Doublea's Trading Strategies Part II

Discussion in 'Journals' started by doublea, Nov 11, 2005.

  1. doublea


    I had kept a journal for a while here but stopped it after about a month. This is going to be my next attempt. I have refined the strategies and have come up with one strategy that I'll trade. It is very simple. I'll buy or sell after 1% true buying/selling day. If the Dow, S&P and Nasdaq all manage to go up by 1%(on the same day), I'll buy on the pullback.

    For example the Dow, S&P and Nasdaq are in a downtrend. The very next day all the indexes go up by 1%, then it will be considered a true buying day. I will buy on a pullback and I'll have a buy limit order at 1pt above the low of that day. Stops will be at 3pts. below the recent low.

    So basically if the S&P is at 1205 and it manages to rally to 1218 then I'll have my buy limit order at 1206 and a stop at 1202. I have noticed that after a 1% true buying/selling day there is always some kind of pullback.

    Position Size, Money Management and Exits:

    I will not add to a winner and adding to a loser is out of the question. So if I'm going to risk $800 per trade, I'll buy 4 contracts if the price comes down to 1206. In case if I do not get stopped out and the market moves in the direction that I had anticipated, I'll exit half the positions(2 contacts) on a 8 day high and the next 1 on a 13 day high. I'll put a trailing stop on the last 1 contract and ride it as far as it takes me.

    I will not initiate a long position if the market is already up. For example Nov 10, 2005 was an almost 1% true buying day but it is already above 50 pts' off the low so I will not initiate a long position here. My goal is to hold overnight and get as much as possible with little risk, so I'll buy after the prices have declined for a while or sell after the prices have gone up for a while.

    My expectations for myself:

    I will follow the rules and do exactly as I have said here. If you read my previous journal you'll find that my timing has been perfect but I got screwed for not having an exit strategy when I'm up. I never hesitated to get out when the market moved against me but I hesitated to take profits when the market went my way. Whoever said ride your winners wasn't trading futures with a limited capital.

    My expectations from you:

    If you see me NOT following the above mentioned rules, please let me know and it sure DOESN'T have to be in a nice way.

    Good trading everyone and waiting for a 1% true selling day.
  2. doublea


  3. doublea


    Anyway I realised that I missed 1 major condition but I'll add it tomorrow. Kinda getting late right now.
  4. Hi Doublea,

    Is this the same strategy from the prior journal but with improvements or is this a completely new strategy ???

    Did your prior journal either improve your profits or help reduce your losses (if such was the goal of the journal) ???

    If the answer to the above second question is YES...

    Have you consider getting a trading partner to trade side by side with in person that becomes very familiar with your trading plan and the same for you of his/her ???

    My point is that some traders don't need help to be consistent in their discipline of following their trading plan and can trade alone.

    While others (most) need constant encouragement from a trading partner to stick to the trading plan because its easier to do such in person instead of trying to use a discussion forum as a substitute for such.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  5. doublea


    Thanks Mark,

    This is the same strategy from the previous journal. In the previous journal there were 4-5 buy/sell conditions but I noticed that you could have made money with just this 1 strategy.

    My previous journal did not help me much in terms of keeping the money that I made and being more disciplined, plus there were very few feedback too. The problem might be because my journal wasn't really easy to follow.

    So I have narrowed the strategies and hopefully make this journal easier to follow.

    Regarding Trading partners, I haven't thought about it. I get the signals at the EOD data and I'm not a day trader so I do not know how it works.
  6. doublea


    The initial stop should be 1pt. above 5 day high/low. So in the above example if the 5 day low was at 1200 then the stop will be at 1199.

    I will post charts this time to make it easier to follow. Thanks.
  7. doublea


  8. doublea


    Here is my recent trade based on the 1% true Buying/Selling day.

    Regarding exits and stops, that depends on each individual. I'll discuss entries only here.

    Please let me know if you have any questions?
  9. doublea


    Yesterday Nasdaq and Russell were down more than 1% but the Dow and S&P weren't down as much. Today I was looking for Nasdaq and Russell to drag Dow and S&P down with them but it did not happen. Since the last rally we haven't had a 1% true selling day in Dow, S&P and Nasdaq on the same day.

    I think we are ready for a move up from here.
    #10     Dec 21, 2005