TRIN, or Arms index, detects overbought and oversold levels in the market. It is the advance/decline ratio divided by the advance/decline volume ratio.
That was rather funny. protrader, are you migrating from the world of discretionary trading to systematic?
getting the one point a day automated is very possible-------getting one point a day "hand trading" is a whole different story. hand trading includes your emotions fighting any system you have-------guess who usually wins---not your great system. if you can create discipline levels to follow a sound mechanical trade method {like a nyse TICK signal based scalp es system}, and you can react fast consistently you can do very well---------but it all comes down to your mental capabilities. the only thing keeping you from one point a day is yourself.
With 1 point a day starting at 1 car i can become a multi-millionaire in about 2 years. Not that its impossible to do 1 pt a day. Just stating the rewards. Summer....is that sept time for u americans? i hate summer index futures. 1 pt range on ES gives me nightmares. I remember being in Woodies' CCI chatroom and the mod took 10 losers in a row taking CCI signals during one such day. :eek:
Summers may be less volatile, but..... The last 8 years' volume numbers are irrelevant considering the contract volume in the most all electronic markets, and the ES particularly, has been on a constant incline. Also, your precious data is not exactly secret; it's common knowledge. I would be hesitant to say the summer months are that quiet. People say summer is slow, as well as December for Christmas and November for Thanksgiving. Also, any week preceeding a holiday is slow. So, by these "conventional wisdoms", we have "normal" markets for about 4 months per year. I have not done it myself, but I'd bet that if you detrended the daily ES volume for the last 4 years and tested the data, the summer months would not be statistically lower volume than any other season. Besides, volume is not the only variable that contributes to volatility...so I suppose the volume debate is moot.
yes 2 years is correct------- this is possible but extremely few do this because of the battle with themselves--------this is why there are not es millionaire traders all around. i do think in the next few years there will be a dramatic increase in futures trader millionaires due to automated trading--------just my opinion----------the technology to trade automated is sophisticated enough to pull this off with good strategies.
I know it's not a secret but saying I won't share forces others to go find it. I have tested the data and, proportionately, volume does pull back every July and August.