Transition from Long Term Trend Following to Day Trading

kobeyashi · Apr 3, 2008

Hi all,
I am an absolute novice when it comes to Day Trading.
Infact, I used to look down upon it, but as of now I am expected to open and close positions intra-day.
How can I make a transition from holding positions for anywhere between a month to 6 months, to now trading everyday?
I have been exploring various approaches such as books, public domain trading systems, but no significant results. Most short-term trading approaches available seem to be peddling snake voodoo oil - 35% on a single trade, 95% success rate, book your 612 Scaglietti today :clap:.

Most recently, I tried the 5-min Intraday System by Philip Nel which has been discussed/recommended here on T2W a few times. Results were disastrous. (see attached pic)
Note: The images are for the Euro Bund, which is the instrument I trade.

I got into the trade at 115.21. Profit target was 12-15 ticks, stop loss was 6-8 ticks. After deciding my point of entry, I contacted my supervisor regarding this, and he commended my analysis. So I entered the trade, only to end with a 9-tick loss. What could I have done differently here?
I was scalping 3-4 ticks every other day, which my supervisor wasn't happy about, and suggested that I change my approach, going in for 8-10 ticks at a minimum per trade.

Any suggestions will be highly appreciated.

Regards,
Kobeyashi

Mathemagician · Apr 3, 2008

Find the right instrument and you won't have to change much at all...

jj

nine · Apr 3, 2008

Instead of referring us to the system why don't you set out the rules here and then journal you implementation. That way we could follow your implementation and suggest improvements.

Also, check the mas that he uses and how they look on what he trades vs how they look on what you trade. You may find that the characteristics of bund needs different mas to the currencies ... assuming that he's used them to indicate where support or resistance is likely to occur.

You might also want to read through the Floor Traders Method which I think preceded Nel's thread. You can find it in my thread:

http://www.trade2win.com/boards/gen...ul-things-i-ve-found-net.html?highlight=found

kobeyashi · Apr 3, 2008

Mathemagician: Unfortunately, I cannot change the instrument that I am trading, so am stuck with it.
Nine: Thanks for the tip. I'll look into it asap and report how it goes.

Kobeyashi

nine · Apr 3, 2008

Also on bund, look at 3m. I seem to recall using 21 and 34 emas on 3m bund once upon a time.

Crap Buddist · Apr 3, 2008

kobeyashi said:
which my supervisor wasn't happy about, and suggested that I change my approach, going in for 8-10 ticks at a minimum per trade.

Any suggestions will be highly appreciated.

Regards,
Kobeyashi

I'd get the supervisor to give you a method to use, least then his or her happiness or lack of may be routed elsewhere. Yeeeshh, some people...

Good luck.

Have you tried the dartboard method ? yah I admit its not the most professional approach, but I would love to see your supervisors face with that one

For everything else in life theres mastercard.

kobeyashi · Apr 3, 2008

Crap Buddist said:
I'd get the supervisor to give you a method to use, least then his or her happiness or lack of may be routed elsewhere. Yeeeshh, some people...

Good luck.

Have you tried the dartboard method ? yah I admit its not the most professional approach, but I would love to see your supervisors face with that one

For everything else in life theres mastercard.

Haven't tried the dartboard method yet, but willing to give it a shot.

You'd be surprised at the power of randomness. I once tested a coin-flip + EMA method, and to my surprise it yielded a positive result, with a fairly decent MAR Ratio to boot.

I am off trading today, purely because I need a mini-break, and need to research more into short-term methods.

By the way, has anyone ventured into system testing using tick data? I am just looking for tick data for the Bunds, but my concern as of now, is the accuracy, since I haven't heard too many good things about that.

kobeyashi · Apr 3, 2008

nine said:
Also on bund, look at 3m. I seem to recall using 21 and 34 emas on 3m bund once upon a time.

Thanks once again, Nine. I'll try and test the suitability of these combinations as well.

TheTick · Apr 3, 2008

kobeyashi said:
Hi all,
I am an absolute novice when it comes to Day Trading.
Infact, I used to look down upon it, but as of now I am expected to open and close positions intra-day.
How can I make a transition from holding positions for anywhere between a month to 6 months, to now trading everyday?
I have been exploring various approaches such as books, public domain trading systems, but no significant results. Most short-term trading approaches available seem to be peddling snake voodoo oil - 35% on a single trade, 95% success rate, book your 612 Scaglietti today :clap:.

Most recently, I tried the 5-min Intraday System by Philip Nel which has been discussed/recommended here on T2W a few times. Results were disastrous. (see attached pic)
Note: The images are for the Euro Bund, which is the instrument I trade.

I got into the trade at 115.21. Profit target was 12-15 ticks, stop loss was 6-8 ticks. After deciding my point of entry, I contacted my supervisor regarding this, and he commended my analysis. So I entered the trade, only to end with a 9-tick loss. What could I have done differently here?
I was scalping 3-4 ticks every other day, which my supervisor wasn't happy about, and suggested that I change my approach, going in for 8-10 ticks at a minimum per trade.

Any suggestions will be highly appreciated.

Regards,
Kobeyashi

Try using P&F charts on a 1x5 or 1x6 reversal and combining with separate 15min and 60min bar/candle charts with either your prefered MA's or something like a momentum indicator. You could then enhance this by pyramiding entries on consecutive breaks, or play it conservatively and only use double or triple tops/bottoms.

This is only a suggestion, but you may be able to play around with it and make it your own.

intradaybill · Apr 3, 2008

kobeyashi said:
After deciding my point of entry, I contacted my supervisor regarding this, and he commended my analysis. So I entered the trade, only to end with a 9-tick loss. What could I have done differently here?

You could have not contacted your supervisor (?) Never let anyone know your positions. To me it's bad luck save the fact that people who know your signals can fade them.

Bill

jm99 · Apr 9, 2008

Mathemagician said:
Find the right instrument and you won't have to change much at all...

jj

jj, are u saying that you use basic trendfollowing methods for daytrading if a particular market is in a certain (favourable) condition? If so, can you give an example of a market that is currently in this condition?

Transition from Long Term Trend Following to Day Trading

kobeyashi

Junior member

Attachments

Mathemagician

Established member

nine

Senior member

kobeyashi

Junior member

nine

Senior member

Crap Buddist

Senior member

kobeyashi

Junior member

kobeyashi

Junior member

TheTick

Member

intradaybill

Well-known member

jm99

Active member

Similar threads