Something very simplistic

Quah · Sep 13, 2002

Iâm going to stop trading for the day â so Iâm not going to take the last two trades of the day. I figured Iâd give NQ a shot starting today â thinking it might prove to be a good hedge on a losing ES trade. Or maybe hedge isnât the right word. How about if one is wrong I hope the other is right.

Got nailed on ES when the âleakâ came out right after the 9:43 trade. Reversed the original loser and that one lost also. First time so far that both trades were losers â Iâll keep an eye on it.

For 9/13/2002:

ESZ2:

11 Total Trades
8 Winners
3 Losers
Avg. Winner +1.03 / Avg. Loser -1.25
Gross 4.50 points - $225.00/contract
Commission $52.80
Net $172.20/contract

NQZ2:

11 Total Trades
9 Winners
2 Losers
Avg. Winner +3.12 / Avg. Loser -3.50
Gross 21.00 points - $420.00/contract
Commission $52.80
Net $367.20/contract

ES Trades:

9:33 S 880.75 +1.00 (1:30)
9:35 L 880.00 +1.00 (2:00)
9:38 L 881.25 +1.00 (1:30)
9:43 S 880.25 -1.25 L 881.50 -1.25 ( ) Yuk!
9:51 S 878.75 +1.00 (0:30)
10:04 S 878.00 -1.25 L 879.25 +1.25 (3:00)
10:25 L 886.25 +1.00 (8:00)
10:59 S 885.00 +1.00 (5:00)
11:54 L 886.00 +1.00 (1:30)
13:23 (not taken)
15:47 (not taken)

NQ Trades

9:33 S 914.00 +3.00 (2:30)
9:35 S 911.50 -3.50 L 915.00 +3.50 (4:30)
9:38 L 915.00 +3.00 (1:30)
9:43 S 916.50 +3.00 (6:30)
9:51 S 912.50 -3.50 L 916.00 +3.50 (7:00)
10:04 L 918.00 +3.00 (2:30)
10:25 S 928.00 +3.00 (7:30)
10:59 S 922.00 +3 .00 (12:30)
11:54 L 921.00 +3.00 (5:30)
13:23 (not taken)
15:47 (not taken)

Breakout · Sep 13, 2002

Hey Quah...good stuff...

I paper traded your method today using 100T bars.

Basically, at the appropriate times if my 100T bar closed
up,I went long, down,I went short.

I didn't try to reverse the losers. So far today,
8 winners and 2 losers for $227.00 after commish.

Since I have an objective entry method, I'll probably be
spending the weekend backtesting this bad boy.

Thanks for your contribution.

Quah · Sep 13, 2002

Originally posted by Breakout
Hey Quah...good stuff...

I paper traded your method today using 100T bars.

Basically, at the appropriate times if my 100T bar closed
up,I went long, down,I went short.

I didn't try to reverse the losers. So far today,
8 winners and 2 losers for $227.00 after commish.

Since I have an objective entry method, I'll probably be
spending the weekend backtesting this bad boy.

Thanks for your contribution.

Excellent. I'm glad to have provoked some thought on different ways of thinking about playing this game. Good luck!

nkhoi · Sep 13, 2002

Originally posted by AAAintheBeltway

... Also of course the total absence of big profits.

if he can do it consistency then big profits will come in when he trade more than 1 lot.

aphexcoil · Sep 13, 2002

nkhoi,

Yes but sooner or later he will push the spread with too many lots -- say around 100 to 200 lots. Then what?

Of course, by that time, if that becomes a problem ... well, it is all relative of course.

rtharp · Sep 13, 2002

Originally posted by Quah

No, the entries are not random at all - they are at those specific times only.

The decision to enter long or enter short at those times is based on something else - whatever you want. Stochastics seem to work well, but it really doesn't matter - maybe you'd find that the current TICK would be your basis for deciding long or short, or that if the temperature in the SP trading pit is above 80 you'd go long, below 80 you'd go short. What ever seems to work would be fine.

Given that, none of it is random at all.

just remember
Stochastics work well in a random/non event market

a trending market ..............you will be in trouble.

Quah · Sep 13, 2002

Originally posted by rtharp

just remember
Stochastics work well in a random/non event market

a trending market ..............you will be in trouble.

That's true if you use stochastics in the "normal" way. What if you only look at them at specific times of the day? At a specific snapshot in time?

AAAintheBeltway · Sep 13, 2002

Originally posted by nkhoi

if he can do it consistency then big profits will come in when he trade more than 1 lot.

Not really. I meant the absence of big profits per trade. It's not something that can be solved by doing size, because the per contract profit is still small, which means you are very dependent on hitting a very high percentage. Like all scalping methods, there is also a practical limit to how much size you can do.

Trading, like life, is about choices. You can swing for the fences, you can try to hit for average, or you can do alittle of both. Experience and a lot of testing has taught me that you will not make much money restricting yourself to singles, no matter how good you are. You may not blow out, but you will not make much. I eagerly await the weekend's backtesting results.

ANCHOR · Sep 13, 2002

Quah,

Congratulations! On both your profits and your good post. Your thread is exactly what ET is all about. Why? Because it's actually about trading!

That is a rare find on ET. You started by thinking "out-of-the-box", you posted your thoughts and system on ET, and now you have others starting to think along similar lines. You and your post are what ET is all about. Keep up the good work. I hope your system works over extended periods of time.

Quah · Sep 13, 2002

Originally posted by aphexcoil
nkhoi,

Yes but sooner or later he will push the spread with too many lots -- say around 100 to 200 lots. Then what?

Of course, by that time, if that becomes a problem ... well, it is all relative of course.

I'd never attempt to trade 100 lots with this system, if at all. I'm not that greedy. FYI, I traded 1's on weds, 2's yesterday and 3's today. I don't anticipate ever trading more than 20 or so with this, if I get that far. I'll pause at 5 for a few weeks.

I think I can live on 4 points a day on a 5 lot - and sitting in front of the PC for less than an hour total.