The Stochastic Indicator
- Thread starter jack hershey
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I am really impressed.
I liked the week's results too.
I really appreciate how people are reporting their stuff here.
Just as a simple comment. It is like adding light to a room. Each equal amount of light seems to change things in a large way at the beginning. The four lights we have burning are:
The knowledge that Stoc is relative and you can hold in the "over...." as a trend that is fast is a good achievement.
Just doing fast paces only as a place to begin is equally great as an achievement.
I appreciate everyone keeping the 20/80 taped so far.
The biggest thing that I think occurred was knowing to stay out of lateral markets.
I liked the week's results too.
I really appreciate how people are reporting their stuff here.
Just as a simple comment. It is like adding light to a room. Each equal amount of light seems to change things in a large way at the beginning. The four lights we have burning are:
The knowledge that Stoc is relative and you can hold in the "over...." as a trend that is fast is a good achievement.
Just doing fast paces only as a place to begin is equally great as an achievement.
I appreciate everyone keeping the 20/80 taped so far.
The biggest thing that I think occurred was knowing to stay out of lateral markets.
Dude, the 'fool' part was in no means addressed to you. It was a general statement, but I am not surprised by your reaction. It's typical of a loser who takes everything personally.
If you think that I care if you answer my question, then you are seriously mistaken. Good luck with your entries, loser. Remember, whether you make money depends on where you exit and not where you enter. Exiting is much more difficult and definitely beyond you as you have clearly demonstrated so far.
BTW, you are also mistaken about my business of selling systems. I do not sell them, because they are too good to sell.
I am calling what you list as a flat trade a wash trade. As you say entry and exit are at same price.
Yes the the reversal out at max profits sets you up to profit every half cycle through the congestion.
For dixon, he can glance at our MACD 5,13,6 on the 1 min and see that the MACD telegraphs the reversals right on down the line. As the amplitude of the MACD absolute indication shrink you see the convergence and then the centering for a BO. The small numbers like 5 and 6 help with preventing bridging. On the 1 min the 14,1,3 stoc is always entwined and not readable for the congestion. The channel and the MACD stear you right along. By seeing it as the linked turns of a slalom you recognize the rythm right away.
Quote from dawg:
tampa
i had no idea what to do...it was like middle of the day, but it is a clear setup...doh! i think what most important is that you don't get burned entering under these setups and if there is any rally/selloff you will definitely be in for it. It's like single, single, strikeout, strikeout, triple. Have a good weekend.
I know what you mean. Obviously, it violated the 11:15AM to 1:15PM "rule" - but as I am sure you know, some nice trends start at that time of day.
While I find Jack's methods to be VERY interesting, I am having trouble following them to the letter - but that's the story of my (trading) life, and the main reason I am interested in what he has to offer - go figure
It does not please me to be looking at something called "beginer level", but...
Well first, I gotta send a big thanks to Jack. I have learned a ton from reading a big pile of his stuff. The funny thing is, I am not using stochastics or MACD right now at all, but I have still learned alot from what he has to say. I am actually using a custom oscillator that isn't closely related to either of these.
Here's a suggestion. You don't have to exactly trade Jack's method to learn from it. Write down all of his rules, then write down your version that you want to trade on a separate page. Trade your version if you like, but JOURNAL exactly how what you are doing is different from Jack's method. Go back through at the end of the day and compare how your system did compared to Jack's version. You will still learn Jack's method this way. As a matter of fact, I'm almost positive you will learn more this way.
Just make sure you consistently follow one or the other of them. Finding a balance between consistency and adaptability is one of the hardest parts of trading.
Good luck.
Quote from tampa:
While I find Jack's methods to be VERY interesting, I am having trouble following them to the letter - but that's the story of my (trading) life, and the main reason I am interested in what he has to offer - go figure
Here's a suggestion. You don't have to exactly trade Jack's method to learn from it. Write down all of his rules, then write down your version that you want to trade on a separate page. Trade your version if you like, but JOURNAL exactly how what you are doing is different from Jack's method. Go back through at the end of the day and compare how your system did compared to Jack's version. You will still learn Jack's method this way. As a matter of fact, I'm almost positive you will learn more this way.
Just make sure you consistently follow one or the other of them. Finding a balance between consistency and adaptability is one of the hardest parts of trading.
Good luck.
Hey, where's this 11:15 AM to 1:15 PM rule? Did Jack suggest this rule, or is it someone else's? Maybe I missed it?
ROCK
I suggested that there are three distinct parts of the day. Volume shows you that. The middle has nominal times assigned to it: 11:15 and 13:15. They change from day to day but they are good references as to when to expect the falloff in volume and when it starts up again.
Something that is ahead is looking at sequences of events. The sequences in the middle of the day will be telling you something is coming so be prepared to start the day again.
After a while we will be noticing that the absolute indicators come to rest on zero and the relative indicators come to rest on 50%.
What will be happening id tht we can then do bracket set ups on the centering and use the non entry as a first trailing stop.
We can always be aware of how to make money at any time. I think easing into it by have a track record of no losses is a helpful orientation. Strangely later on it gets to KISS and your limitations are mostly centered on how many contracts you are able to use to be very crisp in your trading and not have partial fills laying all over the place. This arena is many times what you need to live a top quality life so it is not a greed thing just being in an excellent place.
We are only making 30 to 40K a year now per contract. Once we get to reversals that are a place where you are flowing profits all the time, and then putting on contracts in multiples of 5, you can see we are no longer in the cheap seats.
First we have to learn to stay out of the market during non trends.
Last week I applied Jacks Method to european futures (Euro Bund & Euro Stoxx). I have traded with one contract and I have applied some further criteria for the trade. Mostly I waited for a BO confirmation. I was also more carefully while the Histo was decreasing even there would have been a signal. Sometimes I also stayed out of the market because the picture of the general market looked flat.
Another thing is to stay out when a fast reversal happens and would give a signal into the opposite direction.
I attached a chart with the trades of the 26th of February.
Now here are the trades for this week:
(1 pt equals 10â¬, 10⬠Commission)
24.Feb03
Short; Entry 2194, Exit 2188 = 6pt
Long; Entry 2194, Exit 2190 = - 1pt
Short; Entry 2167, Exit 2170 = -3pt
Short; Entry 2157, Exit 2160 = -3pt
Day Total: - 10⬠- (4x10â¬) = -50 â¬
Total: -50â¬
25.Feb03
Short; Entry 2103, Exit 2083 = 20pt
Short; Entry 2074, Exit 2072 = 2pt
Day Total: 220⬠- (2x10â¬) = 200â¬
Total: 150â¬
26.Feb03 (see attached chart)
Short; Entry 2077, Exit 2059 = 18pt
Long; Entry 2081, Exit 2076 = -5pt
Long; Entry 2085, Exit 2084 = -1pt
Day Total: 120⬠- (3x10â¬) = 100â¬
Total: 240â¬
27.Feb03
Short; Entry 2057, Exit 2047 = 10pt
Long; Entry 2088, Exit 2091 = 3pt
Long; Entry 2094, Exit 2097 = 3
Day Total: 160⬠- (3x10â¬) = 130â¬
Total: 370â¬
28.Feb03
Long; Entry 2141, Exit 2135 = -6pt
Short; Entry 2138, Exit 2137 = 1pt
Day Total: -50⬠- (2x10â¬) = - 70â¬
Total: 300â¬
Statistics for the week
Net Profit: 300â¬
Total Commission: 140â¬
Total Trades: 14
Winners: 7
Losers: 6
Neutral: 1
(Commission included for the following numbers)
Win Ration: 50%
Average Trade 21.5â¬
Largest winner: 190â¬
Largest Loser: 70â¬
Return on Margin: 10%
(Eurex maring 3000â¬, intraday margin would be lower depending on the broker)
Alain
Another thing is to stay out when a fast reversal happens and would give a signal into the opposite direction.
I attached a chart with the trades of the 26th of February.
Now here are the trades for this week:
(1 pt equals 10â¬, 10⬠Commission)
24.Feb03
Short; Entry 2194, Exit 2188 = 6pt
Long; Entry 2194, Exit 2190 = - 1pt
Short; Entry 2167, Exit 2170 = -3pt
Short; Entry 2157, Exit 2160 = -3pt
Day Total: - 10⬠- (4x10â¬) = -50 â¬
Total: -50â¬
25.Feb03
Short; Entry 2103, Exit 2083 = 20pt
Short; Entry 2074, Exit 2072 = 2pt
Day Total: 220⬠- (2x10â¬) = 200â¬
Total: 150â¬
26.Feb03 (see attached chart)
Short; Entry 2077, Exit 2059 = 18pt
Long; Entry 2081, Exit 2076 = -5pt
Long; Entry 2085, Exit 2084 = -1pt
Day Total: 120⬠- (3x10â¬) = 100â¬
Total: 240â¬
27.Feb03
Short; Entry 2057, Exit 2047 = 10pt
Long; Entry 2088, Exit 2091 = 3pt
Long; Entry 2094, Exit 2097 = 3
Day Total: 160⬠- (3x10â¬) = 130â¬
Total: 370â¬
28.Feb03
Long; Entry 2141, Exit 2135 = -6pt
Short; Entry 2138, Exit 2137 = 1pt
Day Total: -50⬠- (2x10â¬) = - 70â¬
Total: 300â¬
Statistics for the week
Net Profit: 300â¬
Total Commission: 140â¬
Total Trades: 14
Winners: 7
Losers: 6
Neutral: 1
(Commission included for the following numbers)
Win Ration: 50%
Average Trade 21.5â¬
Largest winner: 190â¬
Largest Loser: 70â¬
Return on Margin: 10%
(Eurex maring 3000â¬, intraday margin would be lower depending on the broker)
Alain
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