Created my own little system for trading - rate out of 10!

[TAjammy]

its not some revolutionary strategy, just some combination of startegies and indicators that suit me best.

It consist of 6 basic main factors:
1)using the bollinger bands and the 20 MA to go long/short and exit poistion once a candle slips below or above the MA (against the previous trend).

2)Using market divergence with stochastics to look for a short

3)basic patterns, double top, wedge, head and shoulder, etc

4)pivot points- gotta have them!

5)10,20,50 MA to confirm a breakout- or for long term analysis

6)intraday scalps using 5 minute support/resistance levels to trade bounces and intraday breakouts/breakdowns

7) Look for reversal candles at new highs as a sign to trade.

FInally, combining these 7 factors into a trade, e.g. going short on GOOG - if i seen market divergence, a break through support,a reversal candle, a double top formation, or crossover of any SMA below an EMA.

basically it :|

 

[GladiatorX]

Too complicated to start your trading with... I recommend you CHOOSE ONE of them techniques and focus on it and master it on a few markets... Each technique requires experience, tweaking and market context, if you do them all you won't give youself enough time to perfect any of them and ultimately will lose to those individuals who have specialised in them.

Overcomplicating your trading through having lots of methods when your just starting out won't increasing your progression... If you focused on one strategy, perfecting it and becoming a master of it, analysing each trade after. By the end of the month you will have a very nice strategy you will have for ever.
By doing 8, you will be left at the end of the month slightly confused and have done a bit of gambling because Hey, i can do what i want if i write loads of stuff

 

[cr6196]

should you know how to trade your strategy or should you know how to trade the market?

so should you know how to trade bolligner bands, or know how to trade cable?

i have found after trying to learn to trade strategies and doing alright, that i was trading but it didnt feel like i was in control or knew what i was doing, i believe a knowledge of a forex pair/indicie or whatever may be more useful?

 

[TAjammy]

thansk for the thoughts, i suppose 'tis a tas complex for me, but my 'trading' so far has consisted of me trying to perfect each indicator, i tried wekks with stochastics, thinking they were the holy grail, that didnt work well for me. However this combination works well for me, i have tried it for three days now and its had some decent demo returns, albeit a more swing strategy.

 

[vinicius]

3 days?

 

[TAjammy]

sorry-three weeks

 

[TAjammy]

****, no , yeh three days.il see how it fares in a month

 

[TAjammy]

ok, il refine it down a little:

shorting via market divergence by stochastics, buying breakouts using bollinger/20 EMA , intraday scalp, pivot points , trendlines and popular patterns.

that makes more sense now, itl take a month or two to refine it

 

[shadowninja]

Yeah, too many things to be checking for. You'll miss loads of entries simply because you were checking for other things and skew the results.

 

[jammy1337]

well, ok, how about- counter-trend trading tops and bottoms using market divergence, support,MAs, and basic patterns

 

[jammy1337]

i think to call short term reversals i'll use bollinger and 20 EMA, market divergence , basic patterns and support and resistance,perhaps daily swing trades. for example i look at the AAPL daily chart, back in november to december 07 there were two top, the successive one being higher-while stochastis showed divergence-this would be a signal, but onyl a signal and not an entry. To enter i could a) wait for a support to crack, or in this AAPL case as soon as the price moved below the 20 EMA and retraced and bounced back off it , only to plummet for several days after

 

[tomorton]

TAjammy - you've set out with some serious work on TA, which shows serious intent to make this work, but I also have to suggest you keep it simple. I am coming to think these days almost any entry signal will do, but the management of the position after that will divide the winners from the losers.

I would add -

an entry signal which does not automatically suggest your stop is not good
only price gives entry signals, use indicators to filter these and help with position sizing
its inherently high risk to trade against the trend
weigh an entry on what you might lose rather than what you might win
concentrate on losing small: if you can do that, you can stay alive long enough to move to focus on winning consistently: if you can do that, then you can win big

Good luck.

 

[jimbotrader]

its not some revolutionary strategy, just some combination of startegies and indicators that suit me best.

It consist of 6 basic main factors:
1)using the bollinger bands and the 20 MA to go long/short and exit poistion once a candle slips below or above the MA (against the previous trend).

2)Using market divergence with stochastics to look for a short

3)basic patterns, double top, wedge, head and shoulder, etc

4)pivot points- gotta have them!

5)10,20,50 MA to confirm a breakout- or for long term analysis

6)intraday scalps using 5 minute support/resistance levels to trade bounces and intraday breakouts/breakdowns

7) Look for reversal candles at new highs as a sign to trade.

FInally, combining these 7 factors into a trade, e.g. going short on GOOG - if i seen market divergence, a break through support,a reversal candle, a double top formation, or crossover of any SMA below an EMA.

basically it :|

hahahahah -- you forgot to add green elephants and pink swans.

 

[Black Swan]

TAjammy - you've set out with some serious work on TA, which shows serious intent to make this work, but I also have to suggest you keep it simple. I am coming to think these days almost any entry signal will do, but the management of the position after that will divide the winners from the losers.I would add -

an entry signal which does not automatically suggest your stop is not good
only price gives entry signals, use indicators to filter these and help with position sizing
its inherently high risk to trade against the trend
weigh an entry on what you might lose rather than what you might win
concentrate on losing small: if you can do that, you can stay alive long enough to move to focus on winning consistently: if you can do that, then you can win big

Good luck.

I'd agree, good reply Tom, good to see some serious commitment and intense discovery, so what if he strips the signals/indicators off at some stage? The educahsun, as he then scales his technique back, will provide a lot of answers personal to him.

 

[GladiatorX]

One thing someone once said to me which i've found very true is that

'Trading, it won't solve your problems...'

 

[james1989]

10, if it works for you.

 

[tomorton]

Hi Black Swan - I suppose the majority of us learned complex and layered TA with indicators before we realised it wasn't at all necessary. OK, maybe some of it is useful, assuming the 80:20 rule. But un-learning things is exhausting, lengthy and costly. When most of us find trading as an activity, we are full of conventional attitudes, that reward increases with effort, that time equals effort, that more knowledge gives better decision-making, that a very rewarding activity must be very demanding in terms of time and effort. None of this is right in this field.

Let me put forward the suggestion that it is possible to be profitable trading maximum one market (as long as you can go both directions), trading on maximum one entry signal only, using maximum 2 chart set-ups and maximum 2 indicators.

And my serious advice is never ever listen to daily market summaries.

 

[Neoripley]

Too complicated to start your trading with... I recommend you CHOOSE ONE of them techniques and focus on it and master it on a few markets... Each technique requires experience, tweaking and market context, if you do them all you won't give youself enough time to perfect any of them and ultimately will lose to those individuals who have specialised in them.

Overcomplicating your trading through having lots of methods when your just starting out won't increasing your progression... If you focused on one strategy, perfecting it and becoming a master of it, analysing each trade after. By the end of the month you will have a very nice strategy you will have for ever.
By doing 8, you will be left at the end of the month slightly confused and have done a bit of gambling because Hey, i can do what i want if i write loads of stuff

Aren't you confusing INDICATORS with STRATEGY? Surely a good strategy will consist of more than one indicator? Mine definately does.

 

[GladiatorX]

Aren't you confusing INDICATORS with STRATEGY? Surely a good strategy will consist of more than one indicator? Mine definately does.

Pretty sure i meant strategy... I think your the one confusing things
All i was saying is take one methodology to trade with and master it, nothing to do with indicators....

 

[fifty2aces]

Aren't you confusing INDICATORS with STRATEGY? Surely a good strategy will consist of more than one indicator? Mine definately does.

A lot of people would argue that a good strategy will consist of less than one indicator.