Day Trading Methods
- Thread starter sfunds
- Start date
It seems incredibly inefficient; simply author a post written clearly understandably enough so that any need for a so-called "translation" doesn't arise. Why the digging of the toes down into the sand refusal to do so? It's more efficient: there would be a savings of at minimum two posts (per "part") on determining if the "translation" was correct, three posts if you count mine, not to mention all the needless subsequent posts that attempt to unravel the meanings, as if it were some nostradamiation quatraine.
Ok, second translation attempt:
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Musts:
a.) Channel and traverse trendlines = Watch always the trendlines of both the greater channel, as well as the traverses within the channel. Any/every method.
b.) Volume = Watch always the Price/Volume relationship. Any/every method.
For special situations:
c.) Use general indicator signals for methods 2,3,4,5,8 and 9
General = non-absolute, ie. volume generally decreasing/increasing, or stochastic above 80 or below 20 general range, or the subjective appearance of a support or resistance point(s).
d.) Use absolute indicator signals for methods 1,2,6 and 9. For example: MACD Histogram, Relative Strength Index, ect.
Absolute = A flat number to watch for, ie. a reading of 0.40 on the MACD histogram, or 80 on the RSI.
For Peaks, troughs and traverse turns:
e.) Smart money squeeze and stretch = Relationship/spread between ES futures and ES cash markets. Smart money = futures market. Watch this spread when using methods 5,7,8 and 9.
For exacting maximum profits:
f.) First derivatives of indicators: Derivative = calculus term. ie. Calc the slope at a given moment. When trading, watch increasing/decreasing slopes, divergences and/or convergences. This is a relative indication/ indicator...relative to previous bar/bars. Use for methods 5,7,8 and 9
g.) T & S = Time and Sales. You must watch the ticks passing through to profit from methods 7 and 9.
h.) DOM = Depth of Market. You must look at orders waiting to be executed to guage the upcoming buying and selling pressure. Commonly known as "Level 2", but can go to deeper levels. This is another kind of volume indicator, except in advance. Use for methods 5,7,8 and 9.
Definitions:
Halfcycle = Traverse from one side of a channel to the other. Back again = full cycle.
Method 6 = but not limited to, Jack's equity trading method. That method generally explained: From a culled universe of some 100+ stocks, select six that look exceptionally good. Divide your capital into six parts and inject one sixth into each stock at the prime time. On daily bars, look for stocks trending upward showing regular upthrusts on high volume followed by pull backs on low/lower volume. Watch for prices to begin next upward cycle on significantly higher than average volume. Switch to 30 minute bars to pinpoint best buy timing. Transpose this method generally to futures/commodities on shorter time frames, except there is no universe and you are all in with however many contracts both long and/or short.
IT traverses = Intermediate Trend such as may be found on daily, 60, or 30 minute bars. One of these periods, probably daily, is one that would produce 6 to 10 cycles about every 90 days. Two turns per cycle at 20 points each = 2 x 20 x 8 = 320 points ES = $5000+ per month per contract.
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Once again, hopefully Jack will show up to correct any translational errors.
JohnnyK
Quote from BSAM:
Wonder if flipping a coin and good money management might not be better?
http://www.galtcapital.com/Publications/betsize.pdf
Quote from BSAM:
Wonder if flipping a coin and good money management might not be better
I've never been able to "money manage" a coin flip into anything better than an upwardly trending equity curve, with (and heres the catch) some wicked, gut-wrenching, deep-pocket-digging, edge-of-the-abyss drawdowns.
But give me a guaranteed heads (or tails) every 50 to 100 flips, and I can manage that into a million at an optimal pace.
JohnnyK