Chorlton said:
Chris,
Sorry for all the questions but everytime you answer one specific question, this leads to another one - or two!!!
You mentioned that you trade Chick Goslins Methods in his book Trading Day to Day. Consequently, can I ask a couple of questions:
i) What instruments do you trade using his methods?
ii) Do you follow his methods exactly or have you modified / refined them to suit your own trading style?
iii) Do you find his methods offer good results? I'm assuming that as you still trade his methods, that the answer is probably yes to this one though 😉
iv) Any further observations from trading his methods?
The reason I ask is that I too have read the book but personally have had mixed experiences with his method, especially with regards to good timing for entry & exit. I have been trading stocks though so I'm not sure whether this has any relevance.
Any advice, as always, much appreciated.
Chorlton
OK Chorlton, I finally manage to squeeze some time to reply.
1 - I trade the futures with this method, I trade Eur future, Yen future, crude future, silver, gold, copper (infrequently due to volatility), Dow future, S&P future and Naz future, the former two only when trend is solid & Naz when less solid, as the Naz is less likely to bite you big time with a huge wrong way move wheras the S7P and the Dow can shift significantly. I also trade every now Wheat, Soys, Corn, Cotton, Sugar, Cocoa and the long bond. Now this may seem a lot, but I identify each weekend the ones that look liike they have the best opportunity to move and go with them, and only them. It's like having a set of say 25 stocks to look at each week, you cherry pick the most tempting ones and leave the rest for another day.
2 - I refine the method, I use my only methods to set targets and my own entry methods. I also use a couple of other confirming indicators, such as ADX and a bespoke Bollinger Band.
3 - Very good worked in with my own indicators.
4 - Be sure to understand the ability to see when the indicators are about to move and act on them. For instance, when a market is trending significantly like Gold at the moment the opportunities are endless, you need to ensure that you watch for the pullbacks in the trends and jump aboard on the pullbacks without too much fear. The Slow line and the ML may not all be lined up, but count back and when you're reasoably sure the ML will change from a down trending move and the SL is not too oversold then get aboard. Also pay attention to the COT data when it comes to these futures, they can really tell a story.
Hope this is of use.
Chris
PS - great start to the week, the crude long really paid off yesterday and I took some 200+ points on that trade first thing yesterday morning. I also finally liquidated a short position from the Dow which made me some 250 points from mid May. I did liquidate because I felt the Dow was struggling to breach the 11000 barrier, if it does breach it well today then I may get aboard for some more. The fast MACD is showing like it might have some punch to it this time out, so we could see quite a dip coming to the indices if that proves correct.
