Best Thread Live Cable Trading

[Priceman]

Well spotted - that will teach me to check before hitting the button

Whats the weather like in Paris

well that's why I don't post any of my words of wisdom on any trading matters on here !!

The weather is glorious in Paris, it's been a fantastic spring so far, 22degrees today. Shame I'm cooped up in doors all day with my job.

 

[TraderAli]

Hello Everyone !

JillyB, I find your Darvas Method tweaks quite interesting.. could anyone following JillyB post the trades which were taken yesterday, I would actually like to plot these trades on my charts to have a better understanding and do some forward testing into the system. Or, it would be nice if anyone could post a chart or two indicating the trades both positive and negative which they think are valid according to the system.

ChowClown, looking back at this thread JillyB advised to trade in specific time zones for reliable setups. Could you please post the trades or a chart with your boxes plotted ? Thanks.

Hope everyone is enjoying the weekend.

 

[indexgold]

Darves = congestion, Nothing more nothing else. you see them on a chart all the time.no need to have a softwear to draw pretty lines, this will only make you over trade....look for them with your own eyes.

 

[Baruch]

Darves = congestion, Nothing more nothing else. you see them on a chart all the time.no need to have a softwear to draw pretty lines, this will only make you over trade....look for them with your own eyes.

More info about Darvas and his boxes:


http://www.gerryco.com/tech/darvas.html

http://darvas-investing.chambers-media.com/Darvas-Trading-System.html

 

[TraderAli]

Hi Baruch,

Thank you for the links, indeed the Darvas Box System is very well explained.. useful info.

 

[JillyB]

Fantastic, thanks Jill!

Hi Chow,
Sorry I'm a bit late posting these. Had a busy couple of days.
But better late than never.

 

[Baruch]

Hi Chow,
Sorry I'm a bit late posting these. Had a busy couple of days.
But better late than never.

Jilly,

Thank you for the charts. What timeframe? 5 min? How many pairs do you trade?

 

[TraderAli]

HI JillyB,

Thank you for posting the charts, the trades which you have marked were all taken outside the time frame which you mentioned below - did you actually mean that one should not trade within the below time frames for a safer play ? Thanks.

---------------------------------

To be safe trading the Darvas box breakouts in the following time zones seems pretty reliable and safe. If it's outside the time zone - don't trade it.

7.35 - 8.00am
9.10 - 9.35am
10.00 - 10.15am
10.50 - 11.05am
12.20 - 12.35pm
13.55 - 14.20pm
14.55 - 15.10pm
__________________
Jill

 

[Baruch]

Darvas box breakout on 5 min chart just occured.

I trade with CMC so the figures I'm giving are off their trading platform - Sell prices (these are what they chart on)

Darvas box formed at 1.7562 top, 1.7547 base.
Broke base of box on 11.25 candle.
Target 1.7538 (1 pip tolerance on entry, 3 pip spread, 5 pip profit)
5 pips in the bag

Jilly,

Why do you only take 5 pips out? Why cut your profits?

 

[JillyB]

Jilly,

Why do you only take 5 pips out? Why cut your profits?

Unless the breakout candle has some momentun to it, then I prefer to take just the 5 pips. A lot of the time you will find the Cable reverses, or consolidates more at this new level, so taking 5 pips is nearly all that you will get.

But on trades where the candle has some momentum to it. Take Friday and the 8.45am breakout. The first part of this, didn't hit my target, it then retraced a little before breaking through with a very positive thrust candle. On this I traded the candle, trailing my stop up after it and took 41 pips ( I probably could have got more), but I was happy with that.

On the other trades at 11.30am and 13.15pm, there was less momentum, so 5 pip profit was safe.

I have noticed that there is usually 1 breakout situation per day where a good number of pips can be taking. It doesn't usually happen twice in one day (quite rarely), so once I've pocketed the pips from an early day breakout, then I'm happy to just take 5 pips at all the following ones.

Hope this makes sense.

 

[JillyB]

HI JillyB,

Thank you for posting the charts, the trades which you have marked were all taken outside the time frame which you mentioned below - did you actually mean that one should not trade within the below time frames for a safer play ? Thanks.

---------------------------------

To be safe trading the Darvas box breakouts in the following time zones seems pretty reliable and safe. If it's outside the time zone - don't trade it.

7.35 - 8.00am
9.10 - 9.35am
10.00 - 10.15am
10.50 - 11.05am
12.20 - 12.35pm
13.55 - 14.20pm
14.55 - 15.10pm
__________________
Jill

Those were my first look at the times, but I've now done more back-testing and have come up with some more precise times.

Take the 7.35 - 8.00am, this is now 7.35 - 7.40am and 7.55-8.00am.
The times are candle times on a 5 min chart, so each segment actually covers 10 minutes (2 candles).

There is now one 8.45am - 8.50am and 9.10 - 9.15am, 9.25am-9.35am, 10.05am - 10.10am, 10.50-11.05am, etc.

As I said, this is still work in progress, I only have 3 weeks of 5 min intraday charts available on my system, so that is all I have been able to check. It only cropped up because I saw a number of trades occuring at certain times in the day. I'm not sure if there are certain 'news' times associated with the cable that might be causing this. Perhaps one of the others can help with this.

 

[TraderAli]

Hi JillyB,

Thank you for the quick response, was your 3rd trade a valid box ?
As far as I can see the box top was breached by the 5th candle, 3rd Candle being the lowest ?

cheers

 

[Baruch]

Unless the breakout candle has some momentun to it, then I prefer to take just the 5 pips. A lot of the time you will find the Cable reverses, or consolidates more at this new level, so taking 5 pips is nearly all that you will get.

But on trades where the candle has some momentum to it. Take Friday and the 8.45am breakout. The first part of this, didn't hit my target, it then retraced a little before breaking through with a very positive thrust candle. On this I traded the candle, trailing my stop up after it and took 41 pips ( I probably could have got more), but I was happy with that.

On the other trades at 11.30am and 13.15pm, there was less momentum, so 5 pip profit was safe.

I have noticed that there is usually 1 breakout situation per day where a good number of pips can be taking. It doesn't usually happen twice in one day (quite rarely), so once I've pocketed the pips from an early day breakout, then I'm happy to just take 5 pips at all the following ones.

Hope this makes sense.

Yes, I know the morning BO very well (if I may say so.. :cheesy: ). What do you do about major news? And how many pairs do you trade?

 

[JillyB]

Yes, I know the morning BO very well (if I may say so.. :cheesy: ). What do you do about major news? And how many pairs do you trade?

Since my primary trading is done on the DJI, I only trade the Cable and keep this mostly to the morning.

I never listen to news - either when trading the Dow or the cable. I also try not to read anybodies thoughts on what either are going to do, as I find it clouds my judgement. It's like a little voice at the back of my head telling me something which is usually opposite to what the candles are telling me.

I trade only with CMC's software, no other charting package and trade on just what I see. Sounds scary, but it's not.

 

[indexgold]

JillyB

I have MarketMaker with CMC, but I don't see no function for the Darves boxes.

 

[jacinto]

More info about Darvas and his boxes:


http://www.gerryco.com/tech/darvas.html

http://darvas-investing.chambers-media.com/Darvas-Trading-System.html

hi, found this and thought you guys might be interested.

 

[jacinto]

hi, found this and thought you guys might be interested.

sorry Baruch, very sorry , just noticed that this diagram is in one of the links you posted.

 

[Baruch]

Since my primary trading is done on the DJI, I only trade the Cable and keep this mostly to the morning.

I never listen to news - either when trading the Dow or the cable. I also try not to read anybodies thoughts on what either are going to do, as I find it clouds my judgement. It's like a little voice at the back of my head telling me something which is usually opposite to what the candles are telling me.

I trade only with CMC's software, no other charting package and trade on just what I see. Sounds scary, but it's not.

Do you also use Darvas box trading when you trade Dow? I think box trading works very well with German Bunds and US T-notes (or bonds). Take a look on the charts, and I am sure you will agree.

 

[JillyB]

JillyB

I have MarketMaker with CMC, but I don't see no function for the Darves boxes.

There isn't any. As you will see from the chart I've posted, I use lines to define the top and bottom of the box - it's not that difficult and doesn't really need specialist software. If you read the links that Baruch has posted they will explain how to form a box. I think I've also posted how I do it, somewhere back on this thread.

 

[Baruch]

sorry Baruch, very sorry , just noticed that this diagram is in one of the links you posted.

It's OK. I'm a long-time Darvas fan, and until now everybody laughed at me, and said I should be put in a box ... :cheesy: