Daily CAC 40

[lurkerlurker]

Hi Nick,

Thanks, there is 2 of us at least, a couple more and off we go

Count me in!

I'm looking for a lower risk strategy at the moment, and trading a less volatile market than the ES or YM seems to fit in with that. I'll have less time to trade, so I want to be more comfortable with more mechanical entries from longer timeframes, with fixed stops and targets which are left pretty much unattended.

Good news, theres at least 5 of us, I'll start the ball rolling and get things developed for next week, with thoughts and ideas how I would like to see the thread develop.

for you info, a quick analysis at the system I anticipate putting on the thread shows a return of approximately 900pips over a 15 day period from 7 trades with no false signals given.

Until next week, anybody welcome, as long as your input is constructive and friendly, thats all I ask.

Dinos - I'm with you. I am looking for a market friendly enough to take Mark Douglas' challenge from the end of Trading in the Zone and this is it! I'm with you on the system provided I see a positive expectancy in my own testing. I think you have just saved me from my lack of discipline and lack of a system!

-----right, it is pretty apparent that I've totally missed half of this thread, so I will shut up and read for the time going.

It looks like this is turning out nicely!

 

[lurkerlurker]

Who do you use ?

Dinos right - CMC good, Cap Spreads ok as well (same as Finspreads)

Correct me please, but I believe quite a few SB companies will allow you play with their platform with depositing any wonga - have a trawl Pat.

POPPYCOCK! Don't you read the CS thread? Excessive slippage on stops, rude staff, FSA complaints, rogue prices, dealer interventions, a very suspect fills policy, lack of comment from the usual CS guy who used to post here, trade reversals for thousands over a month later, buggered FX platform, payment processing errors, inability to withdraw an "offer" before "acceptance"...should I go on. Forgive me for being offtopic.

I'm using CMC at the moment, am pleased to note they have included a new "If-Done" facility, and I'm beta testing the web platform also. Anyway, a little offtopic, but I thought I'd balance your view of CS with my own!

 

[lurkerlurker]

My Interpretation (and some thoughts going forward)

Not much guys - I've set the charts up, and the system looks promising on the hourly.

My main issues will be correctly using the smaller timeframes to pinpoint an entry. Am I correct that the signal only occurs on the Close of the current hourly, and then is the time to look for local S/R levels, relative highs and lows etc on a smaller timeframe to enter in the right direction?

Further, I would suggest (and I have no business suggesting anything at this stage, bu here goes) perhaps some fixed targets, or targets based on average range, and S/R levels rather than waiting for the MA/DEMA crossover again as this seems to give back quite a bit of the profits. Either that, or trail a stop...

From my chart, it appears we have horizontal and trendline support, an hourly bullish hammer formation, a higher high and higher low, oversold stoch (turning up), and an upturning MACD histogram. Longs only?

If so, we wait for the closure of the bar which has the DEMA touching the MA, and enter on a shorter timeframe with a more conservative stop and target as we are beneath the 35MA which we are using to define trend?

Does all this sound okay. I am a little scared (again......) about trading this way - I have tried to leave indicators in my past, but I know some here are doing well with them. I need something different, and a fairly mechanical system on a more forgiving instrument. My heart is in trading the YM by PV and the order book, and moving to forex and the ES, but this will hopefully aid me in restoring some confidence and discipline into the future (and of course, I am also hoping to make some pips!!!).

 

[Dinos]

Lurker

Have looked at your chart, as I said in the beginning, if you want safe a entry, then as you mentioned take only the trades with the trend. If you look at the DEMA/MA crossover, there were no false signals generated, each once being tradeable.

Your chart clearly telling you, as you indicated to go short, not sure I would have acted on the DEMA/MA as it had not confirmed, however, the MACD crossover and stoch were very well placed to warn a trade may be imminant.

Don't over complicate it, this is a very straight forward simple system.

I'm working on the other MACD setting, running along side my standard setting as mentioned yesterday, albiet on the DAX at the minute, looking very good at confirming entry, momentum and exit. Once I have tried this out a few times I will post details

 

[Pat494]

Got an EOD short signal for the CAC on my automatic pattern search prog.
Probably will not do anything as I go with the trend (ma 18 ) on this one and its a bit flat.

 

[Tawe Trader]

Hello chaps, I think it's best if I count myself out of your CAC thread (not that I have contributed anything to it anyway).

Two reasons:-

1. I have been watching the CAC the past few days and it is way too similar to the FTSE, which is my primary mkt. I don't want to double my exposure if I am already long/short the FTSE.

2. After many years, I have finally forced myself away from indicators and I don't really want to return to trading off them. I finally got my trading going in direction I'm happy with and I feel your charts will cause a conflict in me. I am easily confused.

I wish you all the best in your quest for Frenchie pts and I'll look in, from time to time.

Regards
Darren

 

[nkruger]

Stoch settings.

I've changed the stochastic settings to my normal 'Puppy' 39 2 8, just to see if it confirms better for entry & exit.

Going to be a busy afternoon, me thinks :cheesy:

 

[Dinos]

Nick, somehow, I thought you would do that!!!

Lets see how you get on

 

[nkruger]

Closed position at 15 for +40pips.

Reason, I'm still looking to for further decline as per 3 & 4 Hours charts, however, intraday now 10 min chart looking for a pull back, hopefully will get another entry later on.

Now Flat

Dinos, did you ever get back in ? Been to heavily involved with testing on the Dax - haven't been paying attention....

 

[Pat494]

Got an EOD short signal for the CAC on my automatic pattern search prog.
Probably will not do anything as I go with the trend (ma 18 ) on this one and its a bit flat.

lucky I changed my mind for a short. Really motoring today !! after a bit of drawdown yesterday

 

[buffer50]

Cac 40

Hi Dino,

I do the FTSE & the Dow but would be interested in The CAC, do a little bit but not much on intraday deals

Look forward to hearing from you mate

 

[midge25]

Hi,

I too would be interested in the CAC

 

[Dinos]

Trade Pending

Morning one and all

Hourly's looking good for a possible long trade soon, will watch and post trade as it happens.

 

[Dinos]

Change Thread Title?

Its not a thread for daily trading, but short term position trading, shall I change or leave as be, thoughts?

 

[nkruger]

Its not a thread for daily trading, but short term position trading, shall I change or leave as be, thoughts?

Keep it as it is, Dino old mate - we look at it daily, don't we....

My stoch setting has brought an alert up at 7.00am this morning (on the hourly) for a long as well

 

[Dinos]

Nick, I assume the 2 puppies stoch??

 

[Dinos]

Looking to enter long position based on the 1 hour chart, ideal entry @40, holding back at the minute due to the 5 thru 15 min charts at the top end of the stoch, will be looking to enter when these at the lows and my other indicators confirm.

 

[lurkerlurker]

Its not a thread for daily trading, but short term position trading, shall I change or leave as be, thoughts?

Perhaps rename to CAC40 2007 to go along with the FTSE, Dow, and SPX threads?

 

[nkruger]

Nick, I assume the 2 puppies stoch??

Yes.

Sorry for the delay in answering, for some reason I'm not receiving email alerts about subscribed threads and I've been concentrating on new strats rather than trading today.
I'm trying to put together a longer term (15/30 min) strategy for the Dax. Not much headway yet today, will get back on it in the morning.

 

[nkruger]

Will be trading the hourly chart, indicators I will be using:-

DEMA (8)
MA (10)

Trend Line MA 34

MACD (12,26,9)
Stochastics (14,3,3)

Looking to enter on the crossing of the DEMA/MA,

Morning Dinos, spent an interesting day developing a dax strategy (still unfinished) and one question has cropped up concerning your use of MA's. How did you come to choose your particular settings, and especially, why a DEMA instead of, say, a EMA ?