A good emini day trading strategy

Quote from Daring:

Link specifics would help.
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Read the trade journals, technical analysis, strategy design threads or use ET search to look up key words like "Emini Strategy". You can also use that sticky note thread in the education section made by Benwm that ET management stuck at the top of the education section...

Thread called called ET Hall of Fame Threads. In that thread are direct links to some trade strategies that have been detailed extensively by some traders that have shown some sort'uv verification it works for them.

I do not know what exactly type of strategy you're looking for but I'm sure you can find something that you''ll feel merits exploring further.

Last of all, most of those in the past (many years ago) that have posted verification of their trade approach...they are now inactive or move to other trading forums or social networks.
 
Quote from wrbtrader:


My point is that a trade strategy is just one chapter out of many chapters in one's trading plan assuming we aren't talking about an automated trading system. The only way you'll be able to duplicate someone's results if you're using everything that the other person was using (trading habits, trading environment, trading experience, disciple and so on)...
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Great point!
Importance of a nice setup, professional trading environment, diligent work habits, iron-clad discipline and emotional balance when you are down a lot on a day/week or in high volatility conditions are integral components that make a trading plan successful.

I reckon above things are way more important than a trading strategy. Whats the point of a trading strategy, if you can't execute it!! This is an extremely important point but no one seems to understand its importance. It is also very difficult to master. I took 3.5 yrs of trading experience and losing tens of thousands of dollars to understand the importance of above things.
 
Quote from wrbtrader:

Yes, traders (original designer) have posted details of a strategy they're using that's profitable for them and I've seen some posted here at Elitetrader.com along with seeing real-time trades posted and/or brokerage statements.

Yet, the real question is if others learning the strategy from the original designer have the proper trading plan (e.g. money management, proper capital, proper trading environment, proper trading instrument and so on) to apply the method for profits as the original strategy designer.

My point is that a trade strategy is just one chapter out of many chapters in one's trading plan assuming we aren't talking about an automated trading system. The only way you'll be able to duplicate someone's results if you're using everything that the other person was using (trading habits, trading environment, trading experience, disciple and so on)...

The odds of that happening is zero assuming this discussion isn't about automated trade systems.
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I agree that in the absence of automation, the likelihood of two traders getting the same results is near zero, even with the same strategy.

Which is why I think that any strategy which can be automated, should be. If you are able to develop a set of rules which have positive expectancy, you can only benefit from making adherence to those rules automatic.
 
Hi Rick,

When I'm looking for new ideas (or I'm just bored) I sometimes go to the trading systems site below. There are a huge number of systems discussed there. Some are good, many are bad, and they're based on price action, indicators, or a combination of both.

Most importantly for me, they can act as a source of new ideas that I can backtest on my markets in my time frames.

http://www.forexfactory.com/forumdisplay.php?f=71

Kevin
 
Quote from Slope Trader:

Hi Rick,

When I'm looking for new ideas (or I'm just bored) I sometimes go to the trading systems site below. There are a huge number of systems discussed there. Some are good, many are bad, and they're based on price action, indicators, or a combination of both.

Most importantly for me, they can act as a source of new ideas that I can backtest on my markets in my time frames.

http://www.forexfactory.com/forumdisplay.php?f=71

Kevin
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that's why I say, 90% is just money management. After you have that down, you can take the other 10% of your brain power and blow it on any kind of strategy you can come up with, including no system and just doing what you feel like based on how you feel about the market or read it.

The money management is the same for all of us. There is no escaping it. Some may like tight stops, some loose. Some like to average down, some like to add to winners. Some scale in, some scale out, some like to get flat, some like to be always in. Either way, they all come out about the same if you do it consistently and don't go from one to the other, especially in the depths of drawdown.

The other 10% involves guessing right. And I've seen just about everything work, from MA crossovers to moon phases.

If your money management is sound it doesn't matter how bad of a guesser you are, you won't get wiped out. And if you are a good guesser you might even make a little money.
 
Quote from oldtime:

1. Only trade from one side. Doesn't matter to me if it's long or short, but stick with that side through thick and thin.

2. Figure out how much you want to risk on one trade and put it on with a stop.

3. Wait until you get stopped out, and then ok, you're done with that trade.

4. Repeat step 2 until you don't get stopped out.

5. Don't do anything.

6. When your profit becomes ridiculously silly, put on another one and treat it like a new trade.

If you don't believe this is a good strategy, just try doing the opposite and see how long you last.
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Although there is more to items #2 and #6 than this, in principle I agree that this strategy would indeed suffice for making money in the long run. It sure does sound strange...

... But then again, all you need to do in trading is exploit some facet of the markets that is not (entirely) random and manage the downside risk with meticulous care. This strategy of yours would nicely hook on to the fat tails of asset returns and maintain a limited downside on each attempt.

I think one of Van Tharp's books has some information on random entry systems and the profitability thereof. It should be an interesting read to anyone.

Z
 
Quote from Zyker:

Although there is more to items #2 and #6 than this, in principle I agree that this strategy would indeed suffice for making money in the long run. It sure does sound strange...

... But then again, all you need to do in trading is exploit some facet of the markets that is not (entirely) random and manage the downside risk with meticulous care. This strategy of yours would nicely hook on to the fat tails of asset returns and maintain a limited downside on each attempt.

I think one of Van Tharp's books has some information on random entry systems and the profitability thereof. It should be an interesting read to anyone.

Z
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I only talk about money and trade management. For me that is 90% of trading, and very rarely ever changes. I'll leave the other 10% which consists of entries and exits up to others. It is always changing depending on the current trading fashion.

otherwise, I have my own deal which doesn't use stops, but I wouldn't recommend anybody else try it. But, I guess if you are daytrading the stop will come on the close whether you want it to or not.
 
Quote from oldtime:

I only talk about money and trade management. For me that is 90% of trading, and very rarely ever changes. I'll leave the other 10% which consists of entries and exits up to others. It is always changing depending on the current trading fashion.
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Sure, but I think exits are covered by the topic of prudent trade management. My system provides me an edge of about 0.07-0.15 times the risk per trade (depending on time frame and traded instrument). I don't know if that is good or bad, but the curious thing is that I have no statistical evidence that different entry strategies could make this number any better - or any worse - in the long run. In that sense entries for me are just a way of maintaining consistency.

Z
 
Quote from Zyker:

Sure, but I think exits are covered by the topic of prudent trade management. My system provides me an edge of about 0.07-0.15 times the risk per trade (depending on time frame and traded instrument). I don't know if that is good or bad, but the curious thing is that I have no statistical evidence that different entry strategies could make this number any better - or any worse - in the long run. In that sense entries for me are just a way of maintaining consistency.

Z
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yes, good point, I would guess many TA traders weakness is the exit. Sometimes I think it must be arbitrary in that they will look for a set up and simply settle for x ticks.
 
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