I'll take a shot at posting a journal of a very simple system that I'm trading. (trading e-mini SP's - should work on NQ's also) Here are my goals for a system: 1. Make a consistent profit. 2. Rules that are repeatable. I don't want to have to think too much while trading. That always gets me in trouble. 3. Doesn't require me to remain in the market with an open position for for than a few minutes if possible. So I guess by definition this will be a "scalping" system. 4. Doesn't require me to be glued to the PC, waiting for signals, interpreting signals, and making decisions. I want to be able to walk away at any time and come back later and not feel like I don't have a feeling for what is going on. Here is the system: 1. Use a minute bar chart 2. Trades will be entered only at specific times - they will be entered at the opening price of the following bars after the open - 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377. So, on a normal 9:30 open, trades would take place at 9:33, 9:35, 9:38, 9:43, 9:51, 10:04, 10:25, 10:59, 11:54, 13:23, and 15:47. 3. Use any indicator you like to decide if you will go long or short - doesn't really matter - I use stochastics. Almost anything will work - even something as simple as going in the direction of the previous bar. 4. Once you are filled at the opening price of the bar, enter a limit order to close your position +1. 5. Enter a stop at -1.25. You can reverse at the stop and enter a limit order to close that position at +1.25, leaving you at B/E for that bar's trade (less commish of course). That's about it. I'll post today's results in a separate post.
Today's shortened session only left room for 10 trades. The results are: 12 Total Trades 10 Winners 2 Losers Avg. Winner +1.05 / Avg. Loser -1.25 Gross 8 points - $400/contract Commission $57.60 Net $342.40/contract 12:03 L 924.75 +1 12:05 S 924.00 -1.25 L 925.25 +1.25 12:08 S 924.75 +1 12:13 S 922.50 +1 12:21 S 919.25 +1 12:34 L 920.50 +1 12:55 S 917.25 +1 13:29 S 915.00 +1 14:24 S 911.75 -1.25 L 913.00 +1.25 15:53 S 909.00 +1
quah, that is a very unusual system you are trading. i am curious on how you calculated the exact times to enter a trade. best wishes to you, surf
Very interesting idea using time like that , have you traded this system that long , and what have your results been?
I'm very curious to watch this system play out. If you can average 3 to 5 points a day, you will watch your profits sky rocket. On top of this, this type of system appears easily programmable (IB java interfaces for example). You could do this sort of thing on the NQ's as well. My question is, what happens on trades where they become a loss, so you close out at -1.25, then reverse trying to get another 1.25 to cover, but then the market trend goes against you again. How do you manage these trades? (IE when do you decide to just take the loss)
Surf - The offsets from open are simply fibonacci numbers in sequence. Basically picked that out of thin air for no real reason. Other numbers may work just as well or better.
RE> i am curious on how you calculated the exact times to enter a trade. Me too could you give a little detail here please? mrktwiz
Hybrid - I haven't really thought much about that problem yet - I'm thinking maybe one more -1.25 stop and then quit until the next trade. Need to figure out if there is a balance of just taking the original -1.25 vs. trying to reverse and ending up -2.50 total for the trade. I think the lowest risk would be to just stop out on the original 1.25 and *not* reverse. However, it seems the market will usually move the opposite direction enough to cover the +1.25.