I am trying out the chinese numbers system on a free trial for a month with live numbers. Since last week Wednesday I have traded 13 times and profited on 8 trades by 10 points or more and lost 20 points on 5 occasions. The R1 and S1 points do seem to be the ones used by this system.
You are also right in your previous post Bb in that they do mislead people by stating the Maximum Point Gain possible. Part of "their" strategy is that you shouldn't trade if the index opens above or below their numbers. Yet even when this happens they are still showing that they trade and take the MPG as the representative points made. Misleading in the extreme !
Also interesting to note that they won't give out any physical address or telephone information.
I will let you know how the rest of my 1 month trial goes.
It is a shame that they are probably making a lot of money out of other people taking the risk to use what looks like a rather poor trading system. Their numbers are very close to pivot points that anyone could work out for free. Also the exit strategy is not clear and their profit calculations presume that you know the high and low of the day before trading.
Trying to trade at the points they recommend using a spreadbet company must be extremely difficult. The 10 points index movement would be useless with a spread and slippage.
I wish there was more regulation to stop people making money from schemes like this.
Chrishayes is absolutely right in what he said about their trigger points being 3 points and around 15 away from R1 and S1 levels.
Their FTSE open, high and low figures match those on yahoo and bigcharts .
However when comparing their open, high and low prices for the DOW on any day these are different from those displayed on Yahoo or big charts, any idea where this is ? (using their open , high and low numbers what Chrishayes said holds).
you think chinese number's are bad...check the post under pivot point's ..there is a company selling their pivot method for
one could easily do it themselves using a pivot calculater
instead of paying $99.00. .be carefull out their..
Could someone here maybe enlighten me a little more on Pivot Points? I've had a quick look at pivotpoints.co.uk.
How are these pivot points meant to be used? How are they calculated? Would it be possible to day trade the FTSE using Pivot Point calculations and correct money management? Why are there 2 Support and Resistance levels?
I speak to a guy regularly on email who I met on another bulletin board. He used to be a stockbroker in the U.S. He lives in the UK now and says that he makes his living day-trading the S&P500. I think he is genuine because he will never really tell me his trading system!
My point here is that he's mentioned to me that he uses calculations that he once used as a pit trader in the U.S. to determine the likely "turning" points on the S&P500 index. Are these the "pivot points" that have been mentioned in this thread?
If anyone could explain pivot points to me I would be very greatful. I'm currently paper-trading EOD with Omnitrader, but I want to get into Short-Term Day Swing Trading which is why I'm interested in these Pivot Points.
This is a whole thread at www.spreadsbetting.co.uk that gives all the information on pivot points and includes a spreadsheet that calculates them for you. For those interested in this it is very good in my view.
Damian - it sounds to me as if the US trader is talking about pivot points. These are used by traders in the pit, and therefore used to apply particularly well to pit traded futures. When in the pits the traders could easily remember 5 numbers (R2, R1, pivot point, S1 and S2) and therefore traded between these points.
As the majority of pits have been replaced by electronic systems the pivot points are, theoretically, not as important now as they once were. However, they still have a huge following, particularly among the retail traders, so they are worth using if that is your style.
I used to bear them in mind when trading, but now I don't use them.
Deskpro - there are a couple of reasons why the 5 pivot points may differ.
It depends on which data you are working from - the spread betters figures will be slightly different because they are their figures and take into account the high and low prices the SB company traded at, irrespective of what the underlying index traded at.
Also, there are a couple of slight variations in the formula for working out pivot points. Some use H + L + C / 3, others use H + L + C + O / 4 - the latter takes into account any overnight gap. H = high of yesterday, L = low of yesterday, C = yesterday's close and O = today's open.
Remember also that there are often slightly different figures depending on whether you include the regular traded market or include pre-market or overnight trading as in the S&P.
Confusing I know, but you just have to find out by trial and error which of the pivot points best 'fits' the market you are trading.