Anyone use my method?

Have the basics. I would appreciate any updates you have to add to the original journal.

Thanks again. ( I am going to be up all night backtesting!!)

 

Stopped out at 1268.75.

 

Out at close: +3.50

 

Hi, trading has been going well. I don't feel much pressure, but that's probably just me. Playing someone else's music with them as a critic is stressful. Trading and waiting to see if you pay or get paid is pretty boring by comparison. My old job didn't pay well so it wasn't like I miss it. I've put a few dollars in the bank so it's not like I'm gonna starve if I have a few losing months.

npp

 

When I used the volume on the ES it didn't give very accurate signals. I played with different indicators until I found the CCI. The divergences are pretty clear and easy to see. That was the only criteria. I switched to the ES from SP because it didn't make much sense to watch one market and trade another. In the end I think it's easier to trade off just the ES.

The whole method boils down to this:

1). SP/ES doesn't trend very often (2-3 trending days per-month on average).
2). SP/ES trends start getting old (ADX crossing above 30).
3). After a trend starts aging look for a loss of its momentum(divergence any way you want to see it).
4). Then look for it's last gasp (move in the direction of the trend until it has a bar that stops going in the direction)
5). Keep the risk relative to the volatility (1/3 of Keltner channel width as measured the bar before entry).
6). Sometimes you'll get in early on a new trend. If so, trail your stop to get all you can (parabolic trailing stop).

 

I posted the updates earlier in this thread. Good luck with backtesting. I've tried to automate the method for years and have given up. In the end you'll see it's very hard to come up with a objective way of measuring divergence.

 

what's your win% for the last year ? and how many trades do you have about each month ?

 

Here's today's trade.

Reward 3.75
Risk 2.0

Reward:risk ratio 1.8

 

Win % from beginning to the end of November is 74.8%.
This averages 18 trades per month. The size of the winners is larger than the losers.

Seems to be more mechanical traders here than in the past. I don't think this is easily coded.

npp

 

Ensign has a study called "divergence" that automatically detects divergences on any parameter you like