Scalpers Progress

Quote from KymarFye:

What's the point of the EMA and the second stochastic?
More...

These are for "secondary" trades..ones that do not follow the STRICK rules.

20 EMA and the 20,3,1 are both trend indicators. If price is below the 20, trend is down. If the the 20,3,1 is below the 50 trend is down. (see chart)

All trades MUST be confirmed by a price penetration in the desired direction.

I have been trying to trade strickly on price action, but I know myself enough to know that I need a visual confirmation. Thus the new signature.

Make'em pretty, Chris
 

Attachments

Quote from Ditch:

With a slight adaption this system could also be used to take trades that go in the direction of the trend. I.e. use any kind of trend indicator you like and enter in the direction of the trend if the stochastic moves out of the 15/85 area.
More...

Yes Ditch, that is very true. See my above to KymarFye. These are for the entering in the direction of the trend.

This is a minor modification of LBR's Holy Grail.

Make 'em pretty, Chris
 
Quote from DblArrow:

Using BrackeTrader a target is set for 1 point and a stop is also set for 1 point. However I will often hit the smaller target button if price does not go my way QUICKLY!
More...
Do you apply the same element of discretion by sometimes taking a smaller loss than 1 point? And conversely, if the price does go your way quickly, do you ever move the target to 1.25 or 1.50 points?

I ask this because I am hoping it will require more disipline in my trading, forcing me to stay with what the system requires.
More...
Now that you have outlined your system, apart from discretionary overriding of BrackeTrader, what would you consider to be your main disciplinary violations?
 
Another thought - as I was looking at the previously anotaded chart...

I really like divergence in price and the 5,2,1. It is usually a good trade and I will often time anticipate and jump in early.

Make 'em pretty, Chris
 
I'm not completely sure I have all of your parameters correct. It appears to me, for instance, from your examples as well as from my initial attempt to render your rules as a system, that actual short entries will have to be made after the FastK line has re-crossed 85 heading down.

In other words, are the conditions satisfied by crossing 85 going up, or does FastK have still to be above 85 at the time of the entry? If the former, other than the entry bar making a new high, at one point is the "cross-upper-BB AND cross-85FastK" entry rule negated, and the sell signal no longer considered in effect? The second alternative would appear to exclude some of the entries in your own example.

Also, as for the NewHigh/NoSell rule, what if the entry is made, but the entry bar goes on to make a new high?

Finally, since I'm looking at the results in Tradestation, could you be a little more specific about what the (5,2,1) Stochastic settings translate into? 5 obviously must be length, and I presume 2 and 1 refer to smoothing and smoothing type, but I'm not sure how your software interprets them. I'm assuming that the system is thought to be robust enough so that minor alterations shouldn't matter too much, but results might be more useful if we were looking at the same thing.
 
... been wondering this for months: Make WHAT pretty? And is it "Chris" who's supposed to be making them pretty? Or are you Chris, urging us to make whatever pretty?

Inquiring minds want to know.
 
Quote from Mr Subliminal:

Do you apply the same element of discretion by sometimes taking a smaller loss than 1 point? And conversely, if the price does go your way quickly, do you ever move the target to 1.25 or 1.50 points?

Now that you have outlined your system, apart from discretionary overriding of BrackeTrader, what would you consider to be your main disciplinary violations?
More...

Mr Sub, (and how is Mr. Sub's Mom?)

First how do you break up the quotes like that, can't seem to figure that one out!!:confused:

On the stop - only if I get a signal in the opposite direction before my target is hit or if I get the trend continuation signal, and sometime not even then. That is usally a failure to regognize the signal (or rather refusal) to regognize the signal.

Target - very rarely (almost never) if it moves my way fast enough I don't seem to have time to regognize the potential. And if it moves my way slow enough and do move it, it seems to not get there and then I get hit with the loss (again failure to regognize a change).

Main disciplinary violations come from anticipation, failure to regognize a change in direction. Failure to take all the signals, thus cherry picking the bad ones.

Make 'em pretty, Chris
 
Quote from DblArrow:
Using BrackeTrader a target is set for 1 point and a stop is also set for 1 point. However I will often hit the smaller target button if price does not go my way QUICKLY! This is a scalp after all and any profit is a good trade. I do not trail stops or move them. I may widen an initial stop to a max of 1.25 if the high of the bar so dictates.
More...

I don't use BracketTrader, but had been (and still do when I lose discipline) trading in a similar fashion. I later went back and charted all trades and discovered that "any profit" was not in fact a good trade. Grabbing those smaller targets cost me a large amount of money. If you do this frequently, I would suggest plotting your trades to see if you are better at this than I was (am). If not, cutting your trades early just to get a small profit could mean the difference between profit and loss. Just my input on a lesson I am learning myself. BTW, if I can't take the stress and feel the need to scratch, I will now often just bump my stop up a tick. So far, that has shown to be the better course of action for me.
 
You must log in or register to reply here.
Back
Top