my current setup

Discussion in 'Index Futures' started by dojistarz, May 16, 2005.

  1. dojistarz

    dojistarz Guest

    here's my current setup to papertrade emini russell 2000

    using
    tick charts
    2400 + 150 + 600

    and a simple moving average period 2

    rising moving average is yellow
    falling moving average is blue.

    moving average is wider(more important)
    on longer time frame
    and thinner on shorter ones.


    up candles are white
    down candles are red


    [​IMG]

    the best set up?

    when all candles in all time frames are the same color
    AND moving average of the same color as well.

    Do you see any down sides regarding this setup to daytrade
    emini russell 2000? Would you modify something?
    I would really like to get your opinions/ideas.

    The more I use it, the better I get at feeling the market
    especially for my exits.

    I use 2 to 5 contracts to start with.
    Stop-loss is set at 0.80.
    Target? as long as it is going in the same direction, I am in.
    I get out of 1 or 2 contracts at the first sign of stalling or reversal.
    If I feel it doesn't go anywhere I get out as well.

    It's been only paper traded. No idea how well it would do in real life.

    The plan was to design a setup with a minimum of indicators(to avoid confusion) and with at least 2 time frames to get an idea
    of the general direction.
     
  2. And what kind of results have you had paper trading it?
     
  3. Could you please educate me on why you are using tick counts rather than fixed time intervals? I have never grasped the utility of that. TIA.
     
  4. If you will forgive a socratic question, I should like to know if the sma is calculated on the close, the high, the midpoint, or some other combination of bar parameters. If you think about it, you might be led to conclude that the choice is critically important in such a short sma. It could be that the point is to definitively distinguish the two period sma from a single period sma.
     
  5. dojistarz

    dojistarz Guest

    I am assuming 10$ for commissions.
    Winner rate 68% to 81%.

    The first 2 contracts usually only get $20 to $30.

    For the first 2 hours of trading I can usually end up with a profit

    between $300 to $500. (i try to stick to the first 2 hours only.)

    I stop trading after 3 stop losses are hit in a row.

    Best day was over $2000. Worst day -$500
    All weeks are positive.
    Commissions take 1/3 to 1/4 of my profits.
     
  6. Oh, so you are scaling in? I don't think you mentioned that.
     
  7. dojistarz

    dojistarz Guest

    forgot to mention

    SMA (2) based on closed.
    After testing, high low combinations, ended up using the close.

    close seems to react faster to put you in the right direction.
     
  8. Doji. Thanks for replying. I recommend that you look into Interactive Brokers. The roundtrip per car is under $5. Adds up in the long run. How long have you been paper trading this system? Mike.
     
  9. dojistarz

    dojistarz Guest

    I start with multiple contracts all at once.

    and gradually get out.
     
  10. dojistarz

    dojistarz Guest

    #10     May 16, 2005