leovirgo's Blog

[leovirgo]

Don't underestimate 1min signals

I got short signals in 1min chart at 11130 and later at 11116. Initially I thought they were scalping signals and ignored them as my yesterday's Longs were v.good and I was expecting a consolidation range. Daily chart showed weakness albeit in a bullish territory.

Later shortsale signals appear in 5min chart. The rest is follow the paintbars all the way down until it ( YMU06 futures ) hit FOMC day gap at 11050.

Lessons:
1. keep the faith in the system
2. adopt Champion Spirit ( that means keep the freebie trade to let the profits run )

My shorts at Cable trade were also profit-limit trades. Need to let the winners run.

All in all, a good day.

TOTAL GAINS = 92 points

See my charts at personal blog site
http://leovirgo-trading-diary.blogspot.com/

 

[leovirgo]

More than I can imagine

Dow fell more than I could expect. I sold heavily in the first half session and I thought that was it. I'd never expected for a penetration below 10900.

Sold from 10959 to 10904 for a 55pts profits in SB a/c and 46 pts profits in CFD a/c. That is 101 pts up.

My signals cried for a short after lunchtime. I took a ride down for 20 points profit only to see it fall way below. I did not let the profits run. Besides, I took two Long scalping trades which were stopped out. That is 40 pts down.

It was a good day but not good enough. The bottom line is fine, but as a trader theres' still room for improvement. Partly because I was too tired. Need a good night's sleep.

Total GAINS = + 81 pts.

 

[leovirgo]

TS Network failure

I couldn't log on to TradeStation network since later afternoon. Managed to get profits from the first rally but got out too soon. With TS network down, I wasn't confident to keep the trade open.

Anyhow, my PaintBar system is working well. I am also forward testing VWAP strategy developed by Grey1.

Now I am setting up my laptop for emergency trading with TS. With TS, custom settings and indicators have to be properly transferred.

 

[leovirgo]

DOW day trading system(range)

What a year..! I've been away from this blog for about a year. And here I am, back with a solid trading system.

Profit factor: 2.78, 2.38(Long), 3.15(Short)
Total trades : 89, 45(Long), 44(Short)
Profitable trades % : 58 % 57% 59%
Avg Win(pts): 37 31 44
Avg Loss(pts): 19 18 21
Largest win : 173 118 173
Largest loss : 35 34 35

It is a day trading strategy with either limit, stop or close at end of day.

It is for a ranging day. I have another set of stratey for trending days.

 

[rdstagg]

how do you decide / determine whether the day is ranging or trending?

 

[leovirgo]

I have my own external indicator which determines the likelihood of a trending day, unless it says so everyday is a range trading day. The system automatically detects the conditions and trade accordingly. There is no human intervention.

 

[leovirgo]

How to be a winner in trading

I shall be revealing some of my secrets.. as I have learnt alot from this site and hence it is my turn to pass on my knowledge .. I will not reveal 100% as I myself had to do my homework to find my own way.. however, if you do your homework, you will be able to find your way to success.. so here it goes...

STEPS TO BECOME A SUCCESSFUL TRADER/INVESTOR
by LEOVIRGO

1. Know the market internals : what is happening now?

2. Follow the market: pick your (potential) winners

3. Do your sums : Risk and Return

4. Follow your own system: you need discipline and plan

Details

1. Know the market internals

This is the most important thing in trading, no matter what system you use, be it Fibs or Elliotwaves or MACD or Moving Avgs or Stochastics or ...all sorts of 1001 indicators...
You need to know what the broad market is doing. As a beginner day trader, I did not know this. I learnt all sorts of indicators and I thought I could be a billionnaire in 2 years! LOL.. 99% of beginners started to learn indicators (TA) and can't wait to get into trading. 99% of trading books do not teach you about market internals, and I haven't found 1% yet!

What you really need is an indicator which tells you about the broad market. It must not be based on the instrument you want to trade, say if you trade INDU/DOW, it must not be based on INDU/DOW prices. Indicators are basically derivatives of price. So, in short, you need an external indicator as a guide. If you day trade, this indicator has to update during the day, so that you can adapt to market conditions.

So, billion dollar question is .. what is it? You have to find yourself. Just answer the followings;

What do you trade? What is the larger/broader market for your instrument? Any good broker/ data provider will have what you want. (I am not here to provide it for you. I am not going to sell you anything. )

I shall continue my blog later ... hope this will be helpful for someone..

 

[mulder]

Brilliant! I SHALL discover what the jargon means, 'till then does anyone speak idiots english?

 

[cekk99]

Leovirgo...I think the very first step....an imperative really is... know your own internals... don't you agree?

 

[leovirgo]

How to be a winner: follow the market

No.2 step in becoming a winner is to follow the market.

In the step no.1 we have identified the Market Internals. If the Internals are strong, we go long- and vice versa for going short.

Most of the markets - stocks and indices - except currency pairs - have a tendency to go up.

IF the Internals are strong, we should not be selling short, although how tempting it may be. Likewise, if the Internals are strong, we should be going Long, buying the dips.

Follow the market

For Long entries

1. Buy the dip
2. Buy the Breat Out

No.1 - Buy the dip is for ranging days. You must be patient in waiting for the dip. You can use all sorts of measurements/indicators to define 'the dip', e.g., Fibs extensions or Stochastics/CCI oversolds or SupportLine/ 50-Moving Average etc.

No.2 - Buy the break out is for trending up days. Again, patience is virtue. My experience with trading $INDU is that, on trending days, it tends to come back to a certain level ( 50min MA, significant price levels ) before the trend continues, so the strategy performs better for two unit entry - one at the break out and second unit at the retracement. If there was no retracement, you are in it with 1st unit. There are many days when $INDU break out +100 points or -100 points straight away from opening bar.

The same principles apply to Going Short: -

1. Short the rally ( sellshort at high)
2. Short the break down

When the Market Internals are weak, $INDU normally breaks down straight away on the same day. Short the rally normally happens a few days after the Market Internals have weakened.

Again, patience is virtue - define the rally and define the break-downs.

I know this sounds abit vague, but I have told everything except the Market Internals.

 

[GHoSTMINER]

Regarding Paul Tudor Jones Video.. "TRADER: The Documentary"

I have had the video since the late 80's.. I can assure you it is an original film..

I have already received a bid on ebay for it.. better act fast if you want it.. I WILL sell it to the highest bidder! I CONFIRM that it is the BEST film on trading I have E V E R seen.. and it remains so TODAY!!

GH_ST

PS. Only 5 days left all you jaded, skeptical, critics..