The Case for Technical Analysis

J

jem

I was once a profitable full time day trader.
For various reasons I stopped trading.
I now have a profitable business.
I am going to fund a IB account with about 30 grand and see if T/A still works.

I will seek to show that T/A can still be a profitable method of trading.

At the moment I need to crate a trading plan.

I will start one today off the top of my head and then compare and contrast it with a model trading plan.

I will then have a final product.
 
2. Trading Plan Development.


I will fund an IB acount with 30,000

I need to consider if I will trade
U.S. stocks, futures or Currencies.

I will try to review 20 to 100 markets or stocks a night.
I will risk .5 to 1.5% per trade. Depending on the setup looks to me. I know a ripe market when I see it.

If I take a "type a" (to be defined later) pullback trade I am going to allow one re entry at a second level.

I will have two to 3 exits. One before recent highs and one right below recent high... and one with some sort of trailing stop.

As a pullback trader... I will consider a few types of trades and see which ones suit my swing trading effort.

I am going to monitor my selected markets for 3 types of pullback trades.

We will call them type A,B and C

Within type A - I will have 3 trades. These takes a lot inspection but A1 is by far the best trade I know. I hope it still exists. A2 is a type of flag trade. A3 is a deeper pullback trade than I usually take... so I will have to add filters.

I can Scan for B.
I can Scan for C.

Type B and C are, although I will apply I discretionary filter.



I will spend the next few days... determining how to select the markets I should trade.

Also once the markets are selected I would like to setup a filter for one to trade them.

I would I would like to apply some momentum pullback strategies to my basket of markets to see whether the market is favoring pullback styles or not -- at that particular time. This type of feedback may prove useful.
----

Note: my long term goals will be either to develop a few systems and vol pump between them... or blend a few systems.

I am considering...

setting up my monitoring system:

1. Do this in Tradestation as best I can.
2. See if I can find my old wealthlab password and start all over.
3. Consider spending money on some other setup like Murry Ruggiero's.


I plan to trade through IB.
 
Note. I suppose this should be transferred to journals. Even though I started this to prove t/a works.
 
Quote from jem:

Note. I suppose this should be transferred to journals. Even though I started this to prove t/a works.
More...

I was wondering where the political twist was gonna come from. :)
 
Quote from jem:

I was once a profitable full time day trader.
For various reasons I stopped trading.
I now have a profitable business.
I am going to fund a IB account with about 30 grand and see if T/A still works.

I will seek to show that T/A can still be a profitable method of trading.

At the moment I need to crate a trading plan.

I will start one today off the top of my head and then compare and contrast it with a model trading plan.

I will then have a final product.
More...

I believe TA is a profitable method of trading.In the short term I believe its the only way you can trade
 
You must log in or register to reply here.
Back
Top