Low Risk Entries

This is a discussion on Low Risk Entries within the Trading Systems forums, part of the Methods category; One of my fellow traders just Pmed me to ask what are the LOW RISK entries I said I would ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 4, 2003, 1:33am   #1
 
Grey1's Avatar
Joined Jun 2002
Low Risk Entries

One of my fellow traders just Pmed me to ask what are the LOW RISK entries I said I would open a thread..

Please add your fav low risk entry here


Strategy 1)

Always buy the second pull back from the HIGH of the day ..

( for exact entry point L2 helps a lot )



Same with the second rally on LOW of the day

I will add further
Grey1 is offline Commercial chat room   Reply With Quote
Old Nov 4, 2003, 1:56am   #2
 
Grey1's Avatar
Joined Jun 2002
Grey1 started this thread Strategy 2)

1) Deduct HIGH from the LOW of the day

2) divide this by 2.... we call this Maxmum permissible deviation or MPD for simplicity ...

3) calculate your VWAP

4) go short when price is MPD above the VWAP ( same for long )


In all cases use L2 for fine tuning ( first support or resistance will do )

This is bargain hunting and you need a scanner to identify these situations for you ..
Grey1 is offline Commercial chat room   Reply With Quote
Old Nov 4, 2003, 2:02am   #3
 
Grey1's Avatar
Joined Jun 2002
Grey1 started this thread strategy 3 )

Capitualtion sell off


When a stock closes well below its normal historical close due to down grade, bad news ( avoid profit warning news ) then take a long position // AMZN was sold off 8 % or MSFT was sold off 9 %

Reduce your positon size.. increase your stop loss to around 1% ( you are better off tohave a Money management stop than a set figure but i am only trying to give an example ) and let trade to run for 3 days...

Last edited by Grey1; Nov 4, 2003 at 2:52am.
Grey1 is offline Commercial chat room   Reply With Quote
Old Nov 4, 2003, 2:17am   #4
 
Grey1's Avatar
Joined Jun 2002
Grey1 started this thread Few tips

1) They tell you to buy high and sell higher.. This is Bu**S**
Always sell into strength and buy into weakness..( I fully understand the above reasoning but it is not suitable for day trading )

2) They tell you to buy the strong stock on strong sector
Wohoo .. donot do it... they fall faster if maket goes down..

3) As soon as you made profit raise the stop to entry ..

4) Use Money managment stop.. this is far better than TA stop.. This way you are in charge of your capitaL at all times

4) Learn to use L2

5) Take what market gives you and donot sit there for a reward/risk of 3 ..... You might have to wait a long time

6) LOOK AT THE WAY BARS ARE OPENED AND CLOSED..

7) AND LOADS MORE I LEAVE THE REST TO MORE EXPERIENCED TRADERS WE HAVE .. OUR CITY TRADERS
Grey1 is offline Commercial chat room   Reply With Quote
Old Nov 4, 2003, 8:42am   #5
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Grey 1,
Fantastic thread! One question - I'm very confused about VWAP which I know you're very keen on. I've tried to do a search but can't seem to find a definitive explaination and method for calculating it. Could you provide a link and/or explaination please?
Many thanks,
Tim.
timsk is online now   Reply With Quote
Old Nov 4, 2003, 8:49am   #6
 
Lambchops's Avatar
Joined Apr 2003
Grey 1 - Can you put some charts up to illustrate your strategies?

Last edited by Lambchops; Nov 4, 2003 at 9:13am.
Lambchops is offline   Reply With Quote
Old Nov 4, 2003, 9:45am   #7
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
Trader333's Avatar
Joined Jan 2003
timsk,

Here is a definition of VWAP:

Volume-Weighted Average Price (VWAP)- The VWAP for a stock is calculated by adding the dollars traded for every transaction in that stock ("price" x "number of shares traded") and dividing the total shares traded for a given trading day.

The calculation is:

VWAP = price x volume/ total Volume

But this creates a bit of a problem because you have to know the volume for every price increment. So it is sometimes calculated by taking the average price over 1 minute and using the volume at that average price.


Paul
Trader333 is offline   Reply With Quote
Old Nov 4, 2003, 10:21am   #8
Joined Jan 2003
Grey 1

"3) As soon as you made profit raise the stop to entry .. "

I am puzzled when people say this. Could you explain what you mean?

ie at what level of profit would you move your stop to break even.
presumably you dont mean "as soon as" you are in profit otherwise your stop would be one tick away from the market price and I would imagine 99.9% of trades would be stopped out at breakeven?

Do you have a minimum profit amount ie 1 x stop value before you move to breakeven?

Thanks

Darren
darrenf is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
famous system with low cost ?!! vincent_f Trading Systems 8 May 20, 2007 4:35pm
Spread betting Forex with low leverage fxprocessor Spread Betting & CFDs 3 May 18, 2007 9:18am
Risk-hungry/risk-averseness Dispassionate Psychology, Risk & Money Management 6 Mar 6, 2006 8:39pm
a plethora of entries barjon Discretionary Trading 1 Dec 29, 2003 5:20pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)