GREY1 P/L daily

[rajibde]

Hi Grey1,

I’d like to thank you very much for taking your personal time in clarifying in more detail the “Top Down Approach” to trading the Market today in Paltalk. Your discussions on how to use O/B, O/S signals gave me a much better understanding of the Market and on how to then apply it to trading stocks.

Greatly appreciated - Thanks,
Nas

I'd like to echo Nas's comments- Thank you very much Grey1 for the informative session.

Cheers!

Raj

 

[moreagr]

I must have missed the paltalk session.... I did not know we had one. anyone have a recording for this like last time?

 

[moreagr]

POSITION SIZING


lets say your capital is $100 000
lets say we use 1% rule ( I will discuss the study of ruin in detail in future )
so stop loss would be $100 000 * 1 /100 = $1000
so we have $1000 in our hand to go shopping . Every stock has a price tag defined by their volatility

Stock A ATR 30 C i can afford to buy 3333 of this stock ( $1000 divided by 30 c)
Stock B ATR 50 C i can afford to buy 2000 of this stock
stock C ATR 120 C I can afford to buy 833 of this stock

I would like to ask a question regarding ATR based postion sizing..

say my starting captial is 30k and would only like to risk 1% =$300 on AAPL

AAPL is $75 per share

APPL ATR (14) 1 min is 9cents
atr 3 min 15 cents
atr 5 min 23 cents
atr 15 min is 36 cents
atr 1 day is $1.95

I would think the one day is to high a figure.

which volatily figure would i use?? based on an intraday trading entry?

thanks

 

[rajibde]

POSITION SIZING


lets say your capital is $100 000
lets say we use 1% rule ( I will discuss the study of ruin in detail in future )
so stop loss would be $100 000 * 1 /100 = $1000
so we have $1000 in our hand to go shopping . Every stock has a price tag defined by their volatility

Stock A ATR 30 C i can afford to buy 3333 of this stock ( $1000 divided by 30 c)
Stock B ATR 50 C i can afford to buy 2000 of this stock
stock C ATR 120 C I can afford to buy 833 of this stock

I would like to ask a question regarding ATR based postion sizing..

say my starting captial is 30k and would only like to risk 1% =$300 on AAPL

AAPL is $75 per share

APPL ATR (14) 1 min is 9cents
atr 3 min 15 cents
atr 5 min 23 cents
atr 15 min is 36 cents
atr 1 day is $1.95

I would think the one day is to high a figure.

which volatily figure would i use?? based on an intraday trading entry?

thanks

As I understod it-whichever you are comfortable with 1min ,5 min or the 10min. Depends also on your trading timeframe

 

[moreagr]

Raj,

i would think with as volatile as AAPL is I would go with at least the 3min to 5min figure my time frame is just a few minutes to a half an hour. I think the daily atr is to high to trade unless your going with a small position.

 

[garethb]

A rough mp3 of yesterdays paltalk for anyone who wants to replay

Gareth

 

[moreagr]

A rough mp3 of yesterdays paltalk for anyone who wants to replay

Gareth

thank you garethb!!

 

[Nastrader]

Attached is the Text for Grey1's Paltalk Session on Oct 11th. The Voice recording by garethb has much better info tho.

 

[rajibde]

A rough mp3 of yesterdays paltalk for anyone who wants to replay

Gareth

Hi Gareth,

Thanks for the attachment-a very good source of revision.

Hi Grey1,

Fot the strong trending day entry, you've mentoned an entry when 1min is OS (for price rise trending)- is this the market (INDU) OS in 1 min or the stock OS? My guess is that it is the market OS but could you pl. confirm?

Thanks

Raj

 

[MarkB]

Thanks very much Gareth, excellent recording. This will be very useful.

Cheers MarkB

 

[Grey1]

Another profitable day for all members of team ( all 5 people ) with myself winning $2374 and with 1500 Average share size . other had a much smaller pos size ( around 150 ) and still made $200 ish . No bad


An easy peasy day for any day trader..

Grey1

 

[Grey1]

Hi Gareth,

Thanks for the attachment-a very good source of revision.

Hi Grey1,

Fot the strong trending day entry, you've mentoned an entry when 1min is OS (for price rise trending)- is this the market (INDU) OS in 1 min or the stock OS? My guess is that it is the market OS but could you pl. confirm?

Thanks

Raj

Ideally both but it is not easy to get both OS.. The priority must always be given to Market ,,, there fore the answer is the MARKET

Grey1

 

[LevII]

Another profitable day for all members of team ( all 5 people ) with myself winning $2374 and with 1500 Average share size . other had a much smaller pos size ( around 150 ) and still made $200 ish . No bad


An easy peasy day for any day trader..

Grey1

Yes, very small poition size but a nice return nevertheless for just trading a couple of hours of the morning session. If nothing else it paid for Mrs LII's shopping excesses!

At Mrs LII's insistence, had to go out during the 7.00 - 9.00 session where nice profits were available.

 

[rajibde]

Ideally both but it is not easy to get both OS.. The priority must always be given to Market ,,, there fore the answer is the MARKET

Grey1

Thanks Grey1

Raj

 

[rajibde]

Yes, very small poition size but a nice return nevertheless for just trading a couple of hours of the morning session. If nothing else it paid for Mrs LII's shopping excesses!

At Mrs LII's insistence, had to go out during the 7.00 - 9.00 session where nice profits were available.

Hi LII,

Thanks for the post and congratulations for your success today.
All your SNDK trades today seem to be short entries(am I reading it correctly?) - with a strong dow opening, I am wondering what was the decision process for the short entries.
Sorry if I am interpreting your attachment the wrong way ( )

Cheers

Raj

Edit- PS-Thought I'll add this-I am not criticising -just trying to learn from your experience

 

[evostik]

How may Strat 3 OB/OS Signals per day

Hi Raj

I seem to get between 4 and 6 clear OB/OS 'signals' on MACCI of INDU each trading day (in 1 min, 3 min and 5 min). Would you mind sharing how many such signals'you get? I ask because I am interested to try and validate my indicators and their interpretation.

If other traders of Strategy 3 wouldn't mind commenting on this too it would be appreciated.

Thanks in advance,

Steve

 

[rajibde]

Hi Raj

I seem to get between 4 and 6 clear OB/OS 'signals' on MACCI of INDU each trading day (in 1 min, 3 min and 5 min). Would you mind sharing how many such signals'you get? I ask because I am interested to try and validate my indicators and their interpretation.

If other traders of Strategy 3 wouldn't mind commenting on this too it would be appreciated.

Thanks in advance,

Steve

Hi Steve,

I'll come back to you on this after tomorrow's trading (I've been at work for the whole of this week till now)- what are the timeframes in your indicator?- mine is currently set to 1,3 & 5 min.

Raj

 

[evostik]

Hi Steve,

I'll come back to you on this after tomorrow's trading (I've been at work for the whole of this week till now)- what are the timeframes in your indicator?- mine is currently set to 1,3 & 5 min.

Raj

Hi Raj

Thanks for your reply.

Timeframes I use are indeed 1,3 and 5 minute.


Cheers

Steve

 

[LevII]

Hi LII,

Thanks for the post and congratulations for your success today.
All your SNDK trades today seem to be short entries(am I reading it correctly?) - with a strong dow opening, I am wondering what was the decision process for the short entries.
Sorry if I am interpreting your attachment the wrong way ( )

Cheers

Raj

Edit- PS-Thought I'll add this-I am not criticising -just trying to learn from your experience

Yes, Dow opened strongly but it was also well and truly overbought, therefore short sell a weak stock. The first SNDK entry was not good but the trade was still good (top down from a market likely to turn down ans a stock that was weak) and eventually produced a good profit.

Hope that makes sense after a bottle of good red with mrs LII

 

[rajibde]

Yes, Dow opened strongly but it was also well and truly overbought, therefore short sell a weak stock. The first SNDK entry was not good but the trade was still good (top down from a market likely to turn down ans a stock that was weak) and eventually produced a good profit.

Hope that makes sense after a bottle of good red with mrs LII

Thanks for you reply LII-presumably the selection of the weak stocks was based on the fact that both these stocks were trading below their day's low when you had the OB signal from Dow?
EDIT-One other thing-what were your exits based on?- did you plan a scalping approach to these trades?

Cheers

Raj