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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (1232)	6/21/1999 10:53:00 PM
From: Magnatizer	Read Replies (2) \| Respond to of 18137

Thread I feel the markets have a certain pattern (intraday) which can be distinguished via time zones. What I have noticed is one of two patterns is prevailiant. 9:30 to 10 UP 10 to 10:30 Down 10:30 to 10:45..11 UP 11 to 1:00..1:15 Flat 1:15 to 2..2:30 Up 2:30 to 3 Down 3 to 3:30 Up 3:30 to 4:00 Down this pattern or its exact opposite seems to show up often. Anyone else see it similar to me or do I need to study this some more. ht david

To: shasta23 who wrote (1232)	6/22/1999 4:38:00 AM
From: Teresa Lo	Read Replies (4) \| Respond to of 18137

Your question is something that we have been working on for some time. In an effort to improve the risk reward matrix, we have been trying to follow a trend as far as we can rather than exiting once the target has been met. The problem seems to be that 1. the markets are not trending at the moment, and 2. many times we are being stopped out at breakeven and give up profits while holding on for a trend. This is not helping the matrix at the moment, although in the long run, I'm sure it will work out. Over the past few days we have been thinking up ways to improve the matrix without having to depend on luck to find us an emerging trend, and in the end, I have gone back to the way I used to trade with only minor modifications. There are a couple of ways - trade less, so were are concentrating only on Grail and Trader Vic 1-2-3 set ups seen on the 5 minute chart. No scalping on the 1 minute chart. This cuts down the number of trades tremendously and reduces commission/slippage at the same time. We have improved our entries by using stops (set using Dunnigan bar count) to get in and that has increased the batting average a bit more, which helps the matrix a lot. The other thing we have been doing is to exit on target, unless it crashes right through on the first try and we are capturing more profits due to much less breakeven stop outs. Kacy and I are working on developing a list of rules and you should be hearing more about them over the next month, but in the meantime, we are hoping the market starts trending soon in the larger time frames. The problem with rules is that it is very hard to quantify 14 years of direct observation on a small list that is straight forward, but we are going to try. Great question about time frames. One rule I have is this - entry on one time frame = exit on the same time frame. So if I enter on a pattern seen on the 5 minute chart, I will exit it on a 5 minute chart.