Yes, thank you very much Jahajee. You're going above and beyond. Mandel, you're a riot. Thanks for your posts, too.
SPM discussions
- Thread starter Jahajee
- Start date
Yes, thank you very much Jahajee. You're going above and beyond. Mandel, you're a riot. Thanks for your posts, too.
Added a filter to not take a zero line cross if I have taken a trade within the last 5 bars. This way I only take one trade during those times the zero line gets crossed back and forth during choppy times. It seems best to just take one trade and let a stop or time exit finish the trade, commissions and chopped up bad reversals are limited.
Ok done for the night I think. At this point using SPY one year back tested I have %49.20 profitable and 1.28 avg. win loss.
It seems I am missing some pieces.
A couple of ideas are to position size and make profit targets and stops based on an intraday average true range. This would let me have tighter stops and profit targets and raise the number of shares during the times when the ATR is very narrow. This way during lunch for instance I can possible be taking closer profits, or during a slow thin day. Then perhaps on the wilder days the profits and stops can be wider. Hopefully this would increase the size of the profit loss while keeping the accuracy somewhat the same.
Ok done for the night I think. At this point using SPY one year back tested I have %49.20 profitable and 1.28 avg. win loss.
It seems I am missing some pieces.
A couple of ideas are to position size and make profit targets and stops based on an intraday average true range. This would let me have tighter stops and profit targets and raise the number of shares during the times when the ATR is very narrow. This way during lunch for instance I can possible be taking closer profits, or during a slow thin day. Then perhaps on the wilder days the profits and stops can be wider. Hopefully this would increase the size of the profit loss while keeping the accuracy somewhat the same.
Oh, and one more thing.
Always be aware of the MACD Momentum (Zero Line).
The strongest moves tend to be supported by it, and quite often price action will diverge from the cross and move in the direction of its momentum. Here are some examples:
Bullish Example:
1. The MACD is above the Zero Line and price action is showing a strong trend upwards.
2. The MACD turns down, but price action continues upwards, in the direction of the momentum as demonstrated by the Zero Line.
Bearish Example:
1. The MACD is below the Zero Line and price action is showing a strong trend downwards.
2. The MACD turns up, but price action continues downwards, in the direction of the momentum as demonstrated by the Zero Line.
Good trading.
P.S. And yes, my one loser was Shorting the ES during the dip this afternoon -
Always be aware of the MACD Momentum (Zero Line).
The strongest moves tend to be supported by it, and quite often price action will diverge from the cross and move in the direction of its momentum. Here are some examples:
Bullish Example:
1. The MACD is above the Zero Line and price action is showing a strong trend upwards.
2. The MACD turns down, but price action continues upwards, in the direction of the momentum as demonstrated by the Zero Line.
Bearish Example:
1. The MACD is below the Zero Line and price action is showing a strong trend downwards.
2. The MACD turns up, but price action continues downwards, in the direction of the momentum as demonstrated by the Zero Line.
Good trading.
P.S. And yes, my one loser was Shorting the ES during the dip this afternoon -
I'm too clumsy, but it is day 3 so I got another day or so lol.
I watched this trade with filters on SPY, and had another version that signals all crosses on IWM. It seems if I took the IWM signals and scalped a subjective fast exit it would've been decent. The time based stop seems to be good, with no filters that was decent on IWM. I will post charts later.
I watched this trade with filters on SPY, and had another version that signals all crosses on IWM. It seems if I took the IWM signals and scalped a subjective fast exit it would've been decent. The time based stop seems to be good, with no filters that was decent on IWM. I will post charts later.
Is this what you guys are doing ?
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146827 width=800>
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146827 width=800>
In a very bare bone kinds of way, yeah.
You actually could have taken that last Short trader earlier though.
You should read through the other threads so that you've seen other examples of the system and understand its nuances.
Then you have to put in the screen-time before commiting any funds to the method though ... we have been at this game for a relatively long time and understand price action pretty well.
We just needed the SPM to function as a guide or overlay for what we've seen every day for years. When applying it many of us have found that it's like going from a 20/40-60 vision to 20/20 or better.
Added the ZLCs and and the SMA with displacement.
I assume you guys take the ZLC on the fast one, not the slow one.
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146867 width=800>
I assume you guys take the ZLC on the fast one, not the slow one.
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146867 width=800>
Much better.
Displaced SMA technique is killer for getting you in on trades which have been confirmed by the MACD and being able to quickly exit trades which which don't move towoards your profit target (I like at leat 8 ticks on the ES - or equivalent).
Adjusted SMA.
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146884 width=800>
TV
<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2146884 width=800>