Example Trading System

Discussion in 'Strategy Building' started by sidinuk, Jan 17, 2005.

  1. SidinUK

    Thanks for your excellent article.

    I am a relatively new trader based in the UK trading the ftse future intraday.

    I was wondering if you had done any similar intraday studies regarding the ftse market? As a struggling trader I would be very grateful to here of them.

    The problem I seem to have is taking what I know about
    tech analysis etc and transfering this to intraday time period.
    I feel very comfortable with daily/weekly charts but the adjustment to intraday (with there volatility) has not been as clear cut as I had hoped.

    If you can offer any advice with regards to intraday trading
    (systems, strategies, rules, set-ups, moving averages, indicators, what to avoid, what to look for) it would be much appreciated.

    Thank you.
     
    #61     Jan 28, 2005
  2. sidinuk

    sidinuk

    Teachmetrade,

    The ftse is not the best futures contract to try and trade intraday as it doesn't offer a lot of movement. For indexes I would consider the US markets, particularly Russell2000 and S&P midcap 400 at the moment. In Europe the Dax is far more suited to intraday trading than the FTSE. Currency futures, USD/EUR and USD/CHF, are also particularly suitable for daytraders.
     
    #62     Jan 28, 2005
  3. I completely agree. I used to try to daytrade the FTSE in a variety of ways and it was extremely difficult. And now the volatility has reduced even further it's probably impossible. The Dax is quite a bit better, for sure, but also not very easy. Currencies are _much_ better for daytraders!
     
    #63     Jan 28, 2005
  4. Sidinuk,

    With your experience, how would you suggest I use this system with the EUR/USD where there is no open and close as defined by your YM system?

    I have a few idea's, but I would like to hear from you as to this specific instrument.

    Michael B.


     
    #64     Jan 28, 2005
  5. mogul

    mogul

    certain of the better trending currencies respond well to breakout strategies that buy/sell on highest highs or lowest lows of x bars.
     
    #65     Jan 28, 2005
  6. Thanks SidinUK and all for the above advice.

    A little off the point but how do the currencies
    work with regards to points. The ftse is £10 a
    point, the dax EUR 25 how does it work with
    the currencies.

    Thanks.
     
    #66     Jan 29, 2005
  7. Hi Jana

    As you have daytraded the ftse and the dax
    would you be willing to share 1 or 2 of the
    variety of strategies/syetems you utilised to trade these intruments on a intraday basis.
    I don't expect you to give all of your secrets away but
    a few pointers would be helpful and much appreciated.
    Thanks NoelEmac2@aol.com


    I completely agree. I used to try to daytrade the FTSE in a variety of ways and it was extremely difficult. And now the volatility has reduced even further it's probably impossible. The Dax is quite a bit better, for sure, but also not very easy. Currencies are _much_ better for daytraders!


    __________________
    Jana Sergeevna
     
    #67     Jan 29, 2005
  8. I think both of these filters are random. At least you haven't proven anything here. You must take an out-of-sample test. The reason I say this is that both filters have the same expectancy on both sides of their respective data points. There doesn't seem to be any correlation there.

    The target/stop stuff looks good though. Here you can definitively see correlation, as the system consistently gets better and better as you move the targets/stops.

    good stuff!! thanks sid.
     
    #68     Jan 29, 2005
  9. No problem, will email you. I suspect probably only the Dax is still viable, though, volatility on the FTSE is just too low now ...
     
    #69     Jan 29, 2005
  10. sidinuk

    sidinuk

    #70     Jan 29, 2005