There is no "system"

[kut2k2]

There`s a system though.And it`s Brownian motion.

Brownian motion is a price model, not a trading system.

 

[actionzip54]

That's why price drivers are so important....

 

[Eddiemorra]

the trick seems to be to get away from charts/TA, get away from directional plays, and get into spread trading and complicated options stuff. Never seen anyone able to prove their ability in the former

 

[jack hershey]

Sounds good. But...

What is a zig-zag chart?

How does one know change of sentiment has occurred for one to record up or down on 30m, 5m and zig-zag chart respectively and take trading actions?

1. Up, up, up is enter long.
2. Up, up, down is hold. (how to hold as 3-tick rule would have stopped out one's long position?)
3. Up, down, up is sidelined.
4. Up, down, down is enter early short (?)

5. Down, down, down is enter short (?).
6. Down, down, up is hold (?).
7. Down, up, down is sidelined (?).
8. Down, up, up is enter early long (What is early long?).
(* phrases in grey are your suggested actions)

Another major problem I can see is that slower 30m's sentiment change signal is always late to log due to the trend overlap nature.

Welcome back.

To create a zig-zag chart, just connect extreme bar values (low to high, then high to low) on a 5 min TF.

The simple visual assessment of sentiment is done by using leg 2 of a given fractal.

 

[jack hershey]

To create a zig-zag chart, just connect extreme bar values (low to high, then high to low) on a 5 min TF.

The simple visual assessment of sentiment is done by using leg 2 of a given fractal.

Attached is the set of trades from last Friday (21AUG14)

I use volume signals to substitute for the zig-zag. The EE column names the volume signal.

Actions show in right column. , HT for hold through. S for sideline, and EAR for early.

Also note the three tick rule as e-x-bar #.

I also use re entry as a signal for when coming off sidelines is appropriate.

You can tab the ticks and points of profits. Every 20 points, roughly, is doubling of capital.

The IN to HT to IN shows how picking off slower trends is automated and cuts costs.

 

[jack hershey]

the trick seems to be to get away from charts/TA, get away from directional plays, and get into spread trading and complicated options stuff. Never seen anyone able to prove their ability in the former

One way to cure your plight would be to spend a few days in vegas. There are many small trading rooms there where guys do let observers visit. Same is true of most other cities. vegas guys are more colorful.

You may want to ask yourself how you got so estranged from meeting traders.

 

[Brahmastra]

To create a zig-zag chart, just connect extreme bar values (low to high, then high to low) on a 5 min TF.

The simple visual assessment of sentiment is done by using leg 2 of a given fractal.

What is leg 2?

 

[convexx]

the trick seems to be to get away from charts/TA, get away from directional plays, and get into spread trading and complicated options stuff. Never seen anyone able to prove their ability in the former

Perhaps Jack will invite you out to his $140K home in AZ.. He managed $100K of OPM here on ET and blew-up. Yes, show us more mock-ups of Jack tick-phucking the ES 24 hours after the fact.

 

[Brahmastra]

Sounds good. But...

What is a zig-zag chart?
How does one know change of sentiment has occurred for one to record up or down on 30m, 5m and zig-zag chart respectively and take trading actions?

1. Up, up, up is enter long.
2. Up, up, down is hold. (how to hold as 3-tick rule would have stopped out one's long position?)
3. Up, down, up is sidelined.
4. Up, down, down is enter early short (?)

5. Down, down, down is enter short (?).
6. Down, down, up is hold (?).
7. Down, up, down is sidelined (?).
8. Down, up, up is enter early long (What is early long?).
(* phrases in grey are your suggested actions)

Another major problem I can see is that slower 30m's sentiment change signal is always late to log due to the trend overlap nature.

Welcome back.

ZIgZag is drawn post and amends after the fact, you’d know that if you spent two seconds looking at it.It can’t be used to predict.

 

[Brahmastra]

the trick seems to be to get away from charts/TA, get away from directional plays, and get into spread trading and complicated options stuff. Never seen anyone able to prove their ability in the former

Use the current RTH or ETH Open to trade off of.It`s usually clear after 30M - 1H after the Open where the price is going to go.Play with the Open for some time,and then add Volume for certainty.

Now you have a system.It`s the most simple and logical system on Earth.