The Stochastic Indicator

Status
Not open for further replies.
With some help from a friend we got a chart with few enough bytes to transmit. Thanks dawg for the values you listed. It is in the journal.

The last week of so is a very good practice time for staying on the sidelines. The MACD is particularly helpful for this.

You can see also the gap opens are there and the last two days after the open the synch period (let it be 15 min or the time you get by personal opbservation of the DJXX cash and futures beginning to move together.

The ice bergs had a rocket start, a loss between 11:00 and 11:30 and then a long (start of trade 2 for beginners) that took the rest of the day.

Trendy will be picking up an edge with her "riskier" entries if you are tracking the method I suggested she use.

The back testers can see their data changing with the last two days of additional stuff.

Today didn't have too much fussing regarding being on the fence for exits. Their were two nice examples of "entwining" on the first and last trades. The midday sideling was well illustrated too.

I attached the chart that went into the journal.
 

Attachments

Quote from dkm:

A "wash trade" is to exit at break even.
More...

As I understand Jack are "wash Trades" reversals in the current range. Opposite "whipsaw" when you enter on top of the range and exit on the bottom of the range. Wash would be short on top of the range cover on bottom of the range.

do correct me if I'm wrong Jack.

alain
 
Quote from alain:



As I understand Jack are "wash Trades" reversals in the current range. Opposite "whipsaw" when you enter on top of the range and exit on the bottom of the range. Wash would be short on top of the range cover on bottom of the range.

do correct me if I'm wrong Jack.

alain
More...

Hi Alain,

We are using "wash" here as an entry and exit at the same price.

Later when we get into the details of ends of fast trends, we can take up the opposite of getting whipsawed. This is when you do trades with the congestion, convergence and then set up "brackets" on the centering.

Everyone must wonder who is making it when others are getting whipsawed. There are many people who play the cycles of congenstion and convergence. Also there is a slow motion version of this for head and shoulders and double tops and bottoms.

Elsewhere there is a thread running on how people with long experience always explain "oh you don't take that entry and do it that way.... under these circumstances." then they plug in the comment on what you do when the particular circumstance occurs. This is a good observation that also said that the circumstnces list gets to be at least 100 elements long.

The point is that there is a topic that covers all of this. I call it flaws. All special circumstances originate with "flaws" or variant on the system.

Right now we are using beginner technique to learn one basic thing: How to stay out of a market that is not making money.

The opposite of getting whipsawed in congestion is a techique for making money is rapid continuing reversals. I did a series on LC in MIF to demo the method. To this day several people there could not regonize that I was on the right side of the trade even with my advance posts. we can do this as a way to enhance wash trades to get out at better than even.

Wash trades are essentially to take you out of a trend that didn't play out. what happens when a trend doesn't play out often is congestion. Once we can determine the sequence set (the series of signals from our indicators and price formations) we get the opportunity to improve washing and go into beinbg on the right side of whipsawing. See channel labelling Alian etc..

Has anyone fiured out the compounded minimum daily profit to make 90,000 with one contract? Has anyone seen what the profit level reqired is is you go to no more than two contracts and not compound?

I am showing no completed trades today up to now. One entry short and running.

I have to catch plane soon.
 

Attachments

Do not worry about being out of the market.

Siting around not losing money is a great idea whose time has come.

You probably noticed that those posting their trades are making over 90K a year prorata.

We will begin to see wash trades soon.

The fact that there are few posts is a good measure of people staying on the sidelines.
 
Uncle, uncle...

OK, I give, I'll do it Jack's way...

Using a 75-25 Stochastic trigger:

10:30 Long at 839.50
10:35 Out at 837.75

02:50 Sold at 828.00
03:00 Out at 827.00

Bottom line: Minus .75 on the day.

To this point I can see no benefit to using the 75-25 trigger...the 80-20 would have served me better, not only today, but all week.
 
1. 2:45 Short @ 830.00
3:36 Cover @ 827.75

Total: +2.25 Day: +2.25 Week: +10.75

This trade was during the bar, mkt was b/d out of a channel and MACD and Stoch were well below the area so I shorted. Used the 1m to anticipate (look at 1m and see little consol. 2:40-2:44 right at 830.25 and shorted as it broke)

Reason for exit: 5m MACD XO at 3:15- that bars high was 828.75 and was using 829.00 as a stop at that point. Mkt sold off and made a new low by 0.25 , but on lower volume (NQ did not make a new low). 1m MACD made a higher low. MACD Hist did not turn negative but stayed positive and was a reversal candle. Put stop above high of candle @ 827.75. 1m MACD also XO zero at 3:36. Exit at 3:36 @ 827.75.
 
Status
Not open for further replies.
Back
Top