my journal 2

This is a discussion on my journal 2 within the Trading Journals forums, part of the Reception category; Originally Posted by travis (thanks to who gave me the link) Cool. Just proved to myself, for about ...

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Old Jan 23, 2010, 11:56pm   #22
Benton D Struckcheon's Avatar
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re: my journal 2

Originally Posted by travis View Post

(thanks to who gave me the link)
Just proved to myself, for about the thousandth time, that the following constitutes a sound core for a tradeable system on a daily/weekly timeframe:

10 period SMA
10 period RSI

The rules that underpin every system I ever traded were that three things had to agree, to wit:

1 - Price had to be above/below SMA
2 - SMA had to be rising/falling
3 - RSI had to be over/under 50

Fourth rule is that the RSI period MUST equal the SMA period. Fifth rule was to ignore the nonsense about overbought/oversold periods existing in the RSI: the 70/30 or 80/20 lines commonly used for this are, I've found, valueless.
SMA varies with the timeframe: I use 10 for daily or weekly signals, 6 for intraday on a 30 minute timeframe. (this only works if you ignore overnight trading, and are trading on the 9:30 - 4:00 EST of New York; for FX or for other markets whose hours may be longer or shorter, other timeframes and SMA's doubtlessly work better. And all of this is in the context of swing or even "position" (on the weekly charts) trading; I've never been a daytrader.)
Of course, this is only the core. In real life, I long ago replaced RSI with something that I think is a lot better, and even before that, I was calculating RSI differently from the way it is for these charting programs. But the above is, IMO, a good start.
The wise man does at once what the fool does finally.
- Niccolo Machiavelli

...reclining in a comfortable chair with the dreamy, far-away look a volcano might wear just after it had desolated entire villages.
- Saki
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Old Jan 24, 2010, 12:16am   #23
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re: my journal 2

travis started this thread Ok, so if those three conditions (above SMA, SMA rising, above 50) are met can we go long or short?


I tried for thirty minutes and tripled the 10k, going against them. If price was above, sma rising, and rsi above 50, I went short, and viceversa. It's really interesting how an indicator (maybe any indicator?) keeps you from going crazy. I was trying to trade with just s/r levels, and in the first 20 minutes it worked, and more than doubled capital, but then I started going crazy and being unable to either cut losses or to identify s/r... basically now, with these indicators, it's much better. Thank you for the advice. Please answer those questions above as well if you get a chance.

I just looked at the indicators you told me to use, and kept increasing capital... I never trusted those two indicators, but somehow they worked. Now I'll keep on doing it and if I can bring 10k to 100k, then they'll start making sense to me.


Didn't work. Got 10k to 45k, and then got tired and started screwing around, and lost almost all gains. Besides, I don't even know if I understood his method correctly.

Last edited by travis; Jan 24, 2010 at 1:00am.
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Old Jan 24, 2010, 12:40am   #24
Joined Nov 2009
re: my journal 2

Hope it's okay to go "off topic" again, but I meant to ask you this a while back, and forgot!

My partner and I are both Risk fanatics, we play it on the PS2, but I saw you were playing online. Is that on the PC, the PS3, or...?

Happy trading, travis!

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Old Jan 24, 2010, 12:59am   #25
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re: my journal 2

travis started this thread

We've been playing with another reader. I hope you download it and then you can message me so we can meet and play.
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Old Jan 24, 2010, 1:26am   #26
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restless, impatient, compulsive...

travis started this thread What the hell is the matter with me, or as that girl used to ask me, "what is wrong with me?". I engage in compulsive gambling whether I am investing real money or I am paper trading, or I am playing this chart game:

The first trades are always fine, then I start getting restless and impatient and I lose money. No wonder my only profitable trading has been with automated trading.

You either tell me exactly what I have to do, or it's not going to work. I've been playing this chart game for hours, and I want to figure it out for good, but I can't.

This game is not just any game - it's the key to everything. If I can figure out this game, I am rich.

Come on, Benton, teach me this thing with sma and rsi, i want to learn it. But teach me all the way, not just half way.

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Old Jan 24, 2010, 1:46am   #27
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re: my journal 2

travis started this thread That's it. I give up. I can't believe I am giving up on a free simulator, which seemed to answer to all my questions. It seemed like the greatest link ever, and I am giving up. That means there's no way i will ever find out how to make money with real trading, since the number of experiments i can make with real trading is much smaller than here. So maybe I am not after finding out how to make money, but only after gambling. Otherwise I'd keep on practicing this thing. But maybe I will try again tomorrow. I sure hope I get obsessed with this thing until i figure it out. And if I do, i can apply what i figure out to any market.
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Old Jan 24, 2010, 1:53am   #28
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re: my journal 2

travis started this thread snap1.jpg

Ok, here's a method that works and that is simple. I get the chart, I look at the last 4 years, which is what I am given. I find the highest point and the lowest point. I wait for price to reach that point, and then I bet on a bounce. That's all. It works, it's simple.

What I do not like is how irregular it is, and how rare the trades are. I'd like something regular, frequent... I mean i could trade once or twice every years with such a method, and it could only be viable through a chart game like this is.

However, it's a start. I need to practice more and more and see if I can finetune this thing to perfection.
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