Day-Trading 2.0 for small traders

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Quote from TheRumpledOne:

I noticed something profitable today:

When the MA(6) crosses the MA(240), trading in the direction of the cross is profitable on the GBPJPY.
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I'm assuming you mean either exponential MA or Simple MA.

I don't have GBPJPY so I'm looking at this on 6B.

Anyway, MA crossover systems are fantastic... until it gets choppy and then it's catastrophic loss :D

Anyway what were your exit rules? A specific number of pips for or against you? The MA(6) slope changing? MA(6) crossing back the other way (stop and reverse system)? ATR? Holy Grail?
 
Quote from IronFist:

I'm assuming you mean either exponential MA or Simple MA.

I don't have GBPJPY so I'm looking at this on 6B.

Anyway, MA crossover systems are fantastic... until it gets choppy and then it's catastrophic loss :D

Anyway what were your exit rules? A specific number of pips for or against you? The MA(6) slope changing? MA(6) crossing back the other way (stop and reverse system)? ATR? Holy Grail?
More...

I am using the same MAs as jjrvat described.

EXIT? I put a 5 pip target. Usually, in/out quick. Since I use an ECN, I can BUY at the bid and SELL on the ask. This means I can put the spread to work for me rather than against me.

If a trade goes against me, I add to the position and adjust my TP. WARNING - DO NOT ATTEMPT THIS - THIS CAN BE HAZARDOUS TO YOUR PORTFOLIO.

I am using rules based on casino gaming NOT trading when I do this. Funny thing is, I make more when I exit a trade that went against me because I have more money at risk. DO NOT ATTEMPT THIS - THIS CAN BE HAZARDOUS TO YOUR PORTFOLIO.
 
Quote from TheRumpledOne:

I am using the same MAs as jjrvat described.
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So WMA for the slow and HMA for the fast?

EXIT? I put a 5 pip target.
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Just out of curiosity, do you always used fixed profit targets or do you ever let the market take you out based on some price/volume/indicator/etc.?

If a trade goes against me, I add to the position and adjust my TP. WARNING - DO NOT ATTEMPT THIS - THIS CAN BE HAZARDOUS TO YOUR PORTFOLIO.
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Martingale?

I am using rules based on casino gaming NOT trading when I do this.
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Yeah that sounds like Martingale to me. Please correct me if I'm wrong.

Funny thing is, I make more when I exit a trade that went against me because I have more money at risk. DO NOT ATTEMPT THIS - THIS CAN BE HAZARDOUS TO YOUR PORTFOLIO.
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Cheers. I hope you never get caught in a horrible swing against you. Martingale is only profitable with an infinite bankroll and no limits on the roulette table :D
 
Incognito,
as you know calling people 'names is always contraproductive
and there is no reason for it unless you want to make
this thread invalid…i hope you take this under your consideration
and remove your previous post…thanks

IronFist,
if your have found jjrvat’ trading method helpful but having
aproblem with whipsaws look into some type of bar strength
indicator that will help you identify intrabar setup as
complimentary to jjrvat method until you learn to do it on u own.

i use very simple tick counter for this purpose that continuously
updates bar progress therefore identifying bar strength of high or
low signals…this very simple few lines code can make a lot of
difference in your trading while you learn…
 
Quote from Dr.N:

IronFist,
if your have found jjrvat’ trading method helpful but having
aproblem with whipsaws look into some type of bar strength
indicator that will help you identify intrabar setup as
complimentary to jjrvat method until you learn to do it on u own.
More...

My main 2 issues with jjrvat's method are:

1. entering trades (read: getting trade signals) at the top (for longs) or bottom (for shorts).

2. letting winners turn into losers (ie. the fast MA doesn't give the exit signal until some huge bar in the opposite direction that puts you at a loss by the time it closes)

2.5 missing a huge run that didn't follow a HHHL or LLLH pattern.

- hang on i'll find screen shots to illustrate -

edit - I'm not bashing jjrvat or this thread or anything he's said. I've learned a ton from this thread. I'm just listing my experiences. I'll post the screenshots in the next reply since by the time I have them the editing time limit will have expired.

i use very simple tick counter for this purpose that continuously
updates bar progress therefore identifying bar strength of high or
low signals…this very simple few lines code can make a lot of
difference in your trading while you learn…
More...

Very interesting. Is it possible to code something like this in SierraChart?
 
This pic addresses issues 1 and 2.5 above (I wasn't really serious on 2.5 since statistically it doesn't result in profitable trades... but sometimes it's hard to see a home run like that pass by :p )

lllh1.gif



And the text at the bottom of this pic addresses issue 2 above:

lllh2.gif


The obvious answers would be to use set profit or stop loss targets, but my backtesting (and anecdotal evidence from others in this thread and in other forums here at ET) shows that this leads to less total profit and in some cases leads to overall negative expectancy. Basically you NEED the huge home runs to give you positive expectancy.


Sorry for the huge pics.
 
Hi IF,

You are not following jjrvat's rules/guidelines.

This is a scalping thread. Here are 2 quotes from page 1:

"scalping (= meaning an average of 1 to 6 pips MAX per trade)"

"The first factor for a scalper is to understand in which part of a wave is the market...The only rule of thumb is the later you enter a new wave the less probabilities you will have to be successful."

I think you need to reread jjrvat's entries in this thread and make a list of rules and guidelines you check off before taking any trades.

Bill
 
Quote from bilbod:

Hi IF,

You are not following jjrvat's rules/guidelines.

This is a scalping thread. Here are 2 quotes from page 1:

"scalping (= meaning an average of 1 to 6 pips MAX per trade)"

"The first factor for a scalper is to understand in which part of a wave is the market...The only rule of thumb is the later you enter a new wave the less probabilities you will have to be successful."

I think you need to reread jjrvat's entries in this thread and make a list of rules and guidelines you check off before taking any trades.

Bill
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Bill,

Thanks for the reply.

In my backtesting with YM, setting scalping targets (2, 3, 4, 5, 6, and 10 ticks) yielded negative expectancy.

The only way I got positive expectancy was to ride every PBP based wave until I got the signal to exit.


Quote from nkhoi:

500v is too 'heavy' for YM, your entry was late, check out this 100t chart with the same setup.
http://i35.tinypic.com/an0xns.jpg


the second chart but at 100t
http://i33.tinypic.com/igditv.jpg
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Thanks for posting those. Let me study them and get back to you.
 
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