For most of my career I was not exposed to the retail side of e-mini trading. To be sure, e-mini trading did not exist for the first half of my trading life. So when I exited my institutional trading career, I had to find my way with what existed as indicators/oscillators.
What a shock! Most of the indicators/oscillators were similar to what J. Wells Wilder put forth in his groundbreaking book, "New Strategies in Technical Trading Systems." With the exception of the newest order flow technology systems, these old standards still suffice for what the vast majority of traders call a trading system.
I didn't want any part of trading from a lagging position.
So, in those early days I had to rely upon a couple of tape reading programs, volume tables and price action; hardly the stuff of present day e-mini trading systems which still remain in the domain of lagging indicators and oscillators.
Scarcely a week passes when I don't receive some sort of solicitation for "next and best" trading system. I dutifully watch the promotion videos and shake my head. One of the latest breakthrough systems, whose name isn't important, used only a momentum indicator and the rest of the "proprietary" technology was not visible. After some examination; the "proprietary" technology was a couple of moving averages combined with the ADX portion of J. Welles Wilders Directional Movement indicator. This is fairly typical of most, if not all, of the e-mini trading offerings I see unless you consider the VWAP or Delta emphasis of some indicators a real step toward trading freedom.
I should mention that I am a scalper, and don't trust the volatility of markets to stay within parameters of normal trading overnight. I sleep a lot better that way. That being said, I am not terribly interested in long term trends, mildly interested in intermediate trends, and very interested in short term trends; so when I received a solicitation for a new indicator that would determine the trend for me, I was stupefied. Why not just look at the chart from a few different time frames, draw a few trend lines?
Yet, I get new e-mini traders who own dozens of these indicators and sometimes have spent thousands of dollars in acquiring them. They are sometimes frustrated that I have little use for the "latest and greatest" indicators.
My point is a simple one, if you have thousands of dollars to spend every month you can get professional level quotes and have the same information that most professional traders use. How I wish I had real Tier 2 and higher quotes.
As for retail indicators, it seems to me that if you are determined to follow lagging indicators, well, you are going to lag in your performance and trading is going to be difficult and frustrating. Trading isn't about indicators; it's about reading charts and how you think about trading and set-ups. Of course, experience is a real asset, too. But you can't compensate for lack of experience with a load of squiggly lines across your chart.
In short; I have not seen a particularly impressive trading system in the last ten years, as most are simply combinations of well-known oscillators or moving averages of every shape and kind. They lag. Period.
In summary, I have talked about the relative ineffectiveness of current e-mini trading systems and how new systems are constantly be churned out based on the same old principles. I did mention that modern order flow technology is the one exception to this trend.
What a shock! Most of the indicators/oscillators were similar to what J. Wells Wilder put forth in his groundbreaking book, "New Strategies in Technical Trading Systems." With the exception of the newest order flow technology systems, these old standards still suffice for what the vast majority of traders call a trading system.
I didn't want any part of trading from a lagging position.
So, in those early days I had to rely upon a couple of tape reading programs, volume tables and price action; hardly the stuff of present day e-mini trading systems which still remain in the domain of lagging indicators and oscillators.
Scarcely a week passes when I don't receive some sort of solicitation for "next and best" trading system. I dutifully watch the promotion videos and shake my head. One of the latest breakthrough systems, whose name isn't important, used only a momentum indicator and the rest of the "proprietary" technology was not visible. After some examination; the "proprietary" technology was a couple of moving averages combined with the ADX portion of J. Welles Wilders Directional Movement indicator. This is fairly typical of most, if not all, of the e-mini trading offerings I see unless you consider the VWAP or Delta emphasis of some indicators a real step toward trading freedom.
I should mention that I am a scalper, and don't trust the volatility of markets to stay within parameters of normal trading overnight. I sleep a lot better that way. That being said, I am not terribly interested in long term trends, mildly interested in intermediate trends, and very interested in short term trends; so when I received a solicitation for a new indicator that would determine the trend for me, I was stupefied. Why not just look at the chart from a few different time frames, draw a few trend lines?
Yet, I get new e-mini traders who own dozens of these indicators and sometimes have spent thousands of dollars in acquiring them. They are sometimes frustrated that I have little use for the "latest and greatest" indicators.
My point is a simple one, if you have thousands of dollars to spend every month you can get professional level quotes and have the same information that most professional traders use. How I wish I had real Tier 2 and higher quotes.
As for retail indicators, it seems to me that if you are determined to follow lagging indicators, well, you are going to lag in your performance and trading is going to be difficult and frustrating. Trading isn't about indicators; it's about reading charts and how you think about trading and set-ups. Of course, experience is a real asset, too. But you can't compensate for lack of experience with a load of squiggly lines across your chart.
In short; I have not seen a particularly impressive trading system in the last ten years, as most are simply combinations of well-known oscillators or moving averages of every shape and kind. They lag. Period.
In summary, I have talked about the relative ineffectiveness of current e-mini trading systems and how new systems are constantly be churned out based on the same old principles. I did mention that modern order flow technology is the one exception to this trend.
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