2 Bar Charlie Day Trade System ("LIVE DEMO")
- Thread starter T-REX
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T-Rex
I missed the live demo today. Wasn't aware of it until I stumbled on it an hour ago. Maybe my biorhytms are good today but I got the system right away. Most of my time reading the now 19-pages was, lamentably including various individuals to my Ignore List.
I use a similar system in which I use also usea 60-minute time frame to determine the trend and only take trades in that direction. The difference is that after the signal is given (if I understand it correctly: a low close over the 40 EMA because the 60-minute trend is up), I wait for a 50-75% retracement and place a limit order. I don't always get a fill but today I did. On the ES there was a Low of 1039.50 at 9:45 High of 1043.25 at 10:15 creating a 4.75 range which I rounded out at 4.50 and then took a 2/3 retracement of 3-points, subtracted that from the 1043.25 High yielding a 1040.25 limit buy order which got filled at 10:42. With this market I've just been taking 2.50 points per trade until after lunch.
That was my second trade. There is a 3-bar Charlie that I use. I may not understand it in the way Velez described it, but I look for 3 down red candles (the first 3 bars of the morning ES session on the 5-minute chart), followed within 3-bars of a bar taking out the high of the 3rd down bar. I believe the system requires a buy triggered by taking out that high. I prefer to wait for a retracement with the tighter and tighter ranges the days have been giving us of late.
The range on the 3 white bars following the aforementioned 3 red bars was 1039-1041.25 or 2.25. I like to do my calculations on the fly so half is 1.25 (better to err on the side of caution and not go 2/3 or 1.50-points when the range is 3 or less) and I placed the limit buy at 1040.25 and got filled at 10:04 and took my 2.5 points at 10:16.
Another 2.5 points later this morning and I went outside to dig up the section of sewer pipe that the scope says has roots in it. Looking at the tv camera going through the sewer pipe reminded me of my first flexible sigmoid. . . oh never mind.
Hopefully I haven't expressed myself too illiterately.
Best regards,
JD Schaefer
I missed the live demo today. Wasn't aware of it until I stumbled on it an hour ago. Maybe my biorhytms are good today but I got the system right away. Most of my time reading the now 19-pages was, lamentably including various individuals to my Ignore List.
I use a similar system in which I use also usea 60-minute time frame to determine the trend and only take trades in that direction. The difference is that after the signal is given (if I understand it correctly: a low close over the 40 EMA because the 60-minute trend is up), I wait for a 50-75% retracement and place a limit order. I don't always get a fill but today I did. On the ES there was a Low of 1039.50 at 9:45 High of 1043.25 at 10:15 creating a 4.75 range which I rounded out at 4.50 and then took a 2/3 retracement of 3-points, subtracted that from the 1043.25 High yielding a 1040.25 limit buy order which got filled at 10:42. With this market I've just been taking 2.50 points per trade until after lunch.
That was my second trade. There is a 3-bar Charlie that I use. I may not understand it in the way Velez described it, but I look for 3 down red candles (the first 3 bars of the morning ES session on the 5-minute chart), followed within 3-bars of a bar taking out the high of the 3rd down bar. I believe the system requires a buy triggered by taking out that high. I prefer to wait for a retracement with the tighter and tighter ranges the days have been giving us of late.
The range on the 3 white bars following the aforementioned 3 red bars was 1039-1041.25 or 2.25. I like to do my calculations on the fly so half is 1.25 (better to err on the side of caution and not go 2/3 or 1.50-points when the range is 3 or less) and I placed the limit buy at 1040.25 and got filled at 10:04 and took my 2.5 points at 10:16.
Another 2.5 points later this morning and I went outside to dig up the section of sewer pipe that the scope says has roots in it. Looking at the tv camera going through the sewer pipe reminded me of my first flexible sigmoid. . . oh never mind.
Hopefully I haven't expressed myself too illiterately.
Best regards,
JD Schaefer
T-Rex: Thanks for sharing!
Please clarify a few points for me.
When you first started today, you mentioned that you were not taking the first sell signal because the last "few days" had been gainers? I was confused by this as your original strategy description did not mention anything about a "daily close" type filter, just the use of the 40 EMA on a 60 min chart. Is it or is it not important to filter by the action of the previous close. You had said you would revisit this topic later in the day, but I might have missed it.
The use of 2 time frames (multiple time frame entry) for entry seems sound. Please share YOUR method for determining profit targets and if don't use targets please share what YOU would use to exit. How do you suggest exiting the trade if you're wrong? Do you use a stop-loss or wait for some sort of reversal signal to tell you to get out? If so, what signal do you suggest.? I know you said, that you've led the horses to the water, but now they need feed.....and then the chores will be done.
Having a plan for getting out (based on all contingencies) is for me, critical, before I get in a trade.
Again thanks for sharing......you seem to be setting a good example for fellow posters.
-GM
Please clarify a few points for me.
When you first started today, you mentioned that you were not taking the first sell signal because the last "few days" had been gainers? I was confused by this as your original strategy description did not mention anything about a "daily close" type filter, just the use of the 40 EMA on a 60 min chart. Is it or is it not important to filter by the action of the previous close. You had said you would revisit this topic later in the day, but I might have missed it.
The use of 2 time frames (multiple time frame entry) for entry seems sound. Please share YOUR method for determining profit targets and if don't use targets please share what YOU would use to exit. How do you suggest exiting the trade if you're wrong? Do you use a stop-loss or wait for some sort of reversal signal to tell you to get out? If so, what signal do you suggest.? I know you said, that you've led the horses to the water, but now they need feed.....and then the chores will be done.
Having a plan for getting out (based on all contingencies) is for me, critical, before I get in a trade.
Again thanks for sharing......you seem to be setting a good example for fellow posters.
-GM
Very well done, T-Rex.
One suggestion though: Why wouldn't you simply update/ complete your this system based on today's progress/ input in order to make your contributions easily recognised by others?
Then this thread might become one of the most referred/ valuable ones on ET!
And you would become: T-Rex ..........the most Welcome guy on earth by All traders anywhere!!!!
Just a thought!
One suggestion though: Why wouldn't you simply update/ complete your this system based on today's progress/ input in order to make your contributions easily recognised by others?
Then this thread might become one of the most referred/ valuable ones on ET!
And you would become: T-Rex ..........the most Welcome guy on earth by All traders anywhere!!!!
Just a thought!
Quote from T-REX:
at this point you would either place you Buy @ 1414.50 or wait until 10:30am EST to see how the NQ is shaping up on the day.
NOTE: you scalpers could even buy right now! use a 4 point stop loss.
go to page number 2 take close look at the time of the above post this post was 4 minuets into trading lowest price on that bar is 1413.00 so if scalpers would go long based on the advice there was a stop loss set at 1409.00 which was hit 6 minuets later did any one else notice that
I believe T would prefer that those "who got it" will track his system and if they have the time after decanting, can post their winning trades.
I might suggest to T that rather than have a separate 60-minute window with the EMA to determine trend, that he incorporate a corresponding EMA on the 5-minute chart (not that it probably hasn't been suggested elsewhere but I'm too myopic to have noticed).
Good cheer to all,
JD Schaefer
"Control what you can, manage the rest"
I might suggest to T that rather than have a separate 60-minute window with the EMA to determine trend, that he incorporate a corresponding EMA on the 5-minute chart (not that it probably hasn't been suggested elsewhere but I'm too myopic to have noticed).
Good cheer to all,
JD Schaefer
"Control what you can, manage the rest"
Quote from balda:
go to page number 2 take close look at the time of the above post this post was 4 minuets into trading lowest price on that bar is 1413.00 so if scalpers would go long based on the advice there was a stop loss set at 1409.00 which was hit 6 minuets later did any one else notice that
Perhaps T-Rex has got a filter functionality built-in with his Swing indicator!?
I would think his promotion of this indicator would be fine, as long as making it clear to others.
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