ET member, rtharp talks about his methods for swing trading and daytrading. He goes into the details of what types of risk to reward ratios he is looking for to make each system come out with a positive expectancy. He also covers some of his experience with trading breakout systems.
An excerpt from the first link above:
The first thing I need to do is define my risk when I trade. My risk is always my stop price as I put one in. I classify my risk as R. The next factor to calculate in is your # of shares. This is a multiplier of risk.
ET member Quah has created quite a stir on ET in a very short period of time with "Something Very Simplistic" and "Son of Something Very Simplistic" (see next post in this thread) systems. The "Something Very Simplistic" daytrading system is 100% objective, and is fairly simple as systems go. It limits the number of daytrades to eleven each day, and focuses more on morning trading than afternoon trading.
An excerpt from the thread above:
Here are my goals for a system:
1. Make a consistent profit.
2. Rules that are repeatable. I don't want to have to think too much while trading. That always gets me in trouble.
3. Doesn't require me to remain in the market with an open position for for than a few minutes if possible. So I guess by definition this will be a "scalping" system.
4. Doesn't require me to be glued to the PC, waiting for signals, interpreting signals, and making decisions. I want to be able to walk away at any time and come back later and not feel like I don't have a feeling for what is going on.
ET member Quah has created quite a stir on ET in a very short period of time with "Something Very Simplistic" (see previous post) and "Son of Something Very Simplistic" systems. This "Son of Something Simplistic" system is also 100% objective and is fully disclosed, but trades much more frequently than the "father" system.
An excerpt from the thread above:
I'm going to start this journal as a sort of offspring to "Something Very Simplistic" (SVS). The general goals are the same - something simple, unsubjective, and profitable.
ET member, CaroKann mentioned an interesting method for profiting from stock gaps by using a consistently profitable option selling strategy over time.
An excerpt from the post:
instead of playing e-minis, sell vertical spreads (credit spreads). you can get 15% every month doing that. over 38 months, that is 202x your initial account. hint 1: sell bull put spreads under stocks that gap up, no more than 1-3 weeks before expiration. hint 2: sell bear call spreads above stocks that gap down, once/if they make a move up and fail to close the gap.
ET member LizardGizzard posted a very simple yet interesting method. It appears this method can be applied to any market, and is primarily suited to capturing trend moves. This trading idea is a perfect candidate for adding filters to even out the equity curve, and could be adapted for those traders who are unable to monitor the market throughout the day.
An excerpt from the thread:
Its very simple and does NOT involve watching the market all day. Subtract the OPEN from the HIGH of the day. Then subtract the LOW from the OPEN of the day. You have now established two numbers to trade with tomorrow.
ET member Ditch has shared an interesting trading method that he uses to trade the Nasdaq EMini futures. This entry concept is very easy to understand, and attempts to enter an existing trend just as it resumes after some weakness. Further through the thread Ditch also discusses his exit strategy.
An excerpt from the thread:
Here's a setup I trade a lot. I found it on Linda Rachke's site and its very easy to execute.
