CAMARILLA stock equation

Discussion in 'Trading' started by gdtrader, Mar 4, 2003.

  1. I said it already why. I have a business myself and when you have a business you are vulnerable to many attacks from competitors. Today some crooks can just use legal action to ruine you. I have already experienced that kind of thing to know what I am talking about. As for the cama author I have nothing against him, his discovery merits that one respects him so I don't want be the one who will make sabotage for his work. It is not because it is simple form that it is obvious to find. It is obvious once you have the numerics datas so if you want to find it just make the effort to deserve it and let others make effort also that would be fair no ?


     
    #31     Mar 12, 2003
  2. If, whatever it is, is so simple to calculate why would one want to pay 150 smackers a month ?


    freealways
     
    #32     Mar 13, 2003
  3. its not hard to calculate because I have an excel sheet that will do it for you. Getting the formula to this is another story.
     
    #33     Mar 13, 2003
  4. #34     Mar 28, 2003
  5. What a great site.

    I like this sentence very much: "A final point - bear in mind that trying to make more than $10,000 a day will make your job more difficult...":D
     
    #35     Mar 28, 2003
  6. I always find it *particularly* tricky trying to make more than 10 big ones a day, that's why I personally tend to stop when I've made 9,999

    :) he he!
     
    #36     Mar 28, 2003
  7. manz66

    manz66

    I do not know the real formula, but I use the basic methodology.

    Here is some quote,

    'How does one go about determining which is the best Stock or Futures contract to trade on the following day?

    Add the number of ticks between High and Low. The Stock or Futures contract that has the most amount of ticks is the item to trade. The author actually recommends picking 10 of your favorite Stocks or Futures contracts and calculating the number of ticks between High and Low at the end of the day. The Stock or Futures contract with the most number of ticks will be traded the next day. So if Microsoft's stock had a High today of 62.25 and Low of 60.00 and Intel had a High today of 48.96 and a low of 47.15, well Microsoft was obviously the most volatile of the two with 225 ticks between High and Low versus a 181 tick range on Intel's stock. Futures contracts can be easily calculated using the same simple count of number of ticks between High and Low for a particular delivery month. Let's say March Yen has a High of .9870 and a Low of .9550 whereas the March S&P 500 contract has a High of 1350.00 and Low of 1339.90, in this case the Yen "beats out" the S&P in range-320 vs.101 ticks. Try to select Stocks and Futures contracts that usually have a large intraday range in price when selecting your 10 favorite'.

    more

    ' Discovered while day trading in 1989 by Nick Stott, a successful bond trader in the financial markets, the 'Camarilla' equation uses a truism of nature to define market action - namely that most time series have a tendency to revert to the mean. In other words, when markets have a wide spread between the high and low the day before, they tend to reverse and retreat back towards the previous day's close. The Camarilla Equation uses some complicated mathematics to pluck 8 levels out of thin air, using nothing more than yesterday's open, high, low and close. These levels are, frankly, astounding in their accuracy as regards day trading, even to seasoned traders, who know all about support and resistance, pivot points and so on. Despite popular fiction, the principles of the mathematics required to produce these levels are known to a number of people and organisations around the world.

    The Camarilla Equation produces 8 levels from yesterday's open, high, low and close. These levels are split into two groups, numbered 1 to 4. The pattern formed by the 8 levels is broadly symmetrical, and the most important levels are the 'L3' and 'L4' levels. Traditionally, while day trading, traders look for the market to reverse if it hits an 'L3' level. They would then open a position AGAINST the trend, using (according to the 'classical' rules) the associated 'L4' level as a stop loss. More modern theory suggests setting stoplosses that appear to you the trader to be prudent, and to not even open the trade until it has penetrated the level in the 'right' direction, i.e. demonstrated that it has found resistance (or support). In the case of the higher L3 level, this would mean that price had already reversed and pushed back down thru the level, heading south.

    The second way to try day trading with the Camarilla Equation is to regard the 'L4' levels as 'breakout' levels - in other words to go WITH the trend if prices push thru either L4 level. This essentially covers all the bases - Day Trading within the L3 levels enables you to capture all the wrinkles that intraday market movement throws up, and the L4 breakout plays allow the less experienced trader to capitalise on relatively low risk sharp powerful movements. Here's what it looks like in action':-
     
    #37     Aug 21, 2003
  8. Could you please clarify if this is the results for 3-07-03 from the data of 3-06-03 or the results for 3-10-03 from the data of 3-07-03?

    Thanks very much!
     
    #38     Dec 8, 2003
  9. :D

    always good for a chuckle, Harry.
     
    #39     Dec 8, 2003