Diary of a swing spread better

[Lightning McQueen]

Thank you, Don.

I am so glad that I've met some lovely people here. Marc Rivalland's book is one of the best trading books in my opinion. The only missing thing in the book is what to do in a trading range.

By the way, I quite like the green/red signal on one of the charts you posted here. Would you mind explaining what it is and how it can help you with making decisions.

Thanks a lot,

Hung

Good morning hung

On the whole the members here are quite a friendly helpful bunch aren't they AND this thread hasn't been highjacked yet

Have not bought the book yet but will look on ebay see if is cheap there (I do like a bargain) :cheesy:
My thoughts on trading ranges would be if they are wide enough (as in the dow) you could swing trade the price moves. Narrow ranges stay out of the market, after all doing nothing in this case is a position isn't it, ie no swings to trade.

The idea behind the red/green signal is to able to instantly visually see the market swings and as the bars change colour trade the signal I would just trade the signal and not watch the upper price bar chart at all while trading yes thats right the idea is to do away with price and volume altogether while trading. Google that you wont find much!
The whole thing is being forward tested soon on capital spreads simulator it backtested really well and showed a nice upward slope. A first for one of my strategies

I dont actually trade the red/green ones they are the alert the red/blue bars are the trade trigger but its not perfect at the moment as you would expect, but the same setting works quite well on on most time frames from 10 mins to daily. under 10 mins too much noise, haven't tried weekly or monthly yet as I would like to trade shorter time frames.

the red/green indicator is the bill williams ac oscillator (off ebay)
the red/blue indicator is in TS already i just changed it and put in some extra code to create what i wanted

Have a good day
Don

 

[Splitlink]

REL was a complete waste of time. Closed from boredom, 561 Opened 562.9 last Thursday.Profit 1.9 points. That's what I mean by having patience, Hung

Just installed a new computer. Great change in memory speed. The last one took all morning to get around the sites.
Split

 

[hungvir]

REL was a complete waste of time. Closed from boredom, 561 Opened 562.9 last Thursday.Profit 1.9 points. That's what I mean by having patience, Hung

Just installed a new computer. Great change in memory speed. The last one took all morning to get around the sites.
Split

Anything more than b/even is a success, Split.

I don't feel good trading at the moment so I just look at charts and play the predicting game. This morning I got it right that the FTSE would fall after a support line was broken.

Hope your new computer will bring you new luck!

Best,

Hung

 

[hungvir]

Good morning hung

On the whole the members here are quite a friendly helpful bunch aren't they AND this thread hasn't been highjacked yet

Have not bought the book yet but will look on ebay see if is cheap there (I do like a bargain) :cheesy:
My thoughts on trading ranges would be if they are wide enough (as in the dow) you could swing trade the price moves. Narrow ranges stay out of the market, after all doing nothing in this case is a position isn't it, ie no swings to trade.

The idea behind the red/green signal is to able to instantly visually see the market swings and as the bars change colour trade the signal I would just trade the signal and not watch the upper price bar chart at all while trading yes thats right the idea is to do away with price and volume altogether while trading. Google that you wont find much!
The whole thing is being forward tested soon on capital spreads simulator it backtested really well and showed a nice upward slope. A first for one of my strategies

I dont actually trade the red/green ones they are the alert the red/blue bars are the trade trigger but its not perfect at the moment as you would expect, but the same setting works quite well on on most time frames from 10 mins to daily. under 10 mins too much noise, haven't tried weekly or monthly yet as I would like to trade shorter time frames.

the red/green indicator is the bill williams ac oscillator (off ebay)
the red/blue indicator is in TS already i just changed it and put in some extra code to create what i wanted

Have a good day
Don

Thanks for the detailed explaination, Don. Very much appreciate it.

I like your 'eBay' approach. My wife is a big fan and shops at eBay every week.

On backtesting, I assume the results are always the optimum you can get. But when you trade for real, it may not be possible to replicate the backtested result. The main reason is backtesting involves no emotion, no greed, no fear...

Good trading,

Hung

 

[Lightning McQueen]

On backtesting, I assume the results are always the optimum you can get. But when you trade for real, it may not be possible to replicate the backtested result. The main reason is backtesting involves no emotion, no greed, no fear...

Good trading,

Hung

evening hung

Well actually the backtesting was performed in metastock a while back with no optimisation and as near as could be coded to replicate the trade as i would like to play it, even if it only works half as good in the real world ill be pleased. TS was the next logical step because metastock isn't colour bar friendly (unless anyone knows different). TS is only two lines of code! compared to metastocks ten volumes worth for the same result
Having real time colour bars hopefully is going to dispense with emotion fear and greed as all I will do is follow the bars colour change, not procrastinate on the price chart trying to work out whats likely going to happen next. its all there in one oscillator trend-momentum-swing high-swing low.
Forward testing is more important really that will show up any flaws in the strategy and whether its going to crash and burn as we will soon find out
Im now off to ebay to find that book you kindly recommended

keep the diary rolling

Don

 

[hungvir]

Hi Don,

The system you're trying to develop sounds complicated to me. I don't think I can twist any system technically.

Are the softwares you're using good for both UK and US stocks?

Later,

Hung

 

[hungvir]

FTSE trend line

I am observing both the FTSE and the DOW to see if I can day trade them using only trend lines plus RSI.

For the FTSE, what I notice today and yesterday is that if a 120 minute plus/ 45 degree trend line is broken, it's a clear sign that it will drop. Of course the trend line should be a strong one with prices bouncing off it at least four or five times.

I think it's possible to trade against the main trend (but not against the news flow) if you don't intend to hold positions overnight. And I also notice that the market does not hesitate much when it drops.

 

[barjon]

.......................I think it's possible to trade against the main trend .................

hung,

you are certainly having a go at a lot of different ideas :cheesy:

not really relevant to you post, but trading equities against the market trend is a dangerous game in my experience. i do it, but only half positions.

good trading

jon

 

[hungvir]

Hi Jon,

Thank you. I know 'the trend is your friend'

But when you day trade, there'll be numerous times that you can benefit from the short side.

But in general, I agree that it's not advisable to trade against the trend if you don't intend to do scalping only.

best,

Hung

 

[hungvir]

CMC lowered their LSE June quote from around 1140-1145 to just 940-945 in the last 12 hours while the cash price dropped by just around 20 to 1120-1125.

It looks like the recent gap in LSE's share price may be filled. And it's a big gap but I have no experience playing this, so I'll see how it goes.

LSE has a nice drop today (90 points plus) thanks to this piece of news.

Nasdaq just dropped the bid. CMC obviously knew it yesterday when they lowered the June price. LSE even closed up some 20 points yesterday.

Another lesson here. When the bookies dramatically lower their future prices, it's time to go short with tight stops.

 

[Splitlink]

Bought to open CPI this morning for 459.9.

Split

 

[hungvir]

Hind sight analysis

Looking at the DOW's chart, I could see at least one golden opportunity for a swing trader to make a killing today. That was when the DOW bounced back to the green line then plunged.

Newswise, '10 year treasury yield hit 21 month high' and oil price rose to above 67 were the main drivers.

 

[hungvir]

Look East

Just came across a news item about the Vietnamese stock market. It's been going up with no pause for quite a while now. The trouble is not many SB companies offer bets on stock markets in South East Asia.

 

[hungvir]

DOW heading up

After a drop of about 100 points, the DOW broke thru the 45 degree trend line that managed to hold for up to 90 minutes. It's now entering a trading range that I guess will be quite short-lived.

 

[hungvir]

In with a pound

Bought at the bottom of the channel.

 

[hungvir]

Stop loss raised to 1143. It's a winning trade at the moment and the risk now is just 2 points plus the spread.

 

[hungvir]

Raised stop loss further to 11147 to make sure this trading lesson is free of charge.

 

[hungvir]

Out of the channel

The DOW jumped out the channel. Trailed profit taking order to 11160, the upper line of the channel.

 

[hungvir]

Profit taking is now at 11165.

It's just about 20 minutes to go and I wonder if there's room for it to move up further.

 

[hungvir]

Out

Out of the trade, making 20 points and a mistake. Worldspreads already got me out of the trade because 11165 level was breached but as I still saw the order on the screen, I sold to close. The net effect was I had a short position. But the market dropped as soon as I made the mistake and I got out at b/even even after the spread. Well done!

And well done to Worldspreads. They took me out of the position really fast today. It took ages the other day.