Yes, I'd appreciate Jack addressing this issue in more detail too (see my first question to him in the post above). There is a grey area between having the signal confirmed and getting a price that will turn out to be profitable. What looks like a crossover may well end up on the wrong side of the 50% line by the bar's close. So you need some other comfort in real time.
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Simple Profitable Method
- Thread starter trader28
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Yes, I'd appreciate Jack addressing this issue in more detail too (see my first question to him in the post above). There is a grey area between having the signal confirmed and getting a price that will turn out to be profitable. What looks like a crossover may well end up on the wrong side of the 50% line by the bar's close. So you need some other comfort in real time.
We have gone from 1 price chart with a MACD indicator below it, somebody is now using 4 or more indicators under the price chart and others are adding ema/sma's of different configurations. It looks like now the end result is a price chart with no MACD, just a stoch indicator. That means you are looking at 2 sma/ema lines and 2 stoch lines for crosses before entering/exiting a trade (I'm kind of paraphrasing here, I may be off base).Quote from trader28:
2 min MACD on any of the emini contracts, watch for it to cross it's Moving Average Line with a Zero Line Cross, exceptionally high percentage trade, you can feel everyone jumping on.
Thing is just about every trader I know either only uses the MA cross, or the Zero Line cross... one is trend, the other is momentum... I cant believe how many good traders dont see that almost all the trades that really move have the combination of the two. They'll go long on a MA cross to the upside when it is well below the Zero Line and wonder why it fails and has no momentum
Note: You can use a 9 period Simple Moving Average on the price chart to get you in a little earlier when you see it setting up
If the 10 minute MACD is below it's Zero Line (as it has been all day) then so much the better for the shorts on the 2 minute
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Buy:
1). The cross of the EMA1 and SMA2 +2s and
2). The cross of the Stoch 5-2-3, 50% line.
Sell:
1). Cross of the 1EMA and SMA2 + 2s and
2). Cross of the Stoch 5-2-3. (not the 50% line) were still
determining the exact stoch sell point.
snarlyjacl
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10 period SMA +2 (Triangular preferred if you have it) would have filtered out the false crosses and kept you in the true ones
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I don't know about you but my head hurts trying to figure all of this out. I think the "simple" train left town a long time ago. What happened to trading your desired time frame (2min, 5min or 10min) and entering on a MACD cross as per the original post? Have all of these "tweaks" made anyone that much more profitable?
Ok, Just a couple of comments...
1). Let's say we want a simple system that makes a ton of money. And that is very accurate and works the same way every time. (That is what were trying to achieve).
A). SMA2 + 2 horizontal shift. (very accurate)
B). 1 indicator (Stoch or Macd)? (Stoch 5-2-3 is very accurate).
2). I think we should be doing our "testing" on the 2 minute
chart. The 5 minute chart in my opinion is to slow!!! The 2
minute chart seems to be the sweet point chart on the YM.
snarlyjack
1). Let's say we want a simple system that makes a ton of money. And that is very accurate and works the same way every time. (That is what were trying to achieve).
A). SMA2 + 2 horizontal shift. (very accurate)
B). 1 indicator (Stoch or Macd)? (Stoch 5-2-3 is very accurate).
2). I think we should be doing our "testing" on the 2 minute
chart. The 5 minute chart in my opinion is to slow!!! The 2
minute chart seems to be the sweet point chart on the YM.
snarlyjack
Quote from ryank:
I don't know about you but my head hurts trying to figure all of this out. I think the "simple" train left town a long time ago.
True. My intent was just to clearly figure out what Jack was talking about (with another objective, not to improve SPM), so my questions to him have not too much to do with this SPM. Sorry for that.
Quote from snarlyjack:
Ok, Just a couple of comments...
1). Let's say we want a simple system that makes a ton of money. And that is very accurate and works the same way every time. (That is what were trying to achieve).
If that's what you are trying to achieve you are going about it in the opposite way.
T28 gives a simple method of analyzing price action on two time frames to determine price trend/momentum and when is the optimal time to take a trade, (and with experience) the amount of points one can expect from that trade.
Here's a simple chart of the 10 minute time frame with a SMA (9) and a basic MACD, can you tell me where is the optimal time to enter a trade on the 2 minute chart?
Attachments
Vienna,
With Trader28 and Jack Hershey help we have been able to
develop a system (see my chart on page 336) that can be used in 2 different way's.
1). As a stop and reverse system (Jack Hershey).
2). Or...get in, take your profits, get out system (Trader28).
To be very honest with you I am very excited about our little
simple profitable method (LSPM)!!!
Can you believe that the members of "ET" were able to put
together a very workable system with only minor conflicts along the way.
snarlyjack
With Trader28 and Jack Hershey help we have been able to
develop a system (see my chart on page 336) that can be used in 2 different way's.
1). As a stop and reverse system (Jack Hershey).
2). Or...get in, take your profits, get out system (Trader28).
To be very honest with you I am very excited about our little
simple profitable method (LSPM)!!!
Can you believe that the members of "ET" were able to put
together a very workable system with only minor conflicts along the way.
snarlyjack
Quote from snarlyjack:
Vienna,
With Trader28 and Jack Hershey help we have been able to
develop a system (see my chart on page 336) that can be used in 2 different way's.
1). As a stop and reverse system (Jack Hershey).
2). Or...get in, take your profits, get out system (Trader28).
To be very honest with you I am very excited about our little
simple profitable method (LSPM)!!!
Can you believe that the members of "ET" were able to put
together a very workable system with only minor conflicts along the way.
snarlyjack
Actually, the only one who is going to like the trades derived from that chart is your broker.
Quote from JimmyJam:
Here's a simple chart of the 10 minute time frame with a SMA (9) and a basic MACD, can you tell me where is the optimal time to enter a trade on the 2 minute chart?
The answer is here (don't look at the chart if you want to figure it out for yourself).
Now, at least one of these trades setup everyday for the last 10 trading days, instead of posting triva et. al. on a free board, why don't you review the past 10 days of trading action, identify the correct trade, determine how many points it went for, and see how the previous day's trading relates to the next day.
Then practice what that information tells you for 4 to 6 weeks.
Then you might begin to have this method under your belt ... and will have achieved your goal of having a simple profitable method that makes money consistently.
**
I'll leave the money management up to the individual.
Have a nice sunday.
Jimmy Jam
Attachments
Jimmy Jam,
Nice talking with you!
I am a big believer of "getting in, making your money, and
getting out". Then regrouping. I personally do not like
reversal systems. (but that's me).
I do not like pushing the envelope. I would prefer to take the
meat out of the middle and leave the edges to someone else.
But when I am taking the meat out I need some indicators that
are pretty accurate in showing the true direction of where the market is going. I have no problem with the Macd or the Stoch.
snarlyjack
Nice talking with you!
I am a big believer of "getting in, making your money, and
getting out". Then regrouping. I personally do not like
reversal systems. (but that's me).
I do not like pushing the envelope. I would prefer to take the
meat out of the middle and leave the edges to someone else.
But when I am taking the meat out I need some indicators that
are pretty accurate in showing the true direction of where the market is going. I have no problem with the Macd or the Stoch.
snarlyjack
Quote from snarlyjack:
Jimmy Jam,
Nice talking with you!
I am a big believer of "getting in, making your money, and
getting out". Then regrouping. I personally do not like
reversal systems. (but that's me).
I do not like pushing the envelope. I would prefer to take the
meat out of the middle and leave the edges to someone else.
But when I am taking the meat out I need some indicators that
are pretty accurate in showing the true direction of where the market is going. I have no problem with the Macd or the Stoch.
snarlyjack
You're still posting instead of looking at the charts ...
JJ
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