Simple Profitable Method

Discussion in 'Technical Analysis' started by trader28, Sep 6, 2006.

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  1. ryank

    ryank

    I wish it was 12 points! I took 1.2 points today total on 3 trades. I was trading MACD crosses (not using 0 line, doing a test). I traded 10min time frames, got out quick and early with small profits, too choppy yesterday and today.
     
    #1331     Dec 6, 2006
  2. jack411

    jack411

    Sounds like it may be similar to what Ive been trying to do lately. Scalp small profits in the middle of the trend, instead of trying to catch all of it.

    What are your target and stop losses set at? Also, how do you execute your entry?
     
    #1332     Dec 6, 2006
  3. ryank

    ryank

    I'd like to catch more of the trend, but the trend isn't lasting long today so I am jumpy and pull the trigger when it looks like the trend died or has gone flat.

    Generally my stop is 1.5-2 points, target is to ride the trend until the MACD flatlines or crosses again.

    Edit: I don't necessarily try to call the top or bottom, I do like to take a good chunk out of the middle. I try to enter on the open of the bar after the signal is confirmed. If the signal is strong I will enter a little early but I generally get myself in trouble doing that.
     
    #1333     Dec 6, 2006
  4. jack411

    jack411

    yeah, last couple days have been tough to figure out a target. With 5 min, I usually have 1.5 pt stop, 1 pt target, then try and trail with a tight stop for anything more than that. Im happy with 1 pt though. How do you determine you entry? Do you enter as soon as the SMA pops out, MACD opens or what? Do you enter while the price bar/candle is forming? I think entries are the most important thing with this system.
     
    #1334     Dec 6, 2006
  5. ryank

    ryank

    I agree, entries are a big key. I don't pay too much attention to the price SMA, I just wait for a MACD cross and try to follow the trend. I open the position at the open of the bar after I received my signal (I went long at 10:40am today for example). I've had good success going with the cross whether it is on the "right" side of the zero line but haven't been doing it this way for very long so I may be proven wrong on this approach yet. I do pay attention to the 60min chart to help on entry as well.
     
    #1335     Dec 6, 2006
  6. jack411

    jack411

    I havent been trading the longer frames very long either. But as far as I can see so far, the zero line doesnt seem to matter as much as it does with the 2 min charts. But like you said, we'll have to wait and see.

    I enter as soon as there is a higher high or lower low, depending which direction Im going. So the price has to beat the previous by 1 tick. It's helped keep me out of alot of trades I would have taken otherwise. BUT, the profit isnt as large sometimes. Especially today.

    Trader28 - what are your entries like? And anyone else who wants to share.
     
    #1336     Dec 6, 2006
  7. ryank

    ryank

    Last weekend I went over the previous 20 trading days and came to the same conclusion. There were choppy days where it didn't work well but there will always be days like that with any system. Going with just the cross on a 10min or greater chart seemed to work well, just be careful on your stops. Time (and my account balance) will tell.
     
    #1337     Dec 6, 2006
  8. jack411

    jack411

    I enter as soon as there is a higher high or lower low, depending which direction Im going. So the price has to beat the previous by 1 tick. It's helped keep me out of alot of trades I would have taken otherwise. BUT, the profit isnt as large sometimes. Especially today.

    Trader28 - what are your entries like? And anyone else who wants to share.
     
    #1338     Dec 6, 2006
  9. jack411

    jack411

    Thats about how long Ive looked into the longer time frames too. About a 1.5-2 months. Seemed to have held up over that time.

    What do you think about my entries? Should I go in on the open of the next bar, or wait for the previous bar to get beat by 1 tick?
     
    #1339     Dec 6, 2006
  10. ryank

    ryank

    Just want to make sure I understand your entries. You wait for the MACD cross above/below the zero line, then you wait for price to be above/below high/low of previous bar. Is that it?
     
    #1340     Dec 6, 2006
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