Results of intraday scalping on futures in June 2018

Hi there. Here I want to summarize results of my scalping trading during June 2018 on futures. 23000 USD earning with scalping 2-10 contracts per 1 month I think not bad resultt. 

Here is total result.

Day 1.

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8

Day 9

Unfortunately Blogger forbid to place more pictures, please find the rest on my account in Twitter and in Facebook.
https://twitter.com/TraderVolfix?lang=en
https://www.facebook.com/volfixtrader/?ref=bookmarks

Intraday results in trading

There is an opinion that intraday trading is very difficult and much better to trade swing or long trades. I guess is not true. Using intraday trading we receive results much faster and as a result we have bigger emotional presure. But intraday trading as other trading has own rules and if you use this rule you can receive very good results.

This is my own results for half month (from 1.06 till 15.06.2018)  9 trades day. (here you can see dayly reports:  https://www.facebook.com/volfixtrader/  https://twitter.com/TraderVolfix?lang=en)

I will post my trades during 2 months to show which results you can achieve using intraday trading and scalping. And not only me:

Here is reports for my studetns which traded during jour lessons. Thank you so much Frank, for your constinstenly reports.

This is another student Patrick (thank you too for your job) who posted his screens of trades with  regular basis. This is one of his report:

My friend Sergey who just trade only one instrument time to time has follow result:

I guess it's not bad to have 87% for 3 month trading 1 instrument. Per my opinion if he spent bigger time for trading , but not for his garden he has much better performance :)

So intraday trading this is the same job as other, you should use some rules your skills and experience and have a good result!

Global movement ES.

If we look at the COT reports on CME we can find that this is the first time since March 2016 when small traders have more long positions then big participants.

It seems that we should expect correction or balance accumulation.

*- red line is small trader
* - green is non comercial
* - blue one is commercial

Using simple strategy without analysis

When we talk about trading usually we have two different kind of approach in analysis of situation. One of them based on trading experience, knowledges and skills, another one based on statistical advantages.Wisdom is combination of this two approaches. But very often our brain could work against us when we do analysis, and it usually happens when we in open position or had an opinion about price movement  before making an analysis. Our brain sees what we want to see. When we are in long position we usually pay attention on signals which approve our solution and we ignore signals which are against us. Why is so difficult to trade by hand sometimes. We should do a lot of manipulation: to open and close position, to make an analysis, to check current signals, to control money managment and combine all of these things with several instruments. It's not easy, there is why we time to time we find ourself in tilt situation. Our brain is overloaded of incoming information and emotions. Also often we want to be right anyway and this solution could be very expensive for us.  

    From the another side using statistical advantages we can trade without overloading of our brain, just using strict rules. It looks easier, but problem that we usually don't want to trust of this approache. When we we fall into a series of failures and losses we usually try to update our system not based of previous data but based on current situation which could be temporal. And after, we can fall into constant process of adaptation of the system. And we lose  when our system didn't show good results and lose when it should be but we changed rules. What if I tell you that we could have very simple strategies like crossing of moving averages or something like this. Below I will show results of trading of one of my good student, Stan. He was absolutely novice in futures trading, also he had a job full time. Stan didn't want to spend a lot of time for intraday trading. Manual trading based on receiving and using current information or current analysis was impossible for him. But he was accurated and consistented with rules one of the system which he learned from me. It was on 100% algorithmic system with strict rules. Difficult is was always follow by rules without any own analysis and our opinion. But he did. So, below his results:

Sep 17. + 1445 USD

Oct 17 + 1570 USD

Nov 17  + 5530 USD

Dec 17 - 3875 USD

Jan 18 + 2004 USD

Total: 6674 USD. 

Requarement of his amount was 16 000 USD as Maximum. So it's mean that if he had 16 000 USD it would be enought for trading like this. And he can make 41 % for 5 months. If you have an access to our platform you can check his results in Trading Statistic.

You can ask me: "And what? Another guys did better results with less period!"  Yes You are correct. This information without additional conditions is not so important. But Stan was absolutly novice, and he used simpl strategy which could use everyone. He rejected own opinion and forecasts and he receive better results than others traders who has much bigger experience and who spend much more time for trading. He just follow his rulles.

I want to say in this topic that very often the biggest enemy which don't permiss that we win on market it's our brain or we ourself. I heard saying, that if we really find out who is the person who prevents us from living, and if we kicked his ass. Then we would have a sick ass the next day :)

    

Trading results and conclusions 2017

Hi there. I want to show you my trading results for this year and tell about experience which I received. There is a saying: The cobbler always wears the worst shoes. In our business there  is a lot of mistrust to all who teach others how to trade. Because we don't know exactly is this person really has success in trading or just talk about. (see full video here: https://youtu.be/n-nzeHBnN20) 

 I was trading on real account on Russian market (MICEX exchange) during 9 months and right now I will show results and conclusions which I did during this period. This is my equity curve. As you can see I started with small sum about 300 000 rubles (equivalent 5200 USD) and during this year I invested once more than 700 000 rubles ( about 12100 USD) on this account. So my total investment was  one million and sixteen thousand rubles. It was about sixteen thousand three hundred dollars.

I chose MICEX Exchange for several reasons. Firstly this is real exchange, not a FOREX or CFD or something else. I can see my orders  in Order Flow and I don't trade against my broker. Secondly  futures here  have very small initial margin so I can trade a lot of instruments in the same time. 

I invested not so big sum and it was experimental account so for me more important was final result in percent and approving of my ideas. I traded mostly futures and options and rarely stocks. I used about 5 - 7 strategies in the same time and bet with a little size. And I like what I received because it was corresponded with my theory.

First of all I received very smooth curve without big drawdown. It's not  the biggest profit which I received, nevertheless  I think this  is the best result which I have ever had. I had much bigger profit in money and much bigger profit in percent.  But I have never had so consistent result.

Every month I had profit. Average profit was about 4-5%. At times  I had profit about 7-10% per month sometimes about zero. But in general I received 373 000 rubles (it’s about six thousand and four hundred dollars) or 37 % per 9 months or fifty three percent for the year.

Let’s check more in detail how I did it. If we check my performance report I have one-third more profitable positions than unprofitable ones. But my average profit trade is too small about two hundred and fifty rubles (it's about four dollars) and my loss is two hundred and ninety rubles or five dollars. I did a lot of trades about ten thousand. Because I know that only on big figures we can receive true result. 

My biggest drawdown was  13 416 rubles (it's about 250 USD) but it was part of my delta hedge in my option strategy. The biggest true drawdown was 7711 rubles (about one 130 dollars). The biggest profit was a bit less: 6328 RUB  (about 110 USD).

But usually my profits and my losses were much less. Now it looks unbelievable that I had average profit 4 dollars but eventually I made 6.4  thousand of profit. But answer is about 10 000 trades during about 150 working days (I didn't trade every days). When I trade it was about 50-100 trades per day.

I used scalping strategies, intraday position holding strategies. I traded several instruments in the same time. And in one of them I hold position during several seconds in another I was in position all day. I used diversification and my bets were small.

What I found out during this period? First one there is not any "the best strategy" (holy grail) which you could use everywhere. Every instrument has own character expressed in volatility, reaction on news, correlation with others similar and so on. What can be work good for one instrument  might be not useful for another one.

The second one - timing has very big influence. Input in trade before fast movement - this is real mastery. And vice versa to be in position before balance or whipsaw it's bigger risk to receive stop loss, you hold your initial margin, you can't trade other possibilities on this instrument and pay a lot of your attention sometimes without any result.

And the last one but the most important it's using of your money management. Usually traders don't account power of compound interest and power of big drawdown, and possibilities of big series of unsuccessful trades. And also in this case usually people underestimate the impact of psychology. But impact and pressing yours profits and losses on yourself could be very big.

What else? You should have a rational expectation from your trades and you should  be in agreement with it. And better to undervalue your skills than overestimate them. We often do unreasonable actions and should understand that we sometimes can't control ourself. It too difficult and sometimes useless to fight with our emotions so we should accept them and to make an amendment about them in the future.

I wish you good health (this is the most important), good profits, and be more happy!

Merry Christmas and Happy New Year!

Finally I did it. My book have done. This is a link for download: https://goo.gl/uqWkom

It will be interesting for beginer who want to know more about Volume analysis in tarding.

What prevents us from trading?

There are opinions that just several percents from all traders has constantly profit. All other 95-98% percents loose money or don't make profit. I think this opinion is wrong. Based on statistical datas of open tournaments traders, average percent is about 30% of winners and 70% of losers. But for much longer period amount of winners decrease and finally we can receive ratio 90% of loosers and just 10% winners. But if we check statistic for newly created companies, we also can see that about 80-90% will be closed during first 3-5 years. So this results is the same which we have in trading.  Let's imagine that somebody ask to be his partner and invest money in some business. For example hotel for pets. You didn't know before about how to manage of hotel and take care of the pets. But idea likes you and you decide to invest money and participate in it. You don't know exactly how it will be but intuitively you understand that you will spend a lot of money (or you have written business plan and have an idea how many do you need). Also you should spent some time to create your hotel.

But when we decide to trade on Exchange we decide that it's easy and we shouldn't have business plan, we can do not spent our time. We download some apps on our Iphone and during meeting try to trade EUR/USD or crude oil with expectation to make some bucks.

Let's compare 2 popular opinions (in general) if we trade or if we create Pet Hotel.

Pet Hotel.                                                         

I need a lot of money to create good Hotel.           

It's difficult to manage Hotel and take care of   pets                                                                              

I have spent a lot of time to receive good  results.                                                                         

I have to like animals and I have clean up after them.                                                                           

I must keep accounts and write down all  expenses and incomes.                                             

To make more money I have to invest more and  work hard. 

If I lost money I do something wrong.    I have to change something. 

Trading

It's not necessary to have big money to earn a lot.

It's easy to trade. Just click the button and  follow  by news and recomendations.

I can trade during lunch break and in the  evenings

I like to make money, I don't like to make   research, analysis and others stupid things

 I always can receive report from my broker. Why I have to do it?

To make more money I have to bet more.

If I lost money I will bet more money  next time. Or I will increase my positions.

We can continue on and on.  Opinions about trading is funny for us, are they not? But when we have separate opinion about trading - it looks serious. Hundreds percent per month - just follow us.  Download our apps and trade when you go at home by bus. These are popular advertising appeals sounds for me the same like: Purchase your personal a drilling rig and pump oil in the backyard at home. 

Trading it's serious profession, very nervous but well-paid when you are good specialist. You can earn money everywhere not only in trading. To trade good you have to love this profession and spend a lot of time and a lot of money to succed in it. What prevents us from trading? Our thoughts. Don't be a fool and turn on the brain. 

Comparing two kinds ETFs HYG - ETF of junk bonds and TLT - Long term treasury bonds.

In this picture there are 2 kinds of ETFs on bonds junk (white line) and treasure bonds (blue). If junk bonds is growing up it means that investors are ready for big risk and reward. And vice versa if growing up tresaures bonds it means that investors are avoiding risk. Current  prices on shares   puffed up like bubble. And we see that more and more invesorts are fixing profit and invest in treasures bonds.  

It means that they expect some correlation or down trend. Comparing this two ETFs is good indicators of courage of investors. 

How to increase your analysis on futures emini S&P (ES) and Nasdaq (NQ)

A lot of traders who trade ES and NQ are doing analysis of these instruments. But what if I say that they just follow by others instruments. In this article I'll share with you with some interesting information. Maybe I not pretend to be original but if you know futures and other derivatives have period of circulation with with average period of about 3 month. Sure that a lot of them have more long period. And  there are trading several contacts with different expiried date but with the one basic asset at the same time. But all liquidity is concentrating in the last contract. So despite intraday traders and short - terms speculators always have choice  usually thay use big liquidity in the last contract for active trading. But what about big players who need in long-terms goals for 6-12 months and longer? If they use in futures in their own purpose they receive several problem: 

• If big players use futures in long periods they have to pay extra price (in which include risk free rate) every time. Price of futures is different from  asset on risk-free rate. Because for purchasing futures you use just initial margin but not the full value. You can take a difference between full value and initial margin and put on  deposit  in your bank or you can buy risk free instruments (T-bond for example) and receive extra profit.To avoid this extra profit futures sellers include it in price of futures. Why futures mostly more expensive than assets and price of futures follow to assets price and in  day of expiration of futures both prices the same. For some instruments  price difference between  asset and  futures could be from 2% and more per year (it depend on interest rate of central bank, the higher the rate, the higher difference in price). So big players will lose money for overpay on long distance.
• The second problem is to open positions every time on new contract when old expire. If they have big position they pay  commission once more, and receive slipping during opening, or average price will worse then previous. All of it is addition risk what they want to reduce.

It's a delusion if I say that big players don't use futures. They do it. But for short-terms goals. For hedging, in combination with options and for any other reasons. But nature of futures as instruments is short-term goals. But there are some instruments that were made for long goals. And I will write about them. Some big players bet for the market in general. Thay can  use popular shares which are included in index Standard and Poor 500 or NASDAQ index. Or use ETF (Exchange Trades Funds. An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange).  If you trade emini S&P (ES)  you have to know about  ticker SPY. If you trade NQ you have to know about QQQ. Let's compare ES with SPY and check volumes and correlation between them.

This is 1 day correlation on 1 min bars. As you can see correlation enough big. On other days the correlation usually the same. Arbitrage trading do it.  Now, let's check day volumes on ES and on SPY. This is day volumes on ES. As you can see average volumes per day 1.5-2 Mio contracts. See picture below. 

At the same tame average volumes on SPY is 60-80 Mio contracts,  Despite it trades not whole day but only during pit session. Volume higher more than in 40 times. See picture below. 

This greater volume on the similar instrument indicate that bigger players are represented on SPY. Respectively they push price up and down by their actions and ES just follows by SPY. And despite that ES also has own volume and own's participants (and some of them are very big), ES just follows by SPY.  And the same situation with QQQ and NQ. NQ folows by QQQ. And if you really want to see original volume which can give you information about possibility of price movement you have to make analysis of ETFs during futures trading. This very short resume can save  your money when you will trade futures. 

I wish you more profit and less mistakes in trading!

Classical technical analysis vs Volumetrical analysis

      A lot of traders started trading on the market based on learning learning classical technical analysis. I am one of them. But when I used technical analysis I always doubt about accuracy of my levels.  A lot of traders recommend mutually exclusive rules how to construct them. And there are to subjective points of analysis when you use it. 

     When I started use volumetrical analysis I liked that there are less subjective points of view. And a lot of them different traders can see in the same way.If you know that level of volume of accumulation of the week is good for rebound of the price you will mark them. And there is just 1 exact level which can see any traders, without any "...of my opinion". Very clear and very accurate. 

For sure we can add other levels based on our opinion and based on our own strategy of working. But anyway a lot of them could be similar if you understand price behavior through volumetric analysis.

Below an example of video of Trader from Germany. He is trading  miniS&P contract (ES ticker) and use  Volfix. Look at his analysis and check it now. 

He was basically right with analysis of price development, but price delayed in a balance a bit longer.

He is good trader and is doing a good analysis. But I was surprised that despite I have other tactic of trading and I'm using less time-frame for trading I have the same levels and the same view. You can compare it. 

         But after I understood that if we have one instruments of analysis we can do the same things even don't know what are doing other side. I was passed a lot of trading courses but a lot of them was demonstration how somebody shows how he can trade. And a lot of practice was constructed on subjective opinion which was constructed by great experience in trading. But they  can't share by their brains. And can't explain it, because they see something more that you can't see. 

      In opposite with Volfix you can see the same because no other way to to mark weekly accumulation as for level when the biggest horizontal histogram shows it on our chart. Very clear and very accurate.

Price analysis vs real trading 

If you are good analyst it doesn't mean that you are a good trader. Always remember about it. To be a good trader not enough just understand well price behavior but you must use this knowledge for money making on your account. 

       There are two kind of traders. One of them is checking current situation and place most of trades intuitively. The other one do analysis before placing orders. I don't like to use discretionary trading because is too difficult explain why I did these or those trades after checking next day. For my opinion you can use intuitive trades after years of successful trading. It's like an artist which don't check proportions after huge experience in painting. But when you trade just several months and use initiative trading like base for your trading you are softly killing your account. Even if you have some profit this a question of time. 

       But problem is  that you could be absolutely correct with your analysis and wrong with your trading. Despite good analysis you received losses. Very familiar for a lot of trader. You did right analysis, and price go on by your scenario, but you are out of trade. Causes could be different: you have received stop losses, or wasn't your condition for opening position or you received few stops during volatile price behavior, or you hurried  up with entering. You have to check which cases have the most influence for your losses. And you must work with them. Identify them, understand why you did them, and avoid them in future trading. 

        If your analysis was good during long period before, there are no reasons to deny it when you are trading bad. The problem  could be not in analysis, the problem could be in your trading. You have to separate results of your analysis and results of your trading. And understand  where are you strong. And maybe you will be surprised that not always you did your trades based on your analysis, or despite bad analysis you did good trades. You will understand more when you will separately check results of your analysis and results of your trading. I'm sure you will received more clear answers about your trading and about your current results.

Yesterday i did several wrong trades despite I was right with total direction. 

       First of all I was too overconfident in my forecast. So I hurried with opening first trade. I didn't fix part of profits when I had possibility. Usually, I  fix part of my profit when price  move  in my direction. And third I wasn't lucky with third and forth entering. I received my daily limit stop loss (for my account it's 2%) for the first 30 minutes of trading. And I stopped trading. 

"Shit happens" as said Forrest Gump in movie. But always will be tomorrow. So be ready for good session. But if you afraid to receive losses even don't start the trading. 

P.S. Sometimes markets absolutely unpredictable, and all your scenarios could be wrong. It doesn't mean that you are a bad analyst (although it could be :) but it's means that sometimes predict price behavior is impossible. You should be ready for this when you put your on broker account. 

Forex trading vs Futures trading

I will not explain what is better to trade Forex or futures. I will not explain you that a lot of FOREX brokers trade against you. I just show you a pictures where we compare DOM of GBPUSD and 6b (future on GBPUSD).

As you can see there are about 10-15 pips in average between bid and ask on FOREX market and no spread on futures market. Every time when you opened or closed position by market you will pay extra money for spread. This is not mean that on futures market no spread. It is exist. But only during fast movement and not more then several pips. 

Each overpayment for spread could kill your the best intraday strategies. To win in this game (intraday trading) you need have advantages more than 2 till 1. It's mean that you have to do 2/3 your trades without loss. This is to hard.

So in this way if you want to win you have to use better instruments like futures or bigger time frame  from 1 hour and higher.

Results of public trading account. Conclusions and achievements

As you know I'm showing my account of public trading and its results. If you are Volfix platform subscriber you can check any my trade in Trader Statistic. I'm not a first and not in first ten. From the all public account I took 52 place from 364 with a next result 

I traded intraday and used volumetric analysis for check price direction opening and closing position. For money management I use simple rules:

1) Maximum position size 1 contract per 5000 of funds. But mostly used I understood that it is better solution using 1 contract per 10000 USD of funds.

2) Maximum daily loss limit was not a more than 2%. Several time I broke this rule and I was wrong with it because if I would done all right I would had   better results.

3) My profit target was about 1-2%.

You can check a lot of my trades on my Twitter account: https://twitter.com/TraderVolfix  

I have posted various examples of successful and unsuccessful trades. And if you are understand principles of price action based on volumes profile you can understand how I trade. 

Have a good profit next year!

How to trade on FOREX market with analysis on futures

If you want know how to see big players on the FOREX you can't do it. Forex market decentralized and nobody know real volumes. But you can see volumes on futures where are real volumes.
Because futures and spot markets have big correlation, so big volumes on futures could push price.
Let's check how is trading one of the trader who use futures analysis. And he  places positions on Forex.
First at all he do an analysis of daily chart. He marked  levels where  were accumulated big volumes before and price several time rebounded from them.  He understood price action and expect for rebound. But he  wait  for confirmation.

When price rised he checked that were initial volumes for purchasing. Too risky for opening short position.

When price was tested  level of resistance, was accumulated big volumes and price reversed. He opened short position during price consolidation. It was good trade with good reward.

And this method he use for trading on others currencies.

So, when you use volumetric analysis of futures you can deeper understand  price behavior. Daily volumes are good as levels for support and resistance. Local splash of volumes in this situation could be as confirmation of rebounds or continuation of movement. 

Bellow there are several examples how to trade FOREX with futures analysis:

Follow us and you will know more how to trade with volumes!

How to understand end of movement in middle-term ?

If you use market profile or volume profile in your trading you have to pay attention for the shape of the profile. In the end of movement there are typical forms of the profiles.
One of them classical P profile - the end of uptrend. When you use volume profile you can see it more accurate. Let's check 22 and 29 of Nov on NQ ticker. As you can see at 22 Nov was a classical P profile and after price rebounded down from it. And when 29 Nov started build the same situation it was a good chance to open short position with a little stop-losss and big reward.

And  I did it.

Four biggest Mistakes in future trading by Jay Kaeppel (part 2)

We Continue read and mark quotes of this interesting book

Mistake #2 Using too much leverage. ...Leverage is the double-edged sword that makes a few peoples very rich and upon which the majority of futures traders fall...Unfortunately, the blunt answer to the question "why do traders use too much leverage" is "ignorance"...If you do not not have any way to back test your system than the suggested formula for calculating a reasonable amount of capital to trade one contract of a given market is:
((Initial margin * 3)+ Largest overnight  Gap in $)/2

Mistake#3 Failure to controle risk. The sad fact of the matter is that the majority of traders don’t get around to addressing money management issues until after they have suffered an unexpectedly large decline in equity.
...In reality, most traders would benefit from “fearing” the markets more than they presently do. A fear of losing a large chunk of money quickly is what causes traders to keep their guard up...If you can sleep with the level of fluctuations in your account you are far more likely to stick around for the long haul...The costliest mistakes in trading are usually made when the pain of losing money (and/or the fear of losing more money) becomes too great...The primary purpose of using multiple trading methods is to attempt to smooth out the equity fluctuations in your account...
Mistake#4 Lack of discipline...A lack of discipline is defined as failing to do what you should do in a given circumstance...Of the four biggest mistakes in futures trading, a lack of discipline is the most difficult mistake to avoid...If you succumb to fear or greed or ego you become your own worst enemy...The danger is that if you are constantly tinkering with your existing system, then you may never truly develop the confidence in it that you need to have in order to stick with it when the going gets tough...A lack of discipline can destroy even the
most talented and best prepared trader.

In the long-term there is one drawback: In so doing you have stepped down the path of the 90% of futures traders who lose money. Whatever the market did to you to cause you to act this way is not relevant. What is relevant is this: only you can make the decision to turn around and head back toward the right path and to stay there.

Four biggest Mistakes in future trading by Jay Kaeppel (part 1)

For my opinion - great book about trading. A lot of book show us and recommend what we have to do but also very interesting what is wrong.

Quotes from the book:
...Waht is about futures trading that causes so many people to fail?... It is beacuse future trading is unlike any other endeavor in life.
I'm totally agree with this quote. A lot of traders want to earn a big money but  they are too lazy to write a diary, or to do hometask. They wish to be supermen who can make a lot of money just by one view on the market.
...There is much to be gained by learning from and attempting to emulate traders who have enjoyed a great deal of success without paying some dues along way.
A lot of traders try to find Holy Grail in trading, but don't understand that it is a hard work with big emotional pressure.
...Mistake #1 Lack of trading plan...Most (traders) so anxious to get started that they just don't take the time to make the proper preparations...one of the greatest dangers in future tradingis danger of high expectations...Traders who focus too much attention on how much money they might make run a very high risk of a frightening slide down a steep slope...One of the truest maxims in trading is "if you absolutely, positively cannot afford to lose any more money, you absolutely, positively will lose more money."
Big expectation of results from our trading and plan how to spend your future money is the biggest emotional pressure during your trading. Imagine if you put big sack of grain on yours shoulders and hold it during trading. It is not easy? Yes? But it is the same, maybe less pressure which we have when plan to spend our winnings.

...no inherent advantage to trading more often or less often. The question to be answered to determine which approach works best for you....Using an unemotional systematic approach to trading can greatly increase your odds of success because it can remove your ego form day-to-day decision making process and can reduce your emotional attachment to the money in your trading account.

As the Dr. Elder says - you have to earn the right to listen your intuition after 5-10 years of experience. But when you novice - just use your strong rules in trading based on previous observing. Or observe strictly the plan.

To be continued.

Book: https://www.amazon.com/Four-Biggest-Mistakes-Futures-Trading/dp/1883272084
Author: http://www.investopedia.com/contributors/337/

EUR/USD

We have a big accumulation above previous important volume level on week chart. Be ready for rebound in middle term.

Is it possible to use short stop losses with volatile instruments?

I think yes. Some of traders think that  will a lot of false stop - losses with volatile instruments. Sure you can receive some stops. But if you know conditions of input and use market profile and volume profile you can do it.

Below several examples for today trading:

FDAX

NQ

What about direction of trading?

There are 2 kinds of traders. One of them trades in both direction (buy and sell) other only in one. I mean that for beginner better to trade only in one direction, cause you will avoid mistakes. Overtrading is the biggest problem of traders. When you decrease amount of  your trades you decrease your losses. But  professional traders could do it. And trading in both side with good result is mark of mastery. But how do identify that local trend  broken and new one started? If you will pay attention for reaction of price on local volume accumulation you will  it.

Please look for the example. As you can see was down trend. Price was stopped by local volume accumulation. And next bar bounced from them. This local volume area is ideal target for open long when price tested it once more.