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Thanks for your response.Since it is impossible and impractical to
personalize all
responses , I have prepared an first summary.
DOW Trading Method
Premises:
1.There are small,medium and longer term trends on any given day.
2.This is a Day Trading method and as active as you desire.
3.At any level,even daily the market seeks a 12 1/2 % retracement +
or - .A 10 % move is
reaonable cause for entry.
4.Stop loss is never more than $100 [10 Dow points].
5.You need to play -30 to + 30 range different from higher ranges.
Method Exmples:
A.Market opens or is at + 3.If it goes to + 6 or - 3 , Buy at +6 or
Sell at - 3.You can use a
trailing SL in all examples if desired if you want to lock profits
or cut losses [rarely done
by me].Definitely Buy back or Sell if you are in profit and fall or
gain 10%.Also take a
new position at that point in the direction moved.
B.Market opens or is at + 13 and goes to +19 ,Buy.Sell at + 7.Ditto -
opening or market
location at any time.In other words take action at 50% move either
way.same rules as A.
C.Market opens or is at + 23 , Buy or Sell on 25% move either
way.same rules as A.
D.Market opens or is at + or - 33, Buy or Sell at 10% move [+36 or -
30.Same rules as A.
E.Market opens at + or - 40 or better , same rles as A.
Comments
a.From experience the riskiest and potentially somewhat rewarding
trades or stop outs at
the lower prices ; the most profitable at the higher prices.use your
own risk aversion.
b.The 30 day paper testing yielded approx. $15,000.Can not be exact
due too lack of
knowledge of slippage.Day trsading Dow only requires $2000 margin
min.I use $5000 for
safety.Drawdown ,worst I estmated was $500.
c.I am not a technical writer so please do not expect total
clarity.Concept is the issue.
d.I like the fact I can make a few trades and take a break and come
back or if feeling really
well go the whole day.
e.You can decide on a personal level whether you are going for any
particular trend. i
usually go for allof them for info sake at this time.
Any of your comments or thoughts are welcome.
John
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