ES Journal Archive (2006 - 2008)

martys · Aug 30, 2006

Quote from LondonUSTrader:

I don't think you should try and emulate Spike or try to do what he does. That's a fool's game. We all have to find our own way in trading. Remember it took him 5 years to develop his system.

However, it is useful to follow his general principals of trading. Primarily his insistence on the importance of following the trend with your trading as long as possible.

Believe me, I trade very differently from Spike, and yet there may be some similarities as well.

Cheers.

IMHO, why look for your own way when there is a map made available... I understand what you are saying... You have to trade a system that fits your personality but after a while I think it is possible to push the envelop.

martys · Aug 30, 2006

Hi billp,

I searched for all of Spike's trading related posts and read them all. I will tell you why they are different. They are coming from a very rare trader. You might have heard the same words before but it's different coming from him. If I tell you what they are about, it will be coming from me and that would kill it. Go to the source.

Good trading,
William

BoyBrutus · Aug 30, 2006

Quote from billp:

Hi,

Read a few posts here. Can somebody tell me whether Spike500 system is based on price only or does he have indicators such as MACD? Also, is he a scalper or daytrader? Am considering reading his posts to help me in developing a strategy but it will depend on the answer above. Thanks

He has stated price only, what he mathematically derives from this is another matter, support and resistance are price after all.

He tries to catch the main swings in the day, usually 1 to 3. He doesn't scalp sometimes having a trade go 4+ points in his favor only to give it all back before the main move starts.

Look at the links I posted yesterday from some experienced scalpers (one using MACD) if that is what your looking for.

billp · Aug 30, 2006

Ok, last post on this matter.

Londonustrader,
I understand your viewpoint better now. Thks. However, just want to clarify 1 last point. I've been searching this website (ET) for a long time and have developed some feel as to when its better for me to ask and when its better for me to dig myself. In the above subject, I felt that it would have been better for me to ask (not only because of the time constraint, I shall not elaborate other reasons and I did not mention it in my 1st post as I think its already long enough). Reality is I lost more time.

Just 1 example to think about when somebody ask something/say something next time. Qn :what is the better option--tight stop loss or loose stop loss? Answer--there's no right or wrong answer just based on that statement. Why? Coz it depends on your personality, risk tolerance, market volatility, entry point etc.

Quote from LondonUSTrader:

I didn't mean to sound aggressive. I understand your point of view. I guess my point is that saving time is not something you should look to do, despite the time pressures. It takes as long as it takes. Trading takes years to learn and not something that can be achieved overnight or by taking shortcuts. That is all.

I personally feel the more you get your hands dirty the better it will serve you in the long run. Just trying to help. I am sorry if I offended you.

Chuck Krug · Aug 30, 2006

buy1sell2,

when you write calls, how do you hedge?

do you or have you ever written naked calls? and don't these have a higher return.

Chuck

romik · Aug 30, 2006

Quote from billp:

Hi,

Read a few posts here. Can somebody tell me whether Spike500 system is based on price only or does he have indicators such as MACD? Also, is he a scalper or daytrader? Am considering reading his posts to help me in developing a strategy but it will depend on the answer above. Thanks

From what I can remember he uses a 2 point stop, does not scalp, does not use conventional indicators, I think he mentioned that decision is mostly based on price oscillation, he is a trend follower, does not make discretionary decisions. If you want a more detailed answer, you can scan his posts, as has been suggested prior and/or try sending him a PM. I doubt that you will receive any detailed answer though.

billp · Aug 30, 2006

Thank you Boybrutus,
That was what I was looking for. I know what to do now.

Martys,
Thanks

Quote from BoyBrutus:

He has stated price only, what he mathematically derives from this is another matter, support and resistance are price after all.

He tries to catch the main swings in the day, usually 1 to 3. He doesn't scalp sometimes having a trade go 4+ points in his favor only to give it all back before the main move starts.

Look at the links I posted yesterday from some experienced scalpers (one using MACD) if that is what your looking for.

billp · Aug 30, 2006

Thank you Romik,
Also what I'm looking for.

Quote from romik:

From what I can remember he uses a 2 point stop, does not scalp, does not use conventional indicators, I think he mentioned that decision is mostly based on price oscillation, he is a trend follower, does not make discretionary decisions. If you want a more detailed answer, you can scan his posts, as has been suggested prior and/or try sending him a PM. I doubt that you will receive any detailed answer though.

Buy1Sell2 · Aug 30, 2006

Quote from Chuck Krug:

buy1sell2,

when you write calls, how do you hedge?

do you or have you ever written naked calls? and don't these have a higher return.

Chuck

Well, if I am long, then selling call premium is necessarily considered a hedge. Yes, I do sell naked premium in that every call in excess of the total number of longs is a naked call. Also, at the time when I sell my longs and go short, then all calls become naked. Yes, naked calls have a higher return when used properly.

LondonUSTrader · Aug 30, 2006

Quote from billp:

Ok, last post on this matter.

Londonustrader,
I understand your viewpoint better now. Thks. However, just want to clarify 1 last point. I've been searching this website (ET) for a long time and have developed some feel as to when its better for me to ask and when its better for me to dig myself. In the above subject, I felt that it would have been better for me to ask (not only because of the time constraint, I shall not elaborate other reasons and I did not mention it in my 1st post as I think its already long enough). Reality is I lost more time.

Just 1 example to think about when somebody ask something/say something next time. Qn :what is the better option--tight stop loss or loose stop loss? Answer--there's no right or wrong answer just based on that statement. Why? Coz it depends on your personality, risk tolerance, market volatility, entry point etc.

Actually, I would say the answer is based on your own trade research. You should know from extensive research what your drawdown stats are on any strategy and thus where the stop loss should be.

But, I know the point you are trying to make. Don't jump down someone's throat so quickly when they are only asking a question? Right or right?

Point taken.