44 replies to this topic

[xtrader]

Hi NAV, are u still long? do u have a target? thanks!

[TechMan]

Here's what I got according to Fib's signal, assuming one can trade long/short at the time when the signals were triggered.

However, upon further review of the chart, I did miss 3 points in there. It was a quick draw before the bell.

Long 10:40 = 1,323.90 (--)
Short 11:25 = 1,317.95 (-6)
Long 13:15 = 1,320.91 (-3)
Short 14:00 = 1,318.68 (-2)
Long 15:25 = 1,318.82 (--)

Total loss = 11 points

Anyway, back to work….

When you buy a stock do you always use 21ema as stop or a mental stop?

For day trading purposes, I like to use a 21 period EMA on the 5 minute chart as part as disciplined buy and sell strategy.

Buys and sells are executed on two consecutive "closing periods" either above or below the EMA.

Directional bias of the trade itself is based on daily trending criteria.

Fib

All right, assuming he had cashed out at the end, even though there's no "sell" signal, then it'd only be a loss of 14 points for yesterday.

Using the 21 EMA on a 5 minute chart of the ES, figuring a signal when it closes 2 times under/over the EMA, I get that you would have had a flat performance. That included shorting the gap down. BTW, I would never use SPX to figure trading results. You can't trade SPX. However, when I look through the trades you show on your SPX chart, I don't know where you're getting your numbers. That trade that you show -6, I show -3.50. Then the next trade you show -3, I show 0. Obviously there's a short there that has a profit, and a long trade toward the end of the day that has a profit, one of which you say is a loss, the other of which you don't show at all. All in all, the performance was flat at worst, you might have even eked out a margin gain, less than a point, but I threw that out because it's difficult to tell exactly what the execution was, and there were commissions.

IT

[diogenes227]

Fib, my guardian angel, take it easy. I'm sorry if it came across as such. It's nothing more than just a "friendly jabbing". You did it to me, and I did it back at ya. I'm not trying to prove anything. Of course, no one's perfect.

O.K.? We're cool on my end.

Have a great day too.

Techman,

How about giving it a rest? If you are not trying to prove something why are you going on trying to prove something?

Unless "closing periods" are entirely in the eye of the beholder, your chart doesn't even reflect what Fib is saying let alone any actual vehicles for trading this index, and to say nothing of the directional bias you've conveniently ignored that may or may not overrule any of these trades.

By the way, the above gets my vote for most obnoxious post of the month. That's not "friendly jabbing", that's more like punching a guy and then reassuring him your hand doesn't hurt. I should say of the month so far because I'm sure you can top yourself before month's end.

But hey, O.K.? We're cool on my end too.

Have a great day.

[vitaminm]

I hope this excellent trading method will keep your Subscribers happy!

Why not share other criteria?

How much is it worth to you?

Regardless of any tweaks, as IT has taken the time to provide, if you're one who wishes to play the scalping game, this simple method works quite well and keeps you in touch with the market on a daily basis.

Fib

Edited by vitaminm, 10 February 2011 - 11:54 AM.

[TechMan]

Techman,

How about giving it a rest? If you are not trying to prove something why are you going on trying to prove something?

Unless "closing periods" are entirely in the eye of the beholder, your chart doesn't even reflect what Fib is saying let alone any actual vehicles for trading this index, and to say nothing of the directional bias you've conveniently ignored that may or may not overrule any of these trades.

By the way, the above gets my vote for most obnoxious post of the month. That's not "friendly jabbing", that's more like punching a guy and then reassuring him your hand doesn't hurt. I should say of the month so far because I'm sure you can top yourself before month's end.

But hey, O.K.? We're cool on my end too.

Have a great day.

Whoa! So much anger in this virtual reality world....

Still couldn't get over our prior encounter? Maybe some therapy....

[fib_1618]

I hope this excellent trading method will keep your Subscribers happy!

Actually we've only discussed this once, so you'll have to ask those people if they've found any success with it.

I was just sharing what I use based on my trail and errors of 40 years of trading.

Take it...leave it...play with it...throw it away as you see fit.

Fib

[IndexTrader]

Techman: It's obvious to me that you are not reading your chart correctly. So I'm going to take the time to correct this because someone else might be reading this.

First, methodology: Fib said he buys when he gets 2 closes above his EMA, and sells when he gets 2 closes below the line. He's daytrading so he get out at the close. And he's always in for the purpose of this day, so when he sells, he also goes short. So using the chart that you posted (which is ridiculous because you can't trade SPX), I get

L at 1323 just before 10:30.
S at 1319.80 about 11:15
B at 1319.50 about 12:40
S at 1320 about 1:50
B at 1318 about 3:15
S at 1321 at the close (he is daytrading he said)

Trade 1= -3.20
Trade 2= +.30
Trade 3= +.50
Trade 4= +2.00
Trade 5= +3.00

Total= +2.60

So you're way off using your chart. You can see you're way off just visually inspecting the chart. Now, I did it on the ES, which you can trade. Starting from the opening, I call it a flat performance...marginally profitable. The days where this method works well are the trend days. BTW, if I have to I'll post the ES 5 minute chart from yesterday, but really I don't want to spend the time doing it.

IT

Here's what I got according to Fib's signal, assuming one can trade long/short at the time when the signals were triggered.

However, upon further review of the chart, I did miss 3 points in there. It was a quick draw before the bell.

Long 10:40 = 1,323.90 (--)
Short 11:25 = 1,317.95 (-6)
Long 13:15 = 1,320.91 (-3)
Short 14:00 = 1,318.68 (-2)
Long 15:25 = 1,318.82 (--)

Total loss = 11 points

Anyway, back to work….

When you buy a stock do you always use 21ema as stop or a mental stop?

For day trading purposes, I like to use a 21 period EMA on the 5 minute chart as part as disciplined buy and sell strategy.

Buys and sells are executed on two consecutive "closing periods" either above or below the EMA.

Directional bias of the trade itself is based on daily trending criteria.

Fib

All right, assuming he had cashed out at the end, even though there's no "sell" signal, then it'd only be a loss of 14 points for yesterday.

Using the 21 EMA on a 5 minute chart of the ES, figuring a signal when it closes 2 times under/over the EMA, I get that you would have had a flat performance. That included shorting the gap down. BTW, I would never use SPX to figure trading results. You can't trade SPX. However, when I look through the trades you show on your SPX chart, I don't know where you're getting your numbers. That trade that you show -6, I show -3.50. Then the next trade you show -3, I show 0. Obviously there's a short there that has a profit, and a long trade toward the end of the day that has a profit, one of which you say is a loss, the other of which you don't show at all. All in all, the performance was flat at worst, you might have even eked out a margin gain, less than a point, but I threw that out because it's difficult to tell exactly what the execution was, and there were commissions.

IT

Edited by IndexTrader, 10 February 2011 - 12:53 PM.

[TechMan]

So I'm going to take the time to correct this because someone else might be reading this.

Understood and that's fine.

Fib said he buys when he gets 2 closes above his EMA, and sells when he gets 2 closes below the line.

Yes, I know that. However, we don't know where that 2nd close would fall until the 3rd candlestick appeared, so I used the close of that 3rd stick as the entry point. And, that gave me 1,323.90 at 10:40.

I'll be back later with the rest after taking a closer look at your table and the chart as well....

[IndexTrader]

Fib said he buys when he gets 2 closes above his EMA, and sells when he gets 2 closes below the line.

Yes, I know that. However, we don't know where that 2nd close would fall until the 3rd candlestick appeared, so I used the close of that 3rd stick as the entry point. And, that gave me 1,323.90 at 10:40.

I'll be back later with the rest after taking a closer look at your table and the chart as well....

This illustrates your error. At 10:25 we get the first close over the EMA. At 10:30 we get the second close at 1323.00. This is what I show as the buy signal. At 10:35 we get the third close over the EMA at 1323.20. At 10:40 we get the fourth close over the EMA, the one you chose as the buy signal, at 1323.90. Even if you waiting for some inexplicable reason to execute the order, why would you wait a full 10 minutes? That's beyond even the 3rd bar that you mention.

Fib says he buys when he gets 2 closes over the EMA. That's at 10:30. If I were trading this system mechanically, I would send a market order in a few seconds before 10:30. How tough is that? Why do I need to wait for a 3rd bar?

IT

Edited by IndexTrader, 10 February 2011 - 01:49 PM.

[TechMan]

O.K. going strictly on the close of the 3rd candlesticks after 2 consecutive closes above 21 EMA, I still don't see how it'd turn out to be flat or profitable. I got a nearly 7-point loss still. Long 10:35 = 1,323.17 (------) Short 11:20 = 1,318.04 (-5.13) Long 12:45 = 1,319.68 (-1.64) Short 14:00 = 1,318.68 (-1.00) Long 15:15 = 1,317.86 (+0.82) Total loss = 6.95 In my original post, I didn't consider that the trader would close this trade at the end of the session. Now, let's do that. Closed all positions at end of session @ 1,320.88 Total loss = 3.93 And, I still have a loss of nearly 4 points.