Spread Betting The Ftse 100 Using Macd

[luke299]

Hello all. I believe this is one of my first posts so dont be going crazy with me if i say anything daft. Just wanting to know more about online trading and wanting to know your strategies.


I am currently trading on IG Index on the ftse 100 and sometimes the dow. All I am basically doing is following the the macd on a 5 min TF and trying to take a target of 10-20 points per trade. I use a stoploss of 20 on the ftse .

I have been trading this since the 27th of may and started off with a small £80. I am currently on £163.30. I didnt trade the bank holiday however i traded the 01nd of june and had my only loss which was minus £40 to my bankroll as the min tic size on IG for the ftse is £2.

What I want to know is:

1. Have I just been lucky to double the account in 6 days of trading or does the macd work for anyone else ?

2. Does the spread betting company actually place the trade on the market or is I betting against IG Index e.g like I am betting on man utd at ladbrokes ?


Thanks for reading and all posts are welcome

 

[pboyles]

I'd say you've been lucky, there will be times when this works and times when it doesn't. You may have hit it at a good time. If you go back some weeks in your charts you can backtest your strategy and see how it would have performed

Spreadbetting is just betting with a bookie although somewhat disguised to make it look like trading but you are not in the real market, you are trading against the bookie only.

 

[pboyles]

This thread will explain the sort of thing that goes on when you spreadbet

http://www.trade2win.com/boards/spread-betting/93554-igindex-requoted-already-closed-trade-14.html

 

[Mr. G]

Luke229 - a comment from me, not about your system but about your R:R ratio. Risking 20 pts to make 10-20 is a way to wipe yourself out. I think you need re-consider this.

 

[luke299]

Thanks alot for the replies . What strategies do you use ???

 

[luke299]

And also what brokers would you recommend ?

 

[pboyles]

And also what brokers would you recommend ?

Global futures, Velocity futures or Amp are all OK.

 

[pboyles]

Thanks alot for the replies . What strategies do you use ???

PIN bars off support or resistance levels

 

[Jack Hughes]

What I want to know is:

1. Have I just been lucky to double the account in 6 days of trading or does the macd work for anyone else ?

I think you've been pretty lucky. As someone else said, with such a small account you could have been wiped out in a few trades, whether your strategy 'works' or not. Better to experiment with a SB that allows smaller stakes, anyway. Finspreads, maybe?

 

[buzbe]

Hello all. I believe this is one of my first posts so dont be going crazy with me if i say anything daft. Just wanting to know more about online trading and wanting to know your strategies.


I am currently trading on IG Index on the ftse 100 and sometimes the dow. All I am basically doing is following the the macd on a 5 min TF and trying to take a target of 10-20 points per trade. I use a stoploss of 20 on the ftse .

I have been trading this since the 27th of may and started off with a small £80. I am currently on £163.30. I didnt trade the bank holiday however i traded the 01nd of june and had my only loss which was minus £40 to my bankroll as the min tic size on IG for the ftse is £2.

What I want to know is:

1. Have I just been lucky to double the account in 6 days of trading or does the macd work for anyone else ?

2. Does the spread betting company actually place the trade on the market or is I betting against IG Index e.g like I am betting on man utd at ladbrokes ?


Thanks for reading and all posts are welcome

IG Index should let you trade from 50p for the first few weeks...

Also - are you looking at the MACD for the graident or the crossovers?? I'd say you've been lucky.. I've managed to halve my _small_ account in the past week with stupid trades!

 

[Tryer66]

Dear Luke

I think your post is quite recent.

I'm also new to the site so this is my 3rd post. I have been trading for a year and my current strategy is using the MACD but I combine it with the ADX and moving averages trading the FTSE 100 on a daily basis. From the last 60 trades I have had some success made about 30% profit and thats including some mistakes when I didn't follow my strategy - a quarter of my trades were mistakes so I am working on eliminating those (although that could all go horribly wrong).

It is not a case of the MACD working as it won't work all the time but its a case of sticking to one strategy and getting a number of sample trades to see if your strategy works for you - I'm afraid its a case of just hammering away at it as trading is all about probabilities- they say about 30 trades is a good sample. Its also about managing your risk and knowing what your targets are on each trade.

You need to work out a definative strategy and I think using the MACD is fine so stick with it but for me I use the Average True Range as my stop and aim for 2 times my risk. I only risk 0.5% of my total capital. I recommend a book by Malcolm Pryor called 7 charting tools for spread bettors which shows you how to work out the ATR on whatever time scale you are using.

On the MACD theres a book by Gerald Appel who designed the MACD he says basically for the best trades buy when the MACD crossed below '0' or sell above plus other factors that are in the book.

I'd be interested to know if anyone else uses the MACD.

I hope that helps.

 

[kingfisher3210]

For me, trading is a 'pattern recoginition numbers game'. There is a pattern and human behaviour pattern repeat itself. I have stopped using all technical indicators for past one year and if it works for you, then thats good.

On june 1, 2010- The human pattern again got repeated in FTSE 100. Spain was downgraded on Friday (may 28) and on June 1, asian markets were in bad shape due to bad china manufacturing data.

The June 1, 2010 pattern was to short FTSE 100 and cover it around 2.10-2.20% lower then previous opening as it was expected FTSE would fall by more then 2%. In the morning, FTSE i think felt something like 2.50%, stabilized and then rose after 2:30 P.M BST as DJ 30 rose.

I want to see the naked picture- Pattern and then using memory, learning and revision process, i am retraining the neurons and synapses in my brain to augment right brain which is good in pattern recognition or intution trading.