-oo0(GoldTrader)
Well-known member
- Messages
- 345
- Likes
- 5
Simple method
Synonym, I have addressed this a number of times in my posts spread out over the three spread trading forums. Pretty much the game is to stay in a trade until your trailing stop is hit (not at a cycle low), or seasonal time on the spread runs out.
You can chose the length of time you want to hold before the trade just by looking at the chart. As I said before. Cycles move in waves, if you want to cut your winnings short and get a higher profit per day, you can liquidate on the earlier crests. For any security to make a run it has to make a series of breakouts. Using the Kroll technique any of these would be a opportunity to average up your positions price, staying below support. These same breakout points are areas the short-term trader places resting orders to get out. In fact breakout points as defined by Darves are areas where short-term traders hand over their positions to long-term traders.
3 How long can you hold a position?
Calendar spreads take about 6 weeks to develop. Full Seasonal cycles are about six months.
7 Build a Pyramid
Add to your winners by stacking or averaging up. Build your position when you are breaking out to new highs in the seasonal window.
9 Do not over commit
Because calendar Spreads are fully hedged you can run tight margins. Usually it can be touch and go for about a week. Nevertheless, when that seasonal thrust starts, you can average-up, and use new equity to add diversification.
14 Cut your losses short
Small losses, large profits.
15 Let your profits run
Longer profit runs have higher profits.
16 Always take Windfall Profits
The reason for it all. Buy yourself some luxury items.
Synonym, I have addressed this a number of times in my posts spread out over the three spread trading forums. Pretty much the game is to stay in a trade until your trailing stop is hit (not at a cycle low), or seasonal time on the spread runs out.
My losers are short term, my winners are long term. Most of the time it seems the highest close is on the optimal day at the projected price, so plan to stay the course if you can. The highest peak may come earlier but seldom later. When the seasonal forces switch there is nothing to be gained by trading against probability. Because we know from the seasonal chart what track prices are suppose to take, it is just a matter of bailing out when you feel prices have gone off course.
You can chose the length of time you want to hold before the trade just by looking at the chart. As I said before. Cycles move in waves, if you want to cut your winnings short and get a higher profit per day, you can liquidate on the earlier crests. For any security to make a run it has to make a series of breakouts. Using the Kroll technique any of these would be a opportunity to average up your positions price, staying below support. These same breakout points are areas the short-term trader places resting orders to get out. In fact breakout points as defined by Darves are areas where short-term traders hand over their positions to long-term traders.
Ross likes to catch the highly realizable first thrust, cutting winners short. Jerry likes to catch the fast and quick, readjustments that repeatedly occur in price annually.. Stanley Kroll pyramids and uses the very long term Livermore technique. Simple method - Trading on a shoestring you can get in early on “Lanes stochastic,” average-up on “Wilders parabolic,” breakouts and use seasonal time and price targets from “Toepke's,” spread charts for planed exits. See: my post
3 How long can you hold a position?
Calendar spreads take about 6 weeks to develop. Full Seasonal cycles are about six months.
7 Build a Pyramid
Add to your winners by stacking or averaging up. Build your position when you are breaking out to new highs in the seasonal window.
9 Do not over commit
Because calendar Spreads are fully hedged you can run tight margins. Usually it can be touch and go for about a week. Nevertheless, when that seasonal thrust starts, you can average-up, and use new equity to add diversification.
14 Cut your losses short
Small losses, large profits.
15 Let your profits run
Longer profit runs have higher profits.
16 Always take Windfall Profits
The reason for it all. Buy yourself some luxury items.