2 Bar Charlie Day Trade System ("LIVE DEMO")

[Grob109]

I believe I saw your rules and that as I read all the posts, you repeatedly referred to the entry sytem.

The 60 minute gates in the trend direction you will scalp.

The 5 min gives the timing at bar closes.

Stops are applied in a similar way as the entry is taken.

Ending the trade is up to the participant and is an aside vis a vis the 2-Charlie (day trade only).

You suggested scaling in as a consequence of the trade continuing.

I always enjoy looking at the approaches people use. It was clear to me several posters were in a place where they didn't get it. I always wonder about that. I appreciate your trying to draw them out but to no avail.

The toughness of the scene was apparent to many and they commented. Lately I've been segmenting the groups of people who make it tough.

It would be interesting after a while to find out how fool proof something has to be, to get a rather large x-section to risk surprising themselves by succeeding at something. There seems to be such a large group that have destroyed themsleves.

I was elsewhere and not following you in real time. I posted my midday results (annotated print) in the thread addressing midday stuff. I use the 10:35 5 min bar as a test value area because that is where my indicator carry over ends.

 

[OddTrader]

Quote from balda:

by the way T-REX now states in his posts that he didn't have loosing day/week.
check his journal, first four days were losers and one day no trades due to IT problems so I've got a loosing week for you.
you seem to forget quickly.

See page 6 for update.

 

[T-REX]

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

______________________________________________


If you want to be a JACKASS might I suggest this thread?

http://www.elitetrader.com/vb/showthread.php?s=&threadid=23133


10-14-03 09:34 AM

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.

Funny how the losers refer to the above statement in a attempt to discredit the demo. But that is only "ONE" quote of over 19 pages of post. .............LET'S US READ ON......LOL.

Let us pretend that balda is right. Let us say that I was long at that point he referenced. O.K. so I got stopped out RIGHT?
..............but it did not end there.

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10-14-03 09:44 AM

So far the NQ is under a littel selling pressure but so far the selling is unable to take out any significant levels.


This is an excellent opportunity for you scalpers to buy with a stop loss now @ 1406.00 and a profit target of 1414.00

OOOOOOOOOHHHH!!!!! Did I not say the above statement. What time was it when I posted the above statement?
Where was the market trading?
Did I not say that it was an "excellent opportunity" to buy at this price level? If you are going to get me in the market with the 1st statement what makes this one so different?

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10-14-03 09:57 AM
Downside should be minimal
It is very likely that the market WILL test the 1406 level but NOT take it out!!! If you were long the market you would actually use this opportunity to add longs at 1408 and readjust your stop to coencide with the current lack downside momentum if you did not have your stop outside of this range.

HUH? Did I not say to add longs @ 1408.00????
Did I not say use the 1406.00 price level as your stop-loss???
DON'T BE A JACKASS!!!!

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At 10:30am EST if the market has not blown past the 1406 price level then that is a good indication of another possible up day.
This is what is commonly referred to as "running stops".
A nice headfake to the downside followed by a breakout this afternoon.

This is the theory. Now lets see how well theory does in actual trading?


Not only did I explain changing market conditions throughout the morning but I also explained the rationale behind the price movement. Did the market not dip down on the open?
Did I not say that it would?
Did I not say that the market would also rally?

YOU really need to learn how to read and follow directions.
Until you stop making excuses on why you cant comprehend simple strategies YOU WILL ALWAYS BE A LOSER!

I'm REALLY trying to help you DUDE. Why wont you let me?
Do you really want to except defeat and give up on the idea of trading for a living?
It is sounding as if you already have. If you have not already lost ALL of your risk capital please reconsider your stubborn mindset and get beyond the excuses as to why you can not comprehend.

1.) I've created a strategy for YOU to have the opportunity to make consistant profit from trading

2.) I've traded the system in realtime for you to see how you can make it work.

3.) I've demonstrated that the system is NOT A STATIC method that you can simply trade mindlessly but rather YOU have to think and use common sense.

THAT IS ALL I CAN DO. The rest is up to you.

BE ENCOURAGED my friend. Don't give up on your dream.

 

[T-REX]

Quote from grainmerchant:

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

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The technique is quite simple. You may feel free to add to it as you wish. Let me say it once and for all. Stop-losses & Profit Targets are left up to the individual based on your own needs and specifications. The "2 Bar Charlie" system is not ment nor was it intended to be a mechanical system. I simply provided you with the frame work in which to build a profitable strategy.

Now lets re-visit the simple rules to the system:

1.) If the price is trading above the 40 EMA on the 60 min chart.......- the trend is up and you should look to buy.

2.) If the price is trading below the 40 EMA on the 60 min chart.........-the trend is down and you should look to sell.

3.) Once the price breaks above the 40 EMA on the 5 min chart......-This is your signal to go long.

4.) Once the price breaks below the 40 EMA on the 5 min chart......-This is your signal to go short.

That is all there is to it. Nothing more. This is the system in a nut-shell. Anything else you add at this point is your own "filter". You can also use the close of the 5min bar or add whatever you wish but I have given you the basics.


NOTE: If you would like some suggestions on how to go about placing stop-loss & profit targets I have included some ideas for you to consider in today's "Swing Vix FORECAST Matrix".

 

[T-REX]

Quote from T-REX:




________________________________________________


The technique is quite simple. You may feel free to add to it as you wish. Let me say it once and for all. Stop-losses & Profit Targets are left up to the individual based on your own needs and specifications. The "2 Bar Charlie" system is not ment nor was it intended to be a mechanical system. I simply provided you with the frame work in which to build a profitable strategy.

Now lets re-visit the simple rules to the system:

1.) If the price is trading above the 40 EMA on the 60 min chart.......- the trend is up and you should look to buy.

2.) If the price is trading below the 40 EMA on the 60 min chart.........-the trend is down and you should look to sell.

3.) Once the price breaks above the 40 EMA on the 5 min chart......-This is your signal to go long.

4.) Once the price breaks below the 40 EMA on the 5 min chart......-This is your signal to go short.

That is all there is to it. Nothing more. This is the system in a nut-shell. Anything else you add at this point is your own "filter". You can also use the close of the 5min bar or add whatever you wish but I have given you the basics.


NOTE: If you would like some suggestions on how to go about placing stop-loss & profit targets I have included some ideas for you to consider in today's "Swing Vix FORECAST Matrix".

 

[OddTrader]

,
,
,
....

 

[Kap]

Quote from T-REX:




________________________________________________


The technique is quite simple. You may feel free to add to it as you wish. Let me say it once and for all. Stop-losses & Profit Targets are left up to the individual based on your own needs and specifications. The "2 Bar Charlie" system is not ment nor was it intended to be a mechanical system. I simply provided you with the frame work in which to build a profitable strategy.

Now lets re-visit the simple rules to the system:

1.) If the price is trading above the 40 EMA on the 60 min chart.......- the trend is up and you should look to buy.

2.) If the price is trading below the 40 EMA on the 60 min chart.........-the trend is down and you should look to sell.

3.) Once the price breaks above the 40 EMA on the 5 min chart......-This is your signal to go long.

4.) Once the price breaks below the 40 EMA on the 5 min chart......-This is your signal to go short.

That is all there is to it. Nothing more. This is the system in a nut-shell. Anything else you add at this point is your own "filter". You can also use the close of the 5min bar or add whatever you wish but I have given you the basics.


NOTE: If you would like some suggestions on how to go about placing stop-loss & profit targets I have included some ideas for you to consider in today's "Swing Vix FORECAST Matrix".

OK, this is not rocket science, more a point of placing your trades on the right side of the EMA, i.e going with the flow and not against the longer term trend, which most weatherd traders have been doing for years.

What is more important is EXITS and STOPS, can't see much of that in here.

I think you may have opened a few newbie eyes who up until now have been somewhat in the dark, but now have sma & emas on their charts, so well done for that.

But thats not a lot of good unless your helping them to Exit, Reverse and stop out. Back test this without Stops and targets merely on cross overs and your gonna get whacked - its just way too simple.

 

[T-REX]

Quote from Kap:



OK, this is not rocket science, more a point of placing your trades on the right side of the EMA, i.e going with the flow and not against the longer term trend, which most weatherd traders have been doing for years.

What is more important is EXITS and STOPS, can't see much of that in here.

I think you may have opened a few newbie eyes who up until now have been somewhat in the dark, but now have sma & emas on their charts, so well done for that.

But thats not a lot of good unless your helping them to Exit, Reverse and stop out. Back test this without Stops and targets merely on cross overs and your gonna get whacked - its just way too simple.

Hello old friend.

Thank You for your comments. You do bring up a valid point. I'm glad to see that somebody gets it. All I wanted to do is set the ground work for a great system that newbies could trade profitably without them having to pay money for it. But again you are also correct about profit targets & stoplosses. The reason I did not cover that initially was on purpose. I like for the individual to determine that for themselves. What one person is willing to risk is not necessarily what another is willing to risk. Also I like to let my profits run whenever possible. Setting a profit target is a good thing to do at times but not most of the time.

 

[newtoet]

Quote from Kap:



OK, this is not rocket science, more a point of placing your trades on the right side of the EMA, i.e going with the flow and not against the longer term trend, which most weatherd traders have been doing for years.

What is more important is EXITS and STOPS, can't see much of that in here.

I think you may have opened a few newbie eyes who up until now have been somewhat in the dark, but now have sma & emas on their charts, so well done for that.

But thats not a lot of good unless your helping them to Exit, Reverse and stop out. Back test this without Stops and targets merely on cross overs and your gonna get whacked - its just way too simple.

That was brought up by maggandre in the 4th post in this thread, but never addressed.

 

[snooptrader]

Quote from T-REX:




Hello old friend.

Thank You for your comments. You do bring up a valid point. I'm glad to see that somebody gets it. All I wanted to do is set the ground work for a great system that newbies could trade profitably without them having to pay money for it. But again you are also correct about profit targets & stoplosses. The reason I did not cover that initially was on purpose. I like for the individual to determine that for themselves. What one person is willing to risk is not necessarily what another is willing to risk. Also I like to let my profits run whenever possible. Setting a profit target is a good thing to do at times but not most of the time.

That is ridiculous. Almost like your "the market might go up if it does not go down, and it is going to roll over but will probably continue up until then..." commentary.

Exits are the most important aspect of a trading methodology. I can give you 1,001 valid entries - but all are worthless without a valid exit strategy and profit target.