Big discussion on how to chart the DMI/ADX, can't offer any opinion on that. This chart shows the indicator set to '10', with a 20 period SimpleMA above and Donchian's moving average crossover on the bottom....the DMAC is set to moving average lengths of 3 and 12 and uses an ExponentialMA. The formula should be available on the web. PM me if you want help to set it up as an oscillator using a histogram, the way I have shown it.
HI all, I guess nyc-hotshot is now posting on a british board under the name bigtimetrader. So maybe he will ans^wer our questions there: Start of his posting: http://www.trade2win.co.uk/boards/showthread.php?s=&postid=95711#post95711 DMI Indicator I average between $500 - 1000 per day trading with the DMI/ADX (Directional Movement Index/ Average Directional Index) through the DAS PRO software. DMI/ADX works for any trading style from day trading to swing or position trading. I combine the ADX/DMI onto one study. DMI is actually made up of 2 sub indexes the PDI (Plus Directional Index) and the MDI (Minus Directional Index). I make the ADX line white in color, the PDI line red, and the MDI line green. The DAS software makes it easy because it already combines ADX/DMI into one study. Although, I'm pretty sure most softwares out there also have DMI/ADX (it's very common), I think it's easiest to use and understand when they are combined on one study. This is how I do it: When white (ADX) crosses the other lines and is at the top and green (MDI) is at the bottom (red in the middle), it's a buy. White on top red (PDI) on the bottom (green in the middle), it's a sell. Often the simplest things work best and this seems simple and it is, but it works very good. I consistently make between .02 -.05 cents on 2000 - 5000 share trades. I usually go for more around the open (maybe .05-.10 or more). I ONLY trade widely traded Nasdaq stocks, like CSCO and INTC. I use 1 minute and 3 minute intraday charts to day trade. As I said it can also work for swing trading if you use a longer time frame chart. You can try this theory out by going to the http://www.realfasttrader.com website and using their "free simulator", which lets you try the DAS PRO software free for a week. Test the DMI like I stated above, it has been working GREAT for me for several years now. If you have any questions, post them and I will try to answer. End of his post. So lets post the questions!! Hittfeld
The reason I do not post here much anymore is due to the annoyingly negative attitude of some members here. It seems many people here are quick to shoot down an idea and tell you that you are FOS before they even look at it. As soon as you say you are making money (especially in a simple way), nobody believes you. Which is actually sort of amusing if you think about it. I am not thin skinned. I just have no desire to argue my intentions. I posted the DMI threads on various sites to try and help people with a strategy that works very well for me. I would assume it would be welcomed, especially when the vast majority of day traders are losing money.
NYC-Hotshot, Your posts are/were very much appreciated. I back-tested your strategy using Wealth-Lab over a large sample set of data and a significant timeframe. Unfortunately, I did not find it to be a winning strategy. Perhaps your indicator software behaves differently from my indicator software. Good luck always !
Mista, grow a skin. You haven't even said that you make money with your method and you can't take a little fishy humor? JB
I would like to know this too, but would ike to swingtrade the YM with 2-25 day holds. What would be the optimal setting for that time frame? Michael B.
You have a point. I'll gladly write more about it if there is any interest in this. I just want to say that I don't have any problems with ppl making fun out of me from time to time. But nag about it like that clown did in my thread makes even me tired.
Don't waste your time and energy with these trolls. Don't feed the beast ! Believe me , it's not worth it.
hayman, did you use ADX or DX in your back testing? Remember in the DAS PRO trading software I use the "ADX" line is really just "DX", which is a little different. I think it would be difficult to back test this considering I am really looking especially for the explosive upside moves on the white (DX) line above the MDI and PDI lines. Real life (human) trading is slightly more subjective, its not as simple as a program saying "if this happens, then do this". I don't believe programmed rules translate to real trading (at least not for me with this strategy).