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> Hi Mark,
> After all your years of markets analysis can you tell us :
> 1.Do you use more daily data or intraday data?
i started out like everyone else on daily data, even weekly. i still
respect the daily data and it is very valuable to me in order to get the
perspective of where every market in the world is at. i never look at the
weekly stuff anymore except in a book i get every so often. I do not at
present use any daily data however to trade futures with. i do use daily
data to sell options, but i switch to intraday data to find exact entry and
exit points. getting in and out on volatility spikes ect.
> 2.have you find that is better use one system on different markets or
different systems for every market (because every market is different...)
i honestly am a dull and boring hybrid intraday data user, meaning i do
primarily use intraday data but i tend to just take what seems like random
samples of data points throughout the day. totally ignoring the highs and
lows in a bar, i just use the close of a time interval for all most of my
systems. i like the looseness of fit that this gives me. i also have
determined that i can not compete with the floor trader/locals because the
time delay of delivered quotes does exist. i have found that i must get out
further and above their noise.
i also am ever increasing size, i trade well over 300 bonds now at 3
clearing firms and all the orders go in at the same time. so the need for
consistency increases as your size increases. what i mean is that, i need
everyone looking at the same time, in a rhythm to stay on top of what is
happening. for me that is either on the hour or some even multiple split of
the trading session. i like on the hour the best, because everyone involved
in my trading can remember to report back to their desk on the hour and this
consistency is valuable to profits. it's the one trade you miss that would
have made my quarter, and that's how i get paid only once per quarter so did
i mention consistency is big on my list of to do's?
back to the data question, i have found that consistency is a exponential
slippery slope of problems as the observed data increments decrease in size.
example 5 tick bar chart much harder to maintain than hourly close only
data. tradeoff = the better entry that the 5 tick bar chart may give me on
a trade may not be as valuable to me in the long run as the rock solid
consistency of getting a close price once an hour can give. see i can (if i
have to) call someone and get a price each hour and plug that into a
computer program manually, that would not overwhelm me occasionally. but
to think of maintaining a 5 tick bar chart manually would be all but
impossible, so the consistency level goes way down. so fewer data points
used = more consistency, in my way of thinking. it is for this exact
reason that i ignore the highs and lows in a price bar as well.
each trader must know where they are at in the phase of their trading
career, as time passes and you start to survive in this trade. you become
less intense and will look at screens less, trusting what you have learned
about price action. also having a fail safe plan of what to do when
something goes wrong allows you to stand back some and see the overall
picture. without a backup plan, i find myself glued to a one tick chart - i
think everyone does this at sometime in their trading career. i am not
knocking trading or using small time frames or tick charts, in fact i like
them. i just haven't been able to consistently make money using them, i
have my runs like everyone else but then i give it back. so it was a
surprise to me become a medium time frame trader, i didn't intend it to be
that way but the money dictated it.
> Thank
> Mario
Mark Brown
========CAUTION========
infomercial below read no further
if this might offend you STOP!
=======================
Neal Weintraub will be holding a seminar hosted by the Chicago Mercantile
Exchange June 26th.
http://www.markbrown.com/neal.htm
Call me at 1-800-753-7085 if you have questions. And yes all code will be
furnished...and Day Trading will be covered.
The seminar will be held in Chicago on the last Saturday in June. If you
wish to stay over until Sunday and Monday we have private sessions alone
with Mark as well as a floor tour on Monday. The cost for all three days
will be $450.00. For just Saturday, $200.00.
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