My Strategy....

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vchohan

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I wanted to start this thread to show people what I am trading and how.

I'm pretty new to trading so no track record but i'd like people to show critisize so I can improve and know where the faults are, as well as, the benefits.

My main aim is to try and raise capital to about £5000 starting with £50 on my spreadbetting account with IG markets.

I'm currently using MA5 and MA25 on a 1min and 5min charts on the FTSE100.

If on 5min chart MA5>MA25 buy with stop loss at 20points and profit at 20points.
On 1min chart MA5>MA25 when on 5min chart MA5>MA25 then buy with stop loss at 10points and profit at 10points.

My aim is to make a minimum after losses of 20points in a day's trading. Anymore is a bonus. At the moment I'm trading 10p per point just to make sure I'm following the strategy and not getting greedy or fearful.

I'm working well with this strategy at the moment and am very good and sticking with it not involving many emotions at all.

I've tested it over the past couple of weeks and seems to work in my favour.

One problem that I found in this strategy is that in a sideways market this strategy will not do well. In a trending market it works well. If the market moves in one direction for about 40 points on the 5min it's good and if it moves 20points in one direction (down/up) on the 1min chart i'm in favour.

I've derived this strategy from others and it's worked for me so far. There's only been one day in the past two weeks where my strategy wouldn't have worked and taken minimal losses so the other days would makes up for it.

All comments and advice welcome.

Viks
 
This morning I've gained 10 points:

8.19 Buy @ 4195
8.28 Sell @ 4205 +10points

At the moment there's not much fluctuation in the FTSE100 so I'm not placing any trades until I see some movement in one direction. It's usually pretty obvious to see.

P.S. I don't know who to upload Charts someone tell me thanks!
 
It's their beginners programme; allows you to trade 10p then 20p the following week up til 50p by week 6 I think.

The problem with MA crosses as you have identified is when the market is flat. You need to work out when to stay out.
 
Hi Shadow,

At the moment I'm working on that and trying to use the break of highs and lows for me to get back in and then follow strategy. Haven't tested it much at all but hope it's effective.

Viks
 
Be careful of whipsaws. It'll break out then fall back to the other side of the range. Need to investigate the probability of break outs succeeding. If it's 30% chance and you're going for 1:1 R:R then it's a losing strategy.
 
Hi VC,
ive also been messing about with something like this, and although ok i tend to find that when market is in range bound and whipsaws do occur then the MAs dont really work that good...
What MAs are you using, Exp or simple...?

To upload an image i think you need to upload it onto a server somewhere and attach link..
 
SMA works best for longer TFs like End of Day charts. For instance, look for "golden crosses" on stock charts with scanning/charting software eg Sharescope, Omnitrader.

To avoid ranging markets, you could use something like Bollinger bands.
 
Oh, and EMA is better for lower TFs because it is quicker; the weighting is for the more recent values that make up the average.
 
There are quite a few SpreadBetting companies now offering training accounts with 10p min stake:

iii. com
Finspreads.com

They both allow you 8 weeks I think.
 
Hi,

I was in a similar trade BUY @ 4191.6 with limit order of 4226.8 thats 35 points in the money.

Any questions please contact me.

vchohan said:
This morning I've gained 10 points:

8.19 Buy @ 4195
8.28 Sell @ 4205 +10points

At the moment there's not much fluctuation in the FTSE100 so I'm not placing any trades until I see some movement in one direction. It's usually pretty obvious to see.

P.S. I don't know who to upload Charts someone tell me thanks!
Click to expand...
 
v1per said:
Hi,

I was in a similar trade BUY @ 4191.6 with limit order of 4226.8 thats 35 points in the money.

Any questions please contact me.
Click to expand...

With regards to uploading charts. I presme with the use of Ig is that they have online realtime charting which uses JAVA applications. I presume you are using this - However, what do you mean with respect to " uploading charts"?

Regards

V!PER
 
May I ask why MA 5 and MA 25? What is there significance, and I would appreciate it if you can tell us when you go long/short with the use of both the MA's

vchohan said:
I wanted to start this thread to show people what I am trading and how.

I'm pretty new to trading so no track record but i'd like people to show critisize so I can improve and know where the faults are, as well as, the benefits.

My main aim is to try and raise capital to about £5000 starting with £50 on my spreadbetting account with IG markets.

I'm currently using MA5 and MA25 on a 1min and 5min charts on the FTSE100.

If on 5min chart MA5>MA25 buy with stop loss at 20points and profit at 20points.
On 1min chart MA5>MA25 when on 5min chart MA5>MA25 then buy with stop loss at 10points and profit at 10points.

My aim is to make a minimum after losses of 20points in a day's trading. Anymore is a bonus. At the moment I'm trading 10p per point just to make sure I'm following the strategy and not getting greedy or fearful.

I'm working well with this strategy at the moment and am very good and sticking with it not involving many emotions at all.

I've tested it over the past couple of weeks and seems to work in my favour.

One problem that I found in this strategy is that in a sideways market this strategy will not do well. In a trending market it works well. If the market moves in one direction for about 40 points on the 5min it's good and if it moves 20points in one direction (down/up) on the 1min chart i'm in favour.

I've derived this strategy from others and it's worked for me so far. There's only been one day in the past two weeks where my strategy wouldn't have worked and taken minimal losses so the other days would makes up for it.

All comments and advice welcome.

Viks
Click to expand...
 
Si55AMG said:
How did everyone do with this strategy today?
Click to expand...

Well I have not tried it as of yet but its simple and if its producing constant returns with minimal losses then good for Vchohan do you not think so.

What strategy do you use for your day trading to be profiting in region of £200+ per day?
 
Didn't get the chance to sit down the whole of yesterday but I made 30 points from when I did spreadbet.

This morning I've made 25points.

8.00 [email protected] 5min MA5 MA30 Market opens - MA5<MA30 20point STOP LOSS, 20point target
8.00 [email protected] 5min chart reaches target 20 points bagged

8.32 Sell@4166 1min MA5 MA30 sell confirmed by 5min chart. 10point stop loss 5point target.
8.36 Buy@4161 1min chart reaches target.

yesterday I was testing MA5 and MA25 I usually use MA30 MA5 so i've gone back to that. I know there are a few draw backs with this strategy such is the lag from the indicators can cause trouble if the MA's keep crossing over when bouncing off support and resistence in a sideways market between 10 to 20 or so points. Also I don't maximise profits. Any suggestions?

How did your strat go yesterday and this morning V1per and si55AMG?

Viks
 
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