Methods and Systems Only

T

TriPack

I have created a resource thread on ET that summarizes some of the methods and systems that have been disclosed in past or current threads, and provides links so that members may do further study and reading in the archives. Hopefully this can become a useful and dynamically evolving reference so that new and experienced traders may gain insights and ideas from the methods of others. This thread is located at:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=9722

If you are aware of any current or old threads that disclose specific methods / systems of trading, please post a link to those threads as a reply or PM me. After compiling and editing the list I'll put together a thread that summarizes the basic thrust of each method, and provides links for further reading / research.
 
Man, you sure got a lotta responses. What a coincidence. Let me share the biggest secret: very few people share actual methods on this board (in case you haven't noticed).
 
Originally posted by traderkay
Man, you sure got a lotta responses. What a coincidence. Let me share the biggest secret: very few people share actual methods on this board (in case you haven't noticed).
More...

Yeah I have noticed, but I also have seen at least half a dozen actual methods or systems shared or discussed in various places and at various times on ET. I'm sure I've missed some along the way, as I haven't read every post. I was hoping I could enlist a few hardy souls to pore over the archives and provide links to some of these methods. Thus far I've only been able to elicit your response. Well I guess I should be thankful for what I've got, so thanks for responding! I'd like to build this into a repository of method ideas so that everyone can benefit from the "combined wisdom" posted on ET.

So if anyone has a bit of time on their hands, I'd appreciate it if you could do some searches and hunt down some of those methods that are hidden in the archives and post a link or two.
 
Just a reminder, if you have posted a method or system on ET in the past (or can recall reading one), and would like to forever be memorialized in the GEMS: Methods and Systems thread, send me a PM and I'll hunt it down for you.
 
Here's one:

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. You have your swing high BUY point (high minus open) and your swing low SELL point (open minus low). These two numbers illustrate how far the market was willing to be pushed in either direction today. We will use these numbers as a gauge for tomorrow's trading. If the market exceeds these numbers in either direction, we will get in on the action. Thus, tomorrow, place a BUY STOP at the OPEN plus the swing high amount. And place a SELL STOP at the OPEN minus swing low amount. The bonus is that by bracketing the market, we've already determined our STOPS by setting our ENTRY points. Neato, eh?

4 XAMPLE:

Canadian Dollar:

High minus open=5 ticks
Open minus low=15 ticks

The next day opens at 6300.
Place a BUY STOP at 6305 and a SELL STOP at 6285.
Exit all positions at end of day.

In backtesting various contracts, I've found this to be very profitable, albeit with some significant drawdowns. If anybody tries it out, please notify me of your results (and send money if profitable:D). Another option is to place your stops one tick above/below the buy/sell points. This weeds out some bad trades. Happy trading!

-Lizard

P.S. I'm not trading this method, because I've found others that are more profitable with less risk. However, this one has proven to be quite a jewel. Maybe someone can adapt it for even better results.

P.P.S. I'm a big fan of "dumb" trading systems.
 
Lizard Gizzard,

Thanks for the post and nice method. Simple to implement and could make a good base for a more complex system. Did you have any experience trading this method, and if so what markets and how did it turn out? It looks like this would be a method that would primarily concentrate on capturing trending market moves.

Thanks,
 
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. When the Wilders RSI makes a new high in the 5 minute prior to the index making a new high, I buy with a 3 point stop and trail it up, vice versa for shorts. Also do the same with the 15-minute. The 5-minute trades occur 10 times for every time a 15 minute trade occurs. These have had a 64% profit rate of at least 1 point or greater (with a trailing 3 point stop.) FWIW.
 
Originally posted by lawrence
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. When the Wilders RSI makes a new high in the 5 minute prior to the index making a new high, I buy with a 3 point stop and trail it up, vice versa for shorts. Also do the same with the 15-minute. The 5-minute trades occur 10 times for every time a 15 minute trade occurs. These have had a 64% profit rate of at least 1 point or greater (with a trailing 3 point stop.) FWIW.
More...

lawrence,

What are your RSI settings?

--opm8
 
You must log in or register to reply here.
Back
Top