Trading the US the Naz/Mr. Charts Way
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Mr. Charts
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Today was quite tricky, but my pre-market work threw up only six possible candidates, and only two set-ups triggered.
One of them was ELAB which moved through $3 in the first few minutes of trading, but the momentum was so fast and the spread so wide the risk was simply too great for the sort of safe high probability trade I prefer.
The other stock, RMBS, broke above its pre-market high with the right combo of T&S and level 2.
The exit was one of my standard five methods which are controlled dynamically by the market.
RMBS bought 29.28
RMBS sold 30.30
for profit +102
This was a similar trade in some ways to the one I posted earlier on this thread - SNDK - so hopefully anyone interested can look back at that.
In this sort of thin holiday trading environment it is hard to find good high probability trades and personally I'd rather just go for those and step aside if I can't find them.
The markets are always there the following day.
One of them was ELAB which moved through $3 in the first few minutes of trading, but the momentum was so fast and the spread so wide the risk was simply too great for the sort of safe high probability trade I prefer.
The other stock, RMBS, broke above its pre-market high with the right combo of T&S and level 2.
The exit was one of my standard five methods which are controlled dynamically by the market.
RMBS bought 29.28
RMBS sold 30.30
for profit +102
This was a similar trade in some ways to the one I posted earlier on this thread - SNDK - so hopefully anyone interested can look back at that.
In this sort of thin holiday trading environment it is hard to find good high probability trades and personally I'd rather just go for those and step aside if I can't find them.
The markets are always there the following day.
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Hello Mr Charts
Apologies as I'm not aware of your trading strategies, but was RMBS anything to do with playing a 30 min gap buy? Its a strategy I use and would have given me the same entry point.
ELAB however did not trigger a buy signal for me.
Just curious really....
thanks
Chris
Apologies as I'm not aware of your trading strategies, but was RMBS anything to do with playing a 30 min gap buy? Its a strategy I use and would have given me the same entry point.
ELAB however did not trigger a buy signal for me.
Just curious really....
thanks
Chris
Mr. Charts
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Hi Chris,
No, not as such.
It was as mentioned on my posting.
As for ELAB, I was looking for a potential shorting opportunity, but the movements and spreads were too great as it could have reversed at any time leaving me with a potential large loss.
I don't believe in risking any of my capital in such a situation.
Shorting into an uptick might have been the point the price reversed and since the spread varied between about 10c and 35c the danger was too great.
HTH
Richard
No, not as such.
It was as mentioned on my posting.
As for ELAB, I was looking for a potential shorting opportunity, but the movements and spreads were too great as it could have reversed at any time leaving me with a potential large loss.
I don't believe in risking any of my capital in such a situation.
Shorting into an uptick might have been the point the price reversed and since the spread varied between about 10c and 35c the danger was too great.
HTH
Richard
Hi Richard
Thanks for the feedback.
One quick question.....do you use scanning software to find potential trades and if so which one?
I use Pristine ESP to mainly find gaps and late day breakouts. Also considering using Traderbot!
Do you have any experience with these?
Thanks
Chris
Thanks for the feedback.
One quick question.....do you use scanning software to find potential trades and if so which one?
I use Pristine ESP to mainly find gaps and late day breakouts. Also considering using Traderbot!
Do you have any experience with these?
Thanks
Chris
Mr. Charts
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Hi Chris,
Email me and we'll talk off board otherwise I'll be accused of advertising products or something even more diabolical! ;-)
Richard
Email me and we'll talk off board otherwise I'll be accused of advertising products or something even more diabolical! ;-)
Richard
Mr. Charts
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Chris, in your box
Richard
Richard
Mr. Charts
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Some "pair trades" this afternoon.
I mentioned the underlying ideas on the "Pair Trading" thread 12.50 pm 1-1-04.
My method is unlike other people's and is designed to ideally produce profits on both legs with absolutely minimum risk rather than be strictly market neutral. The benefit is a strategy which allows you to answer the phone and go to the loo rather than have to watch the screen all the time.
Entries were taken between 2.40 and 2.42 and trades closed at 3.32
Entries
Long QCOM 54.87
Short ADBE 39.47
Long CECO 46.06
Short IACI 32.93
Exits
QCOM 55.11 profit +24
ADBE 39.31 profit +16
CECO 46.57 profit +51
IACI 32.94 loss -01
IMO this type of strategy is worth a look
I mentioned the underlying ideas on the "Pair Trading" thread 12.50 pm 1-1-04.
My method is unlike other people's and is designed to ideally produce profits on both legs with absolutely minimum risk rather than be strictly market neutral. The benefit is a strategy which allows you to answer the phone and go to the loo rather than have to watch the screen all the time.
Entries were taken between 2.40 and 2.42 and trades closed at 3.32
Entries
Long QCOM 54.87
Short ADBE 39.47
Long CECO 46.06
Short IACI 32.93
Exits
QCOM 55.11 profit +24
ADBE 39.31 profit +16
CECO 46.57 profit +51
IACI 32.94 loss -01
IMO this type of strategy is worth a look
Interesting to see pairs trading over a short time frame. I take it you used a real time scanner to select the stocks? What sort of criteria were you looking at?
Recently I've looked at the stock scan function in Prophet.net which seems quite good even for the basic user. Do you have a particular scanner you prefer?
machorse
Recently I've looked at the stock scan function in Prophet.net which seems quite good even for the basic user. Do you have a particular scanner you prefer?
machorse
Trader333
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Richard,
The reason why I have become so interetsed in pair trading is because it offers a market neutral strategy.
Looking at the above trades you have made they appear to me to be the same as just taking two normal directional Long and Short trades.
So if this is not the case can you explain how these trades are market neutral unless that is not how you use pair trading ?
Paul
The reason why I have become so interetsed in pair trading is because it offers a market neutral strategy.
Looking at the above trades you have made they appear to me to be the same as just taking two normal directional Long and Short trades.
So if this is not the case can you explain how these trades are market neutral unless that is not how you use pair trading ?
Paul
Grey1
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Paul,
Exactly.. If market neutral is not the reason to pair trade then one might as well take 2 long trades and call it a PAIR trade .. Alternatively take 3 long trade and call it Triple trade LOL and so on ..
I have explained that pair trading using correlation analysis relies heavily on the historical performance and not a proven strategy for day traders, this is why I am not all that keen on it ..
The VWAP model for pair trading has a meaningful concept behind it and does not rely upon Correlation analysis and the historical performance.. One should only pair trade when market is oscillating ( 50 < DOW < 50 ).. If DOW opens strong then one would get a little edge by pair trading .
Regards
Exactly.. If market neutral is not the reason to pair trade then one might as well take 2 long trades and call it a PAIR trade .. Alternatively take 3 long trade and call it Triple trade LOL and so on ..
I have explained that pair trading using correlation analysis relies heavily on the historical performance and not a proven strategy for day traders, this is why I am not all that keen on it ..
The VWAP model for pair trading has a meaningful concept behind it and does not rely upon Correlation analysis and the historical performance.. One should only pair trade when market is oscillating ( 50 < DOW < 50 ).. If DOW opens strong then one would get a little edge by pair trading .
Regards
Mr. Charts
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I've already said,
"My method is unlike other people's and is designed to ideally produce profits on both legs with absolutely minimum risk rather than be strictly market neutral."
The principles are mentioned on Pair Trading 2-1-04 4.43pm
I repeat, this is my method of "pair trading" and is NOT comparable to more technical or mathematical methods - chalk and cheese.
It works for me just fine, though I've been trading for a living for four years so I do know what I'm doing. The approach is not suitable for beginners. I posted about it to share so anyone can look for themselves and consider if it's useful for them.
I wouldn't dream of denigrating anyone else's methods.
Most people are welcome to pm me if they want further details.
"My method is unlike other people's and is designed to ideally produce profits on both legs with absolutely minimum risk rather than be strictly market neutral."
The principles are mentioned on Pair Trading 2-1-04 4.43pm
I repeat, this is my method of "pair trading" and is NOT comparable to more technical or mathematical methods - chalk and cheese.
It works for me just fine, though I've been trading for a living for four years so I do know what I'm doing. The approach is not suitable for beginners. I posted about it to share so anyone can look for themselves and consider if it's useful for them.
I wouldn't dream of denigrating anyone else's methods.
Most people are welcome to pm me if they want further details.
Mr. Charts
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Oh no Paul - you've never caused me the slightest problem!
I wasn't referring to you.
You know where I am for anything you want answering.......anytime..........no problem, no misunderstanding!
As for "upset", no-one here can upset me. I just feel sorry for arrogant people who feed their own egos by bad mouthing others - sad and pathetic individuals.
Richard
I wasn't referring to you.
You know where I am for anything you want answering.......anytime..........no problem, no misunderstanding!
As for "upset", no-one here can upset me. I just feel sorry for arrogant people who feed their own egos by bad mouthing others - sad and pathetic individuals.
Richard
Mr. Charts
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Another pair trade; same criteria.
2.43
MERQ short 49.36
INTU long 48.80
This one I legged out as MERQ went against me with a trend reversal
2.50
MERQ covered 49.58 for loss -22
3.46
INTU sold 49.44 for profit +64
as it is levelling off - maybe consolidation, maybe running out of momentum, can't tell so time to cash in.
2.43
MERQ short 49.36
INTU long 48.80
This one I legged out as MERQ went against me with a trend reversal
2.50
MERQ covered 49.58 for loss -22
3.46
INTU sold 49.44 for profit +64
as it is levelling off - maybe consolidation, maybe running out of momentum, can't tell so time to cash in.
Mr. Charts
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To me this market has looked strong since 2.50/2.55 after the futures reversal................where it is going now I haven't a clue so I'm off for a coffee.
Mr. Charts
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Another pair trade, just the same concepts:
Bought IACI 32.52 14.39
Short ADBE 36.78 14.39
Sold IACI 32.51 14.44
Bot ADBE 36.61 14.43
IACI loss -1
ADBE profit +17
This is a way of trading the early minutes without the stress some people feel and without fear of wild movements.
The first entry to the last exit took just five minutes and netted 16c.
Only a small profit perhaps, you don't always get big gains, but a virtually risk free trade.
Consistent bread and butter trading.
Bought IACI 32.52 14.39
Short ADBE 36.78 14.39
Sold IACI 32.51 14.44
Bot ADBE 36.61 14.43
IACI loss -1
ADBE profit +17
This is a way of trading the early minutes without the stress some people feel and without fear of wild movements.
The first entry to the last exit took just five minutes and netted 16c.
Only a small profit perhaps, you don't always get big gains, but a virtually risk free trade.
Consistent bread and butter trading.
stevespray
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Are there any plans to have another Nasdaq L2 seminar ? I am particularly impressed with the feedback from the one at Heathrow in November.
Steve.
Steve.
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