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>I just wanted to get a grip on what others do.
>Could you tell me what are the basic rules for trading daily charts in S&P ?
>I ve heard many stories about entering on the Open ( after reviewing the last
>set-up the night before etc.ect. some traders still wait for a
confiramtion in
>the morning before they get in etc.
>
Sorry Tom, but I don't know that there are any basic rules other than to
Plan Ahead!
Seriously, it sounds like you're thinking of something like the Taylor
trading technique. I haven't been able to figure it out completely but it
gives a framework.
>So Phil, would you recommend using the emini and holding overnight for a
>small accout 10-15K rather than trading a 1lot and holding overnight If
>things go well.
>I'm asking because your post seemed to make sense.
>
>sincerely
>Jon
I hope hope you guys don't mind if I respond to the list. The way I see it
the stock market will put together trends lasting anywhere from several
days to several months, so it works best to hang on and pyramid successive
signals as long as the trend continues. If the market allows you can wind
up with a huge, profitable position.
Or when things are chopping around you might need to snag a profit pretty
quick, say after a day or two. Sometimes you'll go negative right off the
bat and stay there for a few days before a move in your direction.
You need a way to get good signals. In this case you're looking for
intermediate-term turning points. Our thing is to use price/volume patterns
in the stock MARKETS to trade the futures. We have a CTA based on it. Too
bad I can't give away the signals, but if somebody studies our web site
carefully they could probably figure it out...
Also we're working on some purely statistical stuff. For example, something
as simple as 3 days in a row in the SP with close < open (also with some
other simple rules) has a high probability of doing at least a short-term
pop (several day).
The web site is http://www.accessone.com/~logical/farmer.htm
Sorry to say I haven't updated it in quite a while, but it can still give a
picture of what we do. The blue, purple and red paint bars in the Nasdaq
chart are the thing. BTW we're gonna dump the part about hot stocks, it's
just not worth the hassle. Please no hate mail! I don't imagine anybody
working with TradeStation would be interested in a managed account anyway..
:-))
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