Most useful indicator or stratagy tool

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chrisb
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Most useful indicator or stratagy tool

Postby chrisb » Thu Aug 10, 2006 1:39 am

It might be interesting and helpful for many who are overwhelmed with all of the post and different ideas presented, to focus on one indicator and/or stratagy.

I would ask if those who use the different stratagies, if they could share the one they think needs to be learned first and is the most useful. The stratagy that would scale from scalping to holding for a few days or weeks would be of most interest.

Thanks to those who would share from their experience.

Chris

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Postby TheRumpledOne » Thu Aug 10, 2006 2:22 am

See my trend indicator thread.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Postby TheRumpledOne » Sat Aug 12, 2006 4:23 pm

BACKTESTING

"Backtesting is for the birds"

To me, the only reason to backtest is to make sure your code is working properly.

Backtesting is NOT for determining if your method is profitable.

I know that flies in the face of conventional wisdom.

To me, either the method is STATISTICALLY sound or it is not.

There are 2 DISTINCT parts to trading:

1) Selection of the instrument to be traded

2) Entering and exiting the trade.


For example, my MILK THE COW STRATEGY, that I posted on TradeStation and caught a lot of flak for AT FIRST, does NOT backtest well. But it makes money every day. And, one by one, the critics were SILENCED.

TRO TRADING LESSION 101 NOW IN SESSION

Trading is simple.

Making money via trading is simple.

What makes trading difficult is YOU!!

MILK THE COW (MTC) STRATEGY

Dairy farmers get up early to milk the cow because that's when it is time to milk them.

Stocks have an open, high, low, close price every trading day.

[highlight=yellow]The high is usually higher than the open and the low, lower than the open. [/highlight]

So, if you enter the trade [highlight=yellow]AT/NEAR THE OPEN PRICE, AT/NEAR MARKET OPEN[/highlight] it stands to reason you can sell for a profit sometime during the day.

IT IS THAT SIMPLE!!

The "trick" is to trade stocks with the volume, volatility and daily trading range that give you a chance to make a profit.

AAPL is a perfect stock to "milk" everyday.

AAPL usually has a gap open. All you do is wait for AAPL to move toward the previous close.

AAPL fills the gap about 75% of the time or better.

THE GAP DOESN'T HAVE TO FILL COMPLETELY for you to make money.

If you trade 1000 shares of AAPL and sell it for $.12/share profit. After commissions, you should have $100.

All you have to do is find 4 more stocks like that and you are grossing $125,000 a year.

The beauty of this method is you are usually done in 60 minutes or less.

Furthermore, you don't need any "squiggley line" indicators at all. All you need to know is the previous close and the open price.

TRO TRADING LESSION 101 IS NOW OVER


I am using the TRO_TRADE_ZONES study and that's all.

NO SQUIGGLEY LINES!





AAPL gapped down which means you want to look for AAPL to move toward the previous close (purple line).

The light blue area is the BUY ZONE. It is between open +.10 and Open + .20.

The light pink area is the SHORT ZONE. It is between open -.10 and Open - .20.

As soon as AAPL entered the BUY ZONE 6:44 AM the trade was on.





$.12 profit could be taken 1 minute later.

YOU ARE DONE IN LESS THAN 30 MINUTES.

Yes, there are more opportunities to repeat the process.

But that's another lesson.

In summary, gap down, wait for stock to move toward the previous close, enter the trade when the price is in the buy zone and exit when your target ($.12) is reached.

MILKING THE COWS

You have seen the charts with your own eyes.

It is like this EVERYDAY!

Of course, you can't trade every stock.

But you can select you own "herd" of "cows" to "milk".

You can probably trade 4 or 5 stocks at most. Start with one. Master the method. Then trade 2 stocks. Master that. Then add another if you like.

Or you can just trade ONE stock over and over as it enters the TRADE ZONES. That's what I do.

Perhaps now you understand why I say NEVER LOSE AGAIN.

When you MILK THE COWS, it doesn't matter what the market is doing. The market could be hot, cold, up, down, volatile or flat. It simple does not matter.

You don't have to listen to the news, read, research, etc...

You don't concern yourself with hot stocks, tips, analysts, etc...

You are simply going to "milk the cows".

Now, you don't have to be glued to your computer all day.

Milk the cows, hit your daily goal, and SHUT YOUR COMPUTER OFF and take the rest of the day off!

MAY ALL YOUR FILLS BE COMPLETE.

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Postby pt01 » Sat Aug 12, 2006 4:47 pm

Hello TRO:

where can I find your TRO_TRADE_ZONES efs? did a search but nothing found.

Thanks.

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Postby pt01 » Sun Aug 13, 2006 3:53 pm

I found the trade zones file.

Thanks.

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Postby chrisb » Sun Aug 13, 2006 5:33 pm

Thanks TRO!

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Postby Razor » Wed May 09, 2007 3:52 am

Hi TRO,

Pretty excellent stuff so far I must admit. Simple indeed which is what I truly like.

If you are looking for .10 - .12 on a certain stock like AAPL what do you set your initial stop at usually ?

Do you ever partial and try to ride the some more for a larger gain ?

What are your current TOP 5 stocks to MTCs on ?

Cheers :D






TheRumpledOne wrote:BACKTESTING

"Backtesting is for the birds"

To me, the only reason to backtest is to make sure your code is working properly.

Backtesting is NOT for determining if your method is profitable.

I know that flies in the face of conventional wisdom.

To me, either the method is STATISTICALLY sound or it is not.

There are 2 DISTINCT parts to trading:

1) Selection of the instrument to be traded

2) Entering and exiting the trade.


For example, my MILK THE COW STRATEGY, that I posted on TradeStation and caught a lot of flak for AT FIRST, does NOT backtest well. But it makes money every day. And, one by one, the critics were SILENCED.

TRO TRADING LESSION 101 NOW IN SESSION

Trading is simple.

Making money via trading is simple.

What makes trading difficult is YOU!!

MILK THE COW (MTC) STRATEGY

Dairy farmers get up early to milk the cow because that's when it is time to milk them.




Stocks have an open, high, low, close price every trading day.

[highlight=yellow]The high is usually higher than the open and the low, lower than the open. [/highlight]

So, if you enter the trade [highlight=yellow]AT/NEAR THE OPEN PRICE, AT/NEAR MARKET OPEN[/highlight] it stands to reason you can sell for a profit sometime during the day.

IT IS THAT SIMPLE!!

The "trick" is to trade stocks with the volume, volatility and daily trading range that give you a chance to make a profit.

AAPL is a perfect stock to "milk" everyday.

AAPL usually has a gap open. All you do is wait for AAPL to move toward the previous close.

AAPL fills the gap about 75% of the time or better.

THE GAP DOESN'T HAVE TO FILL COMPLETELY for you to make money.

If you trade 1000 shares of AAPL and sell it for $.12/share profit. After commissions, you should have $100.

All you have to do is find 4 more stocks like that and you are grossing $125,000 a year.

The beauty of this method is you are usually done in 60 minutes or less.

Furthermore, you don't need any "squiggley line" indicators at all. All you need to know is the previous close and the open price.

TRO TRADING LESSION 101 IS NOW OVER


I am using the TRO_TRADE_ZONES study and that's all.

NO SQUIGGLEY LINES!





AAPL gapped down which means you want to look for AAPL to move toward the previous close (purple line).

The light blue area is the BUY ZONE. It is between open +.10 and Open + .20.

The light pink area is the SHORT ZONE. It is between open -.10 and Open - .20.

As soon as AAPL entered the BUY ZONE 6:44 AM the trade was on.





$.12 profit could be taken 1 minute later.

YOU ARE DONE IN LESS THAN 30 MINUTES.

Yes, there are more opportunities to repeat the process.

But that's another lesson.

In summary, gap down, wait for stock to move toward the previous close, enter the trade when the price is in the buy zone and exit when your target ($.12) is reached.

MILKING THE COWS

You have seen the charts with your own eyes.

It is like this EVERYDAY!

Of course, you can't trade every stock.

But you can select you own "herd" of "cows" to "milk".

You can probably trade 4 or 5 stocks at most. Start with one. Master the method. Then trade 2 stocks. Master that. Then add another if you like.

Or you can just trade ONE stock over and over as it enters the TRADE ZONES. That's what I do.

Perhaps now you understand why I say NEVER LOSE AGAIN.

When you MILK THE COWS, it doesn't matter what the market is doing. The market could be hot, cold, up, down, volatile or flat. It simple does not matter.

You don't have to listen to the news, read, research, etc...

You don't concern yourself with hot stocks, tips, analysts, etc...

You are simply going to "milk the cows".

Now, you don't have to be glued to your computer all day.

Milk the cows, hit your daily goal, and SHUT YOUR COMPUTER OFF and take the rest of the day off!

MAY ALL YOUR FILLS BE COMPLETE.

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TheRumpledOne
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Postby TheRumpledOne » Wed May 09, 2007 2:38 pm

I don't set a stop. AAPL moves too quickly.

Yes, sometimes I will let some shares ride.

I posted a list of the top 20 "cows". The list doesn't change much.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

Razor
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Postby Razor » Wed May 09, 2007 6:28 pm

Cheers :D


TheRumpledOne wrote:I don't set a stop. AAPL moves too quickly.

Yes, sometimes I will let some shares ride.

I posted a list of the top 20 "cows". The list doesn't change much.

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