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Old 04-22-2008, 06:35 PM
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Re: Five Tick Trading

And I stumbled upon an archived copy of the $297 course manual via Google.

Quote:
This method applies to the S&P, Dow Jones, and Russell.
We attempt to pick tops and bottoms using a simple indicator and then use the price action
to grab a quick correction against the prevailing trend, often it turns out to be a real top or
bottom and the market takes off in a new trend. We however are long gone. This is not a
trend following method, it’s a grab an opportunity and run for it, method. It works.
The indicator we use is the Commodity Channel Index (CCI) set at 45 periods with the
measurement being the High+Low/2. This is available on pretty well all charting packages.
We look to Sell when this indicator exceeds 200 and Buy when it falls below
-200.
We use a one minute real-time chart and when we get a buy or sell signal from the CCI we
trail an entry order just above or below the market so that we quickly catch a market
reversal when it happens. (Note When not If, no market continues in one direction for very
long, and that’s we’re betting on).
Our profit target is just a small distance away and an order is placed as soon as our first
order is filled. Sometimes if the market starts to move against us a stop-loss order would
be entered but often that’s not required. Usually our profit target will be hit and we have
one of two winning trades for the day in the bag.
Nothing about Bollinger Bands in the manual, although I suspect that the videos that accompany the course may address their usage.

Good luck.


Last edited by Soultrader; 06-16-2008 at 10:28 PM. Reason: Copyright material removed per request from author
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