Trading Methods

Discussion in 'Trading' started by VisionTrader, Jul 27, 2003.

  1. I am interested in what method others use to trade. I know this is a general is intended to be.

    I trade in short time frames and use a divergence system that relies on double tops and double bottoms. An analysis is made and signal is generated based on comparing price to the MACD signal line and a stochasitc oscillator.

    I don't really care where the market is headed and don't need to predict long term. Trade in the present. Whatever the market is offering, I focus on this.
  2. what time frames do you watch. How many trades a day do you make on average?
  3. I trade multiple strategies, all very different from one another.

    opening orders- in 10-15 positions at once, out within 30 minutes.

    very short term scalping based on a filter that streams symbols all day- 100+ trades a day, in positions 5-10 seconds.

    long term pair trades- based on charts and fundamentals, positions held anywhere from a couple days to over a month.

    market making- making an inside market on illiquid stocks with wide spreads, buying on the bid, selling on the offer.

    And about a half a dozen other strategies in the works, many of them incorporating automation. So far I'm doing everything manually and am pretty much at the limit of what I can do simultaneously.
  4. I prefer the daily and longer charts, and use a simple price-crossing-an-average for entry. An MACD divergence is always a plus. Exit is based usually on a reversal pattern, a trendline break, or if I am really lucky, a price-crossing-an-average. My other preference is a consolidation break.
  5. Trade ES
    1M, 3M, 5M

    6 trade per day average

    Target on most trades is 2 points.
    Signal on 5M looks for 6 points.

    All info on what I do is in an earlier journal.
  6. does attempting to make the market on illiquid stocks really work on a consistant basis? aren't you risking a good bit there?
  7. One of my favorite setups occurs when the market breaks out of a mid-day tight consolidation pattern, as happened last Thursday. I place a buy stop above the market and a sell stop below the market at levels that I feel represent a genuine breakout from the chop.

  8. Joe,

    Do you look for this daily breakout as a trading method each day? Or only when a pattern emerges from the mid-day consolidation?
  9. Only when there has been at least 1 1/2 hours of consolidation (chop-fest). I generally do not do any trades in the middle of the day. Only the mornings and the afternoon if my consolidation breakout setup appears.

  10. You comment was interesting. I have never approached trading based on taking a position whichever way things go. I always make a decision based on very short term and if things don't go the way I thought, I just stay out. Your style makes sense.
    #10     Jul 27, 2003