100% Successful Strategy

[FTSE Beater]

Hi all

I think I've come up with a strategy that is 100% right. Now before all you doubters stop reading....it's true and I've manually back-tested. Now this strategy is not available anywhere else apart from T2W - so I suppose this is an exclusive.

It's very simple. All you do is go long when the FTSE goes above a round number. So long at 1,000 2,000 and so on, and you sell out when it reaches the next 1000 point (of course this also means that you then take another long again.....that's if you still want to be in the market).

Here's the chart to show you what I mean.

So far up 3000 points on the FTSE....now you've probably realised that the strategy is still long from 6000 and it might take the FTSE quite a while to get back to 7000.

Conclusion: You have to implement and have an idea of holding period before you enter your trades, and expect a reasonable return on that time period. You wouldn't expect to make 1000 FTSE points in a day, but you also wouldn't want to be making 1 point every year on a single trade. I remember Alan Farley saying Don't day trade your investments and don't invest your day-trades

It also shows that you have to have a sound money management strategy backing up the trades

Just my thoughts

 

[First Wave]

This is a common known trading strategy for trading the DJ-30 in the US.
The amount of capital necessary to trade the weekly, or monthly charts would put it out of reach for the majority of market traders

It is especially useful for daily, and intra-day trading when the DJ-30 is around 100 levels such as 9100, 9200, 9300. It is quite common for the DJ-30 to move 100, 200 or 300 points in one day.

There is a specific repeatable pattern on the daily charts as to its behavior. Specific rules and guidelines have been created for this pattern.
We currently use this information to aid in trading in the E-mini Futures markets.
There are over 1400 of us live trading/and chat, intra-day markets employing this concept in the real world of trading.

This concept probably holds true for the London and German markets when 'closely' examined on a daily basis.

 

[Andreas]

FTSE Beater,

That is interesting what you mention. I used to trade the Hang Seng index, and I made exactly the same observation.

Never thought about using it as a system then, but it helped me to be aware of possible turns or continuations of a trend.

 

[Newtron Bomb]

Very interesting FB,

This is exactly how I am trading the FTSE, long only ATM, but using entries at every 50 points. Just (last thursday) closed a long from 3950 at 4242, it gets a bit whippy from time to time but the overall position has been successful.

I am waiting the markets out for now before i do anything else.