Thanx.. that fits the real world. Gotta always know what the market environ's like. Luv to see traders strongly debate each other without defining the nature and tone of the market... doesn't have as much value. imho. I would think one wants to look at many dff. times frames, that is IF they want to capture larger moves even when trading intra-day. My background is swing, position and options... but I have always looked at many times frames in formulating trading plans/strategies. Even the police take mug shots from 3 diff. angles.
I trade short term on equities, and intraday on commodities futures indexes. The nominal bar durations I use, respectively for each is 30 min and 5 min. The next fastest fractal for each is 5 min and 1 min respectively. I feel that I can cover the range of durations with 7 possible fractals. You can see that the ratio of fractal durations is about 5 or so. I keep track of price, volume, MACD (5, 13, 6) and C&R stops locations. When I am in a situation where another person is using other indicators, I usually suggest to them the defaults I would use were I using that indicator. I trade on the slower of the pair and anticipate on the faster of the pair. For beginners trading commodities futures indexes like the normal or minis, usually I do not let them trade unless certain indicator conditions exist. These restraints simple only let them trade fast paced markets and they enter and exit only on market orders. They must also follow a stop protection regime that is aligned stringently to the market, the pace and the fractal and a related C&R periodicity. I am new here and conventionally most people (4 out of 5) disagree with me in other forurms. You can see the contemporary perspective by looking at the follow on to your question. I try for clarity and i am an older person who probably will give you more of ananswer thyan you wanted but I feel a context is important. My performance in equities is on a 6 to 8 day trade cycle and I realize more than 10% on average. I do about 50 turns per 3 years for each stream of capital I trade. The number of streams is the same as the average hold duration in days so I am rotating through one stock per day. My chief focus is having cash to utilize for opportunities that my universe of about 200 stocks present. My ROI on commodities runs 50 times that of equities with 3 to 5 trades involved per day. I trade by phone and have voice recognition. regards, Jack
From: dkm (davidmarshall@nospamhotmail.com) Subject: Re: Question for Jack Hershey Newsgroups: misc.invest.futures Date: 2003-02-08 05:50:43 PST My interpretation of Jack's earlier posting regarding the use of stochastics to trade ES is as follows: Level 1 - "rockets" - fast paced long and short trends Stochastics set to 14,1,3 Long when fast line breaks above 80. Exit when fast line breaks below 80 Short when fast line breaks below 20. Exit when fast line breaks above 20 Look for fast and slow lines to be entwined above 80 or below 20. Mentally block out the 20 to 80 zone. Target: $30,000 per annum Level 2 - slow trends plus rockets Stochastics set to 5,2,2 Go long as fast line breaks up through 75. Exit as fast line breaks down through 25. Go short as fast line breaks down through 25. Exit as fast line breaks up though 75. Do not look in the 25 to 75 zone for this method also. Do not reverse. (Will do later after capital tripled). Target: $60,000 per annum Level 3 - reverse on slow trends instead of just exiting. Target: $90,000 per annum Notes: Need to distinguish between fast and slow trends. Rockets (fast paced trends) end in congestion. The stochastic signals go to the middle where congestion "lives". If congestion, low volatility and low volume occur, lines become entwined at 50%. This is the "sleepiest" condition. If not at 50, it is going to BO on the opposite side. Congestion ends with a BO. We then get either a slow or fast trend.