"Trading Day by Day" by Chick Goslin

[LevII]

Can you tell a little bit more about Chick's methods ?

Just buy the man's book

 

[TGM]

Can you tell a little bit more about Chick's methods ?

You have 50++ pages on this thread talking about the method. Read it and if interested buy the book.

 

[FuturesTrader]

The Weakest US Stock Index

Hi,

what would you consider to be the weakest market of Dow, S&P or NDX?

trend in the Dow not really changed yet.
in the S&P the direction line just changed.
and in the NDX the trend is clear down.

all three have very negativ SL values.
but even if NDX is concurrent to the downside, due to the low SL i guess an entry could be late.

would be interested in how others see these three markets right now.
don't misunderstand. no advise is required just some analysing of our three lines.

any takers?
cheers
Flex

FlexMan,
NDX has been and continues to be the weakest of the big three US stock indexes. Chick discussed in his book looking at which market dropped the most from 10 weeks ago to determine the weakest. Obviously, you would want to normalize the change in price to a percentage decrease to compare across markets. Another way to get a feel for determining the weakest market would be to see which one has the strongest down-trend as quantified by the ADX (Directional Movement Index). As 20-20 hindsight shows so vividly now, it hardly was too late to short the NDX a week ago. Hopefully you jumped on-board one of the index's descents. Best regards.

 

[eminimethods_com]

Chick Goslin's upcoming webinar

Hi,

I thought that you guys might want to know that CG is going to give a webinar at CBOT (I believe over the Hottcom platform) about his ideas. You may want to check out the complete schedule of CBOT webinars by following this link:

http://www.hotcomm.com/virmeetCID_GCM.asp?CID=YMDZYQ

Once you get to the schedule page you will be able to enroll for the said webinar which takes place on June 1st at 16:30 ET.

Hope this helps.

Best,
Wally

 

[fmarini]

An example of Goslin's 3 point system

I'm new at futures trading and to this board.

Recently listening to Goslin's webinar at the CBOT, I decided to find a trade that met the parameters of his rules.

On 7-31-06 I went long 2 contracts of LCV6 at 8850 with a stop set at 8712 risking $552 /contarct + commissions.

I'm not using SMR's indicators, rather I've tweaked the traditional MACD and am using it in conjunction with the 50 ma, producing very similar but not exact signals as SMR's.

As you can see LCV6 only gave me a couple of days concern then off to the races.

Again sticking with Goslin's suggestion of exiting 1 contract at 100 - 150% of margin, on 8-10-06 I sold 1 contrat at 9100 limit and filled at the gap open at 9140 for a gross profit of $1,160.

With 1 contract left open, I can now relax my stops and let the trend run. Of course, when price goes crosscurrent I'm out with good profits. Alternatively, I can use longer term indicators to ride the trend - financing the volatility with my open profits.

I'm very impressed with how intuitive the price moves unfold.

 

[expensif]

A few more questions...

1. Does a "signal" with +3 points (in the IFT-points system) have better odds to be successful than a "signal" with 2 or 2.5 points?

2. Is anticipating the signals key to success with this method? Or can one be successful with just screening out stocks with the IFT-points system and pick the best candidates for trade from this list of stocks that have "odds in favor"?

 

[L'Escargot]

Can this book still be purchased in the UK (and delivered from the UK)?

It does not seem to be listed in the T2W bookshop any more.

Or does anybody want to sell a used copy??? (PM me!)

Cheers.

 

[klal]

Try this:
Trading Day by Day

Can this book still be purchased in the UK (and delivered from the UK)?

It does not seem to be listed in the T2W bookshop any more.

Or does anybody want to sell a used copy??? (PM me!)

Cheers.

 

[thepoliteone]

I guess I should sell my copy if anyone is interested? I'm moving sometime soon and clearing out space is probably a good idea!

PM me if interested.

-TPO.

 

[siddhakala]

Is it possible to use method given in Trading Day by Day with traditional indicators like MACD, Stochastic, RSI, CCI

 

[KarlaF]

sure it doesn't depend on the indicator. you will find same setup's like ANTI, J-Hook, Zero Line rejection also with stochastic or CCI.
i thing linda raschke and woody have found most of these setups. they all give fancy names but at least it's all the same.
also www.dacharts.com is a good source.
it just requires some research.
karla

 

[LevII]

Maybe 90% of the posts (after say page 5 or so) are nothing more than marketing fluff.

And the first 5 pages aren't?

For anyone tempted to buy, the method postulated is - guess what - a moving average system!

Donations of the amount saved to your favourite charity please (by which I do not mean your spreadbet company).

LII

 

[quanttrader]

i am a small professional trader in new york, i primarily trade hi cap stocks and active electronic futures. i trade self-designed momentum systems. i believe in momentum as a trading approach, but have always gotten smacked around,to some degree, mostly in choppy markets. after reading about chick's book, and reading this great thread, i intuitively know that his approach will greatly increase my results. i have ordered the book, and while awaiting its arrival, have been reading this thread and other things about chick's approach. as a first step, prior to 'integrating' chick's ideas into my own models (something that i believe is not as easy as it may seem), i have chosen the er2 and eur futures markets as the two markets that i will focus on first, to try to master and understand the approach. some of my trading is day trading, and most of it consists of trades that list 2-5 days. i have seen some of the charts posted here. For example, I have seen posts of 100tic charts in the er2. reagrding the euro, because i am in new york, and because i like to sleep, i have always traded it as a day trade vehicle, trading the 'old' cme futures hours, 8:20 am to 3 pm EST, so i don't have to worry about moves overnight. oddly, this approach has worked well, although i do see all the great trades i miss. I am looking for suggestions as to how best to deal with the euro, the er2, and anything else about the approach in general. this is an excellent thread, really great, and i thank you all in advance, and hopefully, after a lot of studying and trading, there will be things i can add.

 

[A Dashing Blade]

. . .
For anyone tempted to buy, the method postulated is - guess what - a moving average system!
. . .

Too simplistic, the "method" (I'd say philosophy myself) is based around waiting for long, medium and short-term indicators to come together.

There's value for everyone in the book imho even if you don't use the "system"

 

[chump]

I recommended this book and it had nothing much to do with the system which is as fine as the skill you use to employ it

This was the first ,and remains the only book I have ever bought that focussed on the process. It basically put you in front of a market situation with a live right hand edge and ecourages you to each day ask what do I now know and what do I do about it and to do this within the context of some fairly simple rules as the market action unfolds in front of you. It therefore tends to move you away from what you might 'believe' , or guess , and encourages you to focus on the objective process. This is no small thing as it encourages you to ask the right questions !

Taking it further you can start to formulate answers to what is YOUR definition of a tradeable trend , what is YOUR definition of a pullback etc etc. within YOUR plan to trade.

and why didn't I pick such a great name ...."A Dashing Blade" .... !

 

[Directional]

i am a small professional trader in new york,...

under 5 feet tall? :cheesy:

 

[Jack o'Clubs]

I notice that on the CBOT 'education' pages there's a webinar on TDBD from Goslin. Not watched it yet as you need to go through some registration stuff, but will do later. There are also some slides you can download without registering - looks like a very brief run through of the book's principles.

http://www.cbot.com/cbot/pub/cont_detail/0,3206,373+38107,00.htm


EDIT: Now listened to the webinar. A bit long-winded (1hr+) with lots of repetition - clearly aimed at newbies - but worth listening to for anyone thinking of buying the book or trying his approach. Some good stuff in there about money management about 45 minutes in. Too long spent on the 'proprietary' SMR indicators, which are basically tweaked MACDs, but he makes it clear that any reliable momentum oscillators will do. Also I think the key to the method is the 'discretional' bit, and he doesn't go into that much in this webinar. Pretty persuasive with his keep-it-simple-stupid message. Good book, good guy IMO.

 

[chitowntrader]

new to this site, read this thread and bought the book, halfway thru it, great stuff. question if someone can help me out; i am a former floortrader, my timeframe is shorter than daily, been fooling around with intraday charts, everything looks like it works as well. any suggestions on time frames would be appreciated. i currently trade bonds, es, er, euro, oil and some stocks. my goal is to pretty much trade exactly as is laid out in the book, seems to make total sense. great approach, and great posts here. any and all comments welcome. i also plan to subscribe to chick's newsletter, at least at first to help with the learning process. thanks in advance.

 

[Jack o'Clubs]

new to this site, read this thread and bought the book, halfway thru it, great stuff. question if someone can help me out; i am a former floortrader, my timeframe is shorter than daily, been fooling around with intraday charts, everything looks like it works as well. any suggestions on time frames would be appreciated. i currently trade bonds, es, er, euro, oil and some stocks. my goal is to pretty much trade exactly as is laid out in the book, seems to make total sense. great approach, and great posts here. any and all comments welcome. i also plan to subscribe to chick's newsletter, at least at first to help with the learning process. thanks in advance.

My view is that the shorter time periods you start to break an instrument down into, the more the individual moves start to resemble 'random walk' rather than a trend, and this will kill a trend following method like TBDB - breakout, or other, strategies probably work better. All IMHO of course - I know people do use things like MACD for intraday. I know from his book Goslin is not a fan of intra-day trading, although that may be as much for lifestyle reasons as anything. So if I were going to use TBDB techniques to trade intraday I would want liquidity (the instruments you list are good), and I'd probably not bother with anything lower than a 60-min timeframe. I like the TBDB method and use a version of it for position trading, and I've had a look at using it intra-day a couple of times, and really not been able to make it work as effectively as it seems to do on daily time periods.

 

[chitowntrader]

My view is that the shorter time periods you start to break an instrument down into, the more the individual moves start to resemble 'random walk' rather than a trend, and this will kill a trend following method like TBDB - breakout, or other, strategies probably work better. All IMHO of course - I know people do use things like MACD for intraday. I know from his book Goslin is not a fan of intra-day trading, although that may be as much for lifestyle reasons as anything. So if I were going to use TBDB techniques to trade intraday I would want liquidity (the instruments you list are good), and I'd probably not bother with anything lower than a 60-min timeframe. I like the TBDB method and use a version of it for position trading, and I've had a look at using it intra-day a couple of times, and really not been able to make it work as effectively as it seems to do on daily time periods.

thanks, jack. points taken, will have to work on my patience