http://stockcharts.com/education/ChartAnalysis/supportResistance.html http://stockcharts.com/education/ChartAnalysis/trendlines.html http://stockcharts.com/education/ChartAnalysis/chartPatternsNode.html
Naive, no, because you are posing questions and seeking answers to questions. I am always recommending a whole day approach to take money from the market daily. This means day trading. For this I suggest an index futures market. You are already looking at YM. Next you will see the gyrations that characterize the DOW day on day. You need to utilize these as profit makers. So the aim is simple: to sell into the top of each downmove and buy into the bottom of each upmove. Very obvious you will think. And you will think, easier said than done: yes, of course. But if you start your study, analysis and preparation there, it is where you can tap into the market's cornucopia. If you are not already doing so, you need to investigate the gyrations in various timeframes (5min, 10 min & half hour) and also, if you have the facilities, in different sizes of tick, range and volume bars. You cannot make a fortune without starting out on your journey and without setting course in the direction where it can be found.
there about 1 million ideas that don't work......and 10 that do.......find them before you put your money on the 10.......
5Pillars, Thanks for throwing out this bracketing concept. I was having this very discussion with someone last week so your posting is quite fortuitous. I'm not a TradeMaven user so can you clarify something for me please. The Sli orders are obviously Stop Limit orders for entering positions, but L orders on the other side are Limit orders for taking profit - is this correct? Thanks, bolter
from the screenshot, it looks like this setup will end up triggering limit orders on both sides at the same price... - seems there is a possibility here of taking the other side of your own trade? - in this case, it will cause some sort of churning (aside from legal issues?) - this setup seems more applicable for a market-making type strategy. i understand, however, that the example was meant to be more of an idea - interesting, but still i don't see anything more than a generalized approach to a high-frequency trading setup; i will take a look at the other thread.
Yes you are correct - you have scaled in "stop-limit" entries with "limit" scale out covers from the examples.
This is not a HFT operation - the examples shown were different ways to be scaled into and out of a position by trending price movement. Every "limit" cover shown would be at a profit - none would be a churning or a breakeven cover.
5Pillars, Thanks for your reply. I think I've figured out your logic. Your paying bro on an additional 9 RT's in order to lock in profit as the market moves in your direction. This will also ensure you're carrying a minimal position in the event the market reverses and doesn't return to these levels. However, as fader suggests there is the possibility that you're taking both sides of a trade. One further question, where do you set your stop loss relative to your orders on the other side? I would presume you execute all your short orders before stopping out any residual longs? Thanks, bolter
The placement of the stops are important, so all I will say is that you have to do a good deal of backtesting to find out the exact area that will work best for the spacing that is used. I do not have my stops where you mention. I think there is enough information out for someone to run with their own ideas, and to develop a bracket method for their own comfort level.