new system to test for all to see (Magnets)

Discussion in 'Journals' started by WhiteWolf, Oct 15, 2005.

  1. WhiteWolf


    I will start posting the entries...targets stops for a system I am testing out. I call the system "magnets". It uses no indicators, moving averages, trendlines. It takes no decision making. So it's even hard for me to screw up. You don't need to look for patterns (H&S's) double bottoms...nothing. The only thing you have to make sure of is that the market doesn't gap past the numbers...or touches a number in the first minute. As long as the market is between the buy and sell numbers...the system is GO !!
    If it gaps past the numbers...or hits one of them in the first minute starting at 8:30 Chicago time...then no trade is entered.
    I will post my buy sell number and a first target...(which is always the closing price of yesterday). The second target is always the other number...if the sell gets filled first the second target is the buy number to exit.

    The way I designed must be traded in units of 2 2,4, Even #. Stops are always 3 I am risking 6 pts total on a 2 lot trade ( $ 300.00 )...3 pts on each one.

    I think you will find it easy to follow, easy to trade if you decided to do it live, and all the greed... most of the fear and all the decisions ( where I screw up) removed. It trades once a day...another problem I had ( trigger happy) and no indicators to watch....which if you ever had a chart up with feel sort of lost. So...just as an's what I'll post...

    sell 1200.00

    buy 1190.00

    first target 1195.00

    if the market opens at 1296.50...I am go...i enter an order to sell 2 at 1200.00 limit.....and an order to buy 2 at 1190.00 limit. If filled on the sell first...I'll enter a buy 2 at 1203.00 stop. I'll enter an order to buy 1 at 1195.00 limit...and an oder to buy one at 1190.00 limit.

    If I'm stopped out at 1203.00 I'm done for the day. If the market goes to and thru the 1195.00 (first target) I'll then cancel my buy stops at 1203.00...and enter a buy stop at breakeven on the second buy 1 on a stop at 1200.00. I'll post the numbers the night before...hopefully before midnight....but always well before the open.

    Guess this belongs under futures (equity trading) I'll psot them there for all to see ( good or bad ). At least you'll get to see the numbers before the fact. My goal is to show this isn't as complicated as it seems..........and that $$$$ can actually be made in the futures market.

    I'm not a broker...advisor. I'm just a trader... So, I must advise you not to take my trades. These are only for entertainment and should not be taken as trading advise. But ...following along and see if it can be done. The test starts Monday the numbers will be posted Sunday night before midnight.

  2. Amnesiac


    Sounds interesting. Can you explain why it is called "magnets" and how you determine the price points for the day?
  3. WhiteWolf


    the numbers are based on what happened yesterday. You'll see after a few days of these...that the buy and sell points will expand or narrow depending on yesterday. The wider the day before the wider the sell and buy points will be. I'm looking at the close as a "normal price". And when it strays too far away from it I am looking for it to return to normal...if there is such a
    And it keeps me from overtrading...I used to be pretty trigger happy.

  4. Not to nitpick, but I think it is a fairly common experience for most that 1 tick in the ES can make a world of difference. For instance, you might find that your limit sell for 1200.00 will not trigger as a high will be made at 1199.75 and vice versa for exits, etc, etc.

    I respect the logic for your "magnets" and have tested the concept myself. However, the execution aspect is what makes this a certain challenge.
  5. just backtest it.
  6. WhiteWolf


    you are right Jack...a tic can make difference. For the test..I will not be counting an entry unless it tics thru that a 1200.00 limit sell will have to make it to at least 1200.25..and I will treat each limit order that way. Murray Ruggiero has recently posted chat on an opening range breakout system. Th is probably the other end of that idea...his test...the breakout and run...mine a turn before it runs.

    Don't know if everyone noticed..but wow...we have some very famous traders posting lately. You might get some good ideas from these people. Joe Ross has been seen. Murray is posting. And someone who's name I forget who trades bollinger bands different than I've ever seen before. Ted Burger possibly ( sorry I'm forgetting his name),,,and he is a great trader.
  7. Hey WhiteWolf are you still reading this forum? What are the results of your testing?