Day Trading Grains Futures

By geosing

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.

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  • geosing December 9, 2011 at 8:34 pm

    12/09/2011 Fri
    WASDE day. Usually we don’t trade the open as moves can be wild. One lot attempt today.

    Simple 2 bar supp/res range and immediate 2 bar pullback, qualifying a sell stop one tick below the bar 2 low. Should have produced a profit almost immediately as beans was really tanking. Remarkable strength in corn, however, tagging along the VWAP. Delivered 1R profit in Bar 19 after taking mild heat for several bars. Almost made 2R too, but there was no position. Corn showed the most strength in grains complex. May be we get a Santa Rally for the next week or two.

    I pulled the image off of my trading buddy’s journal and did not want to fool with cropping the image etc. Sorry for the trade log from IB TWS. Not sure about the YM trade – at least it was closed by the time grains opened. 🙂

  • geosing December 12, 2011 at 8:50 pm

    12/12/2011 Mon
    Tame day in grains land, compared to the stock and currency markets which were having a selling binge for most of the session.

    Bar 4 was an equal high after the bullish first 3 bars. Breakout of this top can be an aggressive entry and works well if the opening supports it. It was gap down today with move up from the get go with hardly any overlap for 3 bars. Corn has a tendency to move towards the prev day mid point and usually tag it. Bias bullish, obviously. Anyhow, we get another high and then the qualifying pullback. And a laborious run-up and b/o. R = 4 cents. Some heat while market dips to test VWAP. Another laborious climb which terminates with a volume spike (not shown). Advantage is entering the orders ahead of time is realized today, as my order was one of the first to fill at the ask. It just tagged that target price before a sharp pullback. Could have managed the remaining better, but it hit the B/E stop. It never went to 2R profit level anyway, as there were other resistance levels, no complaint about 16 ticks for a mechanical trade (or close to it).

    Daily is still in a downtrend using bearish fundamentals as alibi. There has to be a short covering rally ahead …seasonal and all that.

    • geosing December 12, 2011 at 8:55 pm

      I am documenting only the Bennett style trades. I also use Market Profile and OR b/o. I use 15 minutes as OR for corn.

      • geosing December 12, 2011 at 9:06 pm

        And working on cheat sheets and weekly overviews using STOPD principles, using LC’s formats.

  • geosing December 13, 2011 at 10:32 am

    12/13/2011 Tue
    Gap up open and sell down in the first bar.

  • geosing December 13, 2011 at 10:34 am

    Bear turned bull, as we have a new day high on bar 3

  • geosing December 13, 2011 at 10:39 am

    Bar 4 LH LL. LH #1

  • geosing December 13, 2011 at 10:43 am

    One of those days. Low taken out. Bar to Bear.

  • geosing December 13, 2011 at 10:59 am

    Currently short (scalped some) on OR break out. But no BBO (Bennett Break Out) trade yet. We have two higher lows, but they are equal lows. Ok. Bar 13is the qualifying bar. 595 is the swing low.

  • geosing December 13, 2011 at 11:10 am

    BBO triggered. 597.50 is top of R.

  • geosing December 13, 2011 at 12:02 pm

    Closed the trade on Bar 44. Scratch.

  • geosing December 13, 2011 at 12:25 pm

    Just as well. 1/2 R stop would have been hit. 1R stop has not been hit yet. I suspect that would also hit if there is a third push up here. Beans and wheat are strong today.

  • geosing December 13, 2011 at 1:44 pm

    1R stop would have given us the 1R:PT at Bar 94! I am currently short from 595 and scaled out at the AM low of 593. Market stalled around VWAP. Probably due to dollar strength, as wheat and Beans are fading too, though still green.

  • geosing December 13, 2011 at 2:02 pm

    All out at AH low+1 tick.

  • geosing December 13, 2011 at 4:21 pm

    I think it is best not to mix my other trades here. BBO is quite close to a simple, mechanical method. Worth testing it going forward.

  • geosing December 29, 2011 at 6:15 pm

    I don’t anticipate making any further posts here. I wish you all a healthy year ahead, full of profitable trades. Be well.

  • smilingsynic April 6, 2012 at 10:43 pm

    Bennett’s blog. Updated daily.

    http://12oclocktrades.com/blog/date/2012/04

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