My trading strat.......

[ceydababy]

just joined today and trade sp emini during day, ets. i like to use keltner bands, trade in direction of trend; e.g. if trend is up, i look to enter at the mid to bottom kelts; if trend is down, enter on the mid to upper kelts for shorting.

also look for fib levels after a move up, say after the open. i look for 2.25 pts profit per trades, 2--3 times a day. but my best trading is between 10am--11:30am ets.

would like to share info w/you about emini--always looking to improve.

john

Hi John, welcome to T2W ! I have NEVER EVER used Keltner bands, do you keep these on standard settings ??

Will check them out

Thanks

 

[jsoriano]

keltner bands

hello--the kelt settings are 8, 1.3,14. w/in the trend like today's down trend, i look to sell when the price comes back between the mid to upper kelt band. then ride the price down, making sure each 'down level' or new low on the 3 minute chart is not penetrated. then i will stay in the trade as seen in today after 3pm sell off.

prior to that, i shorted after 1pm when the market failed to take out the active high, near the top of the kelt band. when i figure out how to post a thumbnail chart i will do so.

so what general strategy do you use on this vehichle? pivot points etc?

john

 

[PKFFW]

A couple of things I've noticed I thought I'd share.

Firstly divergence is also a useful thing to keep an eye on. I've not seen a statistically significant number but the few times I've seen a trade setup occur after MACD has diverged from price it has always been followed by a strong move. Thus far I definitely feel more confident taking these set ups and will keep a watch on the phenomenon.

Secondly it seems some decent moves can be had out of hours if one has the patience and time to let them run. When I'm home I usually leave the computer running all day, checking the charts whenever I come in to check email or surf the next or do other work on the computer. So I'm not specifically trading but I flick over to the charts every 5 mins or so. Today, just following the system without any changes or discretion would have resulted in 8 trades. 6 winnners and 2 losers. Net gain of 7.75 points(disregarding slippage and commissions). That was over six hours. Not every day has been like this but many have shown nice clear, slow, low risk trades where 1-2 points could have been picked up. Not bad for me when I'm doing other things anyway. Definitely something I'm going to keep my eye on.

Cheers,
PKFFW

 

[black bear]

Open Hour range might help with whips

Hi,
I can see how this sytem works and its made me a few points so thanks for posting your strat. One question Do you find it does well when the market first opens for example yesterdays FTSE gave about three false signals right off the bat. Also how has this been working for you on Aud/Usd? Ive made a few points on this also, trouble is the price spikes that you get with forex make the 10 point stop a little tight at times so it tends to close you out before any profits can be taken.

Hi,

Price spikes are a problem, but there isn't a lot you can do about them. To me they are my biggest problem and often screw with my stop strategy. I think that as far as setting stops go, 10 points isn't a hard and fast rule. If I was trading the dow (notice the IF) I would not trade with a 10 point stop, the chances are that will be hit and you will be out nursing a small loss as you watch the price run you right in to profit. You need to look at the market and assess your own stop strat for each instrument.

You can sometimes find that the open presents the most volatility, yes I took hits on the opening 3 trades yesterday, but small ones.

Realistically this really isn't a holy grail, and I hope to never have made a claim that it is. I just posted the setup I use to trade to see what other people thought, if anyone else makes cash from it then that is GREAT !! I can't stress enough that on a FTSE 1 min chart your losses will be minimal, that doesn't mean losing trades don't happen...of course they will, but when you do lose you are out for a very small loss.

Hi Mark

Good system, as you know there are a few points we have already discussed, principally entry, management and exit.

What I added when I looked at this system is as follows and I have put an attachment to this to show what I mean.

1) 3 MA's 20,50, 100 for trend direction, trading only in the direction of the MA20
mimimum, if all 3 are trending the same this will give strong support to the
direction, do not counter trade (ie trade against the trend).

2) RSI (14) with a MA20 target line

3) Stochastic (14,3,3,)

4) MACD (12,34,9)

A) 1st alert to entry, RSI & Stoch crossover target line.

B) MACD c/o in conjuntion with 1st green bar histogram & PAR

c) At this point, price has nearly bottomed, and is sat on top of the MA20, on candle
confirmation, enter a long position, the price is now above the MA20.

D) The Ma20 crosses the MA50 adding strength to your trade, and the momentum gap #
of the macd is growing, reflected by the growth in the price. whilst this gap remains
open, do not close on minor price drops

E) Close the position after the macd closed and on point of c/o, shortly after this the
price sat on top of the MA20 line before retracing

F) Do not take counter trend trades, therefore ensuring you always stay on side

G) Do not trade when the MAs are flat, wait until trend sets in and act accordingly

H) By trading only trend, if you get your entry point wrong, you have a good opportunity
of getting out unscathed, trade against the trend, you have a good chance of getting
stuffed.


Any thoughts / feedback from you anybody, please feel free

Hi all

Only quick drop in post :cheesy:

Noticed your threads growing and just a thought for all interested, traded very close to your method quite a bit back with very ok results, just was not for me and moved on.

Bracket the open hours range with a couple of lines on the chart, same with yesterdays high and low. Think you will find you can identify bad and good trade set ups better after a little practice.

Dinos suggested ideas are very good to IMO if you like this method of trading.

Trade well and good luck all

Andy AKA

 

[Windowsill]

Depends on your style of trading......Horses for courses. Yes points are small, but you are continually in and out on a 1 minute chart....point hauls can often be higher than you're suggesting. I would suggest position trading would require twigs. Using a 1 minute chart you are always at the coal face.

The points are small, but what concerns me, if one more trade went wrong would that mean a further -10? It seems to be a poor risk/reward ratio. I agree with working 1/3 min charts i think its easier to concentrate when you know a trade will soon happen!

 

[gorney]

My first trade with this System

Hi, this is my first ever post! 😀

I placed my first real trade with this system on the FTSE100 Rolling Daily today.

I entered at 6402.8 and exited half at 6411.8 and the other half at 6410.3 as momemtum began to turn downwards.

I entered the trade on 1m timeframe, at the start of the 3rd bar as price crossed the 20SMA. However, I think I will try the 2nd bar as it rises above the 1st bar in future. I exited the trade on the sixth bar. I set my relative MACD Histogram overbought levels to give me an idea of when the price might start to pullback. This helped me with my exit. I also exited the trade as the price moved outside the upper Bollinger Band level (20,2).

I waited a little to see if the price would walk the upper band, but decided that the general trend was downwards today anyway and I took a risk by going long below the moving averages, which I wouldn't normally do. I also had a chart pattern buy formation forming, a double bottom off the lower Bollinger Band. The first low formed outside the lower band and the second low formed inside the bands which is usually a good rally signal.

I have the RSI indicator under the MACD to use as a confirmation signal for my exits. Lucky for this trade I had an overbought MACD, RSI just turning down before it hit 70, and the price turning down from the upper Bollinger Band. I prefer to exit as things start to turn down from overbought levels.

Thanks for this system, it has given me lots of ideas to play with. Thanks for all the informative and interesting posts.

Maybe it was just beginners luck! Time will tell.

 

[ceydababy]

The points are small, but what concerns me, if one more trade went wrong would that mean a further -10? It seems to be a poor risk/reward ratio. I agree with working 1/3 min charts i think its easier to concentrate when you know a trade will soon happen!

Yes if you followed every signal it might mean further -10's. However a degree of common sense is required. If you take this afternoon on the FTSE, pretty much untradeable, you would have taken hits on most setups on a 1 minute time frame this PM because action was so wild. When the market is like this, engage brain and stand aside.

I do see what you are saying though, you DO NEED to have a little knowledge of "the market" to know when to trade or when not to trade, or as you have put "when you know a trade will soon happen"

With a large fear of repeating myself, no system/setup is fool proof or holy grail esque. In my opinion this setup requires very little interpretation and it's just a case of adopting a disciplined approach to make your profit.

 

[ceydababy]

Hi, this is my first ever post! 😀

I placed my first real trade with this system on the FTSE100 Rolling Daily today.

I entered at 6402.8 and exited half at 6411.8 and the other half at 6410.3 as momemtum began to turn downwards.

I entered the trade on 1m timeframe, at the start of the 3rd bar as price crossed the 20SMA. However, I think I will try the 2nd bar as it rises above the 1st bar in future. I exited the trade on the sixth bar. I set my relative MACD Histogram overbought levels to give me an idea of when the price might start to pullback. This helped me with my exit. I also exited the trade as the price moved outside the upper Bollinger Band level (20,2).

I waited a little to see if the price would walk the upper band, but decided that the general trend was downwards today anyway and I took a risk by going long below the moving averages, which I wouldn't normally do. I also had a chart pattern buy formation forming, a double bottom off the lower Bollinger Band. The first low formed outside the lower band and the second low formed inside the bands which is usually a good rally signal.

I have the RSI indicator under the MACD to use as a confirmation signal for my exits. Lucky for this trade I had an overbought MACD, RSI just turning down before it hit 70, and the price turning down from the upper Bollinger Band. I prefer to exit as things start to turn down from overbought levels.

Thanks for this system, it has given me lots of ideas to play with. Thanks for all the informative and interesting posts.

Maybe it was just beginners luck! Time will tell.

Glad you enjoyed some success with it. All I would say...having been a beginner myself (not saying I'm George Soros here) but too many indicators can throw you off. I find to many indicators gives me too much information, then information Paralysis sets in. One tells me the market is coming off another tells me it's rising.....But whatever works and by the looks of it you have made some profit....profit is elusive in this business...so well done to you...

 

[cu2]

What the heck are MR's?

Hi nkruger,

Ill sell y the MRs, 😆 😆

works similer to the macd except when it starts to flash red

she"ll shout teas ready and the indexs just take off, its the only forward indicator you"ll ever need 😆 😆

Priceless

Andy , just out of retirement for one night only 😀

Hi Develbis,
I don't get it MR's, could you please explain that?

 

[black bear]

Mrs Develbis I mean

Hi Develbis,
I don't get it MR's, could you please explain that?

Sorry for confusion 😱 😱

Her in doors = the Mrs = My better half

Teas ready dear 😀

All indexs will take off for 60pts

I will return and ----------- not a pt available

Best indicator in the world my Mrs,

Sorry the mrs is not for sale

Priceless 😛 😀

Mrs Develbis

Andy

 

[cu2]

Sorry for confusion 😱 😱

Her in doors = the Mrs = My better half

Teas ready dear 😀

All indexs will take off for 60pts

I will return and ----------- not a pt available

Best indicator in the world my Mrs,

Sorry the mrs is not for sale

Priceless 😛 😀

Mrs Develbis

Andy

Well how lucky 4 u Andy.
It would be nice if we could get back to something more useful.

I have been finding this system a little also. The MACD lagging more so than the PSAR, whilst waiting for the 2nd hist. to confirm. Nevertheless it has helped me get a few good wins with it, with heart in mouth trading every signal.

To caydababy1,
A question I would like answered is would you still enter every trade on signal even on a flat market, or do you also look for other factors?

 

[black bear]

Well how lucky 4 u Andy.
It would be nice if we could get back to something more useful.

I have been finding this system a little also. The MACD lagging more so than the PSAR, whilst waiting for the 2nd hist. to confirm. Nevertheless it has helped me get a few good wins with it, with heart in mouth trading every signal.

To caydababy1,
A question I would like answered is would you still enter every trade on signal even on a flat market, or do you also look for other factors?

cu2

I think so 😀

happy trading

Andy

 

[amac40]

I had a go at the system today. Ftse this morning was excellent but as we approach USA time it got a bit more difficult as the FTSE was trading off the S&P. As far as I could see the only time to be careful this morning was when we had a mini spike but it was very encouraging as it gave quite a few good signals in a time when it can be tricky to trade.

I also tried a couple of AUD/US $ which won. Finally tried US crude-works very well on trend side but tricky going against trend.

Will post further experience as it happens. 🙂

 

[ceydababy]

Well how lucky 4 u Andy.
It would be nice if we could get back to something more useful.

I have been finding this system a little also. The MACD lagging more so than the PSAR, whilst waiting for the 2nd hist. to confirm. Nevertheless it has helped me get a few good wins with it, with heart in mouth trading every signal.

To caydababy1,
A question I would like answered is would you still enter every trade on signal even on a flat market, or do you also look for other factors?

ok...back with a solid internet connection.....In a flat market I "try" not to trade. If the market is in a tight choppy range (15-20 points on FTSE) it plays havoc trying to trade it. I like to wait for the first move out of the range or if the range breaks I might trade too I then will assume business as normal. All of my losses using this setup have come from trying to trade in a tight range.

 

[PKFFW]

ok...back with a solid internet connection.....In a flat market I "try" not to trade. If the market is in a tight choppy range (15-20 points on FTSE) it plays havoc trying to trade it. I like to wait for the first move out of the range or if the range breaks I might trade too I then will assume business as normal. All of my losses using this setup have come from trying to trade in a tight range.

I've been finding the same. Ranging market gives alot of whipsaws.

Now I wait for price to clearly break the range before entering. I also find it gives some great "re-enter the trend" type signals too.

Picked up a perfect entry this morning on the S&P emini for 6.25 points. That was after 1 stop out for -1.5 points. So a nice 2 hours for me. 🙂

Cheers,
PKFFW

 

[ceydababy]

I've been finding the same. Ranging market gives alot of whipsaws.

Now I wait for price to clearly break the range before entering. I also find it gives some great "re-enter the trend" type signals too.

Picked up a perfect entry this morning on the S&P emini for 6.25 points. That was after 1 stop out for -1.5 points. So a nice 2 hours for me. 🙂

Cheers,
PKFFW

hi pkffw,

what t/f are you using ??

 

[cu2]

Your STRAT

62 points in the opening 2 hours. My favorite time to trade. It worked really well for me today. Perfect set ups.
Regarding your tip on FLAT markets! The last trade could of gone in any direction. A sample of it going flat came up on the last trade, so as it wasn't clear enough I dissided to X it.

In the picture are arrows which indicates entries and exits, trading the FTSE on the ABN platform showing account balance and fills.

 

[PKFFW]

hi pkffw,

what t/f are you using ??

At the moment I'm using 2 min t/f. I'm experimenting with 50-100 tick charts rather than time charts though to see if that makes a clearer picture to me or not. Unsure at this time.

Something else I thought I'd mention is that the best moves seem to happen when the psar and macd line up within a couple of bars of each other. That's not always the case of course but so far I've noticed it enough to want to look further at it.

Cheers,
PKFFW

 

[cu2]

EMA and SMA

I have also added the SMA 6 and EMA 12 which also helps confirmation.

Dear PKFFW,
To the entry. You need to just trust the signal how its been given otherwise I wouldn't be game at all. It's that simple really. Of course there will always be the odd bad signal. Just watching the FTSE in the last couple of weeks, I find it an easier market to trade than the dax which is jumpy most of the time and less predictable.😱
I dont know much about S&Ps but you seem to be doing just fine.

 

[gorney]

Yes if you followed every signal it might mean further -10's. However a degree of common sense is required. If you take this afternoon on the FTSE, pretty much untradeable, you would have taken hits on most setups on a 1 minute time frame this PM because action was so wild. When the market is like this, engage brain and stand aside.

I do see what you are saying though, you DO NEED to have a little knowledge of "the market" to know when to trade or when not to trade, or as you have put "when you know a trade will soon happen"

With a large fear of repeating myself, no system/setup is fool proof or holy grail esque. In my opinion this setup requires very little interpretation and it's just a case of adopting a disciplined approach to make your profit.

Absolutely. I will do my best to keep things simple. I've been paper trading this system for a while now. All kinds of problems in flat/ranging markets. This seems typical of MACD and moving average based systems. I think the secret is to try to get in the breakouts and trends. I am testing different methods at the moment to help me stay out of the whipsaws. I'll post my results when I have time.

regards.😀