Pivot Points

DESKPRO

Active member
120 0
Been looking at using Pivot Points for the Dow Daily ; sell at R1 and buy at S1. Backtested it usibng last 4 weeks data for Dow and looked promising (Dow has been oscillating in range). Was wondering if anyone uses Pivot points for longer than a month and what the results have been like. Thanks in advance
 

rossored

Senior member
2,103 56
I tend to find that they dont work too well on the Dow, but this is just my opinion. I do feel they work well on the Spoos, and to a lesser degree on Nasdaq, however.
 

adrianallen99

Established member
630 4
Pivot points can be useful and it is well worth calculating them before you trade, but I wouldnt recommend basing your trade solely on them. Better to have another indicator or a good knowledge of the markets so you know in what circumstances it is likely to perform,.
 

chump

Senior member
2,212 274
Just from observation the pivots appear to work best on range days. Trend/directional days forget it.

Cheers
 

DESKPRO

Active member
120 0
I agree from my observations it works best on range days but then there is no indicator that works everytime. Certainly from the DOW observations I would expect that by using stop losses and good money management I will cut my losses on the trend days. I like Capital Spreads in that it allows you to specify new buy and sell orders which is useful when you are not able to watch the market every second. What I dont like about them though is that the default stop loss is 80% of the remaining account . If like me you cant watch the Dow then this is not good money management!! Is there a spread company that allows you to specify new orders online but with a smaller default stop loss ?
 

adrianallen99

Established member
630 4
I know IGindex allow you to specify a stop level when you phone through, have you tried phoning them and asking them to put a x% stop on the particular trade?
 

MikeW

Junior member
29 0
Deskpro,

CapSpreads lets you change the 80% stoploss level immediately after it's the position is setup - to within certain distance limits of the opening position but much tighter than the std.

Rgds.
Mike
 

DESKPRO

Active member
120 0
Yes I was aware of that but my problem is I am not be able monitor the trade always so if order has been filled and I am not there to change my stop loss I could potentially loose a huge chunk of my money with the default 80% stop loss.

Its almost delibrate that they set such a hugh default % stop loss
 

DESKPRO

Active member
120 0
FYI:

Spoke to Capital Spreads regarding the default 80% stop loss. they suggested a way around it would be t place a buy and sell trade at the same time eg if wanted a sell at 10700 (using new option) and wanted a stop loss of 25 points then also set a new buy trade at 10725. In effect then have a stop loss of 25 points. Their default stop loss trade would also be set (greater distance from 10700) but my buy would be hit first so theirs would also get cancelled .
 

TheBramble

Legendary member
8,394 1,170
So they're recommending you open 2 physical trades for each one you want to do.

Unless they're only going to charge you the one spread, this is quite good business for them.
 

DESKPRO

Active member
120 0
Is this different from if I was stopped by their default stop order??

eg If put a new sell order at 10700 then this would get executed when their price is 10700-10705. Their default stop loss would be say at 10860 ie when price quoted is 10855-10860. If I had put another new order at 25 points then would have been stopped when their price is 10720-10725
 

Thirteen

Active member
160 0
pivots are for the pits. big in chicago. thats why it dont work on dow - cos its not traded in a pit, but may work on spoo cos that still is (not the mini) anyway, imo, everyone knows bout them now so less effective
 

JJL3142

Active member
174 0
Pivots

Is there any recommended pivot point articles ?

I had read an article about 6 months ago (cant remeber the author) which was useless ..


Thanks

P
 

TBS

Well-known member
385 0
Thirteen said:
pivots are for the pits. big in chicago. thats why it dont work on dow - cos its not traded in a pit, but may work on spoo cos that still is (not the mini) anyway, imo, everyone knows bout them now so less effective

Basically agree with you - however, diferent people use different formulae to come up with pivots - especially once you get away from r1/s1.

BTW Dow futures are pit traded, same as the big spoos
 
 
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