Trading Dummies

I agree Babak. As long as there's market interest in the stock, you could use the dummies setup. The key is making sure the stock has some sort of reason to move, such as sector strength, news, earnings etc... because I can see a lot of scratched dummies trades if you get in while the stock is ranging on a larger time frame. I think one easy way to trade would be to just watch 52-week highs and lows and then look for dummies setups once they've shown up on your screener. That way you're sure they've got the markets attention.


On another note, I'd like to try to get a common setup for Trade-Ideas that we can all use if we aren't using IB as a broker. Right now I'm going a similar setup to KevinK... New 52 week highs & lows, high relative volume. Anyone have any settings they have found to help? I've tried setting it to check for any stocks that gap more than 3%, but you'll want to take that off once the opening bell rings to look for setups after the open.

Any ideas?
 
Ok, here's my attempt at posting some charts.

Today went quite well using the dummies technique. I had made 9 total trades, with 5 being winners. All done on 15min charts.

I'll highlight one winner, and one loser. Here's the winner.

SNDA had a gap down on relatively high volume. Although the first candle had a bullish bias, the 2nd confirmed that the trend was down by practically engulfing the previous candle. The 4th candle was an inside bar, and with the 3rd being an up candle we had our criteria for a trade. Entry was at 21.40, although if you were on the ball you could have gotten in closer to 21.50. A nice tight stop was available on the other side of the inside bar, at 21.70. R/R ended up not being all too great from the entry at R=1.6, but nonetheless, still a winner. I was able to exit at 20.90 on the bullish engulfing candle.
 

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Now for the loser. With GM restating financial results, and the gap down, it was definitely in my scope for today.

After making a small doji on the 10am bar, I had looked to go short on any break. This bar provided very very low risk entry, with a stop only $0.20 above. The trade looked so-so until early afternoon, when a hammer printed and price continued north from there. Oh well, you don't win them all. And I'm quite content with that :D
 

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Quote from Pete3212:

I agree Babak. As long as there's market interest in the stock, you could use the dummies setup. The key is making sure the stock has some sort of reason to move, such as sector strength, news, earnings etc... because I can see a lot of scratched dummies trades if you get in while the stock is ranging on a larger time frame. I think one easy way to trade would be to just watch 52-week highs and lows and then look for dummies setups once they've shown up on your screener. That way you're sure they've got the markets attention.


On another note, I'd like to try to get a common setup for Trade-Ideas that we can all use if we aren't using IB as a broker. Right now I'm going a similar setup to KevinK... New 52 week highs & lows, high relative volume. Anyone have any settings they have found to help? I've tried setting it to check for any stocks that gap more than 3%, but you'll want to take that off once the opening bell rings to look for setups after the open.

Any ideas?
More...


I tried to look myself into some kind of a dummie screen from trade- ideas, but the results weren't very impressive, even though I like the software . They are very helpful though and hopefully they will come up with something we can all use...
 
for trade-ideas i use the premarket highs and premarket lows. i turn it on about an hour before the open and it will pull up things that i add to a watch list. then during the mkt i use the hi relative volume filters. one set to top stocks that are + and another to minus. then third i use the standard deviation filter and set it to 3. i am away from my trading desk but it is the "Bright Bands". i filter all of these on my own list of stocks with minimum volume, ADR, and price minimums.

i too would love an inside bar filter from them but haven't pursued it.
 
Well today was fairly non-eventful. Ended up taking 11 trades, 1 ended up right around b/e, 5 stopped out and 5 for small profits. Today ended up down about 1.5% ROI.

For the 3 days I traded this week, I ended up with a very respectable 2.98% ROI. I'm not going to post any charts (from today) because there really wasn't one interesting trade in the whole bunch... Pretty much just a slow grind all day.

Anyone have any good trades today using the dummies setup?

Enjoy your weekend everyone!
 
Quote from Pete3212:

Well today was fairly non-eventful. Ended up taking 11 trades, 1 ended up right around b/e, 5 stopped out and 5 for small profits. Today ended up down about 1.5% ROI.

For the 3 days I traded this week, I ended up with a very respectable 2.98% ROI. I'm not going to post any charts (from today) because there really wasn't one interesting trade in the whole bunch... Pretty much just a slow grind all day.

Anyone have any good trades today using the dummies setup?

Enjoy your weekend everyone!
More...

I am continuing to paper trade dummies, so far with mixed results. Over the last two weeks I added a number of criterias to the original setup rules and today they served me well, as I stayed out of the market most of the time until I recognized this pattern in CAL.

What triggered my attention in this chart was the strong first bar (long body), the longer term uptrend and the consolidation after the bearish reaction at 10:45.
 

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