Best Indicator to use with Stocastics.

[Doomberg]

Maybe it was you doing the 'intruding'

btw amongst the clothes you didn't find a blue watch and a pair of Next socks did you :whistling

Haha yes i'll drop them round later :cheesy:

Oh dear, anyway take away is ordered

 

[Sang Froid]

Haha yes i'll drop them round later :cheesy:

Oh dear, anyway take away is ordered

Oh good, my next door neighbour was looking for them, here's his pic so you know who to look for

 

[Oppi1904]

Gotta go, preparations for my Daughter's 18th party are mounting up

Happy Birthday to her!!!:clap::clap::clap::clap:

 

[Sang Froid]

.....Gotta go, preparations for my Daughter's 18th party are mounting up

18 you say

 

[bedsit]

Oh good, my next door neighbour was looking for them, here's his pic so you know who to look for

Doom, I wouldn't do that if I were you.

 

[Doomberg]

And lol sorry OP but i'll have to mention something you said in our convo, it was great

Monkey: "I usually get 40 points, on a good day its 70 and on a bad day its break even"

Me: "How long have you been trading?"

Monkey: "3 days"

 

[monkey180]

Yes Doomberg we have discussed my over optimism, time shall tell, 20 a day on average would do me fine,

 

[monkey180]

Hello Black Swan,

Yes thanks for the insight, as for staying in a trade, you say there is no good indicator.

So move the stop loss to break even / trailing stop is the only way to manage a trade?

And would 9,3,3 be okay for varying time frame?

Yep it is, could let you into a secret re. a leading investment bank that actually recommends trading with it on those settings, too much of a shock for some of our regulars to realise/ accept that a huge IB would use indicators for trading...:

As for over bought/oversold with rsi yep typically those are the areas..but you may prefer to use them in a slighty wacky way..consider what price does when it reaches those areas on a 5 setting, on time frames of 2 hours above I used to have a bit of success just diving in taking 20 extra pips when price went over the oversold or overbought...sound crazy? Gotta go, preparations for my Daughter's 18th party are mounting up

 

[Joey25]

Hi there,


Looking to use stochastic crossovers for entry points, and then have a strict stop loss in place.


What other indicator should be used to help confirm the entry point with the crossover?


The plan is to intraday swing trade.


Thanks

Say you are using a continuous 4HR chart.

A combination could be:

if (close of current 4HR bar > close of 4HR bar 6 bars ago)

and (stochastic indicates oversold)

then buy.

 

[monkey180]

Is using a much shorter time frame like 20 mins too short.

 

[Joey25]

Is using a much shorter time frame like 20 mins too short.

Not at all. I guessed at 6 4HR bars because we might expect there to be a natural 24-hr cycle in the market. Drilling down, you might expect there to be a natural 4HR cycle - which contains 12 bars of 20 minutes each.

You can decide to either:

1) pick a cycle that makes intutitive sense.

or

2) empirically estimate the cycle.

 

[monkey180]

Thanks, what money management would you suggest for intraday swinging the FTSE 100, stop loss at 5 and take profits at 10?

Not at all. I guessed at 6 4HR bars because we might expect there to be a natural 24-hr cycle in the market. Drilling down, you might expect there to be a natural 4HR cycle - which contains 12 bars of 20 minutes each.

You can decide to either:

1) pick a cycle that makes intutitive sense.

or

2) empirically estimate the cycle.

 

[Black Swan]

Hello Black Swan,

Yes thanks for the insight, as for staying in a trade, you say there is no good indicator.

So move the stop loss to break even / trailing stop is the only way to manage a trade?

And would 9,3,3 be okay for varying time frame?

Honestly, this is the time at which I bail in terms of advice because you have to experiment to find what works for you. Warning, no system Is infallible, whatever you use two wins one loss is an exceptional performance, aim for that..over the next twenty four months..

 

[monkey180]

Thanks, I shall see how it goes, but what ratio would you recommend for the FTSE for example.

1.1 e.g 10 stop loss, +10 exit
1.2 e.g 10 top loss, +20 exit

Also for a loosing trade, I see that as getting out at Break Even buy moving the stop to BE, with this strategy I only see loosing the spread.

Also it is very annoying if I have a 10 point target, and it goes to 8 / 9, and do not sell, but I suppose discipline is very important, and I guess must stick to the rules no matter how close I am to target.

 

[Sang Froid]

Thanks, I shall see how it goes, but what ratio would you recommend for the FTSE for example.

1.1 e.g 10 stop loss, +10 exit
1.2 e.g 10 top loss, +20 exit

Also for a loosing trade, I see that as getting out at Break Even buy moving the stop to BE, with this strategy I only see loosing the spread.

Also it is very annoying if I have a 10 point target, and it goes to 8 / 9, and do not sell, but I suppose discipline is very important, and I guess must stick to the rules no matter how close I am to target.

I shall make this post two fold:

1) Why the fu*k would you limit your profit to 10 or 20 pips? Why not identify an area on a chart e.g R1 or S1 or some other level and trail a stop behind, or better yet move your stop b/e once you've hit 10 or 20 take half off, then you're playing with the house's money.

2) Loose

 

[Joey25]

Thanks, what money management would you suggest for intraday swinging the FTSE 100, stop loss at 5 and take profits at 10?

I would recommend no stops and no targets - enter on a signal and exit on a signal.

Use leverage as your risk management tool.

 

[wackypete2]

I would recommend no stops and no targets - enter on a signal and exit on a signal.

At a minimum you should have a "catastrophic" stop. Generally it would not get hit but is there for protection in case your computer goes awry or the electricity is out, or something else similar. In other words, extreme emergencies.

Peter

 

[monkey180]

Hello,

Could you elaborate a little more, what signals do you use, and how to use leverage as risk management?

Thanks

I would recommend no stops and no targets - enter on a signal and exit on a signal.

Use leverage as your risk management tool.

 

[monkey180]

Hello Wacky Pete,


What instrument do you trade? I get the impression that you read the markets more than following set guidelines, as a beginner would it not be best to have loss and profit targets at least to begin with.

Thanks

At a minimum you should have a "catastrophic" stop. Generally it would not get hit but is there for protection in case your computer goes awry or the electricity is out, or something else similar. In other words, extreme emergencies.

Peter

 

[monkey180]

Hi there,

Thanks, I shall see if those lines can be put in with Sharescope, you can get S1, R1 lines but they are the moving average types.

Would you recommend trading a mix of stocastics and R1 S1 lines, with a safety net in place of course?

Thanks

I shall make this post two fold:

1) Why the fu*k would you limit your profit to 10 or 20 pips? Why not identify an area on a chart e.g R1 or S1 or some other level and trail a stop behind, or better yet move your stop b/e once you've hit 10 or 20 take half off, then you're playing with the house's money.

2) Loose