How to consistantly gain from these markets.

[TomTom]

Hi fowks,
We see many vendors and people on here taking about trading systems.
Yet I dont see any of them offering live seminars putting there work in to practice.
Most traders here make a few quid and loose a few more quid and never really make any real head roads into genatating vast amounts of cash.
I have many ways I trade these markets and all is dependant of precised timming of events/seasonal ect.
One of my methods brain dead methods is. USA/EUROPE INDEX's with a tremendouse return on forex Euro Dollar.
Take last weeks high & low
Take the prieviouse days high & low
Place buy sell orders 5 points below and at the high/low then 3 points above the high/low and so on. ( in antisipation that the market will breach previouse high/low)
Never place orders to buy / sell only to exit the trades.
When using this system small stake then higher stake as the trend unfolds.
This over a 12 month time frame the method generates good a income from this system alone.
The down side to this system it require's quite a large account to make it pay. Test it with SB firms with pennies I guarentee you will be impressed.

 

[tomorton]

Hi TomTom -

I'm sure the method is simple, but I think I have not understood your description, can you confirm please?
- using the last week's range, you suggest putting a buy order above the week's high and a sell order below the week's low?
How do you define your exit? Where do the stops go?

 

[TomTom]

Nice one Tomorton,
The system use's the thieroy that if an index is near to yesterdays high/ low or last weeks high/low the stratogy is to positioned for thouse lows to be breached.
Now if they are breached more orders get executed ok
If market dose not move higher/lower your ok and should have profits.
How you manage these trades is dependnat on how agressive you are.

What I do is buy buy or sell sell sell and as I see profits rise I of load a % of the postion.

There are not many times when the index's hits these levels exactly and reverses, as for stops these days 20pts are ok on the dow.

The profit comes when the first entry is at say 2 contracts the next is 6 contract and so on, soon as each market order is executed , at that time is a good time to exit longs to safe gaurd any profits.

The direction of the trades will be made by market orders, it really is up to the expieance ofthe trader knowing if the market is to continue the trend or about to reverse. However this is a sort term scalp trade that can also be used as a postion trade.

I hope this has clarified my earlyer post.

 

[tomorton]

This sounds like you're momentum trading, jumping on and off the prevailing trend. I am sure we both agree that if a price makes a high in an uptend, it is more likely to make a new high than a new low. But, surely, 20 Dow points stops????? You must get a lot of stops hit but I suppose the ones that are not stopped out could be very profitable if you let them run.

Actually, I had forgotten that keep a chart using weekly bars for the FTSE100 and the S&P: I last marked the trend channel (down) on the FTSE100 5 weeks back, since when we have been ranging sideways.

I don't think this is one for me right now but I'll keep it in mind for the future. Cheers.

 

[TomTom]

Use it daily,
M8 the results will speak for them selfs.
I reiterate , like all things the stratogy needs to be monitored.