No Brainer Breakouts or How An Early Bird Catches A Worm

[JSSPMK]

Hi,

This is going to be a rather short journal time wise, I will keep it open for exactly 1 month & polls will close after 7 days. It's open to rational debates only, TY!

It will implement the most basic of technical methods - a breakout of a range using a Martingale strategy using after hours Hi/Lo range on a 30 minute ES chart.

Key part - to greatly underleverage initial entry. For this purpose I will use a spread betting firm in the UK. Initial bet starts @ 0.10 pence (roughly 0.16c) per point. Sell Lo & Buy Hi. Bet size doubles every time Lo/Hi is touched. Target is at least 2 times stop/reverse after hours range.

After hours catastrophes will be excluded, basically all bets are off.

TY & Enjoy! Starts Monday 2nd November 2009 & runs till Friday 27th November 2009

Here is a quick visual.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2622751>

 

[JSSPMK]

Some will be able to implement this method during RTH using 1 point range from an opening price, this is the Holy Grail

 

[sosueme]

Quote from JSSPMK:

Some will be able to implement this method during RTH using 1 point range from an opening price, this is the Holy Grail

thank God someone has the courage and the wisdom to finally publish the holy grail.

sosueme

 

[shikantaza]

Quote from JSSPMK:

Hi,

This is going to be a rather short journal time wise, I will keep it open for exactly 1 month & polls will close after 7 days. It's open to rational debates only, TY!

It will implement the most basic of technical methods - a breakout of a range using a Martingale strategy using after hours Hi/Lo range on a 30 minute ES chart.

Key part - to greatly underleverage initial entry. For this purpose I will use a spread betting firm in the UK. Initial bet starts @ 0.10 pence (roughly 0.16c) per point. Sell Lo & Buy Hi. Bet size doubles every time Lo/Hi is touched. Target is at least 2 times stop/reverse after hours range.

After hours catastrophes will be excluded, basically all bets are off.

TY & Enjoy! Starts Monday 2nd November 2009 & runs till Friday 27th November 2009

Here is a quick visual.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2622751>

I have two questions regarding your wonderful system:

1-Will it work in a 27 minute chart?
2-What is the cost of a bag of white rice in the U.K.?

 

[JSSPMK]

1. yes
2. no idea

This is just a fun exercise of how to achieve a 'guaranteed' gain if both greed & leverage are kept in check. I do understand that it is a totally unsexy thing to do

It is totally bias free, just like a remora fish attaches itself to a bigger one, we attach our position (remora) to a market (shark).

 

[JSSPMK]

Range 1038.75 - 1028.50, therefore targets for Long trades 1059 & for shorts 1008.

(Quite wide range for ES, might take 2-3 days to get to targets)

 

[shikantaza]

Quote from JSSPMK:

1. yes
2. no idea

This is just a fun exercise of how to achieve a 'guaranteed' gain if both greed & leverage are kept in check. I do understand that it is a totally unsexy thing to do

It is totally bias free, just like a remora fish attaches itself to a bigger one, we attach our position (remora) to a market (shark).

So basically, if price wanted to, it could whipsaw N times (with N more than 1 and less than 50) within a 30 (or preferibly 27) minutes time period?. I'm not sure I understand the entry and exit rules. Are they based on time or on price fluctuations?.

I do not understand your remora and shark comment, as I don't currently eat sushi. Only Boiled White Rice. But let's leave that out and concentrate on the holy grail for now.

 

[Now is Now]

I am VERY slow on picking up details.

So what we have today is that if the market breaks 102850 we SELL to 1008...and the STOP is is 103875? On the other hand if the market breaks 103875 we BUY to 1059..the stop being 1028.50.

If we are stopped you apply the Martingale system for the next allocation.....

Is that it?

Come over the see the boys sometime.....

 

[JSSPMK]

Quote from Now is Now:

I am VERY slow on picking up details.

So what we have today is that if the market breaks 102850 we SELL to 1008...and the STOP is is 103875? On the other hand if the market breaks 103875 we BUY to 1059..the stop being 1028.50.

If we are stopped you apply the Martingale system for the next allocation.....

Is that it?

Come over the see the boys sometime.....

Hey man how you doing?

Buy resistance 1038.75 & Sell support 1028.5, double position every time position gets stopped out/reversed at either support or resistance. Profits target equals at least twice the range, in todays' case range is 10.25 that means profit target is at least 20.50 points. This will ALWAYS work out in profit as long as rules are not ignored. Because price can & will at times whipsaw within a chosen range position starts with a puny 16c per point. That is the whole principal of underleveraging. Trends persist, price always oscillates

 

[JSSPMK]

Quote from shikantaza:

So basically, if price wanted to, it could whipsaw N times (with N more than 1 and less than 50) within a 30 (or preferibly 27) minutes time period?. I'm not sure I understand the entry and exit rules. Are they based on time or on price fluctuations?.

I do not understand your remora and shark comment, as I don't currently eat sushi. Only Boiled White Rice. But let's leave that out and concentrate on the holy grail for now.

LOL