The two types of trades mentioned in this page the Spread and Spike belong to the cluster of Continuation Trades but they are very different in their origin. What connects them is the way that they are traded as a continuation of the Main Trades. Also they are both short duration trades and they are scalping in nature.
Continuation Trades are designed to complement Main Trades and when you become very experienced with GemsBot you should be using them as such. Having the ability to re enter when the market is making a substantial move in the predicted direction and Profit Targets for Main Trades have been surpassed is their main usage. Thus they justify the existence of small Stop Loss and Profit Targets for Main Trades.
An alternative usage of Continuation Trades is for adding contracts when the Main Trades are successful, since when they are produced the Main Trades are already profitable. For example you could be trading half of your maximum exposure contacts with Main Trades reserving the other half for trading Continuation Trades. This way you increase your exposure to its maximum with very successful trades, while you are trading at half exposure for others.
Finally you could be trading just Continuation Trades if you are interested in scalping with GemsBot. There are days or periods of a day that scalping is very successful and it mentioned in our hotComm room when they occur.
The following trade notes are shown so that you have an understanding of how trades are produced from the trading signals. You do not need to memorize any of them, since all of them are shown in the spreadsheet with clear color coding.
The choice of trades is yours. GemsBot is here to cover your needs whether you are a novice or an experienced trader.
|
Entry Signal
Trades are triggered when the Market Strength changes at a rate of greater than +100 or less than -100 per minute.
|
What you see
The Spread cell changes color to either dark green or red and remains so while the rate of change of Market Strength continues to be either above +100 or less than -100 per minute.
|
Audio Alert
Due to the scalping nature and the high frequency of this type of trade there are no audio alerts produced.
|
Exit Signal
When the rate of change of Market Strength falls in the range of -80 to +80 per minute. Since this is a scalping trade in nature, trade management with roughly speaking half as tight Profit Taking or Stop Loss as the Main Trades should be applied.
|
Frequency
Depending on market volatility you will see anywhere between 10 and 40 Spread trades per day. It is noteworthy that some great runs produce 2 to 5 Spread trades and most of them successful.
|
Entry Signal
Gap values (the difference in ticks between Last and Current Evaluated Price) are used to trigger Spike trades. These are 5 for ES, 7 for YM, 5 for NQ and 6 for TF.
|
What you see
The instant Spike trades are triggered you see a Time Stamp and the current Bid or Ask price. The Price is always underlined as filled and the current P&L for 1 contract less $5 commission is shown continuously in the adjacent cell.
|
Audio Alert
Due to the scalping nature and the high frequency of this type of trade, the Spike Line audio alert are produced only when all four instruments produce a Spike in the same direction within 1 minute of each other. These are normally more successful than the independent ones.
|
Exit Signal
When there is a Spike in the opposite direction for at least 1 tick.
|
Frequency
Depending on market volatility anywhere between 30 to 60 are produced during regular hours. This number is divided almost equally between Trendy Spikes, in the same direction with the prevailing trend or Contrarian Spikes against it. The first type are more successful most days and are considered as Continuation Trades.
|
|