This is a method I have been trading a little, doing pretty well at. It is based on a method in The Compleat Daytrader, by Bernstein.
Chart setup:
1 Minute chart.
34 EMA
10 SMA of highs.
8 SMA of lows.
I call it scalping, you might not, but it does produce a lot of trades. Works nice on the YM, probably good on other indexes, but haven't looked.
Trades:
Pullbacks. Wait for two consecutive bars completely below the LMA. Wait for a higher low, and go short on the next lower low.
Range trades. Wait for a bar completely above the HMA. Short when the low of this bar is taken out. The MA's should be fairly flat. Never do this against a strong trend.
Stops, I use the last high, but if the last high is only 2-3 pts above my entry I will give it a little wiggle room(only a few points). Once 10 pts in the profit, I use a trailing stop of the high of the last three bars. You can go long or short with this system. So far it has had a nice win rate(60%+) and the R/Reward ratio is very high, like 2:1 minimum. If I don't like the R/Reward for a trade I don't take it because there will be another one a few minutes later. I don't have set targets, but losses are, and I usually won't take a trade with risk more than 7 Ym points($35 a contract). Let me know what you think, and if there are any backtesting wizards around maybe you could give it a whirl.
I posted a pic with three trades from today, two ranges and a pullback. First two are the ranges. I didn't post exits. Go long above green line and short below red.
I try and only trade during decent volume periods.
Remember this is a very short term system, so don't expect too many big winners, although you will have some. It does hit a lot of singles, though.
The times on my chart are PST, three hours behind NY time.
There, I posted a method.
I'll be gone for a while so if you have any Q's I won't see them for a few hours.
Don't forget to vote!
Chart setup:
1 Minute chart.
34 EMA
10 SMA of highs.
8 SMA of lows.
I call it scalping, you might not, but it does produce a lot of trades. Works nice on the YM, probably good on other indexes, but haven't looked.
Trades:
Pullbacks. Wait for two consecutive bars completely below the LMA. Wait for a higher low, and go short on the next lower low.
Range trades. Wait for a bar completely above the HMA. Short when the low of this bar is taken out. The MA's should be fairly flat. Never do this against a strong trend.
Stops, I use the last high, but if the last high is only 2-3 pts above my entry I will give it a little wiggle room(only a few points). Once 10 pts in the profit, I use a trailing stop of the high of the last three bars. You can go long or short with this system. So far it has had a nice win rate(60%+) and the R/Reward ratio is very high, like 2:1 minimum. If I don't like the R/Reward for a trade I don't take it because there will be another one a few minutes later. I don't have set targets, but losses are, and I usually won't take a trade with risk more than 7 Ym points($35 a contract). Let me know what you think, and if there are any backtesting wizards around maybe you could give it a whirl.
I posted a pic with three trades from today, two ranges and a pullback. First two are the ranges. I didn't post exits. Go long above green line and short below red.
I try and only trade during decent volume periods.
Remember this is a very short term system, so don't expect too many big winners, although you will have some. It does hit a lot of singles, though.
The times on my chart are PST, three hours behind NY time.
There, I posted a method.
I'll be gone for a while so if you have any Q's I won't see them for a few hours.
Don't forget to vote!