Am looking for a simple strategy for trading the Dow Jones

Discussion in 'Strategy Development' started by Dave2, May 27, 2005.

  1. Dave2

    Dave2

    Hi,

    I have been trading the DJ using candle stick patterns but would like something more mechanical. For example, using MA combo crossovers or FIBS etc.

    Advice appreciated,

    Regards,
    Dave
     
  2. Choad

    Choad

  3. Trade all retracements to the 50% fib. And let me know if it works.
     
  4. Dave2

    Dave2

    Informative site Choad. Thanks Guys.
     
  5. Understand that there is a huge difference in a simple strategy and a profitable strategy.

    I would suggest you re-word your question.

    Once you get the answer, please post it for all of us.
     
  6. flat5

    flat5

    Evidence please? And don't say "these simple strategies X,Y, and Z don't work."
     
  7. Tradefox

    Tradefox

    Dave I saw your post on moneytec and I will say the same thing to you here that I said there.

    There is no EASY answer.

    Trading is a profession NOT a hobby ... dispite what all the fools on moneytech will lead you to believe.
     
  8. Dave2

    Dave2

    Hi Sweetlettuce,

    First thanks for your input.

    I think the question is simple enough as it stands, Choak has provided me with an excellent site with hundreds of strategies to trade. On browsing, I have seen several that interest me. AS you can see, John also has provide a simple strategy (in my opinion) which I will be looking at. These guys seem to understand the question ok.

    Have you come across the phrase 'Keep Things Simple'. I am not being sarcastic here. As you may well be aware there are strategies/systems that incorporate several types of indicators as well as MA combos in order to confirm whether a trade should be entered or exited. I have used them mystelf, hence my question.

    Can you explain your statement:

    'there is a huge difference between a simple stragegy and a profitable strategy'

    What is the difference? Are you implying that simple strategies are not as profitable as sophisticated strategies? Your evidence, as Flat 5 mentions, will be educational.

    I suppose in the end, what might be a sophisticated strategy for one trader, might well be a simple one for another.

    Horses for Courses.

    No offence meant by any of my comments :)
     
  9. Dave2

    Dave2

    Hi Tradefox,

    Yes, your right in what you say, I work full-time and trade the Forex market part-time (ie at lunch break during the busy hours). I am relatively new to the trading profession and have already discovered that it is becoming less of a hobby in the sense that you need to be incredibly focused on what you are doing and tryiing to achieve (I'm not sure if this makes sense or not in terms of comparing a hobby with trading). I dare say that there are some traders out there for whom trading is a perfectly legitimate 'hobby' that they perform with incredible efficiency.

    So I do understand where you are comming from and I am not nieve and taking trading lightly. As a matter of fact at the moment I am enjoying it. My reason for asking for a 'simple strategy' (I realise that it is a very general term) is that I don't have a lot of time during daytime hours to trade the DJI but do have two hours from 7am - 9am GMT after work. Therefore, if I do manage to identify a strategy, I will be delighted.
     
  10. simsim

    simsim

    try EMA cross overs like 10/28, 13/50, experiment and find the crossovers that suits your temperament
     
    #10     May 28, 2005