FTSE100 & S&P - SB Daily Cash System

PART 1 of my system. This is just the BASICS!


What follows is my personal system for trading the FTSE100 daily cash and S&P cash markets offered on spread betting platforms.

There is a small element of discretion as far as support and resistance goes and also the drawing of trend lines. But I think this is basic T.A.

This system is not intended to be used on the FX or commodities market but it could be modified to do so. My intention is to use it for the FTSE and S&P ONLY!

These following rules are only guides on how to use this system. One can use this along with their own system or use it alone.

FSTE100 DAILY CASH

Only trade this system from 8am UK until 14:00 OR stop trading the FTSE if you achieve 50 or more points. Whichever comes first.

S&P CASH MARKET

Only trade this system from 14:00 until 8pm UK OR stop trading if you achieve 50 or more points. Whichever comes first.

This system has 4 components to it….

• Trend Detection
  
• Triggers
  
• Previous day’s high/low
  
• Volatility

This system can be used on the 5 minute chart OR the 15 minute chart.
First I’m going to run through the indicators I use for the 5 minute chart, these are…

5 minute chart set up ONLY!



Chaikin volatility indicator

Set to MA nbr periods 60, past nbr periods 50.
We only trade when this volatility indicator is rising or has flattened out.

We never take trades when it is falling.








Bollinger%b set to 30/1.5.

This indicator is used for the trigger.

BUY when the indicator moves and closes above 80.
BUY when the indicator breaks and closes above 20.
SELL when the indicator breaks and closes below 80.
SELL when the indicator closes below 20.










TEMA (TRIPLE Exponential Moving Average)

Set to 100

This is my trend detection indicator. I only trade in the direction indicated by this MA.

BUYS price above the MA.

SELLS price below the MA.

Breakouts price being slashed by the MA.

Now VERY important point…

When price breaks the MA to the up side or down side never take the trade. ALWAYS wait for the pullback then take the 2nd trigger.






Putting Part 1 Together


As I said at the start of this post these are only guides and some discretion needs to be used.



FTSE100 Chart







Never trade into clear reistance or support. And always take notice of the previous days high/low.


PART 2 COMING SOON.

Looks good and informative xenophobia,
Although i don't trade indexes or stocks I like the simple and effective setup you have explained here.

Looks well thought out. I have been seeking a rational daytrading technique and will try this in practice (I normally EOD swing trade only as I don't have screen time in the middle of the day usually).

Initial look at my intra-day charts doesn't reveal Chaikin Volatility (though I do have 'Volatility'). I assume the same principle can be used though with any volatility indicator, and appropriate periods inputted. Does this sound right?

tomorton said:

Initial look at my intra-day charts doesn't reveal Chaikin Volatility (though I do have 'Volatility'). I assume the same principle can be used though with any volatility indicator, and appropriate periods inputted. Does this sound right?

Click to expand...

Yeah I don't think there is much difference between the 2 indicators.

This was the FTSE100 chart from yesterday.

There was 2 trading opportunities.

As you will know some days we get a nice trend other days we get flat markets so we need to take what we get on offer. That maybe 20 points one day and 50 points another.

I don't sweat it if the market is flat I just lower my targets.
This system is good for catching 10 or 20 points even during crap days were price just doesn’t want to move. We can often do a little points catching.

Today on their hand has been fantastic. I did 20 points on the first trade and 40 points on the second trade. Whereas I only did 23 points all in yesterday.


Yesterdays chart below.

This is todays charts.

Real easy trades and entries. I love days like this.

Slow day so far no clear trend on the FTSE 5 minute.

But still managed to catch 20 points.

I appreciate your putting this sustem on the forum - it looks most interesting.

BrianVT said:

I appreciate your putting this sustem on the forum - it looks most interesting.

Click to expand...

Just doing my little bit to help which a lot of members do fail to do

Use it or don't use it its here if you want it.

I will post Part 2 on Tuesday.

Today? Waiting......

Thanks

Hittfeld

Hi Xenophobia,

Have you changed your mind about posting Part 2 ?
As you can see, there is interest in your system.

Brian

Re: Ftse100 daily cash system

Xenophobia said:

PART 1 of my system. This is just the BASICS!


What follows is my personal system for trading the FTSE100 daily cash and S&P cash markets offered on spread betting platforms.

There is a small element of discretion as far as support and resistance goes and also the drawing of trend lines. But I think this is basic T.A.

This system is not intended to be used on the FX or commodities market but it could be modified to do so. My intention is to use it for the FTSE and S&P ONLY!

These following rules are only guides on how to use this system. One can use this along with their own system or use it alone.

FSTE100 DAILY CASH

Only trade this system from 8am UK until 14:00 OR stop trading the FTSE if you achieve 50 or more points. Whichever comes first.

S&P CASH MARKET

Only trade this system from 14:00 until 8pm UK OR stop trading if you achieve 50 or more points. Whichever comes first.

This system has 4 components to it….

• Trend Detection
  
• Triggers
  
• Previous day’s high/low
  
• Volatility

This system can be used on the 5 minute chart OR the 15 minute chart.
First I’m going to run through the indicators I use for the 5 minute chart, these are…

5 minute chart set up ONLY!



Chaikin volatility indicator

Set to MA nbr periods 60, past nbr periods 50.
We only trade when this volatility indicator is rising or has flattened out.

We never take trades when it is falling.

Bollinger%b set to 30/1.5.

This indicator is used for the trigger.

BUY when the indicator moves and closes above 80.
BUY when the indicator breaks and closes above 20.
SELL when the indicator breaks and closes below 80.
SELL when the indicator closes below 20.

TEMA (TRIPLE Exponential Moving Average)

Set to 100

This is my trend detection indicator. I only trade in the direction indicated by this MA.

BUYS price above the MA.

SELLS price below the MA.

Breakouts price being slashed by the MA.

Now VERY important point…

When price breaks the MA to the up side or down side never take the trade. ALWAYS wait for the pullback then take the 2nd trigger.

Putting Part 1 Together


As I said at the start of this post these are only guides and some discretion needs to be used.



FTSE100 Chart

Never trade into clear reistance or support. And always take notice of the previous days high/low.


PART 2 COMING SOON.

Click to expand...

AMAZING ! You got the gulfstream on order ?

Why repeat Xenophobia's original posting ?

Looks like a nice common sense approach and interesting, hopefully thread will be gather a bit of momentum soon

Shame this has gone so quiet, I liked the look of it.. looked like it was going to be a quality interesting thread

why not pm him? Hopefully he didn't get shy about posting after a silly and embarassing tiff we had. Mods justly removed posts. Forgive, forget and we move on....


Peter

The reason why I have not posted part 2 is becasue I have had no time. One of my sons has Leukemia and I have been spending a lot of time in the hospital during his treatment.

I'm sorry to hear that, best wishes to you all.

Rich