Dow Intraday Strategy - 10/20 pts target

[dpfuller]

Hi PP,

this does look promising, the problem i've had in the past with EMA crossover strategies has been whipsaws. We've all been there, shaken out only to see the trade reverse again in your favour. How do you implement stoplosses?

Also entries can be tricky, taking Fri 8/9 as an example the 14.40 bar has a high of 11370, price then retreats back to the EMA giving apossible entry of 11355/60. I've tried waiting for the pullback in the past which you sometimes get, other times it never looks back and an entry is lost. I like your approach of scaling in, the position can be increased if price pulls back towards the EMA providing 7 remains above 20.

Who do you use for your spreadbets?

Good luck with this and thanks for sharing it

David

 

[PurplePerson]

Hi David,
I mostly use Cantor http://www.cantorindex.co.uk
Cantor won't allow their standard non-guaranteed stoplosss to be positioned closer than 20pts on the FTSE and 16pts on the Dow. I tend to instead set them further away initially, purely as a distant safety net (in case of net access failures etc) and rely on manual exits or part exits closer in. Sometimes I am chickening out prematurely, but will usually leave a residual stake in place until actual x/o reversal.

My 'lazy mode' default model is a straightforward long or short on the basic crossovers, with no regard for any other cues, at minimal stake, and based entirely on the 5 minute line chart. I know this is a crude inefficient approach - so it isn't what I do most days. It gets hit by whipsaws on sideways days of course. It works better on the Dow than on the FTSE (Dow often has fewer crossovers. First three days this week produced I think 16 X/Os on the FTSE but only 4 on the Dow, though this is obviously too small a sample to mean much)

I am still experimenting, and still welcome suggestions, but am happy to base whatever refinements around that 7ema/20ema crossover principle.

PP


PS: Tomorrow is a quarterly triple-witching day. I shall probably stand aside, but might switch to fixed-odds betting for that

 

[mikewilliams]

dpfuller

I wouldn't rely on 30mins chart alone. As it is a scalping system, I would use smaller time frames like 5min or 1min chart for precision entry. The use of oscillators and momentum indicators will give you nice entries. It's not too difficult to collect 10-20 points from DOW. The only thing you will need is 'patience'. Good luck.

hi ,just curious as to what momentum indicator do you use

 

[Trader1UK]

Hi,
I have also been testing a strategy on the DOW and FTSE, but does any one use Camarilla or Pivot points? can these be used successfully?

Thanks

 

[nkruger]

Hi,
I have also been testing a strategy on the DOW and FTSE, but does any one use Camarilla or Pivot points? can these be used successfully?

Thanks

I use pivot points on the Dow and the Dax they seem to work better on the Dax at the moment - must be used IMHO with other indicators, look a bit risky to base a system solely around PP's !! UNLESS ANYONE KNOWS DIFFERENTLY.....

NK

 

[nkruger]

Prior to a few months ago I never touched indices. Now I spreadbet the FTSE and Dow intraday almost every day. I take no interest in predicting where the indices will go next day or beyond. I merely trade moving average crossovers when they happen. Using 7ema/20ema on a five-minute chart, with 14rsi taken into account, along with glances at a one-minute chart. No other indicators, no fancy patterns. No waves, percentages, or magic numbers.

I don't mind whether the market each new day goes up or down or both - though if it's both I naturally prefer a few good moves rather than lots of titchy ones.

Will post a few live examples when I get time

Hi PP, are you still using your system (mentioned above) ? I'm interested as I am in the final stages of 'fine tuning' a Dow system, and I've 3 too many indicators this afternoon !!

NK