My spreadbetting scalping technique

This is a discussion on My spreadbetting scalping technique within the First Steps forums, part of the Reception category; I use this system on the FTSE and Dow Jones. I have been trading with these indicators: Ma's, DI and ...

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Old Nov 22, 2007, 8:24pm   #1
 
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Joined Aug 2007
My spreadbetting scalping technique

I use this system on the FTSE and Dow Jones.

I have been trading with these indicators: Ma's, DI and RSI's for a couple of weeks. I can only trade dinnertime 1 hour at work and maybe 1 hour after. (Family commitments ). I trade £5 a tick and have had some losses but I am in profit. I tend to make an average 5 to 10 ticks per trade on the FTSE. (On a correct trade) and 8 to 14 ticks on the Dow per trade. Occasionally you make more.

When the orange line crosses the black line down and we have below -15 on the DI, I go short.
If the orange line crosses the black line going up and +15 on the DI, I go long.
I tend to exit my trades when the RSI (1) is 100 to close out my long trade and 0 to close out my short trade.
I check the RSI (14) to make sure I do not go long when above 70 and I do not go short if below 30.
To confirm this trade, I use the black (ema8) to cross the (ema12) line up for long and down for short.

The (ema20) was something I was looking at for exiting trades.

One of my faults seems to be exiting my trades to soon...if anyone has ideas of how I can improve this it would be appreciated.
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Old Nov 22, 2007, 8:43pm   #2
 
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Quote:
Originally Posted by ajs5274 View Post
I use this system on the FTSE and Dow Jones.

I have been trading with these indicators: Ma's, DI and RSI's for a couple of weeks. I can only trade dinnertime 1 hour at work and maybe 1 hour after. (Family commitments ). I trade £5 a tick and have had some losses but I am in profit. I tend to make an average 5 to 10 ticks per trade on the FTSE. (On a correct trade) and 8 to 14 ticks on the Dow per trade. Occasionally you make more.

When the orange line crosses the black line down and we have below -15 on the DI, I go short.
If the orange line crosses the black line going up and +15 on the DI, I go long.
I tend to exit my trades when the RSI (1) is 100 to close out my long trade and 0 to close out my short trade.
I check the RSI (14) to make sure I do not go long when above 70 and I do not go short if below 30.
To confirm this trade, I use the black (ema8) to cross the (ema12) line up for long and down for short.

The (ema20) was something I was looking at for exiting trades.

One of my faults seems to be exiting my trades to soon...if anyone has ideas of how I can improve this it would be appreciated.
Looks good.....another scalping system shared !!

Exits are the trickiest. I am running two positions now. One I take at + 10, as soon as that's hit I put the stop to flat on the last position...Take that out when the system reverses.
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Old Nov 22, 2007, 10:45pm   #3
 
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Why not set a target point stop? What's the range it could run to?

Having a look at the last couple of days (excluding today), it could work on cable with 5 minute charts.
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Last edited by shadowninja; Nov 22, 2007 at 11:57pm.
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Old Nov 23, 2007, 12:11pm   #4
 
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Originally Posted by ajs5274 View Post

One of my faults seems to be exiting my trades to soon...if anyone has ideas of how I can improve this it would be appreciated.
I know what you mean. I was thinking about this. How about going all the way then as soon as it dips you come out. If you see the attached chart, whether you come out at point A or B, you will get more or less the same profit. Or as Shadowninja says find out the recent base range and use it for your limit order.

If you don't mind my asking, I am interested to know what percentage you are consistently winning with this strategy?
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Old Nov 23, 2007, 2:18pm   #5
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I know what you mean. I was thinking about this. How about going all the way then as soon as it dips you come out. If you see the attached chart, whether you come out at point A or B, you will get more or less the same profit. Or as Shadowninja says find out the recent base range and use it for your limit order.

If you don't mind my asking, I am interested to know what percentage you are consistently winning with this strategy?
Good luck with this, Spreadbunny. I think that the theory of the system is fine but am doubtful of the speed that you will be able to execute it on a consistent basis.

Let us know how you go.

Good trading

Split
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Old Nov 23, 2007, 2:24pm   #6
 
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That's why I like limit orders. It executes the close as soon as it hits the value. You just worry about moving the stops up. It's a bit like climbing; the belayer constantly takes in the slack rope to ensure safety so you can focus on climbing. I guess in this case, when you're moving the stops up, you are actually the belayer, not the climber.
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Old Nov 23, 2007, 10:15pm   #7
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Yes, limit orders are the way to go.

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Old Nov 24, 2007, 12:12pm   #8
 
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Yes, limit orders are the way to go.

Split
But you still have to watch that trade in case if it doesn't get triggered
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Old Nov 24, 2007, 1:34pm   #9
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But you still have to watch that trade in case if it doesn't get triggered

Right, and if it does get triggered you can't change your mind, no matter how long it takes to fill. You have to see it though. The alternative, though, is to aim for your price and not get it, which is frustrating.

Hope you have a long lunch break.

The only thing you can do is try it out and see if how it works, you'll know after a few goes.

If you are on a winner, what are you going to do when the break is over? Close, or put a 2 point stop above breakeven and let it run in your absence?

Split
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Old Nov 24, 2007, 1:44pm   #10
 
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Sorry, what I meant was that for an open position, you set a pip target that you want to "win" and just manage your stop to control loss.
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Old Nov 24, 2007, 2:16pm   #11
 
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Originally Posted by Splitlink View Post
Right, and if it does get triggered you can't change your mind, no matter how long it takes to fill. You have to see it though. The alternative, though, is to aim for your price and not get it, which is frustrating.

Hope you have a long lunch break.

The only thing you can do is try it out and see if how it works, you'll know after a few goes.

If you are on a winner, what are you going to do when the break is over? Close, or put a 2 point stop above breakeven and let it run in your absence?

Split
There is no perfect solution and you'll just have to see what works for you.

Long lunch? Are you trying to hint something?

When I come back from break and if it's a winner, I have a tendency to take the profit and run.
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Old Nov 24, 2007, 2:48pm   #12
Joined Dec 2005
Excuse my ignorance, but what does DI stand for as an indicator?

Thanks.
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Old Nov 24, 2007, 3:09pm   #13
 
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Hi packhorse, try this link for a read on DI

http://www.trade10.com/Directional_Movement.html

It would appear that ajs5274 may be using +DI minus -DI or just one of either and displaying it as a histogram, I think. I'm sure he will clarify this for us.

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Old Nov 24, 2007, 3:11pm   #14
Joined Nov 2001
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Long lunch? Are you trying to hint something?
I'm too old.

Split
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Old Nov 24, 2007, 9:16pm   #15
 
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DI Indicator

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Originally Posted by Lightning McQueen View Post
Hi packhorse, try this link for a read on DI

http://www.trade10.com/Directional_Movement.html

It would appear that ajs5274 may be using +DI minus -DI or just one of either and displaying it as a histogram, I think. I'm sure he will clarify this for us.

Lightning
Yes thats correct Lightning,
The DI is the directional indicator. Its just the DI part shown as a histogram. However I am looking at using The DI- and DI + which seem to give smoother indication of trend. Can you suggest anything to add to the way I trade?
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