my current setup

D

dojistarz

Guest
here's my current setup to papertrade emini russell 2000

using
tick charts
2400 + 150 + 600

and a simple moving average period 2

rising moving average is yellow
falling moving average is blue.

moving average is wider(more important)
on longer time frame
and thinner on shorter ones.


up candles are white
down candles are red


miniruss2000.gif


the best set up?

when all candles in all time frames are the same color
AND moving average of the same color as well.

Do you see any down sides regarding this setup to daytrade
emini russell 2000? Would you modify something?
I would really like to get your opinions/ideas.

The more I use it, the better I get at feeling the market
especially for my exits.

I use 2 to 5 contracts to start with.
Stop-loss is set at 0.80.
Target? as long as it is going in the same direction, I am in.
I get out of 1 or 2 contracts at the first sign of stalling or reversal.
If I feel it doesn't go anywhere I get out as well.

It's been only paper traded. No idea how well it would do in real life.

The plan was to design a setup with a minimum of indicators(to avoid confusion) and with at least 2 time frames to get an idea
of the general direction.
 
Could you please educate me on why you are using tick counts rather than fixed time intervals? I have never grasped the utility of that. TIA.
 
If you will forgive a socratic question, I should like to know if the sma is calculated on the close, the high, the midpoint, or some other combination of bar parameters. If you think about it, you might be led to conclude that the choice is critically important in such a short sma. It could be that the point is to definitively distinguish the two period sma from a single period sma.
 
I am assuming 10$ for commissions.
Winner rate 68% to 81%.

The first 2 contracts usually only get $20 to $30.

For the first 2 hours of trading I can usually end up with a profit

between $300 to $500. (i try to stick to the first 2 hours only.)

I stop trading after 3 stop losses are hit in a row.

Best day was over $2000. Worst day -$500
All weeks are positive.
Commissions take 1/3 to 1/4 of my profits.
 
forgot to mention

SMA (2) based on closed.
After testing, high low combinations, ended up using the close.

close seems to react faster to put you in the right direction.
 
Doji. Thanks for replying. I recommend that you look into Interactive Brokers. The roundtrip per car is under $5. Adds up in the long run. How long have you been paper trading this system? Mike.
 
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