The Volatile IBEX - a simple trading strategy..

[nkruger]

This stoch is fast becoming my favourite indicator.

And.... the divergence thing on the RSi has become my favourite. Over the last couple of days I've been wondering whether we've found a 'holy grail' of a trading system ? It does work very well. What do you think ?
:cheesy:

 

[options]

Ugh!! Please don't call it the holy grail. SSSHhhhhhhh! It just works quite well.

Price as ever will always dictate and is always right.

Some of the lower indicators work quite well by showing divergence and the settings have to be played about with to suit. I don't use rsi. But rsi, macd and cci amongst others, when set right give excellent divergence indicators.

You gotta laugh at all the people that say all indicators lag and are worthless.

Price is an indicator of the next possible direction. According to the mass then, price must be wrong!

 

[brutusdog]

binarys with lovely puppies

hi nk,

basically my way of trading the binary markets is pretty simple and is based around the same system i was using for day trading, basicaly based on an amagamation of different things i found worked.

the key is price and basic t.a of price. only really bothered about support and resistance, either from trend lines or highs and lows...

1 min candle price chart.

m/a's i have 100 / 50 / 12 / 5. all exponential.

i have full stocs set 39 1 8

i have rsi at 21 with a 8 period exponential m/a.

not too concerned with the main trend, although it is important for a general view, so i have the 100 and 50 moving averages to show the short term main trend.

trades taken on a ma cross of the 5 and 12.

confirmation is from rsi crossing its m/a and above 50 or breaking resistance / support.

also stocs have to be coming from +90 or 5 and be past the trigger line and preferably moving past 50 as well.

this is an entirely subjective system. it is not intended that every signal as such is taken. it is more a way of getting into a short term move at an opetune moment. it can also be used on any time frame.

the reason i am trading it on binarys is due to the volatility. hourly binarys have high volatility and as this way of trading allows you to get in early on a move it is possible to get very good r/r ratio.

however, the binarys have to be bought at low levels. and not useually in the 15 mins before they expire as the volatility decreases due to the pricing model taking account of the short amount of time left.

hope some of this makes some sense?..

all the best lads.


addition....no such thing as the holy grail....unless its psyhcology and money management.

 

[nkruger]

Ugh!! Please don't call it the holy grail. SSSHhhhhhhh! It just works quite well.

You gotta laugh at all the people that say all indicators lag and are worthless.

You're right, options - it's working well strat. Probably a lot of other systems on these boards work just as well if I was to spend a couple of days searching for them & testing them, but I'm too busy trading this one !!
It does seem that the Stoch we use actually is AHEAD of the price move on some occasions. Mmmmm.
Could this complete strat be used in Forex ? I've never really looked into that market, always prefered indices....
Another thing I'm looking into is Pivot Points (for the Dow,Dax,FTSE and Ibex) I'll let you know what I find.
Busy day with the Puppies today !!

 

[nkruger]

hope some of this makes some sense?..

all the best lads.




Yes it does BD, thank you for the post. Who do you trade the Binaries with ? - like to take a look at the site.....

NK

 

[nkruger]

A Name for the Strategy..

I hereby name this strategy - THE PUPPIES - and may everyone who 'sails' with her, be successful.

Nick

 

[brutusdog]

hope some of this makes some sense?..

all the best lads.




Yes it does BD, thank you for the post. Who do you trade the Binaries with ? - like to take a look at the site.....

NK

was using i g index but there is a wider choice of binarys on choice odds, so giving them a go and they seem ok. no charting on the site but sure you have that else where, who are you using for that and trading with?

hope the puppies are on fine form today

 

[neil]

Him with glasses

Oh Deep Joy! (Now who said that?)This stoch is fast becoming my favourite indicator.

PUPPY POWER!
(And where is that from?)

Stanley Unwin ??

 

[nkruger]

Stanley Unwin ??

Have a listen to the audio clips on www.stanleyunwin.com they're hilarious !

Nick

 

[nkruger]

was using i g index but there is a wider choice of binarys on choice odds, so giving them a go and they seem ok. no charting on the site but sure you have that else where, who are you using for that and trading with?

hope the puppies are on fine form today

Morning BD, I use CMC for trading, but I find the Finspreads charts are a lot clearer, so I have those on a screen next door.

Puppies are pert this morning, ready for whatever move seems evident.

NK

 

[options]

Stanley Unwin ??

Give that man a cigar!

I thought you would get it. Your as old as me!

Now, Puppy power? I'll have to try and jog me daughter's memory 'cause she used to watch it when she was 4 or 5. She's 22 now.

nkruger: Is that short for krugerand?

Anyway. Yes it does work on fx, but there must be a bit of wind behind you. Certainly for the lower time frames. If not you get chopped a bit. Been trying this in the comp, and with no momentum the cuts hurt quite badly mummy. So the longer time frames are good for this (of course). With lots of momentum the short frames are okay. Jap has been useless for a couple of days and has picked up this morning.

Best times to trade the 'puppies' is just after the open. So must put together a trading time table: IE GB time from 7am to 10 ish forex, ftse, Ibex, cac, Dax, Bund? Then from 2.00 pm Dow, nas and s & p.
Anyone think of anything else?

Ahh, Ahh. Early morning Aussie market. What times that open? 5 am?

 

[nkruger]

nkruger: Is that short for krugerand?

Yes.

 

[Van88Guy]

Thanks, nKruger, I'm going to check this out.
Van88Guy

 

[brutusdog]

Give that man a cigar!

I thought you would get it. Your as old as me!

Now, Puppy power? I'll have to try and jog me daughter's memory 'cause she used to watch it when she was 4 or 5. She's 22 now.

nkruger: Is that short for krugerand?

Anyway. Yes it does work on fx, but there must be a bit of wind behind you. Certainly for the lower time frames. If not you get chopped a bit. Been trying this in the comp, and with no momentum the cuts hurt quite badly mummy. So the longer time frames are good for this (of course). With lots of momentum the short frames are okay. Jap has been useless for a couple of days and has picked up this morning.

Best times to trade the 'puppies' is just after the open. So must put together a trading time table: IE GB time from 7am to 10 ish forex, ftse, Ibex, cac, Dax, Bund? Then from 2.00 pm Dow, nas and s & p.
Anyone think of anything else?

Ahh, Ahh. Early morning Aussie market. What times that open? 5 am?

i've been finding it works pretty well on anything, am using 1,3,5,15 min charts, with my system. the ideal is when the m/a cross happens as same time as puppies and rsi breaking suport / resistance. heres to a good day guys...

 

[options]

Just been having a look at Choice odds. Thanks for the heads up Brutusdog.
I too use IG but Choice do look better for the binaries.

Binaries from 10p as against a fiver min on IG.

For anyone new to binaries Choice has to be worth a look.

Now does anyone know a place where they will accept my hindsight bets?

 

[mikehbeck]

A little confused

I gotta admit guys, I'm a little confused as to how your setup works (the original one posted... not the divergence one). Let me what it sounds like you're saying, and if you would be so kind, please tell me where I got it wrong.

For a long setup, the 8 ema is currently below the 10 sma. Then the 8 ema crosses over the 10 sma going up. Then, you look at your Full Stochastic (period = 39, %k = 1, %d = 1), and wait for it to go below 10 (or was it already below 10 before the ma crossover?) and then turn around and go above 25, at which point you enter your long.

Looking at my charts, I don't see this setup happening... it looks impossible. After the 8 ema crosses over the 10 sma going up, the Stochastic is not going to go down, it's going to go up, so I'm guessing the Stochastic was already below 10 before the crossover?

Also, another thing I notice, is that usually the Stochastic is crossing over 25 before the moving average crossover. So when you say the 8 ema crosses the 10 sma (for a long setup), do you mean it crosses it over going down, or going up? Would you classify this as a trend following setup, or a reversal setup?

Any help would be appreciated. One screen print from the original poster would probably be worth a thousand words.

 

[nkruger]

I gotta admit guys, I'm a little confused as to how your setup works (the original one posted... not the divergence one). Let me what it sounds like you're saying, and if you would be so kind, please tell me where I got it wrong.

For a long setup, the 8 ema is currently below the 10 sma. Then the 8 ema crosses over the 10 sma going up. Then, you look at your Full Stochastic (period = 39, %k = 1, %d = 1), and wait for it to go below 10 (or was it already below 10 before the ma crossover?) and then turn around and go above 25, at which point you enter your long.

Looking at my charts, I don't see this setup happening... it looks impossible. After the 8 ema crosses over the 10 sma going up, the Stochastic is not going to go down, it's going to go up, so I'm guessing the Stochastic was already below 10 before the crossover?

Also, another thing I notice, is that usually the Stochastic is crossing over 25 before the moving average crossover. So when you say the 8 ema crosses the 10 sma (for a long setup), do you mean it crosses it over going down, or going up? Would you classify this as a trend following setup, or a reversal setup?

Any help would be appreciated. One screen print from the original poster would probably be worth a thousand words.

I normally look for the price (I use candlesticks) to go above the MA's to signal a long trade - but sometimes the Stochs have already signalled a trade, so the MA's are just there to confirm. If you read back a few pages you will see that the later stochastic setting we are now using (39/1/8) gets us in a trade VERY early and also give us a better idea if it's going to work.

 

[nkruger]

Today I shall mostly be using......

Morning fellow contributors,

Today I'm trying the more relaxed 5 min charts on the Ibex for a change, to see if I enjoy it better.

What are your experiences ?

Nick KrugerRand

 

[new_trader]

Ugh!! Please don't call it the holy grail. SSSHhhhhhhh! It just works quite well.

Price as ever will always dictate and is always right.

Some of the lower indicators work quite well by showing divergence and the settings have to be played about with to suit. I don't use rsi. But rsi, macd and cci amongst others, when set right give excellent divergence indicators.

You gotta laugh at all the people that say all indicators lag and are worthless.

Price is an indicator of the next possible direction. According to the mass then, price must be wrong!

Options,

I'm a little confused here. Playing around with the indicators until they "work" is curve fitting isn't it?

 

[Dinos]

Morning Nick and all, seems we all have a slight variation of how best to trade, and I must say, I have started to adopt the Stochastic (39,1,8) into my general trading. I'm very impressed, my normal strategy, is using lagging indicators and enter a trade after the direction has begun to avoid the whipsaw action, I'm comfortable with this as it has served me well for about 10 years now.

I want to try and adopt this into my plan, but do feel slightly out of my comfort zone at the moment and not really prepared to put my head on the block at the moment in contributing to much to this board, I need to adopt this into my normal DOW trading, however, give a me a couple of weeks and I'll join you for a bit of banter and trading.

Good luck and keep up the good work