The Case for Technical Analysis

Discussion in 'Technical Analysis' started by jem, Dec 3, 2011.

  1. jem


    I was once a profitable full time day trader.
    For various reasons I stopped trading.
    I now have a profitable business.
    I am going to fund a IB account with about 30 grand and see if T/A still works.

    I will seek to show that T/A can still be a profitable method of trading.

    At the moment I need to crate a trading plan.

    I will start one today off the top of my head and then compare and contrast it with a model trading plan.

    I will then have a final product.
  2. jem


    2. Trading Plan Development.

    I will fund an IB acount with 30,000

    I need to consider if I will trade
    U.S. stocks, futures or Currencies.

    I will try to review 20 to 100 markets or stocks a night.
    I will risk .5 to 1.5% per trade. Depending on the setup looks to me. I know a ripe market when I see it.

    If I take a "type a" (to be defined later) pullback trade I am going to allow one re entry at a second level.

    I will have two to 3 exits. One before recent highs and one right below recent high... and one with some sort of trailing stop.

    As a pullback trader... I will consider a few types of trades and see which ones suit my swing trading effort.

    I am going to monitor my selected markets for 3 types of pullback trades.

    We will call them type A,B and C

    Within type A - I will have 3 trades. These takes a lot inspection but A1 is by far the best trade I know. I hope it still exists. A2 is a type of flag trade. A3 is a deeper pullback trade than I usually take... so I will have to add filters.

    I can Scan for B.
    I can Scan for C.

    Type B and C are, although I will apply I discretionary filter.

    I will spend the next few days... determining how to select the markets I should trade.

    Also once the markets are selected I would like to setup a filter for one to trade them.

    I would I would like to apply some momentum pullback strategies to my basket of markets to see whether the market is favoring pullback styles or not -- at that particular time. This type of feedback may prove useful.

    Note: my long term goals will be either to develop a few systems and vol pump between them... or blend a few systems.

    I am considering...

    setting up my monitoring system:

    1. Do this in Tradestation as best I can.
    2. See if I can find my old wealthlab password and start all over.
    3. Consider spending money on some other setup like Murry Ruggiero's.

    I plan to trade through IB.
  3. jem


    Note. I suppose this should be transferred to journals. Even though I started this to prove t/a works.
  4. You're a smart guy Jem , i'm sure you'll do well. :) .
  5. Lucrum


    I was wondering where the political twist was gonna come from. :)
  6. 377OHMS


    Its TA, y'know... religion. :D
  7. Lucrum


    T & A is MY religion.
  8. pspr


    Not S&M? Or is that RCG's preference?
  9. I believe TA is a profitable method of trading.In the short term I believe its the only way you can trade
  10. +10
    #10     Dec 3, 2011