Gems: Methods and Systems

TriPack · Oct 11, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=136457#post136457

ET member LizardGizzard posted a very simple yet interesting method. It appears this method can be applied to any market, and is primarily suited to capturing trend moves. This trading idea is a perfect candidate for adding filters to even out the equity curve, and could be adapted for those traders who are unable to monitor the market throughout the day.

An excerpt from the thread:

Its very simple and does NOT involve watching the market all day. Subtract the OPEN from the HIGH of the day. Then subtract the LOW from the OPEN of the day. You have now established two numbers to trade with tomorrow.

TriPack · Oct 11, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=136667#post136667

ET member Ditch has shared an interesting trading method that he uses to trade the Nasdaq EMini futures. This entry concept is very easy to understand, and attempts to enter an existing trend just as it resumes after some weakness. Further through the thread Ditch also discusses his exit strategy.

An excerpt from the thread:

Here's a setup I trade a lot. I found it on Linda Rachke's site and its very easy to execute.

TriPack · Oct 11, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=127110#post127110

ET member rs7 relates the basic methods of three traders who use very simple methods but who he calls very profitable traders. Even though they each use very different strategies, one of the interesting common traits all three posess is that they don't spend much time looking at charts.

An excerpt from the post:

You know I did a whole thread on "keeping it simple". Yet if I remember correctly I tried to avoid specifics and tried to convey the importance of attitude and consistency.

I will even divulge their "secrets"...unlike others, I don't think giving away a "secret" is going to affect me or them one bit.

TriPack · Oct 12, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=137172#post137181

ET member doher posted a swing trading system for the EMini S&P. The system includes objective rules for entry, stop loss and profit target. There is even a link to a system backtest done in Excel. This system is always in the market.

An excerpt from the post:

The 30/34 System is a swing-type system for trading the S&P E-minis. Signals are taken from a 30 minute chart of the ES with a 34 EMA.

I suggest you never risk more than 1-2% of your trading capital on any individual trade. You might live to trade another day.

TriPack · Oct 12, 2002

http://www.elitetrader.com/vb/showthread.php?s=&threadid=5329&postid=104235#post104235

ET's very own Mr Subliminal has been so kind as to post his trading plan for all of us to share. He details every aspect of trading, even down to the specs of his computer system and software. His trading plan takes only intraday trades that set up on the EMini S&P futures contract based on the 5 minute chart. The one piece of the puzzle that Mr Subliminal leaves for us to determine is how to best utilize the SOMP (seat of my pants) indicator. The plan focuses on money management and risk control, and as such is worth a look if only for that reason.

An excerpt from Mr Subliminal's trading plan.

Trading Style
Discretionary, intraday, scalping, mainly trend following, based on price action. Intraday (5m) trend of market used to determine bias of direction to be traded. Special focus on selectivity of trades.

TriPack · Oct 12, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=136625#post136625

ET member Lawrence shared a pithy but fascinating method for daytrading the S&P by using the RSI. He utilizes a trailing method for exiting his trades, and claims a 64% win rate.

An excerpt from the post:

Here's one method I focus on for trading the S&Ps. I use a 5 minute and 15 minute chart with a wilders RSI.

TriPack · Oct 17, 2002

http://www.elitetrader.com/vb/showthread.php?s=&threadid=9828&perpage=6&pagenumber=1

ET member acrary has shared an interesting method for trading the S&P or EMini contract that uses 100% objective rules that are easy to understand. The system's rules lend themselves to be easily coded and backtested. The code for the system is included in the thread. This system should be of interest for those who trade on a longer-term time horizon.

An excerpt from the thread:

Most traders are familiar with the concept of trend following. If you're looking for a system in the SP or emini market, here's something to start with.

It's made money every year since 1990 and has had a max. peak-valley drawdown of 19% in 1996. So far this year it's up about 70k on a single contract basis.

TriPack · Oct 19, 2002

http://elitetrader.com/vb/showthread.php?s=&threadid=1716

ET member zentrader shares a basic setup for trading the stock index futures, but that could probably also be applied to other instruments. zentrader gives logic as to why the setup makes sense from observation of the market's character and provides an example of how this knowledge could be implemented in a method to create a positive expectancy.

An excerpt from the thread:

This is a strategy that I have used when daytrading stock index futures. It should work just as well on stocks.

It is based on the following observations:

1. The high or low of the day is more often than not made in the first hour or so of trading.

TriPack · Oct 19, 2002

http://elitetrader.com/vb/showthread.php?s=&threadid=5859

This is an exceptionally simple stock picking model for value investing. The author describes the method that his trading "robot" has used to beat the S&P for the past few years. This might be a good starting point for someone who is interested in using a shotgun approach to scanning the market for stock picks for longer term position trading.

An excerpt from the article:

THE INDOMITABLE ROBOT

An incredibly simple stock-picking method nets a 267 percent gain

BY JOHN DORFMAN

At the beginning of 1999, I created a stock-picking robot. Now I feel like a parent whose child is outdoing himâproud but a trifle annoyed. The robot, which lives in my basement and uses Bloombergâs equities database, compiles its official Robot Portfolio at the start of each year, though Iâve updated it to April 1 for this story. It assembles a 10-stock portfolio using a method that is simplicity itself.

The PDF file containing the entire article can be downloaded at:

http://www.bloomberg.com/personal/0206/jun.ss.dorfman.lo.pdf

TriPack · Oct 20, 2002

http://www.elitetrader.com/vb/showthread.php?s=&postid=95799#post95799

ET member zentrader shares another method that he claims is better than the Turtle breakout method, and requires none of the discretion that the turtle trading method requires. The system caught my attention with this claim, and impressed me with its exceptional simplicity and 100% objective rules. The system uses standard deviation to set the buy and sell zones, and goes from long to flat to short instead of being a simple stop and reverse system. The system only needs daily data so it is perfect for someone who is looking to position trade, and who is unable to watch the intraday price movement.

An excerpt from the post:

There are many better long term systems than the turtle method. One of the problems is that it keys off intraday data, so you need to call in stop orders for all the markets you trade every day. Most brokers won't like you ringing in with 20-30 orders each day, especially as only a few a week will give fills.

This system is good because it will catch all major trends, and is easy to implement (you just ring the broker the next morning with your market on open orders).