Big Ben on the FTSE100

tomorton

Legendary member
7,262 970
Day 1.

From my rolling daily SB tick chart -
0800-1000 Range = 5225.3 - 5185.0
Range = 40.3pts (0.8% of L)
SB spread = 1.0

Orders set -
Buy at 5225.3 + 4.0 = 5229.3
Stop at 5229.3 - 40.3 = 5189.0, Target 5229.3 + 40.3 = 5269.6
Sell at 5185.0 - 4.0 = 5181.0
Stop at 5181.0 + 40.3 = 5221.3, Target 5181.0 - 40.3 = 5140.7

Stops and Targets make 1:1 r:r but now allowing for spreads. This is very unambitious and my next objective will be to inprove this ratio.

Reoprting back later.

tomorton
 

tomorton

Legendary member
7,262 970
Mr.G - yes. If, say, the long is filled, the short will be cancelled and my stop-loss on the long kicks in, though this is above both the range and the short order level.

Vice versa for shorting.
 

Lord Flasheart

Legendary member
9,796 975
just logging on to thread,good luck
 

tomorton

Legendary member
7,262 970
Cheers, chaps.

My key questions so far concerning Big Ben are to do with exits - the relationship of the size of the range to stops and targets, whether a trailing stop would be better, whether to close half position early and ride the remainder to b/e or beyond initial target etc.

Backtesting with simple parameters is easy - if it goes up Xpts I'm out for a gain, if it's down Xpts I'm out for a loss. But I find it very hard to realistically backtest complex parameter sets. So I'm doing my own research in the field. Hopefully it will pay for itself.
 

tomorton

Legendary member
7,262 970
Position closed at 14:50 for 40pts gain. That's 1/1 (100%!).
Incidentally, price has so frar only made 0.2pts above target.
 

StephenMcCreedy

Active member
168 3
i played with a system like this a few years ago and did well. can't remember now why i stopped. as always with trading i think it's easy to give up on something that works well at the first signs of trouble.

well done for today. all the negativity that was around plus my own bearishness stopped me buying the rally even though if i had started the day less biased it was a good day to make money in what is normally a tough month.

in my experience, from when i was trading like this the complex entry and exit criteria people come up with is far less important than the money management. ie if you tossed a coin to enter long or short with a rrr of maybe 2-1 you'd like to think you could keep your head above water by luck.

i guess most traders have too much of their own ego invested in picking entries and exits and being right to hand over to luck. i include myself in that slating.

good luck, i'll be watching with interest but as i said, i think over time i think with a 1:1 rrr you will struggle. you might find you entry and exit is less important than you think.

stephen
 

Rugby Trader

Established member
951 12
Day 1.

From my rolling daily SB tick chart -
0800-1000 Range = 5225.3 - 5185.0
Range = 40.3pts (0.8% of L)
SB spread = 1.0

Orders set -
Buy at 5225.3 + 4.0 = 5229.3
Stop at 5229.3 - 40.3 = 5189.0, Target 5229.3 + 40.3 = 5269.6
Sell at 5185.0 - 4.0 = 5181.0
Stop at 5181.0 + 40.3 = 5221.3, Target 5181.0 - 40.3 = 5140.7

Stops and Targets make 1:1 r:r but now allowing for spreads. This is very unambitious and my next objective will be to inprove this ratio.

Reoprting back later.

tomorton
Hi tomorton,

any reason in particular for adding 4 (rather than 2 or 3) on to your orders?
 

tomorton

Legendary member
7,262 970
Hi stephen - Absolutely right - controlling losses is the foundation of trading success, and it's the exits that make the money, not the entries.
 

tomorton

Legendary member
7,262 970
Hi tomorton,

any reason in particular for adding 4 (rather than 2 or 3) on to your orders?

No reason. I am sure 3 would be equally good (or bad), as 4 or maybe 2. I feel 5 or 6 would be too many on an instrument with points value in the 5,000's, where I'm only looking for 40 points or so.

There's a balance to be struck. The bigger the confirmation you look for, the less likely you will get the green light, but I have no mathematical studies for this pattern / market to back up my choice.
 

bangkoker

Well-known member
314 17
Hi, apologies if my question ends up being stupid ( I really should go and find the system and have a read) but here goes:

If you are placing orders based on 8-10 range.. Is there not a danger you could have a big move... say straight up from 8-10 of 60 points for instance and then get triggered long when the momentum/move may be running out of steam? Or that the market may be choppy (after say a big move the day before) and that it may have made a 20 point move and just so happen to be at one extreme of that range at 10 (therefore making it more likely for you to be triggered in that direction but then the chop to continue?)

I have tried similar on a shorter time frame, i.e. capturing the momentum off the open with some degree of success. Today I managed to get out of a short before the rally and then get back in a the top (which was quite nice) I don't usually do longer term moves but feels like momentum is fizzling and it may drift to the downside :)rolleyes: OK, just told myself off I shouldn't try to 'guess' what it is going to do.. it could charge higher and higher tomorrow).

Sorry if this has ended up being a silly post, maybe I should go and find the Big Ben system, just getting my coat, off to look now.
 

tomorton

Legendary member
7,262 970
Hi, apologies if my question ends up being stupid ( I really should go and find the system and have a read) but here goes:

If you are placing orders based on 8-10 range.. Is there not a danger you could have a big move... say straight up from 8-10 of 60 points for instance and then get triggered long when the momentum/move may be running out of steam? Or that the market may be choppy (after say a big move the day before) and that it may have made a 20 point move and just so happen to be at one extreme of that range at 10 (therefore making it more likely for you to be triggered in that direction but then the chop to continue?)

I have tried similar on a shorter time frame, i.e. capturing the momentum off the open with some degree of success. Today I managed to get out of a short before the rally and then get back in a the top (which was quite nice) I don't usually do longer term moves but feels like momentum is fizzling and it may drift to the downside :)rolleyes: OK, just told myself off I shouldn't try to 'guess' what it is going to do.. it could charge higher and higher tomorrow).

Sorry if this has ended up being a silly post, maybe I should go and find the Big Ben system, just getting my coat, off to look now.

Good post, thank you.
Yes, there is likely to be a range of market conditions that will demand a range of appopriate responses. The entry is simple - follow the break-out established after 10:00. I was thinking I also need to prioritise establishing rules for optimal exits. However, your point is good - it would be even more urgent to find rules for conditions that would negate the entry conditions - it's important to know when not to trade as well as when to trade.
 

bedsit

Experienced member
1,794 165
Hi Tomorton.
Would you apply conventional target? - If there is a range of 30 points if you would go for 30 points target.
 

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