FTSE 100 - Strategies or Plans?

[timlewis]

I have been thinking of this stratergy for use on the rolling ftse and wondered if anyone could help with comments ?

First of I have 2 accounts with Cap Spreads - one mine the others my partners.

This would allow me to go either way on a trade - and with only a 1 point spread on the rolling FTSE easily close the losing one.

My other plan was to only go with an opening bet of £ 1 on both a/c's and then jump in with a further £9 (if looking to go £ 10 a point) when I get confirmation of the correct trade direction maybe 3-4 pts up and and incicators - MACD, Stochastic RSI confirming not just a blip - then closing the losing a/c - at £ 10 a point if the other a/c had lost ten points this would easily wiped out by a one point profit on the winning account ?

Comments ?

 

[Hoggums]

I have been thinking of this stratergy for use on the rolling ftse and wondered if anyone could help with comments ?

First of I have 2 accounts with Cap Spreads - one mine the others my partners.

This would allow me to go either way on a trade - and with only a 1 point spread on the rolling FTSE easily close the losing one.

My other plan was to only go with an opening bet of £ 1 on both a/c's and then jump in with a further £9 (if looking to go £ 10 a point) when I get confirmation of the correct trade direction maybe 3-4 pts up and and incicators - MACD, Stochastic RSI confirming not just a blip - then closing the losing a/c - at £ 10 a point if the other a/c had lost ten points this would easily wiped out by a one point profit on the winning account ?

Comments ?

Your first strategy is the same as another one posted on a different thread. As I said then - save yourself some money and dont open any trade until the move has happened, then open a trade in the "winning" direction. That way you are not handing over the spread of the losing trade to the broker.

Same comment goes for the second strategy. Don't waste your money opening opposing positions - you are just handing over spread to the broker/SB

Personally I think your barrier of 3-4 points is too small. Have you considered what you'll do if you open your £10 trade and then the index reverses direction by 10, 20 points?

 

[Splitlink]

I'm the guy who made 198 points with close stops, last month, trying not to lose more than 8 points per trade max.

This month, for me, is a b........! I am using the same close stop method but, so far, am only 7 points up on the month.

Correct trend diagnosis is the problem. Get that right and there is no problem with close stops. I, also, have a contrarian mentality that I find difficult to cure. However, whether I am right or wrong in direction, I believe that the close stop idea keeps my losses small until the time that I get a good trade.

Today a missed a good fall, I could not put off my haircut any longer

Split

 

[neil]

Disciplined puppies

I'm the guy who made 198 points with close stops, last month, trying not to lose more than 8 points per trade max.

This month, for me, is a b........! I am using the same close stop method but, so far, am only 7 points up on the month.

Correct trend diagnosis is the problem. Get that right and there is no problem with close stops. I, also, have a contrarian mentality that I find difficult to cure. However, whether I am right or wrong in direction, I believe that the close stop idea keeps my losses small until the time that I get a good trade.

Today a missed a good fall, I could not put off my haircut any longer

Split

Could you not try the method on the IBEX thread(Options and Kruger) - stochs and puppies!! - this might give you the discipline needed to act logically?

 

[shortorlong]

BOOM! knockdown

Hi all,

My system failed today and in the absence of an exit strategy for a losing trade I gave back all the points I had collected in 26 consecutive trades where the outcome was positive or benign. (always looking on the bright side - lot of good that does)

Today I was long from 6712 @ 8:00 for +2 points :| shoulda held on
short from 6725 @ 8:30 for +5 points shoulda held on
long from 6711, 6706 and 6656 doubling my position twice
closed in pain @ 6646 @ 14:31

I was trading with the RSI indicator.

 

[shortorlong]

I have been thinking of this stratergy for use on the rolling ftse and wondered if anyone could help with comments ?

First of I have 2 accounts with Cap Spreads - one mine the others my partners.

This would allow me to go either way on a trade - and with only a 1 point spread on the rolling FTSE easily close the losing one.

My other plan was to only go with an opening bet of £ 1 on both a/c's and then jump in with a further £9 (if looking to go £ 10 a point) when I get confirmation of the correct trade direction maybe 3-4 pts up and and incicators - MACD, Stochastic RSI confirming not just a blip - then closing the losing a/c - at £ 10 a point if the other a/c had lost ten points this would easily wiped out by a one point profit on the winning account ?

Comments ?

Tried this using two brokers - didn't work - cost a lot to try it too, as there is a false sense of security in being long and short at the same time - The problem is the age old one of identifying the correct future direction of the market - it becomes no clearer when it has moved one way or the other.

 

[nkruger]

Hi all,

My system failed today and in the absence of an exit strategy for a losing trade I gave back all the points I had collected in 26 consecutive trades where the outcome was positive or benign. (always looking on the bright side - lot of good that does)

Today I was long from 6712 @ 8:00 for +2 points :| shoulda held on
short from 6725 @ 8:30 for +5 points shoulda held on
long from 6711, 6706 and 6656 doubling my position twice
closed in pain @ 6646 @ 14:31

I was trading with the RSI indicator.

Hello shortorlong, do you only trade with RSi ? That sounds dangerous to me ?

NK

 

[nkruger]

Could you not try the method on the IBEX thread(Options and Kruger) - stochs and puppies!! - this might give you the discipline needed to act logically?

My thoughts exactly Neil.

There is a change to the MA's which I'm testing. I'll post it in the next few days.

Kruger. (Dr.)

 

[nkruger]

The problem is the age old one of identifying the correct future direction of the market

"Trade what you see, not what you think" Tommy Cooper - 1984

 

[shortorlong]

I'm the guy who made 198 points with close stops, last month, trying not to lose more than 8 points per trade max.

This month, for me, is a b........! I am using the same close stop method but, so far, am only 7 points up on the month.

Correct trend diagnosis is the problem. Get that right and there is no problem with close stops. I, also, have a contrarian mentality that I find difficult to cure. However, whether I am right or wrong in direction, I believe that the close stop idea keeps my losses small until the time that I get a good trade.

Today a missed a good fall, I could not put off my haircut any longer

Split

hey, at least you are up on the month :cheesy:
how about close stops (that might have saved me today) but equally close profits?

 

[shortorlong]

"Trade what you see, not what you think" Tommy Cooper - 1984

Tommy Cooper said that?

Trouble is the short term trend turns on a dime, and which time frame is telling the truth? I never know

 

[shortorlong]

Hello shortorlong, do you only trade with RSi ? That sounds dangerous to me ?

NK

Yes, and turns out it is dangerous.

but why? contra trend?

 

[Hoggums]

hey, at least you are up on the month :cheesy:
how about close stops (that might have saved me today) but equally close profits?

There's a problem with that - if your limits are roughly the same level as your stops then you have to have an "edge" that enables you to enter more profitable positions than not. But if you tighten your stops then you increase the chance that they will get taken out due to random noise in the markets - thus decreasing the effect of your edge, also the detrimental effect of the spread is magnified the closer your limits/stops are..

 

[nkruger]

Tommy Cooper said that?

Trouble is the short term trend turns on a dime, and which time frame is telling the truth? I never know

I think he did - or was it Jesse Livermore. can never remember......

What time frame do you use ?

 

[shortorlong]

I think he did - or was it Jesse Livermore. can never remember......

What time frame do you use ?

1 minute . I'm very short term

 

[nkruger]

Yes, and turns out it is dangerous.

but why? contra trend?

Always found RSi to be bit of lagging indicator.

I don't really trade the FTSE as there's not enough 'action' for me, but I'll have a look at some charts with my indicators on it (stochs and Ma's) and post them for you.

 

[nkruger]

1 minute . I'm very short term

Blimey - you are brave. 1 min charts and RSi's !!

I've attached a 3 min chart of today's FTSE showing the trade I would have taken (If I'd been trading the FTSE, which I don't)
It's basically the strategy as outlined in my Ibex thread, with the MA's changed to 7 & 21 DEMA's. As you can see there is a divergence between the price and the Stoch, so it's a sell as soon as the stoch value goes below 80, and also there was a sell signal with the DEMA's as a confirmation. Around 90 points for the day.

 

[shortorlong]

Blimey - you are brave. 1 min charts and RSi's !!

I've attached a 3 min chart of today's FTSE showing the trade I would have taken (If I'd been trading the FTSE, which I don't)
It's basically the strategy as outlined in my Ibex thread, with the MA's changed to 7 & 21 DEMA's. As you can see there is a divergence between the price and the Stoch, so it's a sell as soon as the stoch value goes below 80, and also there was a sell signal with the DEMA's as a confirmation. Around 90 points for the day.

Thanks m8, all help gratefully received.

 

[Splitlink]

Could you not try the method on the IBEX thread(Options and Kruger) - stochs and puppies!! - this might give you the discipline needed to act logically?

No, Neil, I'm going to stay where I am because, if I don't, I'll start chopping and changing- I'm not doing too badly, I could be losing a packet so'll just be patient and keep the losses small until I get a trade that is successful.

Split

 

[Splitlink]

Hi all,

My system failed today and in the absence of an exit strategy for a losing trade I gave back all the points I had collected in 26 consecutive trades where the outcome was positive or benign. (always looking on the bright side - lot of good that does)

Today I was long from 6712 @ 8:00 for +2 points :| shoulda held on
short from 6725 @ 8:30 for +5 points shoulda held on
long from 6711, 6706 and 6656 doubling my position twice
closed in pain @ 6646 @ 14:31

I was trading with the RSI indicator.

QUOTE=shortorlong;344773]hey, at least you are up on the month :cheesy:
how about close stops (that might have saved me today) but equally close profits?[/QUOTE]

I'm so sorry, man. but don't give up and don't change the system that gave you 58 points the other day. I would question some of your methods but 58 points are 58 points! Who can argue about the success of that! Your methods have got to be right. Except for today, where you changed them.

Good trading tomorrow or, perhaps, give it a rest for a day.

Split