Index King's Trading Opportunities

[Thestockoperator]

Imranq,The majority of arb/pairs traders earns points on each trade but it is the trade that goes against them that kills them.
It takes real discipline with this style of trading to know when to exit a losing trade,it is no good doubling up and entering the HOPE mode because you wont survive.PERIOD!!!!!!!

 

[rudolf]

I took the FTSE / DAX opportunity for a spin on Friday (as posted) & the results were encouraging.

Additional feedback previous points as follows:

1. Max drawdown (StockOp).

Suggest this is calculated from the stake + margin factors for both legs of the trade + stop loss according to your trade management criteria.

Experimenting with ftse / dax on friday @50p per point meant a max drawdown of £110 - i.e. £50 + £50 (margins / NTR) + max 20 points loss inc. 8 point spread.

As per other comments on thread, the level would go up considerably where the Dow made up one of the legs (margin factor circa 250 + higher tolerance on stop loss).

Achieving a "reasonable income" from the dax / ftse trade would probably have taken circa £2500 drawdown during Friday @£10/point.

2. Getting the trade on (Lambchops).

ftse / dax was straight forward as online prices were available to monitor and capture the trade when the sub 888 condition was met. With today's trade, I don't have online access to the SMI leg so won't be taking it any further.
On Friday, the ftse / dax difference was hovering around 891 for around 45 mins before dipping to 884 late morning - re-calculations required regularly.

In conclusion, it seems possible to achieve a low max drawdown on the less volatile pairs and maintain a pot of money against the IK predictions over the longer term. Potentially, the stakes can be increased in line with success / experience but this relies on IK continuing to post or learning the method of analysis .......... no expectation on either front, but IK has created some interest meanwhile. I've seen other T2Win folks' comments re: the dangers of blindly following someone else's system but I've always been a bit of a Ballasteros fan & this may be good for my swing

 

[Lambchops]

Rudolf - I don`t think Indexking operates a stop loss (point 1.)- The trade runs until the close - With todays trade unless you could get pre-market prices I`m pretty sure this one (German/Swiss) has been untradable up to now so I hope Indexking doesn`t claim a winner on this one even though it looks like showing a good profit.

 

[bonsai]

?
£2500 draw down in a day ?
Have I read that right ?
Ever had 3 losses in a row ?
and then come back for more ?

 

[iq200]

?
£2500 draw down in a day ?
Have I read that right ?
Ever had 3 losses in a row ?
and then come back for more ?

Very interestimng strategy tho....

IK above says that the total gain is 64 points = 640 GBP at 10 GBP pp. I dont think I would like to risk my heart for a
drawdown of 2500

 

[rudolf]

Agree with Bonsai / ImranQ, but maybe at cross-purposes between notional trading requirement / drawdown & variable margin - with stop loss, the maximum downside would be 20 x £10 in the above example = £200.

As Lampchops points out, IK doesn't have a stop-loss rule & seems like suicide even if the stats show it's "impossible" to lose your shirt

Finally, please note the 64 points was for Trade1 + Trade2 - my speculation on drawdown related to Trade2 only.

 

[temporarilylight]

who do u trade with rudolf?

 

[indexking]

** Index King Update **

SWISS 30 close @ 4825
Dax close @ 3186

Difference is 1639 therefore total point profit was 59 points less 10 for spreads. Make 49 points.

This was not easy to trade since difference criteria lasted less than a minute occurring at around 825am . Although the condition was met spread prices and dealer delays give Index King a difference of 1676 !!! Ik only made 26 points after spread.

Although the markets had the action pretty much in the bag to start with the criteria did occur briefly. Dealer delay cost points which IK not happy about

I would like to add that although I give a condition to be met it must be seen that if you take a prices that give a difference as trade start to come good, you will lose yourself points (reduced win). IK go for between 10-200 points a day.
Although method work you perhaps need to take prices as difference is coming good. A window of around 10-15 points should still give a decent win. For example today you could have got in when difference was 1660 etc etc, Index King recommend you use your initiative before entering trades. This way you can see that maximum loss at end of day cannot exceed the difference criteria you take and the final closing differences.

To close, I am working on some Asian trades for all those who like to sit up late at night with Catherine Yang of Bloomberg These will take several days due to maths.

Hope you all managed to gain something from the days trade opportunity.

Many Thanks

IK

 

[rocwell]

looks like index king does it again!

 

[indexking]

Trading Opportunities For Tuesday 24 June 2003

The Index King has identified 4 trading opportunities for Tuesday 24 June 2003

1.Index King advises to BUY IBEX on its own tomorrow as close to the closing price as possible. If price obtainable is more

than 30 points from 6919 then perhaps not bother, however this does have potential ! Use discretion and your beloved stop

losses if you are nervous of this

The condition is: Nikkei should close UNCHANGED or preferably POSITIVE


2.At anytime during the day when the difference is less than 4975

Place a BUY order on the IBEX
Place a SELL order on the Belgium 20


Make these 'Market On Close' (MOC) orders if possible otherwise close out just before the official close of trade for each

index.If you use Deal 4 Free then you have to phone in and say its a Market On Close order(s)
After you close out the difference will be greater than 4975.


3. At anytime during the day when the difference is greater than 1131

Place a BUY order on the DAX
Place a SELL order on the Irish 100


Make these 'Market On Close' (MOC) orders if possible otherwise close out just before the official close of trade for each

index.


After you close out the difference will be less than 1131.

4. At anytime during the day when the difference is greater than 230

Place a BUY order on the FTSE
Place a SELL order on the Irish 100

As usual try for Market On Close orders

At end of day difference will be less than 230

NB Buy and Sell orders must be equal in bet amount !!!!

Have a nice day !
Index King

PS Please stop trying to rubbish my methods ! As Granny index often say. To build a castle you must first collect enough

bricks

 

[iq200]

IK, No-one is trying to rubbish your methods - well at least I am
certainly not. It is a very interesting and kool method iff you have
balls of steel to bear the drawdowns
Hope the IK method is working for you people and you are all
making lots of money from Mr Market.

Regards,

Imran

 

[Thestockoperator]

IndexKing,What ever method you trade Risk Control is the most important aspect.Asking if your System has a stop loss isnt rubbishing your methods.

 

[rudolf]

Timely discussion of stop-losses ............ Ibex currently sitting at 6839. Are you stopped out or do you see a great buying opportunity? - all great fun

 

[2468steve]

Rudolf,
I think IK made the condition that the Nikkei needed to close unchanged or positive to place the IBEX trade.Japan fell 217 pts last night.

Steve

 

[rudolf]

Oops - nice spot 2468 appreci8

Feel it would have been better to present the trading opportunity in the usual IK style re: IBEX / Nikkei difference = X, locked into anticipated closing price of Nikkei. The IK method is based on the analysis of closing prices so even better to have held off the post until the Nikkei had closed.

 

[indexking]

** Index King Trading Update For 24 June 2003 **

** Index King Trading Update For 24 June 2003 **

1. IBEX single buy aborted due to big drop on Nikkei when IK got out of bed this morning !

2. BUY Ibex
Sell Belgium
Ibex open @ 6919 close @ 6871 48 point loss (was chance to get out @ 6953 but this would be against trade conditions)
Belgium20 open @ 1945 close @ 1929 16 point gain

Aprrox 42 point loss with spreads.

Trade 3 DAX/Irish not completed but should be ok for few points

4. BUY FTSE
SELL Irish 100

FTSE open @ 4087 close@ 4060 loss of 27 points
Irish Open@ 4317 close @ 4326 loss of 9 points

46 point loss with spreads approx

Anticipating DAX closure good, see roughly 5 points after spread. therefore roughly 80 points given back over week

Unfortunately today was bad for IK and week my method not reliable in consolidating markets.

From your posts I see you realised any IBEX buys was very dependant on positive closure for Nikkei. The full trade here was SELL NIKKEI (Overnight) /BUY IBEX for today. In hindsight this would have netted nearly 200 points !!!. Reason I not post this is that although my method can predict movements, how they get there is unknown. The danger here was essentailly doing two single trades without other as hedge. The Nikkei could have closed positive although initial calculations did not suggest any buy on it. A strong sell was indicated. The IBEX buy trade with belgium 20 and singly would not have been necessary today !

I make know excuses for today. I failed BIG TIME However IK will try harder for tomorrow

I will now get ready to duck as you hurl your negative comments at me !

Have a nice evening

IK

 

[quint]

Fascinating stuff. Delivered in entertaining style. I am very much a beginner at SB so forgive me if the following questions are hopelessly idiotic.
Questions for Index King.(forgive me if these have been asked before)
eg place a buy on the FTSE
place a sell order on the Irish100
1)When you say bet the same amount, do you literally mean (for example) buy FTSE at £10 a point,sell Irish100 at £10 a point?
2)Are you looking for the necessary points difference in the indices themselves or the SB quotes?
3)Do you place a stop loss?
4)Have any of your trades ever failed? The tone of your posts suggests this is impossible.
5)Would it be possible to outline an actual trade you have made step by step, including SB prices etc.
Sorry in advance for being such a beginner.

 

[quint]

Dear Index King,
Please ignore question 4 as todays events have answered this one.

 

[iq200]

IK We will forgive you if you will give us a share of your
profits next week

Imran

 

[indexking]

Reply to quint

Hello Quint

Thanks for your comments. My pigeon English make me sound overconfident ! Sorry for tone of postings. In answer to your questions.
1. Yes I mean equal amounts eg Buy Ftse £10 Sell Irish £10. Bets to go on at same time (one after other..no waiting..regardless !)

£10 bit extreme while following my methods! I am new to the board ! Recommend you follow only one trade and reduce amounts 90% !!

2. Points difference doesn't matter either shown through national media (live prices) or SB prices. The difference I predict is outcome across board regardless of whose prices taken.

3. Stop Losses ? Interesting question. Have been bashed for not giving stop losses on my trades. Reason is trades are calculated for a single day's trade for each Index. Each Index must be closed out at its official market close even though SB firms prices continue to roll ! I always suggest orders are Market On Close (MOC) orders. SB firms will do this for you. Problem with MOC order is not allowed to close out until official closing time. Index King is accused of being suicidel in his trading methods. Therefore stop lossess to don't really come into my trades since trade not last more than day. Also simultaneous buy and sells means one index becomes hedgy for other. Index King not know how difference target arrived at by end of day but bets recommended take advantage of final difference without being stung for crummy SB prices !.

4 Yes my trades have lost but I am still up over 4000 points for year using this method. (Surprisingly it now seems !)

Hope this helps

Regards IK

PS As Grandad Index used to say. It's doesn't matter what you drink as long as it gets you pi**ed.