Recent content by DailyTA

Ummm... I'll take the other side of this comment. If you swing trade low beta stocks your exit will more likely be at a loss compared to higher beta. I won't waste time trying to explain here. Try this for yourself: Put an IWM chart next to a DIA chart. Back test the same signals from your...

From what I understand, Beta is calculated based on around 5 years. My swing system relies on high beta stocks. When back testing, I like to get 10 to 15 years of data to ensure I cover several different market cycles. The further back I go, the fewer stocks on my list even existed which...

Everything swings... you just want something that swings far enough in each move to make some money in the middle. Do a search for high Beta stocks.... (1.2 minimum). Let me know if I can explain better... reply or tweet me: @DailyTA_com

Try this in your back testing: You're entry and exit parameters should be profitable without any stop placement. After you have enough evidence that your entry / exit parameters are robust ... then you can figure out what type of outliers you need a stop to protect you against. I used to...

Agreed... I've not come across any implementation for trailing stops that has better results in the long run. I can't even find an initial stop that improves the performance of the system I use (its quick in and out looking for the first part of the turn). One solution I use for the "give...

65 Minute entries and 195 minute exits in the direction of the daily trend. (The 65 minute candle gives you equal amount of data in 6 candles instead of "1 hour" candles in 6.5 hour trading day). Typical win is held 5 to 10 days, and losers are closed out in 1 to 2 days. You have to be ready...

You don't have a high probability of making money... You just have a higher probability that some money will be left in the end. I don't like ITM spreads because it doesn't offer good return on risk. My directional trades are long slightly OTM on higher beta stocks with liquid options. My...

Now for the real fun... You can sell a call option each month where you don't think GE will be. This is called a long diagonal. Doing this gives you some income against your long term option. If played right, you can wind up owning the long term option for free. Tweet me with any additional...

Once you understand how gamma works and you know the average length of each winning trade... then you can determine which time frame to buy. Tweet me for more info: @DailyTA_com