Day Trading Grains Futures

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  • October 30, 2011 at 1:27 pm #205742
    geosing
    Participant

    This is my attempt to forward test David Bennett’s methodology which he shares in his book – “Day Trading Grain Futures” (ISBN: 978-1905641932). I use a modified version of this in my trading. This is just to document the profitability or lack thereof of the method, as detailed by David – as close to a purely mechanical and simple methodology as I have seen. I am also trying to teach someone to trade. This trader will be using this method to trade corn and OR Breakout scalps in ES, YM or NQ from Mr. Chan’s arsenal of tools.

    I am taking a medical break from trading so real time posting may not be possible and is not necessary for this project. I may not even be able to update it on a daily basis, but I will try my best to do so.

    Although traders trade numbers, I like trading a real commodity, although I do not plan on unloading bushels of corn any time soon on to my driveway.

    November 2, 2011 at 6:21 pm #206084
    geosing
    Participant

    I didn’t know this got live till today. However I have been told to restrict some or all of my trading activities. So depending on how I interpret those orders, I may post like crazy (since I will lose trading privileges) or not at all (because I lost the trading privileges). Just like this schizo market, I will have to take it one day at a time. Take the time to smell the flowers; you can take absolutely nothing with you, when you depart.

    November 27, 2011 at 2:09 pm #206085
    tradahmike
    Member

    Hi Geosing, thanks for starting this thread. I read Bennett’s book and I am interested to see how his method plays out in real live trading.

    Do you follow his 2 min opening candle breakout method, or have you developed something else to get you into your trades?

    December 4, 2011 at 10:27 pm #206086
    geosing
    Participant

    When trading Bennett setups, I strictly went by his scheme, using 2 minute charts only, but I restricted the trading only to corn. Despite my intentions, I am unable to follow through, as I trade very little these days. I hope to do what I intended to do, once I am able to.

    December 5, 2011 at 12:30 pm #206087
    geosing
    Participant

    Got kicked out of YM and 6E trades this a.m.. So switched to March corn. Took the Bennett set-up. Bar 2 was an inside bar, defining Bar 1 range as the breakout range. While waiting, observed resistance at R1, when making ORH. Bar 9 broke the range and stopped in at 599. After taking a quick 3 cent profit to ring register, I am still in the trade. Looks like a R1 to S1 move.

    December 5, 2011 at 12:45 pm #206147
    geosing
    Participant

    Covered all at S1 – 591. Since I can watch the market, I do not follow Bennett’s profit targets. Instead I take profit at pivot levels, OR extension levels and MP VA/POC levels. 3cent OR resulted in 4X OR.
    +3 and +8 (2 units).

    I used to trade unit size of 5 contracts for up to 3 units. I have removed most of my capital from the account (post MF Global) so I am now trading only unit size of 1 lot.

    December 5, 2011 at 12:51 pm #206146
    geosing
    Participant

    Even though I only day-trade, I use $10K equity per contract for grains and $15K per contract for YM and 6E.

    December 6, 2011 at 10:59 am #206077
    geosing
    Participant

    Tuesday, 12/6/2011

    Once again, Bar 2 is an inside bar . 3 cent profit booked on half on the resulting long trade. (583-586). Possibility of reaching yesterday’s settlement price of: 591

    December 6, 2011 at 11:30 am #206078
    geosing
    Participant

    2x OR is same as yesterday low. 589.50
    Closed the trade as I type this. Limit sell filled.
    +3 and +6.50 (2 units)

    I still think the gap gets closed by reaching the settlement price. Beans staying green today, giving some support to corn and wheat.

    December 6, 2011 at 12:09 pm #206079
    geosing
    Participant

    Tagged 591 on Bar 47(2′) and turned green for the day!

    December 6, 2011 at 12:17 pm #206080
    geosing
    Participant

    PP @ 595, just above 3X OR. OR is 4.50 today (I Use first 15 minutes for OR for grains). No sign of sellers so far, but beware volume spike at Bar 21(5′) following a wide range bar.

    December 6, 2011 at 12:50 pm #206081
    geosing
    Participant

    Beans staying green, but not making progress. The Volume spike produced a retracement. Looks like they are working on a 3rd push towards the PP. December is usually a seasonally bullish month, but daily is in a downtrend from Mid Nov peak.

    December 6, 2011 at 1:30 pm #206082
    geosing
    Participant

    Triple Green, as LC would put it. Beans, Wheat and Corn. Approaching PP with one hour to spare. And done – as I type this. I think all the anticipatory biases are exhausted.

    December 6, 2011 at 2:20 pm #206083
    geosing
    Participant

    Closed at HOD, above 3X OR, PP and Prev Day Mid. Classic Trend day. Left some cents on the table. May need a 3rd unit for a runner.

    December 6, 2011 at 4:55 pm #206076
    geosing
    Participant

    Here is the entry. This is what Mr B calls “Third bar breakout”. If the second bar is an inside bar, it is deemed to be the pullback and any extension of bar 1 range is a breakout and a valid entry. Strictly not the third bar today because of two inside bars, but the same principle applies.

    4 days of lower lows and lower highs in the daily.
    Open gap down way below Pivot Point
    Open in October monthly opening range (start of a rally then)
    Limits for the day: 551.00 and 631.00 – plenty of room

    Opening bar was the LOD, so no heat at all in the trade.

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