I was working on a micro-scalping system...

R

RangeTrader

For this friend of mine who is an idiot... He wants to capture single point moves... So, I was sitting there scratching my head on how he could effectively do that... And I came up with a 1 minute price only based indicator as the main part of the system.

It turns out he doesn't want to buy low and sell high though... He wants to chase moves around... Hah... Whatever, he'll learn his lesson.


This is so stupidly simple and so effective at detecting cheap vs expensive prices during medium/strong internals uptrends it's hilarious... No need to hassle with retracements and projections continually...

Just simple buy red sell green...
 

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Here is five period...

Essentially all the indicator is is a hybrid candle... Essentially you have a high/low based engulf candle that you create on a one minute chart. Set to whatever period you want... My original idea was that I wanted to have 5 and 15 minute candles, but that I wanted them on a 1 minute chart so I could see the price action inside them...

What I came up with was a little different...


If you want to put the work in to reverse engineer this it's quite easy... Given you enough hints! So, have fun!

This won't work just by itself unless you have a well developed traders instinct.


I am personally going to use this to compliment my overall system. It's stupidly simple and it removes all second guessing from where good exit/entry prices are in trends.

Never thought about doing a price only based indicator like this before...
 

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I have always had trouble getting proper dip entries into very strong trends with very strong internals... There is bloody no retracement dips to get on board...

I follow my rules and NEVER chase a trade setup...

This definitely helps me huge with proper entry positioning during trends... :D

Woot, can't wait to get trading again next week!!!
 

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I don't want to burst your bubble, but I can't tell you how many times I got excited over a strat over a weekend, only to have it blow up in my face over the next few trading days.

I hope it works for you, but keep your expectations low. I know it sounds contradictory, but allow it to happen with small size, rather than forcing it right out of the gate.

Patience works. And it's kinda critical in this business, btw.
 
It's not a strategy. It's just a bull market rally timing technique. I will only be using it for strong bull market rallies like we will continue to have over the next couple weeks after dips.

For sideways/bear markets my usual retracement/projection methods work solidly.

It's just those steep one directional uptrend days that are tricky to get entries into. You know the ones... The ones where you know the market is going to rise 20-30 handles because of the daily technicals and the internals.

They are tricky to get proper entries into except to just buy in and hold.


My buy entries in the Friday uptrend were not quite as good as the areas this indicator showed...

If I had been using it I would have been around a handle more accurate in my entries/exits in the uptrend.


Too bad Monday isn't going to be a steady up-trending day...


This is my market outlook for last week... I will have to look over the charts and decide upon this weeks trading outlook on sunday.


"
Posted on June 3, 2012

Daily Outlook – Starting to get a cautiously bullish. There is the potential for a violent around 2 week counter trend rally starting around midweek. If you see a upside breakout get in on the retracements.

Weekly Outlook – Very oversold. I expect bears to lose control of the market soon and for us to see a couple solid up weeks or so by around mid June. I wouldn’t recommend buying though… Weekly rallies are just counter trend to the larger monthly market cycle right now.

Monthly Outlook – Were merely in the second month of a bear market cycle. I’m looking for around a couple more months to the bears unless we crash. A crash would turn me bullish a month or so afterward.

Summary – Short term traders can play around with long swings over the next few weeks, but the only longer term trade I would recommend taking is to fade a two week weekly rally into June if it shows up. This market is still headed downward into summer unless there is a QE3 surprise or a crash.

Key Support Levels – I’m keeping an eye out for 1244.25 ES and the 1220 Area.

Daytrading Outlook – Looking for a fierce and violent rallies midweek intraday. Going to be very rippy around Beige book and leading up the Bernanke speech. I’m personally getting ready to hit the bid and expect some real uptrend breakouts later this week."
 
Quote from RangeTrader:

It's not a strategy. It's just a bull market rally timing technique. I will only be using it for strong bull market rallies like we will continue to have over the next couple weeks after dips.

For sideways/bear markets my usual retracement/projection methods work solidly.

It's just those steep one directional uptrend days that are tricky to get entries into. You know the ones... The ones where you know the market is going to rise 20-30 handles because of the daily technicals and the internals.

They are tricky to get proper entries into except to just buy in and hold.
More...

you have none on your display to show the directional move.
 
How does your friend set his Targets and Stops?...whether they be manual or hard...You obviously have identified the entry where he can keep his stop small...or he will die a slow death with a lot of work doing it to boot!

ES

Quote from RangeTrader:

For this friend of mine who is an idiot... He wants to capture single point moves... So, I was sitting there scratching my head on how he could effectively do that... And I came up with a 1 minute price only based indicator as the main part of the system.

It turns out he doesn't want to buy low and sell high though... He wants to chase moves around... Hah... Whatever, he'll learn his lesson.


This is so stupidly simple and so effective at detecting cheap vs expensive prices during medium/strong internals uptrends it's hilarious... No need to hassle with retracements and projections continually...

Just simple buy red sell green...
More...
 
Oh honestly... I have given up on him. I'm just going to let the market teach him a lesson.

His stupid idea is to have a buy stop then a sell limit a half point or a point above it during trending moves...

I told him a bunch of times... That is retarded...

You have a 8% commissions handicap trading for a point...


If you trade for two points you only have a 4% commissions handicap at $4 per round trip. It's best to play for at least more than two points just because of how commissions work...


Quote from ElectricSavant:

How does your friend set his Targets and Stops?...whether they be manual or hard...You obviously have identified the entry where he can keep his stop small...or he will die a slow death with a lot of work doing it to boot!

ES
More...
 
Nothing that a MAE or MFE study cannot prove...

MAE = Maximum Adverse Excursion
MFE= Maximun Favorable Excursion

Quote from RangeTrader:

Oh honestly... I have given up on him. I'm just going to let the market teach him a lesson.

His stupid idea is to have a buy stop then a sell limit a half point or a point above it during trending moves...

I told him a bunch of times... That is retarded...

You have a 8% commissions handicap trading for a point...


If you trade for two points you only have a 4% commissions handicap at $4 per round trip. It's best to play for at least more than two points just because of how commissions work...
More...
 
Sigh, that was just a demonstration of that indicator alone...

My current trade timing chart is here... This is just the "entry timing" chart... There is a lot more that goes into it.


Quote from ocean5:

you have none on your display to show the directional move.
More...
 

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