Daily Dax

[rustic1]

http://www.bloomberg.com/markets/stocks/movers_index_dax.html

useful link delayed data but better than nothing

i often follow DTelecom as it is such a heavey weight gives a feel sometimes

 

[ceydababy]

Scalping....

Hi Rustic,

What methods are you using to scalp the dax ?? if you don't mind me asking. Not looking for specifics just the indicators used !!

Thanks

 

[Kevin21]

god i feel as if i'm gonna be an old man whenever i eventually get a signal on 3hrs....

 

[rustic1]

Hi

I am using a stochasics setting, I know they lag and some do not like them, but for me I get on fine with them. I am now trying to do short sharp sweet trades instead of holding positions as for me it works better that way. I will often trade now up to 20 times but with a smaller position and goals that way I do not hold onto losses & go to bed flat each night. I am therefore unbiased the next day. When I get caught in a position I used to hold losses too long in hope they would come back to me which they hardly ever do.

Kathy

 

[ceydababy]

stochastics......

I have seen a setup on here 39/1/1 for scalping indicies....Still sends the fear of god up me though....

Who are you trading through ??

 

[Kevin21]

39/1/1 stochastic?

 

[ceydababy]

Waiting for a 3 hour chart....

Whilst you are waiting....

Get your Stochastics up and enter 39 1 1...Switch to a 10 minute chart.

Look to buy when the Stochastic rises from below 10 to over 25

Look to sell when the Stochastic drops from over 90 to under 75.

AMAZINGLY THIS WORKS....

Thanks to NKRUGER for this little system...helps to while away the hours whilst waiting for a signal on the larger time frames.

These are obviously the triggers, I look to trade to the support area on a short or to the resistance area on a long position. Don't get greedy and you can make some cash.

There are a couple of moving averages to overlay too, I don't bother with those.

 

[ceydababy]

if you've got balls of steel.....

try the 1 minute chart with the same settings !!

 

[Kevin21]

hmm, i've got a nice little system for day trading that i use on 1-5min time frames. Altho i'm wanting to move away from day trading due to wanting to do my masters, and if i'm honest, i want to go back to getting wrecked with my mates again. Haven't seen a lot of them for over a month now...

The idea i have is work on the bigger safer time frames, work multiple markets to take an average of 200pts a week collectively. In theory it should be a safe little earner which will allow me to gear the nutts of them to make up for the lost profit from day trading. Day trading 16hrs a day isn't fun anymore, and if one was to be dramatic, it has taken my heart and soul....

 

[Kevin21]

Just had a look see at the graph with them settings. Whats the exit signal, or the profit target? I looked at it on the dow and it looks like lots of whipsaws to me, unless your profit target is just 5points for each hit



edit to say.... actually the more i look at this, the more interesting it seems...

 

[brutusdog]

Whilst you are waiting....

Get your Stochastics up and enter 39 1 1...Switch to a 10 minute chart.

Look to buy when the Stochastic rises from below 10 to over 25

Look to sell when the Stochastic drops from over 90 to under 75.

AMAZINGLY THIS WORKS....

Thanks to NKRUGER for this little system...helps to while away the hours whilst waiting for a signal on the larger time frames.

These are obviously the triggers, I look to trade to the support area on a short or to the resistance area on a long position. Don't get greedy and you can make some cash.

There are a couple of moving averages to overlay too, I don't bother with those.

the stoch settings work great on anytime frame or markets, personally i have them on all charts and am very happy with them.

i have found the best way of trading is to cross analyze the given market in 2 timeframes and when the higher tf is going in either direction use the lower tf to look for oppertunitys to trade in that direction. the stochs can act as a great trigger to get on board moves early.

 

[rustic1]

I trade through SB company CMC I get on ok with. Had a few run ins but my orders get filled good.

kevin yes lots of whipsaws I agree but even 5 points each way 20 trades 1s 100 points in the bag. Of course all these are not al winners but you have to work with what feels best to your sort of trading. I do keep an eye on my 4 hour 1hour 15 min & 5 min.

As we all know trading is very long hours so I am trying to cut it down hence scalping.

Well I am finished for a few hours

 

[Kevin21]

Look to buy when the Stochastic rises from below 10 to over 25

Look to sell when the Stochastic drops from over 90 to under 75.

Also it there's only a couple of occasions where it breifley is below 10 or above 90. So by sticking to them rules we would of only had couple of trades since the start of august, which is pretty poor for scalping

 

[ceydababy]

DAX Scalping

Well, I put my money where my mouth is and just got short the Dax @65 based on that stochastic system.

On the 10 minute chart today for the dax there have been...

1 Buy triggered at 7386
1 sell triggered at 7443
1 sell triggered at 7465

I am in on the short at 65. But the three have been profitable.

I look to exit near the closest area of support on the short side. So I will be looking to get out around the 48/50 area.

This system was designed for use on the IBEX I believe. It isn't my system so can't take credit for it but it really does seem to work.

I guess like all these things the larger the time frame the fewer signals, but fewer signals generally mean less false opps IMO

Never tried it on the Dow.

 

[ceydababy]

the stoch settings work great on anytime frame or markets, personally i have them on all charts and am very happy with them.

. the stochs can act as a great trigger to get on board moves early

I agree. I have been back checking the 10 minute chart, you have got in to some major moves at the start by following them.

 

[ceydababy]

out.....

with 10 points.....Not bad for 5 minutes work. Make no mistake you are going to be pushing it to get 200+ points per trade on this system. However, I agree with rustic1, the risk/reward ratio is pretty good. Because of the stochastic settings you are pretty much calling the Top and the Bottom of the market at that time. If it starts to rally massivley when you are short you know to get the hell out of town.

Having read Market Wizards about a bizillion times, one thing that sticks out for me is the interview with Paul Tudor Jones. He actually makes most of his money calling tops and bottoms. With the view that if you buy at the bottom and the price moves sharply lower you wern't at the bottom and you get out.

I think the problem with some trend following systems is that you can go really offside before you know you need to cut it. Again Paul Tudor Jones discussed this in the interview and having tried to use trend following systems I am inclined to agree.

 

[Kevin21]

The more i look at these stochastic settings, the more it grows on me. Like i say, i'm looking for the real high probabilty shots on the bigger times frames. Just need to work out an exit point now. I've i made 10pips a day out of each market i did it with i'd be happy. At 100 quid a point it should be a nice earner lol.

When you say you exit at support a resistence levels, do you literally just draw your lines up and then exit when it gets close?

 

[trendie]

throwing something into the mix.
since nkruger and options have been very helpful in giving us the stoch(39) method, I thought I would add an idea. probably triggers less often, but wanted to give something back.
Jimmer Slingshot, stochs(20,20,10), and then stochs(5,3,1).
(obviously you could use 39 if you wanted to)

basically, wait for a slow-stochs move up or down, then wait for the 5,3,1 to pullback for entry.
pullback when 5,3,1 goes above 80 and drops for a short entry, abd below 20 and hooks up for long entry.
(I have 5-EMA high/close channels for "observation", or signalling entries.)

you can see it catches the transient hiccup, for a relatively low-risk entry.

I am fixated with these slingshots ever since I read about them in Linda Bradford-Rashkes "Street Smarts" book, and everything I do is a variation of them!!

EDIT: logic! 20 and UP = LONG entry

 

[brutusdog]

The more i look at these stochastic settings, the more it grows on me. Like i say, i'm looking for the real high probabilty shots on the bigger times frames. Just need to work out an exit point now. I've i made 10pips a day out of each market i did it with i'd be happy. At 100 quid a point it should be a nice earner lol.

When you say you exit at support a resistence levels, do you literally just draw your lines up and then exit when it gets close?

attached a chart showing the stochs setting on the dax 4 hour chart.

note that there is also a big puppie divergence ( aka a pair of jordans) before the move.

also when more than one thing lines up its time to pull the trigger, ie, macd / stochs/ 123 rev, and making a possible double top ....

obviosly everyone will and should have their interpretations and rules on how to use these things but just my 2 pence.

 

[brutusdog]

throwing something into the mix.
since nkruger and options have been very helpful in giving us the stoch(39) method, I thought I would add an idea. probably triggers less often, but wanted to give something back.
Jimmer Slingshot, stochs(20,20,10), and then stochs(5,3,1).
(obviously you could use 39 if you wanted to)

basically, wait for a slow-stochs move up or down, then wait for the 5,3,1 to pullback for entry.
pullback when 5,3,1 goes above 80 and drops for a short entry, abd below 20 and hooks up for short entry.
(I have 5-EMA high/close channels for "observation", or signalling entries.)

you can see it catches the transient hiccup, for a relatively low-risk entry.

I am fixated with these slingshots ever since I read about them in Linda Bradford-Rashkes "Street Smarts" book, and everything I do is a variation of them!!

think youve got a typo there trendie....should it be and below 20 and hooks up for a LONG entry??

thanks for sharing that, have heard of it but never played around with it, but have some time on my hands today so will have a look.