Profitable support trading on indices Dow ,dax ,Nasdaq and s&p

foroom lluzers

Veteren member
3,612 135
Historically indices are well supported and indexes usually rise over the long term.To make profit buy at supports of major indices.Supports are at least two trough bottoms on daily or 4 hour charts

This strategy is buy at index supports (horizontal , up trend line and up channel) ,sell high.It will be highly profitable ,if used correctly.Supports are historically good areas to buy ,patience is required to wait for a day or a few days or even a month ,for the trade to go into profit.Buy at bottom of supports in ranging markets.

This is not a breakout strategy ,only 10 % are uptrend trades ,they are only traded after a successful trend breakout and tested and retest of new trend breakout.Rest of the time 90 % buy at supports on pullbacks.

Buy a weekly or daily or monthly put option as a protection for a long trade .There is the cost of the options to be deducted from profits , but this cost gives the holding power to hold on to your trade , for almost a week or month.Put Option prices costs are half the volatility , so one can make money on other half.

Before opening trade read context to see support /resistance ,if context is good buy near support and close end of day on daily but weekly run it for days.

As an example
weekly dow put long cost 34 strike 21100
long cash dow 21120



http://www.trade2win.com/boards/trading-systems/223496-trading-without-stop-loss-using-options.html

I did a similar strategy on Dow Jones PRODUCING A CONSISTENTLY PROFITABLE METHOD

http://www.trade2win.com/boards/indices/224008-daily-weekly-dow-trading-system-5.html#post2919808

Supports Compulsory filter
• For long positions price has to sit (close) above support with full 30 min candle or at least with more than half of 30 min. candle real body closed above support.
• Have you seen resistance become support on several points?
• Don’t open long position if major resistance level price is less than 20 pips away from current price.
• Is there newly formed support or up channel/slope on tick charts?

Buy above support, bottoms of channels or above moving averages



I start with a daily option trade , after 2 losses I move to weekly options , therefore recovering all previous losses .First trade is at first support and second trade is at second support , both on daily options .After a string of losses I increase position size to recover losses and make a profit.

Don't close half position , just run your profits.Close losing trades at end of day .

After 4 consecutive losses I increase my stake to double , same after 8 losses and 12 losses



Practice on demo first , this hp system







1.2 News - Compulsory filter for all systems
• Don't take any new trade 2 hours before MAJOR news (i.e. NFP, FED, ECB, BOE, BOJ, bank rates), and close all existing trades 15 min before. Enter 5 minutes after these, but let market settle and show clear set up.
• Don't take any new trade 30 min our before high impact news, but don't close existing trades. You can open trades immediately within 5 minutes.
• Do not trade until major Central bank conferences (ECB, BOE, BOJ and FED) are over.
• Only high impact news to be considered, the ones that are marked with red on calendar.
• Do not do any trades until the major central bank press conference is over, never put on trades during major central bank conferences.
• Thin down (reduce) positions near the news time to avoid slippage.

1.4 Trading opening time – Compulsory filter
• New trades opening time: 08:30 to 13:00 GMT and 13:30 to 19:00 GMT
• DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and market settles.
• S&P opens at 14:30 GMT. Do no not trade for the first 30 minutes, until markets settle.
• Do not put on trades, you have no interest in managing with less than half an hour to go until the end of session.

1.6 Defining a trend
Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.

2.6 Trading DAX and FTSE - Compulsory filter
• They have to trend/move in the same direction in order to place an order. Look also at DOW and S&P; they have to move as well in the same direction. This does not mean set ups have to be valid on the other instruments; it means they just have to move in same direction. (S&P/Dow is more important than FTSE)
• If FTSE and DAX are not moving together, then either FTSE or DAX orders are valid, only if S&P and DOW are moving together.
• DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and markets settle.
• S&P opens at 14:30 GMT, so do not place new orders between approximately 12:30 and 15:00, until direction is clear.
• If there is no news, do not open new trades on indices 1 hour before USA opens.
• Trending definition: prices must be above lwma 18 for longs or below mas for shorts on 30 MIN (with slope, channel and trend line).
• Rules 3.1, 3.15 and 4.1 will invalidate the compulsory filter (rule 3.12). It applies if DAX, FTSE, S&P and DOW are trending in the same direction.
• Do not open new DAX position after 110 pips made in one day.
• Do not open new FTSE position after 75 pips made in one day.
• Always use s and p supports , resistances , trend lines and channels to trade ftse /dax /djia
• The system set ups must valid on the instrument as high probability example :eek:n ftse it has to be valid on ftse (not s and p , dax , dow , nasdaq
 

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foroom lluzers

Veteren member
3,612 135
This is like a set and forget strategy.Read all my psychology threads to help you understand the importance of trading psychology ,why trading with right psyche is important. Psychology is 80% success , system is only 20%.

Learn trading psychology now in the following threads .

http://www.trade2win.com/boards/psychology-risk-money-management/80752-best-threads-psychology-risk-money-management-forum.html

http://www.trade2win.com/boards/psychology-risk-money-management/163366-essentials-trading-psychology.html


READ ABOUT MARKET TIMING
It is not always possible ,maybe difficult to time the markets

http://www.trade2win.com/boards/technical-analysis/223866-t-market-timing-versus-predicting-roulette.html

http://www.trade2win.com/boards/technical-analysis/224246-trend-trading-failure-trend-breakouts.html

Mistakes make losing traders

http://www.trade2win.com/boards/educational-resources/223432-mistakes-make-losing-traders.html


Patience is required

You need patience to wait for quality trades , the patience to run your winners and the patience to wait on the losers.

http://www.trade2win.com/boards/general-trading-chat/36745-patience-what-3.html#post2913022
 

foroom lluzers

Veteren member
3,612 135
Can you put a few more indicators on your charts? I can still see the price.
I don't actually use any indicators in my trading,I know where my supports are on candles .This is a simple support buying system.

Only inexperienced or unskilled traders need indicators .I don't even look at them.
 

darktone

Veteren member
3,916 1,000
You think those candles arnt indicators?
 

darktone

Veteren member
3,916 1,000
I don't actually use any indicators in my trading,I know where my supports are on candles ..
^ if you say so

So how would it benefit anyone if I said where I was buying?
Im buying blah blah at 10 , 8 , 6 , 4 , 2.
filled.
looking for the the outs at 10 , 12, 14 , 16 , 18 blah blah blah....

I dont have the power of foresight either, good job you dont need it to be profitable eh.
 

foroom lluzers

Veteren member
3,612 135
So how would it benefit anyone if I said where I was buying?
Im buying blah blah at 10 , 8 , 6 , 4 , 2.
filled.
looking for the the outs at 10 , 12, 14 , 16 , 18 blah blah blah....

I dont have the power of foresight either, good job you dont need it to be profitable eh.
You pick numbers out of thin air ?

You don't need foresight , just be content with hindsight ,it gives you valuable information ,unless blind is leading by hindsight market timing.
 

malaguti

Senior member
2,326 443
Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition.
In a down trend the buy is 10 pips above the high of last two peaks.
In a uptrend the buy is 10 pips above the high of last peaks with full candle close.
• In an uptrend sell is 10 pips below the low of last two troughs.
• In an down trend sell is 10 pips below the low of last troughs , with full candle close.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.

some idiot posted on this thread that 80% of all breakouts fail to materialise
http://www.trade2win.com/boards/technical-analysis/223916-wot-happens-next-9.html#post2911962

and yet your strategy here is a breakout strategy

are you going to post trades here to prove that 80% of your positions aren't going to materialise. Can you show us your account so we can see it going down

or are you suggesting that 80% of all breakouts don't actually fail?
now, this presupposes of course that you knew/know what a breakout is
I suspect you don't :whistling
 

foroom lluzers

Veteren member
3,612 135
some idiot posted on this thread that 80% of all breakouts fail to materialise
http://www.trade2win.com/boards/technical-analysis/223916-wot-happens-next-9.html#post2911962

and yet your strategy here is a breakout strategy

are you going to post trades here to prove that 80% of your positions aren't going to materialise. Can you show us your account so we can see it going down

or are you suggesting that 80% of all breakouts don't actually fail?
now, this presupposes of course that you knew/know what a breakout is
I suspect you don't :whistling
Only a few trades in up channels and up trend lines apply to the strategy , after the trend has broken out.Most of the trading 90% is buying supports .

I have removed the breakout part from first post , so it is buying at supports only.See up trend lines/channels buy at them.

80 % of breakouts fail ,that is why breakout gurus have dissipated.
 

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malaguti

Senior member
2,326 443
Only a few trades in up channels and up trend lines apply to the strategy , after the trend has broken out.Most of the trading 90% is buying supports .
but that's not what your entry criteria states
it says buy on a breakout of a last high (paraphrasing)
it doesn't say buy on a breakout of a last high but only some of the time..

can you define some of the time?
or is your strategy NOT to buy on the breakout of a last high
your village is riding on your words foroom

oh wait a second, you have just changed your entry criteria. so this wasnt a susccesful strategy then?
had you backtested this you might have realised. another idiot posted that all backtesting was useless. sure would have helped here.
are you making it up as you go along
 
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foroom lluzers

Veteren member
3,612 135
but that's not what your entry criteria states
it says buy on a breakout of a last high (paraphrasing)
it doesn't say buy on a breakout of a last high but only some of the time..

can you define some of the time?
or is your strategy NOT to buy on the breakout of a last high
your village is riding on your words foroom

oh wait a second, you have just changed your entry criteria. so this wasnt a susccesful strategy then?
had you backtested this you might have realised. another idiot posted that all backtesting was useless. sure would have helped here.
are you making it up as you go along

To make profit buy at supports of major indices.Supports are at least two trough bottoms on daily or 4 hour charts

This strategy is buy at index supports (horizontal , up trend line and up channel) ,sell high.It will be highly profitable ,if used correctly.Supports are historically good areas to buy ,patience is required to wait for a day or a few days or even a month ,for the trade to go into profit.

only 10 % of trades are after trend has broken out .I deleted that part related to trending , just a mistake.Hope this is now clear.

1.6 Defining a trend
Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.
 

malaguti

Senior member
2,326 443
To make profit buy at supports of major indices.Supports are at least two trough bottoms on daily or 4 hour charts

This strategy is buy at index supports (horizontal , up trend line and up channel) ,sell high.It will be highly profitable ,if used correctly.Supports are historically good areas to buy ,patience is required to wait for a day or a few days or even a month ,for the trade to go into profit.

only 10 % of trades are after trend has broken out .I deleted that part related to trending , just a mistake.Hope this is now clear.

1.6 Defining a trend
Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.
yes i know, you changed it from a breakout strategy below:


• In a down trend the buy is 10 pips above the high of last two peaks.
• In a uptrend the buy is 10 pips above the high of last peaks with full candle close.
• In an uptrend sell is 10 pips below the low of last two troughs.
• In an down trend sell is 10 pips below the low of last troughs , with full candle close.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.
why the sudden change? did you not remember that breakouts fail
your village foroom, think of your village
 

foroom lluzers

Veteren member
3,612 135
but that's not what your entry criteria states
it says buy on a breakout of a last high (paraphrasing)
it doesn't say buy on a breakout of a last high but only some of the time..

can you define some of the time?
or is your strategy NOT to buy on the breakout of a last high
your village is riding on your words foroom

oh wait a second, you have just changed your entry criteria. so this wasnt a susccesful strategy then?
had you backtested this you might have realised. another idiot posted that all backtesting was useless. sure would have helped here.
are you making it up as you go along
The missed the entire point of the back testing thread.Go read it and then come and argue.Try breakout on fx ,it fails 90 % of the time.

I realized all this breakout trading is for hindsight traders , I realized this from one of the gurus who was never trading , but just sold education to the blind .I learnt it 20 years ago.

The only time to buy a trend breakout ,is after a successful trend breakout and test retest of reliable support.shown here

 

foroom lluzers

Veteren member
3,612 135
yes i know, you changed it from a breakout strategy below:




why the sudden change? did you not remember that breakouts fail
your village foroom, think of your village
Move on!I use to trade trend breakouts after buying course on them and books from failed trend traders.

I just made a mistake ,from the copy and paste from my previous strategy , so I have removed it.

Just move on.