Emini divergence journal

[MarkB]

Quote from no_pm_please:



Sorry, I'm not going to be posting that method.

I didn't expect that you'd want to share all your hard earned secrets. But at least you're confirming that it's a divergence based system as well.

In your experience, does the technique which you ARE sharing produce a sufficient return (for now) that it's worth using on it's own? I ask because some of your win/loss comments seem to include averages based on including the advanced method as well.

 

[no_pm_please]

Quote from jabbar11:

Do you use tick volume or actual volume for the S&P ? Actual intraday contract volume is not available in Tradestation 7.1

I'm using the actual pit volume reported for the SP contract.

 

[daveb351]

Why not use Linda's method to buy on retracements to 20ema with increasing adx over 30?

 

[dbphoenix]

Quote from Trend Fader:

This looks like a nice system.

70% hit rate seems about right because markets only trend 30% of the time. This system profits off fading trends and choppy markets.

When the market has a solid trend day.. which is pretty rare... this system will always lose.

The reason why this system works I believe is mainly twofold.

Firstly it makes sense.. because you are fading a intraday trend.. and in reality intraday trends lasting the entire day are pretty rare.. so there is an edge to it.

Secondly, the entry and exit are very well defined. There is sound money management and very acceptable risk to reward per a trade. Your money management is being defined by the volatility of the market which is smart.

To me, it's a mistake to choose. If it is at all possible for one to make the mental shift, having both a trend-trading and range-trading system in the toolbox is a smart idea.

The difficulty now, of course, is that ranges are so contracted. Therefore, even with a trend-trading system, the tactic of taking Npoint chunks during the day rather than "letting profits run" may be more profitable over the month, particularly since genuine trend days have not been common. Or, if one is trading multiple contracts, each contract can have a different job.

In any case, it needn't be either/or, even though one may end up using one strategy exclusively for weeks.

 

[MarathonTrading]

Great journal

A question about divergences. It seems (but I am not sure) that you are not necessarily waiting for a turn in the oscillator itself to enter.

In my view the divergence is not completed until the oscillator has turned.

Any opinion or precision?

 

[no_pm_please]

Quote from daveb351:

no pm...

Take a look at Ninjatrader.com, a good order interface for IB. Set stops, targets, brackets, etc.

Looks like a lot of stuff. For my purposes it looks like overkill. I think IB TWS is fine for me. I like not having extra stuff between me and the broker. Thanks anyway.

 

[no_pm_please]

Quote from MarkB:



I didn't expect that you'd want to share all your hard earned secrets. But at least you're confirming that it's a divergence based system as well.

In your experience, does the technique which you ARE sharing produce a sufficient return (for now) that it's worth using on it's own? I ask because some of your win/loss comments seem to include averages based on including the advanced method as well.

MarkB, I have no secrets. I just want to keep this journal clean (one method...here's the results...any questions about it?). If my account grows to 600k I plan to do trading fulltime. At that time I could have one journal for basic and another for advanced. I think it would be too confusing to mix the two in one journal. I think this method works fine by itself. After a couple of months of posts I think others will agree.

 

[MarkB]

Thanks for the reply. I shoulda put a smiley after "secrets".

It's very nice of you to reply individually to all the questions and comments. Your logic and writing skills are better on little sleep than most people's are when fully rested.

 

[no_pm_please]

Quote from daveb351:

Why not use Linda's method to buy on retracements to 20ema with increasing adx over 30?

How do you know it's a trend day before it's over? I looked at Linda's stuff. I prefer my trading methods. I know on trend days I'll lose. If I have a loss early and it looks like a possible trend day, sometimes I don't take more trades that day. I guess I'm a one method kind of guy.

 

[rickty]

Quote from daveb351:

Why not use Linda's method to buy on retracements to 20ema with increasing adx over 30?

This is the so called Holly Grail trade. I've looked over the recent sp price history and it appears to me that no_pm is having more success with his method than the grail trade.

Richard