Canaccord Share Discussion Threads

[minky] 21/6/2008 10:37

Henry, the chart you provided is like a work of art. It is great to see your annotations which are extremely helpful in explaining the situation. I think I need some practice to produce similar pictures.

Many thanks for sharing your strategies.

[minky] 20/6/2008 11:13

Capital failed on me three times today. Had to log back in each time. I think they switch it off.

[fivesboy] 20/6/2008 08:31

Henry,

Thanks for the chart that you sent Minky. What I hadn't understood with your diversification up until now is exactly how it works but your last chart demonstrated that clearly between the short and the longer term plays. What are you using as your third strategy?

Received Rockefeller's book yesterday and am impressed so far. Clear, no nonsense and full of info. Look forward to using it for a long time.

Not a promising start to the day so far. Tea and toast any body? Ooh, was that a breakout??

[minky] 20/6/2008 06:34

Henry, thanks for e-mail received OK. By utilising different strategies you seem to have overcome something I have been thinking about. Namely, before the market opens at 8'0 the some of the indicators and especially the longer averages might not give a proper picture due to the narrow price range and flatish channels. Have printed the chart for future reference.

[henryatkin] 19/6/2008 13:50

Fives emailed me about the problem of requotes. I have overcome this to a fair extent by not entering a trade immediately after the new price bar is displayed (except for the first few minutes after eight when I enter my first trades of the day). I note the time that the price bar changes to the nearest second. So if the price bar changes at 15 seconds past the minute I will usuall enter and exit at between 5 and ten seconds past the minute. Requotes tend to occur when the market is most active and that is just after the price bar changes. I'm also sure the spreadbet companies have software that is more than capable of stacking the odds in favour of the company - why wouldn't they? Part of that is to play with our emotions and get us to react in a moment of panick such as a rapid price movement against the current trend, followed by an immediate retracement. If you try to respond rapidly in these instances you will nearly always get a requote that ends in you trading at exactly the wrong price - coinsidence? I don't so. I'm told this doesn't happen to direct access futures traders so draw your own conclusions. Best to control emotions and sit and watch until your clock and the indicators all give the trade signal.

[henryatkin] 19/6/2008 11:47

Minky .. you have email.

[henryatkin] 19/6/2008 11:23

X ... only tried 5+2 to see if it would be better than 20 x 20+8 for long term trends. It wasn't. My long term trends are still 20x 20+8 wilder smoothing moving average and cci from under zero up through 100 and close on zero or better still long term trend line and Ross 123. I have replaced 7 or 8 sma with 3+2 as it works much closer to a tight crossover. I am finding both TEMA and DEMA of little use at the moment but am still playing around with them.

Minky ... I am sorting out your email - should arrive soon.

[minky] 19/6/2008 11:18

Henry, re post 154 i think that is where my strategy is not quite right. I was starting to think that different indicators with perhaps different settings MAs etc might work better depending on the conditions. These could trending up, trending down or horizontal consolidation. I did have some good trades but they have sudennly started to go against me. Either I have changed my trading or I am not taking proper consderation of the conditions.

My that CCI moves quick on the 1 minute. I am not sure I could get in and out of a trade quick enough on Capital, if it goes against me.

[xanbea] 19/6/2008 10:37

Cheers H

Is the 3+2 correct? Previously it was 5+2 was it not?

[henryatkin] 19/6/2008 10:17

X ... The minimum that I have loaded is SMI8383, CCI 60 and moving averages 20,20+4, 3+1, 3+2. I do sometimes refer to several other M/A's which I load as required. I also have RSI loaded but minimised in size. SMI I use mainly before 09.00 and after that just to give indication of when not to trade (between +/-40) so that is mostly minimised is size. I am presently using three trading stratgies at any one time. They are designed to hedge each other so depending on how the market is working one will usually out perform the others. This keeps me with a good average and 100% winning days(though several loosing trades). The three strategies I am using are short term trends, long term trends and price action. I will vary the weighting from one to the other at different times of the day and under different market conditions. Its all working really well but I am still making lots of mistakes and trying to improve on existing strategies and trying to come up with alternatives which might out perform those that I use. I am using exactly the same indicators for trading end of day equities.

[minky] 19/6/2008 09:41

Fives, I am finding it easier to lose than win at the moment. Have not got something right. Glad to see you making points.

[fivesboy] 19/6/2008 09:34

Minky, can confirm Joe Ross 1-2-3 works really well if you can spot them in time. I spot the occasional. I am also doing the first SMI reversal as Henry has mentioned which worked well this morning. Better than usual. I got 17 points of it.

[xanbea] 18/6/2008 20:41

Evening All, been away from the screen for a few days, so just been catching up on some good posts. Probably won't be trying to trade again until next week. Just to clarify, Henry, you've been mentioning a few new indicators/settings of late, and saying that this one or that one may have worked better on a given day - do you have them all loaded into the charting software - that would get a bit confusing forme i think? Or are there a particular 3 that you have loaded as default and if so, which are they? I guess I'm talking about the various moving average variations as presumably you have CCI and SMI on all the time.

[henryatkin] 18/6/2008 17:09

Minky ... Joe Ross uses a price action trading style that ignore all indicators and looks soley at the price bars. I don't follow it to the letter but I do use his 123 pattern along with my other tools. His style is more suited to futures traders who trade the tick. I know a lot of US futures traders sware by him. I'll give you the link to his website so you can see what we are talking about:



Check out the memorise section.

[henryatkin] 18/6/2008 16:55

Minky ... I will sort out an email with my strategies but may take a little time to sort it out. You can delete your email address now if you like. Email title will be Henryatkin Trading Strategies.

[minky] 18/6/2008 14:37

Henry, thanks for the advice. Made a bit of a hash of it today being too eager.
Still, took some points off Dow last night to ease the pain. I tend to use the 1 min and 5 min on the dow because of the rapid movement.

I am not sure if I am utilising the same settings time frames and indicators as everyone else on this board. Looking back through the posts you sent an e-mail to other posters and if it is not too much trouble perhaps you could forward me a copy My pot has certainly increased since starting to use the CCI, allbeit slowly.

[henryatkin] 18/6/2008 13:35

Fives .... I have taken a look back at were you may have lost out on 123 trade entries. Although I tend to take an entry as soon as (for a long trade) the price starts rising above the No3 candle what Ross says is that the trade is only valid after the No2 candle high has been breached or alternatively the tradeis invalidated if the price falls below the low of No1 candle. So if you want to improve your sucess rate at the expense of a few points here and there just wait for the breach of the entire 123 price range.

[henryatkin] 18/6/2008 11:16

I found this morning a bit difficult early on not helped by CCI line going almost horizontal for about 45 minutes. Most of my profit came from 3+1 moving average.

I read last night that Welles Wilder mostly traded 20x5 M/A but it did not say why or on what time frame he used it. Having looked into it, it is very close in results to 20x20+4 so I am getting something right even if 20x20 hasn't made any profit yet for today.

Minky .... if you are looking at longer term intra-day trades (say over an hour) 20x5 might be worth looking at especiall if you can time entry and exit with a bit of bias in your favour.

[fivesboy] 18/6/2008 09:58

Great downtrend this morning. Picking off as it hits or goes near trendlines. A couple of 1-2-3's earlier on didn't work out great with minor losses. How are others doing?

Henry, I've ordered that Rockefella book. Thanks for the heads up. Looks very interesting. Got good reviews on Amazon.com as a reference book. Enjoy Elder. He may not cover exactly what we need for day trading but his approach is impressive.

[minky] 17/6/2008 13:29

Got phased out early on instead of sticking to the rules. Should have made good points today but did not. However, still ahead by a few points and that is important. Henry, I like the sound of that book and will try to get a copy.

[henryatkin] 17/6/2008 13:21

Fives .... I find those Ross signals work almost every time but you need to identify the No 3 position a.s.a.p so that you can use the previous No1 position as your stop with as little risk as possible. If you use a previous trend line break as confirmation along with rising CCI or RSI you have all three things in your favour and it will very seldom fail to make good. Its suprising how many signals still get overlooked.
I have purchased Elders book - looks good. The best book I have to date for futures trading is "technical analysis for dummies" by Barbara Rockefeller - Wiley Publishing Inc. it sounds and looks a bit naff but I have loads of trading books and still refer to this one the most. She is obviously a good trader as well as a good writer. Check this out for example:

".... another example is in chapter 4 where adding momentum to a moving average indicator improved the gain/loss from 2.8:1 to 7:1 (which means you get a $7 gain for every $1 loss instead of $2.80 gain for every $1 loss.....but which two indicators should you use..."

[fivesboy] 17/6/2008 10:45

Henry, Ross 1 2 3's seem very powerful if you can see them in time. I found one at 9:41, got out at 9:50 on the lower high lower low but missed the one straight after at 9:52 which would have been nice. What system are you using. I also chickened out of the one at 10:32 which would have been nice. Did you get a chance to look at Dr E? What did you think?

[fivesboy] 17/6/2008 10:29

Hi Minky, Things go up and down the same way so it's important to be able to do trade both directions. It can be hard to go short. I find it a lot easier for some reason on an index rather than an individual stock as it still seems odd to want a stock to go down.

And don't worry, I am finding it hard. Some days seem impossible to get anything right and on other days, your brain seems to see things a lot more easily. At least that's what I' finding, but Henry's when not to trade on SMI etc really helps a lot with that.

[minky] 16/6/2008 19:43

Hi, I found today very difficult as I still need to be confident going short. Tried 4 trades going long. Two wins 2 losses but slight loss overall. Managed to keep out of the market during the protracted fall and not near a computer when the rise kicked. Still, tomorrow is another day.

[henryatkin] 16/6/2008 15:27

Fives .... will do.