Lightning's Pit Stop

[Lightning McQueen]

So here we go then, this journal is going to be the place where it all happens for me now, a sort of do or die environment so to speak. I will lay out my plan, which hopefully wont change too drastically over the short term but everything is open and fluid, focusing on the eventual goal of trading for real instead of nattering about it.
Comments good and the not so good are welcome but outright negativity will be ignored.

off we go

Trading plan

1.Forward test the strategy as outlined in the thread simple moving average system

http://www.trade2win.com/boards/showthread.php?t=20862&page=1&pp=10

I. Plot a 5 period simple moving average on to a 60 minute chart of the dow

II. When the price bar penetrates up through and closes above the SMA go long.

III. When the price bar penetrates down through and closes below the SMA go short.

IV. MACD is to be used as a signal filter by only allowing signals that are in the same direction as the trend in the MACD

2.Trade the dow in a risk free environment eg demo spread betting account, with trades expected to last from days to weeks depending on signal.

3.No stop rules for the moment. (the system should signal a reversal taking me out of an iffy signal)

4.No money management for now just a straight £10 / point.

5.keep everything as simple and easy to do as possible.

I will also use this journal to post comments and channel ideas that will help make my goal a reality. posting is good for the soul even though I may be shot down in flames at times


Don

 

[firewalker99]

So here we go then, this journal is going to be the place where it all happens for me now, a sort of do or die environment so to speak. I will lay out my plan, which hopefully wont change too drastically over the short term but everything is open and fluid, focusing on the eventual goal of trading for real instead of nattering about it.
Comments good and the not so good are welcome but outright negativity will be ignored.

off we go

Trading plan

1.Forward test the strategy as outlined in the thread simple moving average system

http://www.trade2win.com/boards/showthread.php?t=20862&page=1&pp=10

2.Trade the dow in a risk free environment eg demo spread betting account, with trades expected to last from days to weeks depending on signal.

3.No stop rules for the moment. (the system should signal a reversal taking me out of an iffy signal)

4.No money management for now just a straight 10/point.

5.keep everything as simple and easy to do as possible.

I will also use this journal to post comments and channel ideas that will help make my goal a reality. posting is good for the soul even though I may be shot down in flames at times


Don

Hi, first of all good luck to another fellow journalist!

I know you're refering to the "plan" in that SMA thread, but there's not much info about your plan. If I'm correct the basics are in post #1, then you added MCAD in #14,... perhaps not such a bad idea to start the journal by putting it all together so everything you need is collected at one place? Seems to be easier to review...

Also, I was wondering to what extent you had already defined the details
"when the price bar penetrates up through and closes above the MA go long." -> penetrates how far? how long (time)? closes above MA, by what amount? go long when exactly? how many contracts? ...

And, being curious about your strategy, you say you just picked it from the net and will apply it to the DOW?

 

[Lightning McQueen]

Hi, first of all good luck to another fellow journalist!

I know you're refering to the "plan" in that SMA thread, but there's not much info about your plan. If I'm correct the basics are in post #1, then you added MCAD in #14,... perhaps not such a bad idea to start the journal by putting it all together so everything you need is collected at one place? Seems to be easier to review...

Also, I was wondering to what extent you had already defined the details
"when the price bar penetrates up through and closes above the MA go long." -> penetrates how far? how long (time)? closes above MA, by what amount? go long when exactly? how many contracts? ...

And, being curious about your strategy, you say you just picked it from the net and will apply it to the DOW?

Thank you firewalker for your welcome into the world of journalism.

Yes you are quite correct that the strategy should be in the trading plan in full I will sort that out for clarity. and that should address your concerns I hope.

The MACD was first suggested in post 5 by jbat001 and taken onboard by post 9 to filter signals.

A long story which I wont go into now but heres the link to the article that was thought provoking for me. The dow was the first to be checked out appeared to work ok there so posted it as a free system.

http://www.esignallearning.com/education/marketmaster/archive/0706/072806.asp

cheers

Don

 

[Splitlink]

Thank you firewalker for your welcome into the world of journalism.

Yes you are quite correct that the strategy should be in the trading plan in full I will sort that out for clarity. and that should address your concerns I hope.

The MACD was first suggested in post 5 by jbat001 and taken onboard by post 9 to filter signals.

A long story which I wont go into now but heres the link to the article that was thought provoking for me. The dow was the first to be checked out appeared to work ok there so posted it as a free system.

http://www.esignallearning.com/education/marketmaster/archive/0706/072806.asp

cheers

Don

Hi Don,

Congratulations and Good Luck with your journal.

Would you tell us a little about your trading method, please?

1.Spreadbet or broker?

2. Daily (rolling) or future?

3. When and how do you intend to time your entries? I have problems, here, because I am away from the computer in the afternoon and don't get home until less than an hour before the NY close. That's why I stay in London- even then I don't catch London's close but I get all the morning so that's OK.

Split

 

[Lightning McQueen]

Hi Don,

Congratulations and Good Luck with your journal.

Would you tell us a little about your trading method, please?

1.Spreadbet or broker?

2. Daily (rolling) or future?

3. When and how do you intend to time your entries? I have problems, here, because I am away from the computer in the afternoon and don't get home until less than an hour before the NY close. That's why I stay in London- even then I don't catch London's close but I get all the morning so that's OK.

Split

Good morning Split

Its going to be daily rolling spreadbet.but the future is not set in stone.

Im working nights for the foreseeable future so market participation is not a problem. The actual mechanics of entry after a signal um well that isn't in the plan, so will just jump into the market after the signal but I will work that out by "doing" it will quickly become apparent what needs to be added to the plan.

Thanks

Don

 

[Splitlink]

Good morning Split

so will just jump into the market after the signal but I will work that out by "doing" it will quickly become apparent what needs to be added to the plan.

Thanks

Don

That's fine. I just wanted to know, really, if you were "there" when you were making trade entries or whether you would have to rely on studying EOD data and getting in the next day, en fin, what your working circumstances were regarding hours.

Regards Split

 

[Lightning McQueen]

scribble pad

The actual mechanics of entry after a signal um well that isn't in the plan, so will just jump into the market after the signal but I will work that out by "doing" it will quickly become apparent what needs to be added to the plan.

Well yesterday it was quickly apparent that a setup needs to be written into the trading plan
*separate signal and entry/exit rules to be written up - signals on dailies - ent/ex 15 mins
look also at entry/exit targets + stop loss rules
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31/8/06
oh dear completely getting bogged down in the process of setting this whole thing up regards the journal, trading plan, strategy, setup. I know how I would like to do it all, but setting it all out and writing it all down in a framework thats of use to me just isn't going well.
----------------------------------------------------------------------------------------------------------------------
3/9/06
have started setting out my "proper" trading plan and posted it 3/9/06 its far from complete and will need adding to but its a start.
I am thinking of constructing a flow chart of all the elements I am trying to put together - trading plan, journal, strategy etc this may help on placing it all together in a coherent framework
-----------------------------------------------------------------------------------------------------------------------
1/10/06
flowchart almost complete and have posted the finished parts
setup and entry /exit trigger box flowcharts still to edit and edit all to fit in a stop rules box
-----------------------------------------------------------------------------------------------------------------------
15/10/06
setup flowcharts posted. entry/exit/trade cont rules written
practice entries this week start mon 16/10

 

[Lightning McQueen]

Hi Split

thanks for the concern, yes if I leave it much longer It could be yearly

im having trouble putting it all together and writing a plan that I can follow it is making no sense to me whatsoever, to this end I have been busy on creating a flowchart of the plan which is now nearly complete and should make it easier for my tiny brain its going to combine the whole trading thing in a generic format so I can forward test strategies and not have to rewrite large amounts just change boxes, I will post it when ive edited it and checked for errors.

hows the index trading going, ive been following your progress on the day trading footsie thread
and in the chatroom. I was interested to read your comments regarding index day trading and not listening to others that it couldn't be done by sb.

cheers

don

 

[Lightning McQueen]

I understand, perfectly, the problem. You are committed to writing your plan in a manner that will be understood by all of us reading it. That is very difficult and you have my best wishes.

I was flattered that my exploits in the chatroom are being noted. It boils down to one thing, trying to go in the direction of the trend. I thought that trying to figure the day's trend and then attempting to enter on the low/high point for that day might be the answer, but it is more complicated than that in intraday trading. Friday closed about 10 points down. I had banked on a rise, which it did but then there was a reversal off the high, which I was able to spot. The net result was a 35 point profit, just in the a.m. I am sure that those able to trade after lunch made much more.

I was interested in that my profits were almost as good as another poster who uses a broker.
He has half a point spread on the future and I use a 2 point spread with Fins. It depends on the trader, in my view.

Hope you get interested!

Regards Split

I have to get the foundations right for anything I post in my journal otherwise I will learn diddly-squat I may as well go gunslinging with any old strat and become a 90%er which i dont want.

Nice one for friday, on thursday I believe you were 20 points up when I logged off how did that day pan out in the end.

I have always been interested in day trading (not scalping) but feel more comfortable learning in the longer term environment and my strategies never seem to work well in shorter timeframes.....ah well one day maybe

cheers

don

 

[Lightning McQueen]

new trading plan

This is my new version of my trading plan in flowchart format.

I find it easier to follow and being modular easy to edit and change when required. each box can have its own flowchart giving a comprehensive overview of the plan.

Everything is glued together by the trading journal it is also now easier for me to to understand what should be reported to the journal.

I havn't posted my flowcharts for the strategy, setup entry/exit boxes as I have changed my mind (again) on the exact strategy after adding stop rules but will post these as soon as they are edited

 

[Lightning McQueen]

thats the strategy flowchart sorted (anyone who may be looking in on this please disregard the sideways market and breakout strategy boxes they will not be part of the plan as yet)

setup flowchart next ....this ones is a bit of a mess and needs plenty of pruning and tidying

 

[Lightning McQueen]

RT and EOD setup

setup flowcharts

 

[Lightning McQueen]

ftse charts

 

[Lightning McQueen]

useful reading stuff

links for further research

http://www.incrediblecharts.com/technical/moving_average.htm

http://www.traders.com/Documentation/FEEDbk_docs/Archive/042005/TradersTips/TradersTips.html

http://www.clifdroke.com/info/moving_averages.mgi

http://www.io.com/gibbonsb/trading/CT9708.html

http://transcripts.fxstreet.com/2006/06/how_to_become_a.html

http://www.babypips.com/forex-school/moving-averages.html

http://www.trade2win.com/boards/archive/index.php/t-9450.html

http://www.winningedgesystem.com/articles/article8.htm

http://www.finspreads.com/IFXWeb/Finspreads/Data/en/downloads/SpreadTradingWebinar.pdf

 

[Lightning McQueen]

opened a finspreads account this evening......hmmm not very instant have to await a phone call to activate well thats me woken up tomorrow then

their webinar that pops up in the ads on this site is actually quite useful and informative.....ah
spread trading much less seedier sounding than spread betting must be the latest buzzword in the sb industry, or is it st now

 

[rols]

opened a finspreads account this evening....:

Don. Why?
http://www.trade2win.com/boards/showthread.php?t=20011&highlight=finspreads

 

[Lightning McQueen]

Don. Why?
http://www.trade2win.com/boards/showthread.php?t=20011&highlight=finspreads

hi rols
thanks for the heads up, had read those posts, I must admit to not knowing these posters so dont know their trading styles and position size. others that I do know and chat with dont, as yet have a problem.
im sure that the position size I will be using wont cause a ripple on their radar

 

[Lightning McQueen]

finspreads is up and running although I havn't funded the account yet! still familiarising myself with it all but its not looking too daunting, I like the layout.....nice.

a test chart

 

[Splitlink]

finspreads is up and running although I havn't funded the account yet! still familiarising myself with it all but its not looking too daunting, I like the layout.....nice.

a test chart

I posted a lot of stuff to Happy, but if there is anything I can help you with, just let me know.

Your presence on the chatboard this morning must have brought me luck, after more than a week of losses.

Regards Split

 

[Lightning McQueen]

I posted a lot of stuff to Happy, but if there is anything I can help you with, just let me know.

Your presence on the chatboard this morning must have brought me luck, after more than a week of losses.

Regards Split

thanks Split I may need help soon , reading the instructional pdfs about the fins platform and getting used to it, sort of

yes, pleased you have had a better day. just popped in to the chat show briefly today to see how the gang were calling their trades and reading the market compared to my signals and thoughts. I did notice your first trade was against the trend, is that whats been happening this past week.
I think thats the problem with using a chatroom you cant review others successes and failures after the event like you can on threads in a forum.

cheers

don