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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (2082)	8/19/1998 11:38:00 AM
From: SE	Read Replies (1) \| Respond to of 44573

I did not explain it while you were away....but I developed it then! It works off of a one minute bar chart with a 20 period ma. To trade just the ma will give you lots of whips, so I follow the change in the TICK...by a percentage method. This tends to eliminate the whipping. The goal is to capture the middle of a more extended upside or downside move. I calculated the usual range for the TICK and then factored that into an equation to give me a range. When the SPOO hits the 20 period ma, I enter the TICK number. This gives me a TICK target on both the long and short side. If it hits one of the targets and on the right side of the ma for either the long or short, then I will look to take the trade. It appears that most of the time when a signal is generated the movement will be strong at first, it will pull back to the 5 or 12 period ma at which point entry is contemplated. I use the moving averages, the direction of the TRIN, the PREM all as confirming a good entry. My exits generally come on a spike in the direction I am trading. If the PREM spikes the right way with the action on the SPOO I usually hit it and get out. Generally speaking it is good for 1.80 points per trade, sometimes more, sometimes less. I did not like the action on the TRIN or the TICK on the last short and covered, later than I should have at 1105.10. The SPOO was moving up while the TRIN was also moving up and the TICK was coming down. Not a good combination of indicators and I should have hit the exit at 1104. Something was out of whack with the TRIN and the SPOO when they are both going up.....if it is out of whack, get out. Anyway, that is the basics in a nutshell. Doesn't always work, but generally speaking, the losses are small. The other thing I try not to do is to enter a trade when the SPOO price is within a point of the 20 period ma. Too much chance for a re-touch and then the system needs to be re-calculated again. Upon a re-touch of the ma, exiting is best. Right now looking for a long and if the SPOO stays above the 20 period ma and the TICK gets to a -150 or so, I will look for an entry. This explanation is probably more confusing than it really is....