Daytrading the EMINI's, manual method version 2

bnaimy

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Manual trading method by Bashir Naimy

This method can be traded on any futures markets and even on the forex market.

The charts that you will need:

1: 2min chart with macd with settings of 12.26.3 and 10ema and a slow stochastic with settings of 10.3.2

2: 9min chart with slow stochastic with settings of 10.3.2 and a macd with settings of 12.26.3 and a 10ema

3: 89tick chart with 10ema
All the stochastic must have its overbought line at 85 and oversold line at 15, no exceptions please.

If there is someone who doesn’t have access to tick charts then you can use a 1minchart with a 5 ema. The same rules will apply.

So how do I trade this?

Here are the rules, no exceptions please. Follow them and that’s it.

When can I go long?

When all the rules are ok, you just go market, no exceptions:

When:

1: 9min chart macd is crossed and if you can with your eye see that there is separation, as long as you can see a separation, then that’s enough. There is no fixed number here.
And the stochastic must also be crosses (same as macd) and the slow d-line must be below the overbought line 85.

Price must be above the 9mins 10ema, no need to wait for a bar to close above it, if price is above then that is enough.

2: 2min macd must be crossed (same as the 9min macd) and the slow stochastic must be crossed (same) and the slow-d line must be below the overbought line 85.

Price must also be above the 2mins 10ema (same)

3: Price must be above the 10ema on the 89tick (same)
These are the rules and MUST be followed, otherwise it will not work and you will lose money.


Where and how do I cover my position?

When trading with 2 contracts you need two targets and I recommend trading in even numbers like 2, 4,6,8,10,12 and so forth. A number you can divide with 2 and get even number on each side.

When trading 2 contracts you do the following and the same goes for any other even number of contract.

Do the following:

1: When price goes +10 you move your stop to breakeven +1

2: When price move some more and you get +15 in your favor you sell 1 contract at market.

3: The last contract you sell at market when the 2min macd lines gets very close so that you barley can see any spacing.

While you are waiting for your macd to do this, you are allowed to move your stop from breakeven to 1 tick below the last two previous bars, assuming that place is higher than your entry of course. Otherwise there will be no point with doing that.

Doing this will lock some of your profits on your second contract, in case the marked reverse really fast. If it does not you will keep moving your stop 1 tick below the 2 previous bars and trail this way.

If you are trading the NQ then instead of +10 you use 2.5 points and scale out first target at +3.5 points instead of +15. And you stop is then 5 points on the NQ. On the YM it is 20 ticks.

When do I go short?

No a hard nut to crack, just do the opposite of the long.

Words of wisdom:
Don’t trade before 09:45
Don’t trade after 11:45 and start trading after 13:05, trading in this time is usually a dangerous game and there is little volume.

And stop trading at 15:45 or 15:50, you decide. I stop at 15:50
Be a cold fish and don’t do anything stupid because your gut felling was telling you something.

Your emotions are your biggest enemy, so kill it before it kills your account.

Money management

I recommend trading with 2 contracts, not with 1.
You don’t have any flexibility with just 1 and making any money will be difficult.
When trading 2 contracts you must have 10000 in your account so your risk is only 2% of your account pr trade.

When your account grow to 20000 you can increase to 4 ,but I recommend you still trade 2 contracts that way you risk only 1%. When you double it again you can then go to using 4 contracts.



Enjoy and make loads of money ;)

I will ask any questions on this thread, so please dont send me private messages as i want the answers to be available to everyone.

I have attached a pdf file that have the rules in there as well.
ANd there is also a temple for sierracharts attached that anyone can use.


Regards
Bashir N
 

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Bashir,

Can you comment (any thoughts) on the superior performace of this version over your previous method ( Version 1: 1/3/10/30min chart with slow stoch and 10ema PLUS 2min with MACD ) , specifically I have been live feed papertrading with stock interday trading and found Version 1 above to be performing very well. I know we are pressing full ahead with autotrading, but any reflection on manual Version 2 strength over manual Version 1 in this regards? I guess I am inquiring on your confidence in the strength of Version 1, or some insight in the superior nature of version 2.

Thanks as always Bashir, as always, you've inspired many...

Drew
 
Bashir

May I suggest a more responsive setting for the 2min stoch
try 5,2,3
wait for the slow-k to cross 50

it can give you a 1 bar advantage
and signal you a second chance if you missed the original entry
if you only trade with 9min 10ema on your side, even with this faster setting, you should be safe.
 
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Bashir,

Can you comment (any thoughts) on the superior performace of this version over your previous method ( Version 1: 1/3/10/30min chart with slow stoch and 10ema PLUS 2min with MACD ) , specifically I have been live feed papertrading with stock interday trading and found Version 1 above to be performing very well. I know we are pressing full ahead with autotrading, but any reflection on manual Version 2 strength over manual Version 1 in this regards? I guess I am inquiring on your confidence in the strength of Version 1, or some insight in the superior nature of version 2.

Thanks as always Bashir, as always, you've inspired many...

Drew

Its not superior, its just more simple to use and will give you similer results.
Instead of looking at 5 charts you only look at 3 charts.

That makes you more aware of the changes happening on the chart and is less stressfull and easyer.

That the entire purpose of this method.

Regards
Bashir N
 
Hi Bashir

Nice of you to create a new thread, thanks. Quick question, do you have a template for Ninja? If you do would you mind please sharing it with us.

Thanks Bashir
 
Hi Bashir

Nice of you to create a new thread, thanks. Quick question, do you have a template for Ninja? If you do would you mind please sharing it with us.

Thanks Bashir

Puh-lease Newt, 3 charts, 8 indicators, took me less then 5 minutes to set up the Ninja-charts....;)
 
ok WillemDress, I'll do that, acaully after I wrote the response, I thought to myself, acaully I can do it myself PS what does "Puh-lease Newt," mean?
 
ok WillemDress, I'll do that, acaully after I wrote the response, I thought to myself, acaully I can do it myself PS what does "Puh-lease Newt," mean?

Hehehehe now that line really made my day :cheesy:

its mean please newt24:D
Its kinda being sarcastic i guees, just harmless fun from our friend whillem:;)


Bashir N
 
Bashir

May I suggest a more responsive setting for the 2min stoch
try 5,2,3
wait for the slow-k to cross 50

it can give you a 1 bar advantage
and signal you a second chance if you missed the original entry
if you only trade with 9min 10ema on your side, even with this faster setting, you should be safe.

I will look into it, thanks for the advice.

Regards
Bashir N
 
Manual trading method by Bashir Naimy

And the stochastic must also be crosses (same as macd) and the slow d-line must be below the overbought line 85.



Regards
Bashir N

Hi Bashir!
When u said stochastic must be crossed, should they confirm trend, I mean going up in this case? :|
 
Nice to have the threads separated. It was getting difficult to find stuff in 180+ pages of post.

I am curious on how one can compare the effectiveness between different setups (5 charts vs 3 charts) using the same method. Having all the required charts open at either replay or live data to compare the signal seems to be the way, but there must be better ways than this.

Jason
 
I have all 3 fractals superimposed in one chart.
that's the best way to go.
 
Nice to have the threads separated. It was getting difficult to find stuff in 180+ pages of post.

I am curious on how one can compare the effectiveness between different setups (5 charts vs 3 charts) using the same method. Having all the required charts open at either replay or live data to compare the signal seems to be the way, but there must be better ways than this.

Jason


Hi Jason,

i thought of that too, but i think it is just to compare the 5chart entries versus the 3 chart entries. In SC you get a nice cross which points on all charts the mouseprice so check out the spots that were a good buy/sell and compare those entries with 3/5 charts.

Good luck, hope it helps....

~Sebastian
 
Hey folks,

Would like to know your results from backtesting/sim/live trading version 1 (5chart) or version 2 (3chart) with equities (or fut). I had strong results with V1.0 through the new year bull run and retrcmnt in my favorite targets (shipping/energy-solar) ...

Bashir has indeed helped create a wiki of excellent testing and diagnostics...

All the best,

Drew
 
Hi Jason,

i thought of that too, but i think it is just to compare the 5chart entries versus the 3 chart entries. In SC you get a nice cross which points on all charts the mouseprice so check out the spots that were a good buy/sell and compare those entries with 3/5 charts.

Good luck, hope it helps....

~Sebastian

Thanks for answering. I was thinking something along the same line.

On a somewhat related issue, the "Global Crosshair" in Ninja really bugs me. It seems that I have to turn it on on every individual chart to get a true global crosshair on every chart. Their documentation doesn't say anything about this, and google found a bunch of irrelevant sutff. If anyone knows how to get a SC like global crosshair which can be turn on/off using one hotkey, please let me knkow.

Jason
 
Hey folks,

Would like to know your results from backtesting/sim/live trading version 1 (5chart) or version 2 (3chart) with equities (or fut). I had strong results with V1.0 through the new year bull run and retrcmnt in my favorite targets (shipping/energy-solar) ...

I think this is not specific to Bashir's system. I found backtesting to be quiet different from trading the method in real time whether using replay or live. Both 10 min, 30 min, and to some extend 3 min stochastic exhibit quiet a few of uncertainties when trading on real time. I think this issue makes backtesting not as useful as one would expect.

What I started doing recently is that I would pick a date and run market replay on certain moves when I come across a new trading system. Repeat the process few times and see what the result is.

It is very time consuming and doing that after a day at work isn't exactly the most fun thing to do :sleep: I wish I know a shortcut to getting familiar with a system.

How does everyone carry their backtest and learn new system :?:

Jason
 
don't get excited
read what austin_bevo said in the prev post,
it is only a backtest.


startdate: 20081226
enddate: 20090113
symbol: ym
contracts: 1
 

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Bashir

May I suggest a more responsive setting for the 2min stoch
try 5,2,3
wait for the slow-k to cross 50

it can give you a 1 bar advantage
and signal you a second chance if you missed the original entry
if you only trade with 9min 10ema on your side, even with this faster setting, you should be safe.


This is a good reccomendation to explore. In the past several months I have used a somewhat similar system but on a bit longer time frame and have used the 5,2,3 settings with good success, but only with confirmation from multiple time-frames. My main problem has been a horrible trade entry platform with optionsxpress. Once I move to the infinity DOM the improvement will be dramatic. Thanks Bashir for sharing your ideas and rules with us. Truth be told, it would be awfully hard if not impossible to trade the system on automatic if there were any areas kept proprietary or somewhat "black box" in nature. I fully understand your reasons for doing so and I don't blame you, but it would be tough for me to trade it. That's why I'm so grateful you started this thread to share your manual version with us. This way we can tweak it a little to make it our own and thereby keep it from crashing and burning because of too many people trading the same signal. Markets change and over time a system must be flexible enough to change too. An example would be the recent lack of volume in the markets. I am however going to follow your rules exactly to start out with.
 
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