My Strategy....

[vchohan]

thanks mate yeah come back with some updates upload some charts of what you're doing if you can as well.

 

[Trader1UK]

Mate, be aware of a few things:

1) Equities seem to me to revert to the mean more often that not - that means that the kind of sharp moves that cause moving average crossovers are just as likely to reverse the moment you enter.

2) You will need to test this for a significant period of time before concluding that it works. A system can work excellently in one type of market but when that market behaviour changes, the system can very easily stop working.

I would personally forget moving average crossovers and concentrate on reading the price action.

Look at previous HIGHS and LOWS on the daily, hourly and 5m charts. Look for patterns. Think about other FTSE traders and where they might get in and if they get in where they might have to puke if the trade doesn't work. Look at support and resistance. How is the market acting at these levels?

This is honestly more likely to make you consistent in the long run because it will work in all markets (trending and non trending).

At my prop firm there are huge number of FTSE traders - we do a great deal of the daily volume so its guys like the ones I sit with that will be causing you to win or lose. They don't use moving averages or indicators...they trade in the way I explain above...and if they are moving the markets...then you need to watch the same things they do. They are, after all, the people you will be competing against.

Thanks TD for the info, appreciated.

 

[Trader1UK]

The bigger players will look at the bigger levels. You absolutely must know what your market looks like on a daily TF minimum and it always helps to keep an eye on the hourly - all the locals I know do so. You can't just watch a 5m chart - you need to put the moves you are playing for in perspective. If a trend is about to start for the day because of an important pattern completion or breakout on a higher TF, why do you want to take just 20 ticks out of it? Always make sure you know where things could go. The best traders are those that can identify the short term moves and scalp but also know when to run a position. If you only look at the 5m you will never get to be able to do both.

Thanks TD,
well said. 5m alone has cost me in the past,

 

[Trader1UK]

thanks mate yeah come back with some updates upload some charts of what you're doing if you can as well.

Doing ok...
Ill try n see if i can get charts up..