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Buy Sell Zone on the Russell

Posted: Wed Mar 14, 2007 3:51 pm
by eudamonia
I've had a request from a couple of people to show my setup for the Buy Sell Zone on the Russell. The settings I use are .5, 1, 1 for the BuyZone, BuyZoneHI, BuyZoneLO inputs.

Today was a very straight forward day and you could have easily bagged +1.5 points. I'm looking to enter the zone for a buy zone trade this morning at 776.2 and exit at 776.7 (five ticks or $50/con). On the sell zone I'm looking for an entry at 775.2 and exit at 774.7. If things go wrong I look to exit at 6 ticks (5 tick stop market order).

So here is my expectancy with a with an 80% win ratio:

5 ticks * 8 trades (40 ticks) less 6 ticks * 2 trades (12 ticks) = Net 28 ticks or about 2.8 ticks per trade.

With an average of about 3 trades per day I can expect to net about +8.4 ticks per day or about $80 per day per contract. Trade this with 5 contracts and you're looking at $400 per day. Easy.

So you might be wondering where I'm getting my "statistics". Simple, this has been my observation so far. It isn't statistically significant (yet) with a mere 15 trades (need at least a minimum of 30 to be significant). So if you decide to use this - use your head first and paper trade it!

BTW, this is certainly not the only way or even the best way, it's simply one way of looking at the Buy/Sell zone on the ER2. I haven't even bothered to use Avery's statistics in Radar. So if you think your way is better, then please post it and let me know. Thanks.


Posted: Wed Mar 14, 2007 5:21 pm
by Patch
eudamonia

Congratulations on having a great week, great profitable week trading. Would you make a screen shot each day and write in notes about what happened when.

Thanks
Patch the Pirate
in VA

Posted: Wed Mar 14, 2007 5:52 pm
by bh_trade
Edward:

Thanks for that post. Know you are a Phil McGrew fan, I worked with Phil out East when he was a real-time power trader - great guy.

Posted: Wed Mar 14, 2007 9:51 pm
by eudamonia
Jeff,

I already post one of my Russell setups at my blog everyday (and I shared how I use this setup at the pirate meeting), so sorry but I have to decline on this one. How about you post a setup of how you would trade the Buy/Sell zone Russell? I strongly encourage to do your own setups and homework. After all my trading successes and failures won't help you become a better trader unless you do your own homework and your own trading!

bh_trade,

I'm glad you liked the post.

Everyone else,

I still would like to hear from you about how YOU would trade the Buy/Sell zone on the Russell (or anything else for that matter).

Edward

Posted: Wed Mar 14, 2007 10:14 pm
by Patch
Hi Edward

No problem.

May I ask where to find your blog?

Thanks,

Patch the Pirate
In VA

Posted: Wed Mar 14, 2007 10:19 pm
by eudamonia

Posted: Thu Mar 15, 2007 10:59 pm
by hans-ulrich.rudel
Hm... TradeStation charts.....

Posted: Fri Mar 16, 2007 4:22 am
by Patch
Hi Hans-U.R
Welcome to Kreslik, the single best trading forum I've ever found on the net.
Patch

Hi Eudamonia

I am wondering what futures broker you use and like the most?

Thanks,

Patch the Pirate
VA, USA

Posted: Fri Mar 16, 2007 3:27 pm
by eudamonia
I use MBtrading and have been very happy with them. They are a sister company to EFX.

Posted: Fri Mar 16, 2007 5:12 pm
by hans-ulrich.rudel
Patch wrote:Hi Hans-U.R
Welcome to Kreslik, the single best trading forum I've ever found on the net.
Patch
<SNIP>


Yes this site is good. But I like www.traderslaboratory.com better.
You should visit it esp. if you are a tradestation user.

Hope I don't get banned for this :D