10 points a day....

On the other hand, if you were a price maker rather than a price taker this would be an excellent strategy.

But the costs of the spread are far too high to make this a viable strategy, sorry

I've got a 1 pip spread on the FTSE100 and soon i will have a 0.25 spread, i've not found that to be a massive problem even when i used a 2 pip spread which i did for a full month using this style of trading... You just have to incorporate the spread into your entry and exit and also not take the extremes of the high and low...

If the high if 4100 and the low 4080, then my entry would be 4085 bid, long and sell at 4095 ask. Therefore mid-price would have to reach 4084 and 4096 for my orders to be filled... Which in a 20 pip range is fine, even with that 2 pip spread.
 
5-minute chart. Basically, just when several bars in a row keep hitting certain tops and lows with atleast 10 pip range, i buy the high and sell the low, then buy the low and sell the high and thats 20 pips made...

Yeah, as a strategy buying the high and selling the low has a couple of fundamental flaws...
 
have been having a think about demoing a 10x10 system.

ie. just trying to get 10 points a day at £10pp. £100 per day, £500 per week. sounds easy enough. probably just take trades at support / resistance for a quick 10 points.

anyone here use a system like this sucessfully ?

I think you have the wrong approach to trading. If it was simply a matter of choosing the number of points you want why would you choose to stop at 10? Why not choose 100 or 1000? You need to study the instrument you wish to trade. Study it thoroughly until you get to know its habits and more importantly, its footprint. Remember, trading is a game, a very expensive, nasty and bitter game where only the best survive. The best being the shrewdest and the quickest.
 
I think you have the wrong approach to trading. If it was simply a matter of choosing the number of points you want why would you choose to stop at 10? Why not choose 100 or 1000? You need to study the instrument you wish to trade. Study it thoroughly until you get to know its habits and more importantly, its footprint. Remember, trading is a game, a very expensive, nasty and bitter game where only the best survive. The best being the shrewdest and the quickest.

Not sure about having the wrong strategy at all, to ways to look at it imho, A) 10 points @ High Leverage, B) 100 Points and low leverage... For I have a points total I aim for each week/month etc, I do and have used something very simliar and successfully now for over 10 years, why do I prefer small pips and higher leverage, one fact, when a trade is intiated, none of us have the foresight to know how far its going to run, however with the benefit of hindsight and a lot of hard statistical analysis, you should be able to analysis your strategy, and determine when your entry criteria is met, what was the outcome, say for argument sake a minimum of 15 pips was gained 80% of time, then by setting a lower pips take (say 10) on higher leverage, hey presto, for me anyway, I'd rather be in, get the pips and out rather than be in open positions when your exposed to the market markers.

This from John Carter of trade the markets.com " In trading, it isn't the tortoise or hare that wins the race, its the sparrow, darts in grabs a mouthful of seed, and iss off before the neighbourhood cat can pounce. That said, it it important to realise, that its not just any sparrow who will be the winner in the end, its the sparrow with a pre-dtermined plan that specifies the number of seed he will eat each day that ultimately survives, the moment the sparoiw gets over confident and tries to gorge himself, he is dead. The cat patiently waiting in the wings for her moment to pounce, will snatch the physically and mentally gloated sparrow in a heartbeat. "

So choices really, dependant on your style and trading plan, I have a set plan, I trade it with discipline and patience, I'm not swayed by anybody elses opinion, its my own plan developed through hours, weeks and months rigourous backtesting and forward testing, the result a contended happy and relaxed trader, 3 trades a day, set exit for stop and limits, trading 3 markets only, each currently ranging at 82%, 86% and 87% success rate. Discipline and patience is required at all times, there will be 2 outcomes, if you have your set-up right your a winner, but don't get greedy,it will get you in the end.

I have seen it on these boards before, "I took 15 pips and it carried on, I should have stayed in"... we've all probably being there, look at it another way, if you took those 15 pips as part of a trading plan, then you executed the plan to a tee, this assumes the 15 pips was a determined and identified point from you analysis, what if you tried to run it further, it goes to 20, you get exited, then it drops below your initail 15 target, you hang on waiting for it to bounce again, it carries on against you, need I say more....

If say (and this is not what I do), trade 2 trades a day, 10 points each, simply maths, using sensible and cautious attitude to leverage to enable to earn your daily wages, gradually increasing the leverage but keeping the same pips, a slow and consistent return, avoiding greed, building up your pot and drawing regular wages, I prefer this than running long positions, not knowing how far the position will run, you could use trailing stops some will shout at me, yep, you can, if it suits you, but I have in the past and found I'm forever watching, by using the former system, I start 7.30 in the morning and am finised by dinner time, then I have the quality for me, thats what I aimed for when I started trading, all part of the trading plan as well.

I'm going on here, I'll leave it, so, in short if you want to do a 10x10 system, do you your homework, it is very posibble and easy to achieve.

good luck
 
A good post Dino but what I am saying is basically the same. What you should be focusing on is what the market is doing and not whether you have made 10 points yet out of a trade. There are times when you might think you have judged the market correctly and that it will move in your favour 10 points, but it may just as quickly stall and reverse. You need to think and act at the speed of light! You should recognize when it is time to exit a trade and reverse your position, hopefully with a (small?) profit or loss, or exit and stand aside until you have sufficient reasons to enter again. You must pay attention to the market you are trading and nothing else if you are serious about trading. You cannot skylark in a trading forum or in a chat room. If you are not up to the task then you ought not be risking your money. Stick to playing your XBOX360!
 
New-trader......I accept your points/views....for me patience, discipline and action, before I enter any trade I know what the profit or loss outcome may well be and based on my statistical analysis/records, I know what the % chance of each will be, hence why I'm very relaxed about my trading, I take any loss as a matter of course just as I do profit, its all part of the business plan is all I will add..... I do agree entirely with you about trading forums/chat rooms, hence why I'm not around a lot....cheers, all the best
 
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New-trader......I accept your points/views....for me patience, discipline and action, before I enter any trade I know what the profit or loss outcome may well be and based on my statistical analysis/records, I know what the % chance of each will be, hence why I'm very relaxed about my trading, I take any loss as a matter of course just as I do profit, its all part of the business plan is all I will add..... I do agree entirely with you about trading forums/chat rooms, hence why I'm not around a lot....cheers, all the best

Hi Dinos,
I am a newbie. Do you use automated trades to enforce execution of strategy?

Basically, I have been on these forums for some time and the conclusion that I am coming to is look for 10 points a day, with a higher success rate. if that strategy works, then good, keep with it slowly increasing the $per points. In the meanwhile,also work on a differerent strategy, developing, refining it, it returns another 10 points. And another,so on. the reasoning for the more than one strategy being that one day, the 1st may stop working as the markets have changed. One needs to constantly monitor the strategy performance and backtest/forwardtest it.
I have automated my strategies(I have been looking for ones I can automate) in NinjaTrader. 2 of them actually and continue to find and refine new ones, which the existing ones are chugging along nicely. I have a problem with manual approach in a sense that I get the entry/exit timings wrong, basically, just loose sight of the goal.

Thanks for your post, being a newbie I was not sure my approach though logical was correct or not. At least one senior trader using it gives me a lot of confidence now!
http://www.trade2win.com/boards/images/smilies/thumbsup.gif
Regards
 
Hi Dinos,
I am a newbie. Do you use automated trades to enforce execution of strategy?

Basically, I have been on these forums for some time and the conclusion that I am coming to is look for 10 points a day, with a higher success rate. if that strategy works, then good, keep with it slowly increasing the $per points. In the meanwhile,also work on a differerent strategy, developing, refining it, it returns another 10 points. And another,so on. the reasoning for the more than one strategy being that one day, . One needs to constantly monitor the strategy performance and backtest/forwardtest it.
I have automated my strategies(I have been looking for ones I can automate) in NinjaTrader. 2 of them actually and continue to find and refine new ones, which the existing ones are chugging along nicely. I have a problem with manual approach in a sense that I get the entry/exit timings wrong, basically, just loose sight of the goal.

Thanks for your post, being a newbie I was not sure my approach though logical was correct or not. At least one senior trader using it gives me a lot of confidence now!
http://www.trade2win.com/boards/images/smilies/thumbsup.gif
Regards





Hi there, no its not automated, I do take maual entries, you said ..." One needs to constantly monitor the strategy performance "... - hit the key there, for me anyway. I statistically record data from every trade where the set up identified a trade irrespective or whether I took the trade or not (for arguments sake, say because it was in the afternoon) and I don't work afternoons, I take all the important data from that move eg: minimum moves, maximum move against the position for stop loss purposes etc, etc, and build up as New Trader mentioned, a thorough understanding of the product I'm trading. I do this conintually, weekly, monthly, yearly, so as you mentioned, "the 1st may stop working as the markets have changed"... it shouldn't stop working, it may change its dynamics, thats why it is so important (for me) to record everything, so I'm aware to the current demands and can tweak things a little to match the current trading environment without moving away from the set-up I trade.

I can understand wher you have problems with the manual approach, its not easy, we've all being there and at times I still have a doubt (human emotion), but I have developed the discipline and patience and learnt not to think, the set up I use does all the "thinking" for me, I await the confirmation and place the trade without thought or hesitation, simply because I'm backed up by my stats.

What ever system you adopt, and, please don't take this wrong, don't try and develop to many stratagies, as you may finding yourself, trading one set up which isn't developing the trade, but you know your other set up would have delivered, and it ends up delivering confusion for the trader, best imho, to have one, develop it, understand it inside out, back test as far as possible and forward test it live (in demo), to build you confidence, record everything that happens, its not easy, but get it right, you should bear the fruits of your hard work, good luck and happy trading
 
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Thanks Dino.

Yes, I take your point about not working on too many strategies, may be 3, as I have 2 already.

Also, about the 1st strategy stopping to work, You pointed out correctly that If one is constantly monitoring it and analysing the results, it should with changes to market reality incorporated continue working. I had meant to say that it will stop working with its current parameters etc.

Thanks again!
 
Hi there, no its not automated, I do take maual entries, you said ..." One needs to constantly monitor the strategy performance "... - hit the key there, for me anyway. I statistically record data from every trade where the set up identified a trade irrespective or whether I took the trade or not (for arguments sake, say because it was in the afternoon) and I don't work afternoons, I take all the important data from that move eg: minimum moves, maximum move against the position for stop loss purposes etc, etc, and build up as New Trader mentioned, a thorough understanding of the product I'm trading. I do this conintually, weekly, monthly, yearly, so as you mentioned, "the 1st may stop working as the markets have changed"... it shouldn't stop working, it may change its dynamics, thats why it is so important (for me) to record everything, so I'm aware to the current demands and can tweak things a little to match the current trading environment without moving away from the set-up I trade.

I can understand wher you have problems with the manual approach, its not easy, we've all being there and at times I still have a doubt (human emotion), but I have developed the discipline and patience and learnt not to think, the set up I use does all the "thinking" for me, I await the confirmation and place the trade without thought or hesitation, simply because I'm backed up by my stats.

What ever system you adopt, and, please don't take this wrong, don't try and develop to many stratagies, as you may finding yourself, trading one set up which isn't developing the trade, but you know your other set up would have delivered, and it ends up delivering confusion for the trader, best imho, to have one, develop it, understand it inside out, back test as far as possible and forward test it live (in demo), to build you confidence, record everything that happens, its not easy, but get it right, you should bear the fruits of your hard work, good luck and happy trading
Top posting:)
 
gpstradellc.com

have been having a think about demoing a 10x10 system.

ie. just trying to get 10 points a day at £10pp. £100 per day, £500 per week. sounds easy enough. probably just take trades at support / resistance for a quick 10 points.

anyone here use a system like this sucessfully ?

blowout ROI's
 
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