Simple Profitable Method

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don't feel like the lone ranger there cd. I've traded this live for about a month and my $3000 acct is down to $2219. Early last week it was over $3500 and I thought I was doing something right after six years of trial by error.

The drawdown came from two trades. I entered a fast moving market fairly early in the morning, before I even entered a stop the market was against me a whole point I went on tilt and like I froze up and watched the thing go another 3 points against me before I pulled out. I did the same thing again about a half hour later too.

I've been using a half point stop.

This market will go a point and half or two points then retrace all the way back in a heartbeat. I'd like to let a winner run a bit but it isn't working with a stop at break even.

A bad day tomorrow and I'll be able to focus more on my day job. IB shuts me down when the account goes below $2000.

Hey the market just broke 785. Tomorrows pivot is 782.5 and this is also the lower trendline.

Hey snarly what's a sma25? I thought we were using a 3 and 9 period simple moving average crossover, on the 2 minute charts.

Somebody else said something about the macd crossing the macd and that confused me too.
 
I still think it's possible to make money with this, just underestimated a bit the emotional side of it. This swings either big on the upside or big on the downside at the end of the day. Made some losses back but still lost 390 USD a contract. Think I'm going to trade this somewhat smaller from tomorrow on.
Not too sure this will work with those tight stops, beeflover.
 
Ok ya'll,

Here is a picture of today's action (on my program).

Hawthtrader,

If you want to use moving averages, the short term
EMA's 3,5,8 will gage the short term investors for you. I watch
them to see which direction they are pointing. (up,down,sideways).

Beeflover,

In my opinion your "stops" are way to loose. I trade the (ym)
but if the market moves against me for like 3 or 4 points
($15. or $20.) I get out. I would rather pay the commissions
of $4.80 and repossession the trade than take a large loss.
But that is just my opinion.

Also, this isn't a crossover system on the SMA's 3 and 9!!!

If you go back to page #1 instructions you use the SMA 8 or 9
shift +2 (or approx I think SMA 25) as a early entry if it lines
up with the Macd zero line. (actually the shift +2 was buried
in the text of this manuel) but it is just a early warning signal.

The other indicators the Stoch (14-1-3) and On Balance Volume
(3-200) really fine tune the entry/exits.

I have found that by using all 3 indicators. The Macd for the
general trend, where are you in the market. The Stoch for
fine tuning the entry/exit. And the On Balance Volume to see
if volume is picking up the prices. Used together it makes for
a great system.

The Guppy system (multiple moving averages) is just a system
that came with my program that I like to watch.

Hope all this makes sense.

snarlyjack
 

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Potential Trades:

If you look at my chart...

1). 8:15 long
2). 8:30 long
3). 9:00 short
4). 9:45 long
5). 10:15 long
6). 10:30 short
7). 10:45 long
8). 12:35 long

As you can tell I am not hanging around very long. Get in,
make your money, until the market turns against you, and get out.

The entry signals are the zero line cross of the macd.
But, use the other indicators for confirmation of the trade.

*****MOST IMPORTANT OF ALL*****

When you see the "pirate" in the crows nest with the spy glass,
start smiling, that's your sign to go for it...

snarlyjack
 
Get up close and personal:

This is what I do...

1). I use bar charts but candles would work also.
2). EMA(1) Pink = shows where the real price is.
3). EMA(3) White = emergency/watch STOP.

***When the EMA1 crosses the EMA3 to the upside/downside
I watch that very closely. If the other indicators are starting
to turn against me, I close out my position and think about
it. I do not flip/flop positions.

***A lot of times the prices will move against you (down into
the blue/red EMA's then turn back up. This is where Trader28
teaches to reenter if prices go back through EMA3 (reentry).

If you can see my chart, I hope you can visualize the moves.

Hope this helps...

snarlyjack
 

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Trader28,

Are my teachings and methods close to yours?

In my mind they are the same except for some minor tweaks.

Just thought I'd ask, cause I don't want to mess up a
good thing.

Let me know what you think!!!

Thanks for all your help!

snarlyjack
 
I've given up on absolutes Snarly, you are using the basic template and a good trader will put his twist on it and make it his own and make money, and that's what many, yourself among them seem to be doing. Initially I really only wanted to point out how to use the MACD properly because the zero line was almost a lost art. I love trading but it is not my first love and never has been or will be fulltime for me, if only for the fact that the market starts at 1.30 in the morning and I am a lazy bastard that loves my sleep, and I think that more than anything drove me to look for something simple and profitable
 
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