If you want to just use a fixed amount of capital and make more money with it as a trader who is doing other activities financially, you can specialize a little more. You do want to keep making money all the while but you want to do it more effectively with a limited amount of capital. Trading cycles is still a good idea. So using your current approach should continnue. You need to do two filters so that the particular universe you trade is a small and exacting one that gets you top returns. The two filters act as a way to zoom to the right stock at the right time. The particular movement in price you are looking for occurs infrequently for a given instrument but fortunately a lot of instruments do this occasionally. So you do have a broad selection and the moment of the timing occurs rarely. A typical trade will be 30% over 3 days. You have a lot of advance warning for the trade. filter #1. filter stocks in short IT's that are having FTT's on dominant traverse of the IT. Filter #2. List the stock for monitoring and sort the list by "unsual volume". When it hits .22 on the list at about !0 to 11, then you have about and hour to enter and then price will break out over several days. The volume will really pick up after the IT channel has been broken. IT means Intermediate Term FTT mean Failure To Traverse dominant traverse means the price movement across the IT in the direction of the IT. Unusual volume is a calculation where you get the decimal perent of the 65 day average volume as a continuous calculation on a list. The common term for these kind of trades is called "hitting a home run". Most people have seen them and most people do not know how to anticipate them since two filters are required. You can hold them long than the three days. There ways to make more money and do it continually but that would require more work. You are only at the hold winners and cut loser stage and have a limited interest in making money.
I am new to FTT's and have been studying and practicing. I haven't really asked for feedback except to redo charts on my own as I study more. Would this be an approximation of the set up you described?
So the volume was hit around ten today. This is a paper trade for me entering at 90.85. "When it hits .22 on the list at about !0 to 11, then you have about and hour to enter and then price will break out over several days. The volume will really pick up after the IT channel has been broken."
IT channel broken. Volume really picked up. "When it hits .22 on the list at about !0 to 11, then you have about and hour to enter and then price will break out over several days. The volume will really pick up after the IT channel has been broken."
I am going to finish up this series. It will be a record to study as I learn the indicator techniques. Price did not drop below the IT trend channel..purple, but did not break out of the blue UP trend channel.