What Is Your Favourite Trading Strategy ..??
- Thread starter spunkyblonde
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SGhosh said:
Not too experienced, but I have used them. Are you reversing when the price touches the BB?
Works well while there is congestion but when the trend starts I found that they are unreliable.
Sometimes they reverse at once towards the average, or maybe they stay beyond the BB while the market is trending so that, if reversing, you get stopped.
The trick is to find a clue that will tell when that is about to happen.
Split
trendie
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Splitlink said:Not too experienced, but I have used them. Are you reversing when the price touches the BB?
Works well while there is congestion but when the trend starts I found that they are unreliable.
Sometimes they reverse at once towards the average, or maybe they stay beyond the BB while the market is trending so that, if reversing, you get stopped.
The trick is to find a clue that will tell when that is about to happen.
Split
In the old "Live Cable Trading" thread, I posted an FXCM article where they showed how to use Boll-Bands with ADX.
in short:
if ADX is below 20 or 25, market if flat/rangey, therefore better to fade the price when it hits the boll-bands.
if ADX is rising and/or above 20 or 25, then the market is trending, take the break-out of the boll-band, or do not fade the price here.
very general, but may be worth exploring, or a basis of further study.
(sorry, dont have access to full article anymore).
hope that helps.
trendie said:
Hi Trendie,
I have used BBs but don't anymore, they are not my thing. Thanks just the same. I stopped using indicators a long time ago. Now it's patterns and 123 formations but you, still, have to be in the right trend for that. Do you have any ideas on how to determine whether you are on a "3" of a 123 pattern,or is it the "2" of a different trend?
Split
trendie
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Splitlink said:
funny old world!! You've stopped using BBs!
I have started looking at BBs as potential profit-targets in tight markets, or as risk levels when my MAs get whippy.
re: 123:
My understanding is the 123 has (ideally) to occur within a set number of bars (around 5-7 max), so there shouldnt be any issues of it being part of a different pattern.
Too many bars without resolution, and I think it becomes a "ledge".
(take above with some leeway, as I dont use 123s, and havent addressed them for sometime)
What Is Your Favourite Trading Strategy ..??
I look for price which as exhausted itself and place the opposite bet of what others are doing. That is the basic rule.
But you got to understand when the market is trending. What I find, when the Dow is exhausted lets say the market is up over 100 points, but through the day the range of lets say 10 mins bars are small, this tells me we are in a trend. You will get a warning when you see a big reverse bar on a 10 min bar, which looks out of place to all the previous bars for today trading if this happens and the market starts to trend again I look to go short at about 50% of the big range 10 min bar. I got many methods, doing similar things but some use limits and other don't..
I look for price which as exhausted itself and place the opposite bet of what others are doing. That is the basic rule.
But you got to understand when the market is trending. What I find, when the Dow is exhausted lets say the market is up over 100 points, but through the day the range of lets say 10 mins bars are small, this tells me we are in a trend. You will get a warning when you see a big reverse bar on a 10 min bar, which looks out of place to all the previous bars for today trading if this happens and the market starts to trend again I look to go short at about 50% of the big range 10 min bar. I got many methods, doing similar things but some use limits and other don't..
Discipline needed to exercise discipline needed to read discipline needed to stick to the plan its hard to find and maintain discipline somehow one has to find the inner strength and maintain discipline anyhow one thing is for sure most dont have discipline, with no discipline, you cant do size anything without size, you cant get rich that is, the bottom line
Shark mind set = cruise.....test out, for non threatening targets, that seem sure easy prey...... meanwhile at any hint of trouble, shark body swerves away..... the shark never messes with threats...the shark survives by being very choosey and the mse aplies to the markets.
Shark mind set = cruise.....test out, for non threatening targets, that seem sure easy prey...... meanwhile at any hint of trouble, shark body swerves away..... the shark never messes with threats...the shark survives by being very choosey and the mse aplies to the markets.
Try to keep my trading strategies as simple as possible.What you want to do is be able to find 4 or 5 general rules involving set-ups, position sizing, and exits then apply them to the entire stock universe over a period of time that involves different market conditions such as a bull run, a bear run, and some sideways action and then see if the results are positive, and consistent through all time periods. It is dangerous if almost all of the gains came from 3 months out of 3 years for instance. You want to see persistent consistency.
Here is an example of several simple rules...
1, S&P 500 has closed down for at least 2 days in a row
2, Put in a limit order 2% below yesterdays closing price
3, Position Size=5% of your account value
4, Exit the when the 3 period RSI of the stock is above 65
This is the level of simplicity that I look for in a system. Now, I don’t want to go and preach this as an effective system because I haven’t studied it (the power ratings are proprietary so it is difficult to test unless you do it prospectively) (if anyone wants to test it prospectively though...please do). The concept is to get an idea of what to look for in terms of simplicity of a system or strategy.
The bottom line...whatever your trading style is-keep it relatively simple. Find several rules to abide by that are both profitable and work with your personality. If you do, you have a much better chance of success not just in trading, but in life.
Here is an example of several simple rules...
1, S&P 500 has closed down for at least 2 days in a row
2, Put in a limit order 2% below yesterdays closing price
3, Position Size=5% of your account value
4, Exit the when the 3 period RSI of the stock is above 65
This is the level of simplicity that I look for in a system. Now, I don’t want to go and preach this as an effective system because I haven’t studied it (the power ratings are proprietary so it is difficult to test unless you do it prospectively) (if anyone wants to test it prospectively though...please do). The concept is to get an idea of what to look for in terms of simplicity of a system or strategy.
The bottom line...whatever your trading style is-keep it relatively simple. Find several rules to abide by that are both profitable and work with your personality. If you do, you have a much better chance of success not just in trading, but in life.
black bear
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G-Man said:
Be clear whch time frame the beakout as taken place in and trade it, a strong break out in 5min, 10min, 15min, and hourly will not break a simple 20 MA at close and you can always re-enter later when later price action confirms breakout.
I find the shorter time frames (less than 5 mins of no use a whipsaw or neg price action in 1&2min charts happen all the time you would need to use a simple 100ma and price x entry to have a chance of holding position and catching a breakout.
Be wary of trading a time frame where you can not old position until the candle is closed.
I look at next time frame up ie 10mins to hour with bollingers and daily pivots on chart.
Hope thats a bit of use to you, Daily Pivot points tend to be where breakouts in the short time frames break down.
Develbis
Crap Buddist
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Racer said:Shorting is a good way of keeping an open mind, I often go long or short the same share... or index. That way you don't get fixed into thinking it will always go up (or down!)
Married men can skip this exercise .
Crap Buddist
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ohh that goes for married women too no doubt.
lurkerlurker
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A reliable, backtested, objective indicator of whether the market is trending or not. Perhaps either only trade when the market is trending, and if you must trade a choppy range half your position size and be less ambitious with the targets.
Easier said than done, yes. What are your favourite indicators of trend? Swing lows and highs, simple HH/HL (LH/LL)? ADX? Moving averages (or crosses)? Volume higher on up (down) bars in a bull (bear) phase?
luckyd1976
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2 Favorite LongTerms
1 (Daily Chart, 65ema/260sma crosses)
2 (Daily chart, "Front Runners")
1 LongTerm Long side only.
2 Front Runners YTD outperformers crossing the index
2 EX: MCD vs DJIA
When MCD crosses DJIA on a YTD compare I'm in. Keep the winners dump the losers of an index. Instant outperformer every year.
1 (Daily Chart, 65ema/260sma crosses)
2 (Daily chart, "Front Runners")
1 LongTerm Long side only.
2 Front Runners YTD outperformers crossing the index
2 EX: MCD vs DJIA
When MCD crosses DJIA on a YTD compare I'm in. Keep the winners dump the losers of an index. Instant outperformer every year.
Last edited:
2George
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Use extended trendlines
Use extended trendlines to determine whether a swing trade is coming up. Used with a momentum indictor like CCI they are very informative.
Trade in probabilities not possibilties.
George
"Trade what you see and not what you hear or hope."
Use extended trendlines to determine whether a swing trade is coming up. Used with a momentum indictor like CCI they are very informative.
Trade in probabilities not possibilties.
George
"Trade what you see and not what you hear or hope."
rathcoole_exile
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Not too experienced, but I have used them. Are you reversing when the price touches the BB?
Works well while there is congestion but when the trend starts I found that they are unreliable.
Sometimes they reverse at once towards the average, or maybe they stay beyond the BB while the market is trending so that, if reversing, you get stopped.
The trick is to find a clue that will tell when that is about to happen.
Split
SGhosh,
to follow on from Monsieur Splitlink,
a well known technique for anticipating big movements after a period of consolidation is using BBs in conjunction with Keltner channel - when the BBs are inside KC then it means consolidation is in progress, action is then taken once at least one BB moves outside KC, indicating an increase in volatility may be about to start.
So i guess you could reverse the logic, and use your channel bouncing system only whenever BBs are both inside KC, indicating a significant lack of volatility ??????
just a thought ................
I use Point&Figure charts with standard buy and sell signals. Favourites are 3 point reversal charts. I use 3x3, 3x1 and 2x1 charts mostly. I also use Equivolume charts as well. Indicators are Ease of Movement and ATR which I use for volatility based stops.
I got rid of all other indicators and concentrate solely on price, volume and volatility.
I got rid of all other indicators and concentrate solely on price, volume and volatility.
mp6140
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MP -- spunky and muddy ?
sounds to me that youre using "muddy's method" from many a year ago, and one that indeed is very successful -- do you use his ma "zone" also ?
mp
=====================================================================HI I like tradeing uptrend 3 day reversals .. and downtrand reversals both 3 day and 5 day (dead cat bounces ) i agree not a popular trade .. But good % gain .. when entry/exit are correct .. i would be very intersted in what other traders see as there favourite type of trade ... cheers ..
sounds to me that youre using "muddy's method" from many a year ago, and one that indeed is very successful -- do you use his ma "zone" also ?
mp
