The Bollinger Bandit Strikes Again

Discussion in 'Index Futures' started by profitseer, Aug 21, 2002.

  1. as a matter of fact, the dmi crossover is impossible to trade on it's own because it will whipsaw you to death. But it has never paid me to go against it, so that is why I use it.

    Now I see, waiting for a breakout misses many good crossover trades, but almost EVERY SINGLE TIME the bad whipsaw crossovers occur well within the channel.

    The dmi crossover is usually my first warning sign that I am gonna get my head handed to me, but maybe next time, if I get a crossover inside the channel, I will stick around for one more laugh.

    I was going to try to make some observations on the bands in conjunction with the channels, but I don't know if I will get to it this weekend.

    The harder I work at night, the easier my day goes.
    #31     Aug 25, 2002
  2. well, first time through,

    1. Price tags of bands well within channels are better fades than trends.

    2. Breakouts (of the channels) inside of bands are usually duds.

    3. Best breakouts occur when channels and bands are close.

    If anybody else except me is fascinated, take a look and see if that's what you see.

    I can see why you like those channels Breakout. There is a lot of action out there. (That must be where the "in crowd" hangs out.)
    #32     Aug 25, 2002

  3. Hmmmm...sounds interesting. I'll definitely be checking it out
    on some charts.


    Good stuff profitseer...looks like you're going to keep me
    up all night!...

    If I make any interesting observations tonight, I'll post
    them. Talk to you later, buddy.
    #33     Aug 25, 2002
  4. Hey sunnyskies...

    Here's a great chart to show when to "TAKE A BREAK"

    Whenever I start a day like this and have 3 losers in a row,
    I take a break!

    I'll probably come back around 1:00 or so, and maybe try
    a couple of more trades. But, for now I'm going to focus on something else.
    • br6.jpg
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    #34     Aug 26, 2002
  5. ChrisM


    Anytime I hear someone trading well know indicators I get deja vu, like - what the hell am I doing for so long ? . all:confused:
    But after all I`m back, alive and well, trading only one I developed myself under specific circumstances only :)
    #35     Aug 26, 2002
  6. I'm using the channels just like you taught me.
    4 min chart/dmi 13/adx=30/n=30 about 9:03 chicago time
    1. prices tag lower band
    2. Channel and band are close
    3.Bear dmi crossover and fantastic upward slope on ADX
    4.Breakout of lower channel
    5. I'm too scared so I wait for 20sma to cross below 50ema.
    6.Trading one contract with no money stop, ATR too high to try a 2 pt stop
    7. Lower band moves too far below channel so I stop myself out at 634 and don't take the second break down.

    You have the right ideas. I know it. And don't think I don't know how it feels. It feels like you wished you'd eaten a bigger breakfast so you could puke even more!

    Good Trading and Thanks for Sharing
    #36     Aug 26, 2002
  7. these comments are just like watching a top flight game of tennis where the volley never goes out of bounds and the fury in the eyes of the opposing players intensifies with each stake that's raised and each volley that's returned.

    You had a $700 profit on 8/15 following the charting pattern and example, and ended up with a $500+ loss after the nasty sell off that occurred.

    That's the problem with charting. You essentially are driving your objectives forward by looking backwards. Daytrading, prop trading and other forms of professional / floor trading discards all those "investor" type tools and runs with indicators (secrets of floor traders) that are co-assistive instead of tracing in pattern.

    Normally the experience to trade comes after significant losses and then the gains come in. Dumb Luck principles state that there are some who have dumb luck and win first, then incur losses off those gains, instead of against their original principle. Hence, net, net, net, they're able to last longer in the game.

    Most traders I've read about would have taken such a whipsaw and given in the towel, and did some serious sould searching. Knowing that those are real bullets that we're firing really comes home to traders whence they realize that you can loose just as easily as gain.

    Chartist beware.
    #37     Aug 26, 2002
    #38     Aug 26, 2002

  9. No offense ChrisM...but, odds are, whatever that indicator
    is you say you developed has probably already been around
    for years...just a different name.

    For example...Larry Williams came out with his Percentage R
    indicator. Lay it on top of a Stochastic FastK sometime, same
    #39     Aug 26, 2002

  10.'re getting out of hand

    You're making something that's simple into something
    complicated. Just look for support and resistance
    levels. When there broken on high volume, go for it!

    Put a 5 or 6 tick stop in and if you don't get stopped
    out try to get a 3 to 1 ratio.

    The best traders in the world are only right half the time, and
    that's on a good day!

    You're trying to be right everytime, and it just aint gonna happen.
    #40     Aug 26, 2002