We use 100% mechanical entries, when you are wrong, it is usually something no sane person would do, only a computer. Accounts for all big losers, but it works for us. Discretionary exits, based on if it doesn't move scratch on the first sign of weakness. Lower transaction costs are the key. If we paid the cheapest retail rates we would lose about $30K a day. I have told other serious traders what we are trading, and they comeback a week later and say it doesn't work. It takes a long time to work the bugs out and understand how to trade any system; and they don't work forever, that is problem with backtesting. You need to find something that works today and milk it as hard and fast as you can, because it will stop working.
No, not yet, hasn't seemed liquid enough I understand that DOW eminis are coming to a market near you soon...April
yeah, apparently CBOT are getting rid of the current dow e-minis (index x 2) and the full contracts (index x 10) and making them all A/C/E (?) traded (index x 5). is that right?
CBOT to Launch New Electronic Dow Contract Chicago, March 21, 2002 - Continuing to expand creation of new products and trading opportunities, the Chicago Board of Trade (CBOT®) today announced the newest addition to its DowSMJonesSM Complex, a CBOT® mini-sized DowSM contract with a $5 multiplier, to be launched on April 5, 2002 (trading begins 8:15 p.m. on 4/4/02). To enhance liquidity, the CBOT® plans to use two electronic market markers for the CBOT® mini-sized DowSMfutures contracts on its electronic trading platform. The new CBOT® mini-sized DowSM($5) contract is one-half the size of the original CBOT® DowSMJones Industrial Average (DJIASM) futures contract. The value of a CBOT® mini-sized DowSMcontract is its multiplier times the DJIASM index level. CBOT® Chairman Nickolas J. Neubauer said, âThe CBOT® received strong encouragement from customers to launch a new mini-sized contract and we are responding. The introduction of the CBOT® mini-sized DowSMcontract with a $5 multiplier complements our existing DowSMEquity and CBOT® Index complexes. This unique synergy, combined with the trading expertise and liquidity provided by our DowSMtraders, ensures the best fit for open auction and screen arbitrage opportunities for our members and retail customers. âIn addition to electronic market makers, a new CBOT® arbitrage program, with multiple firms participating, is now in place to promote an environment conducive to arbitrage and spreading between the open auction contracts and electronic mini-sized contracts.â CBOT® DJIASM and mini-sized DowSMfutures contracts based on the DowSMJones Industrial Average -- the world's most readily recognized and followed stock index -- provide large and small investors a way to profit by taking a position based on the performance of the DJIASM, to diversify and protect their portfolios against adverse price changes in the stock market, and to preserve investment value. On April 5, the CBOT® will cancel side-by-side trading for its DJIASM futures and futures-option contracts. The new trading hours for the CBOT® DowSMJones complex are as follows: DJIASM futures & futures options - open outcry: 7:20 a.m. -3:15p.m.; electronic: 8:15 p.m. - 7:00 a.m.; CBOT® mini-sized DowSM($2) and ($5) contracts - electronic: 8:15 p.m. - 4:00 p.m.
As an alternative method, any one may want to check out Bob Coppo's site Stockmarkettimer.com, it is a membership site but be opens each of his areas one day a week to visitors. he has a day trade area and swing trade area, etc. this is not an ad for him. I am a member there. for day trading he seems to use entry and exit points for the day.
wow! Just went through this spread and figured I will contribute my observation as a BROKER who sees many clients daytrade (both on jTrader/PATs and on PFG BEST) KEEP it SIMPLE. Look for set ups. Get rid of the one minute chart. use the folowing support/resistance numbers which we can provide daily While I am a broker and therefore dont have the time to trade like most of the dedicated daytraders, i do have the chance to speak and observe many traders. I also have a little e-mail service that goes out 2-4 times week with different added value info (my e-mail is ilan@cannoncapital.com )