Shared by
Trader_Rod
Closing range imbalance Friday fade. The 20 second trade. Volatile, action close. ES dropped 3 handles in 30 seconds.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-07-12 16:00:03 | YMU3 | sell | $15387 | short |
| 2013-07-12 16:00:08 | YMU3 | sell | $15386 | short |
| 2013-07-12 16:00:08 | YMU3 | sell | $15386 | short |
| 2013-07-12 16:00:13 | YMU3 | buy | $15368 | short |
| 2013-07-12 16:00:13 | YMU3 | buy | $15368 | short |
| 2013-07-12 16:00:13 | YMU3 | buy | $15368 | short |
| 2013-07-12 16:00:24 | YMU3 | buy | $15378 | 0 |
Comments
RobinHood
Man that's a nice quick gain! You trade that kind of thing a lot? I trade just ES, but notice after 4pm it always gets so crazy, so I usually get flat before then. I can't make any sense of that action it seems so wild and erratic and slippage looks like it could hurt a lot, what are you looking for if you don't mind me asking. I'd love to try and take advantage of that volatility. Great stuff!
Trader_Rod
These set-ups occur 6-8 sessions per month. The trigger is an imbalance of greater than $1B (they'll mention this on CNBC near the close sometimes) and buy stops or sell stops getting hit into the close. (You can see this on the T&S). The trade is counter trend, opposite direction of the closing 10 minute range. In this case I placed a Sell Stop. A few weeks ago the Russell rebalancing into the close provided a classic example of the set-up too.
Hey Thx Options_Rod!
Very interesting, I'll look into this more, thanks for sharing.
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wow. super sweet trade...so fast o.o