 07:21:00 +0000

Prioritised the day with updating record keeping so just the one trade; however plenty of notes on the chart explaining the logic behind the entry and exit

click on chart to enlarge