Spreadbetting the FTSE100 - Made Simple (Not Mentally)

[vchohan]

Based on .5% risk those returns are fantastic. Hope it holds up in forward 'testing' (well with real money, application!)

They do look great for results but I try not to hang onto those figures as trading it for real can be a totally different story.

Emotions get involved (of which I'm trying to eliminate). Here comes the hard work! I know even though I've blown accounts and felt all the emotions before I know I still have a lot of hard work cut out for me and I think the greatest thing I'm trying to accomplish is confidence in my ability to trade. Doubt plays a role sometimes but I'm trying to eliminate it.

I've got to keep active too so I'm going to do some hard work at the gym after the market closes.

 

[tomorton]

You're getting all excited but what's the basis for your action? What TA technique identifies a probability of price advancing without a 5pt retreat? The best TA pattern or signal would surely not claim to be accurate to just 0.1% of the index value. This is typically covered by the FTSE in seconds - almost every 1 minute bar today spans more than 5pts.

 

[vchohan]

I'm not getting excited I'm putting my strategy into practice. And I'm hoping that if what you are all saying is right (the things in regards to my strategy not being up to scratch) then I will hopefully learn this over the next two weeks which is also something I want to do over the next two weeks, learn. If there is a 5points retreat then there's a 5point retreat and I learn the hard way but learning in a way that hopefully embeds in my mind that I need to tweak my strategy.

As you say almost every one minute bar spans more than 5 points. Hopefully with the strategy I've learnt over time that I'm using helps me to take advantage of the ones that don't span more than 5 points in the opposite direction of my trade.

As I've said I can make between 0 to about 7 trades in the day some wins some losses and hopefully with my strategy I can learn to trade in a consistently profitable way.

The basis of my action is that the back test and paper trades I have done over the past three months lead me to believe that my strategy works as long as execution is where I want it to be. I can understand it's hard for you to believe that my strategy is highly unlikely to work and I'm happy that you made this aware to me but I think you should know most people learn from their mistakes and learn from experience, experience I'm trying to get.

 

[tomorton]

I'm not getting excited I'm putting my strategy into practice. And I'm hoping that if what you are all saying is right (the things in regards to my strategy not being up to scratch) then I will hopefully learn this over the next two weeks which is also something I want to do over the next two weeks, learn. If there is a 5points retreat then there's a 5point retreat and I learn the hard way but learning in a way that hopefully embeds in my mind that I need to tweak my strategy.

As you say almost every one minute bar spans more than 5 points. Hopefully with the strategy I've learnt over time that I'm using helps me to take advantage of the ones that don't span more than 5 points in the opposite direction of my trade.

As I've said I can make between 0 to about 7 trades in the day some wins some losses and hopefully with my strategy I can learn to trade in a consistently profitable way.

The basis of my action is that the back test and paper trades I have done over the past three months lead me to believe that my strategy works as long as execution is where I want it to be. I can understand it's hard for you to believe that my strategy is highly unlikely to work and I'm happy that you made this aware to me but I think you should know most people learn from their mistakes and learn from experience, experience I'm trying to get.

Well that's told me hasn't it?

I do like some of the things you say - a well-defined stop-loss: disciplined stop-loss application: back-testing (though is there enough of it?): money management. These things will keep you in the game until you win it. Good luck, please post your progress here.

 

[vchohan]

You are right and I know you are when you say there isn't enough back testing. I would love to have at least 6 months of back testing and the time to trade it in real time but I have to go to work, which is just a reality. I was lucky to be able to get two weeks off from work and have £5000 to see if I can really do this which I believe I can. Nobody does this over night and everyone has their own approach to doing things some turn out good and some bad. It's just life.

It's nice to know that people who have been trading for years are watching over the shoulder of the rookies to try and help them which ever way it comes out.

Just made my last trade of the day which is yet another loss of 5points. 3 full losses in day means no more trades for the day and to evaluate. If I don't stop now (even though it's end of the day anyway) my emotions will want to take over and I will not allow it to do that.

I must say trading it for real seems to feel a lot harder then people think. Total losses today of 15.50 points.

Any advice on how to deal with three losses in a row of your first day trading?

 

[shadowninja]

I usually just mutter "typical" and go play a game. Whenever I increase my trading size, you can guarantee the next couple of trades I take are losing ones. You get used to it after a while.

 

[vchohan]

I usually just mutter "typical" and go play a game. Whenever I increase my trading size, you can guarantee the next couple of trades I take are losing ones. You get used to it after a while.

In the last year what is the most amount losing trades have you had in a row after increasing your trading size? I'm gonna get to the gym now and try and forget about the loss made today and look to see what happens tomorrow, after all anything can happen right.

 

[pboyles]

I'm not getting excited I'm putting my strategy into practice. And I'm hoping that if what you are all saying is right (the things in regards to my strategy not being up to scratch) then I will hopefully learn this over the next two weeks which is also something I want to do over the next two weeks, learn. If there is a 5points retreat then there's a 5point retreat and I learn the hard way but learning in a way that hopefully embeds in my mind that I need to tweak my strategy.

As you say almost every one minute bar spans more than 5 points. Hopefully with the strategy I've learnt over time that I'm using helps me to take advantage of the ones that don't span more than 5 points in the opposite direction of my trade.

As I've said I can make between 0 to about 7 trades in the day some wins some losses and hopefully with my strategy I can learn to trade in a consistently profitable way.

The basis of my action is that the back test and paper trades I have done over the past three months lead me to believe that my strategy works as long as execution is where I want it to be. I can understand it's hard for you to believe that my strategy is highly unlikely to work and I'm happy that you made this aware to me but I think you should know most people learn from their mistakes and learn from experience, experience I'm trying to get.

Will they not consider this scalping? Fine on a demo account but I think they'll screw you when you're in with real money, as you may already be seeing.

 

[shadowninja]

In the last year what is the most amount losing trades have you had in a row after increasing your trading size? I'm gonna get to the gym now and try and forget about the loss made today and look to see what happens tomorrow, after all anything can happen right.

From memory, 4 trades. It's just "luck". Keep trading.

 

[vchohan]

pboyles what's wrong with scalping?

shadowninja thanks for the push I think it helps. After about an hour after the close I wasn't feeling too confident and began to doubt whether I would be good at this or not but I think I've passed that now and looking confident and looking forward to tomorrow. Being at the gym felt good and I feel more refreshed.

I think keeping fit and eating healthy to keep a good mindset is a good practice in order to become a good trader. I reckon there's some sort of aid there.

 

[vchohan]

So I had another look over today FTSE100 5min chart and scrolled along as if I were trading it and I think I feel more confident that I've trained my eye better and know where I went wrong. The trades were taken 5min too late so a candlestick too late. I was waiting for a confirmation bar of which I hadn't done while testing. I would have been about 10 points up but I'm glad I looked over it I feel I've learnt from my mistake. It's not a psychological error, more of an execution error or lack or real time practice.

I think the evaluation of the day's trading is a good thing as I have found what went wrong. There is promise ahead!

 

[benji2010]

Hey vchohan,

Good luck with the next few weeks, please keep writing as I am enjoying what is going on!

Thanks,

Ben.

 

[Jack Hughes]

pboyles what's wrong with scalping?.

It's not that there's anything wrong with scalping, more that SB companies don't like it (if you win). Particularly if using a 5pt stop, it'll be difficult to make a profit if they start rejecting trades and requoting.

 

[benji2010]

They actually do that?

 

[vchohan]

Hey vchohan,

Good luck with the next few weeks, please keep writing as I am enjoying what is going on!

Thanks,

Ben.

Thanks Ben,
You trading yourself or a newbie? What do you trade?

EDIT: I've been reading loads of articles on here and I think they are a fantastic resource, read about 15 to 20 I think but one which I think relates to me and has taken my interest after today's trading is: http://www.trade2win.com/knowledge/articles/general_articles/3-ways/

 

[brettus]

Thanks Ben,
You trading yourself or a newbie? What do you trade?

EDIT: I've been reading loads of articles on here and I think they are a fantastic resource, read about 15 to 20 I think but one which I think relates to me and has taken my interest after today's trading is: http://www.trade2win.com/knowledge/articles/general_articles/3-ways/

I think your method of trading would work well with breakouts and falsebreakouts. With only 5 point trailing stops i think you could benefit even if price pulls back straight away.

 

[benji2010]

vchohan,

I will see how you get on and then try your method with £1.00 per point!

Good luck for today!

 

[vchohan]

benji, no problem mate but bare in mind it'll take some training to get the eye for the entry point and execution. You'll probably find that you would use my strategy and end up making it tailored to you or your style which I think means you are developing and developing it according to you as a person.

 

[vchohan]

So I've just taken on my first trade for the day and it was a 2point loss. I don't seemed too disturbed by it though. I'm just trying to tweak whether I should hold out on using the trailing stop on the entry candle or start using it on the next 5min candle. Looking at the charts I don't think I need to, although it would need testing. For now I'm going to stick to my strategy and follow it as it is. Psychologically I just think I should be waiting for the next trade.

I am, however, considering using a 6point trailing stop loss to take into account the spread as someone mentioned earlier I may not have fully considered, or I thought I had but haven't.

I've taken all monetary value off from my spreadsheets so I can't see it and all monetary values off my spread betting platform so I can't see it. It seems to work and is eliminating emotions.

EDIT: It's the lunchtime period so no trades for the next hour or so.

 

[benji2010]

Maybe in the afternoon you might have a better result!