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randini

Mini Dow

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I've been trading the dow futures since 1999. That was back in the old days before things got fancy.

I had to call my broker in chicago to place my order then he called the pit while I waited then we waited to see about getting filled then I had to decide what to do with the dang thing.....

It was a hairball. Round-turn started @ $50 but I eventually got it down to $35 if I did 5 lots or more.

Made $$ & lost $$. Comm. killed me in the end.

Data feed was from DTN. I had to mount a dish outside for the feed. If it rained or was windy.....well good luck. And get this.......it was over $400 a month. If you got a buddy to sign up it went to like $365.

My first computer (desktop) was just a little thing really. Guess how much it was? $3600

What a deal.

 

We have come a long way. Oh........we won't even get into volume & liquidity. lol.....

 

All that to say this. I've been through the fire. I've done & seen it all. More than once. I've made every mistake that could be made. but I never lost the farm.

I managed to hang around & win & lose & fund & refund. I have had to take jobs I didn't want to make $$$ to refund. I've lost other peoples $$$ (POA). I've lost friends. (so called)

But I never quit. I manage to hang around long enough & study live & dead charts tens of thousands of hours & came up with a way........to make it.

If you want to know my way its free. I'm going to tell it right here.

I'm not selling anything so let's get that thought over with right now.

 

First....5 minute chart ONLY. Real & dependable. 2 computers. 1 for transactions & 1 for data feed. It's a way to "check & balance" cause it's 2 different sources. They MUST run in tandem. If they aren't, don't trade.

Second...on yer 5 min. chart. It needs to be clean as a whistle. No lines or indicators or MACD or any of that BS. All that stuff is BS. Remember that. NO INDICATORS!!!

Third.....I traded for years using the pivot calc. It's another scam. Throw it away. Do NOT try to use a trading strategy using pivot calc. numbers. You will lose your rear end. It was designed to FAIL. Remember that.

Fourth.....I'm gonna take a smoke brk. If anyone is interested.......let me know. I'm gonna have a puff then pick up where I left off.

randini

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OK.......where I left off......

Fourth.....take a little time & notice the highs & lows of the 5 min. bars. When the h/l is broken how far does it brk? we are talking "usually". Remember that word. Usually in trading is valuable cause you aren't going to be right every time. But usually will win. Brks of the h/l usually are 10 points or less. Especially after the first & before the last hour of trading.

Fifth.....10 points. remember that. As I said previously...forget the piv. calc. numbers & let's focus on 10 points & the multiples of 10. For instance......if the h is 13200....13210 is a number to be aware of. In what way you ask? Well spend some time & look at h/l brks & what happens 10 points out from the brk number.

Sixth.....this will be the last one tonight. I'll pick it up tomorrow. Anyway......for now.....just picture a 5 min. bar & the h/l . If the next 5 min. frame brks that h or l & CLOSES outside of that h or l (brsk up or down) what happens during the NEXT 5 min. frame? If it brk the h of the 1st 5 min. frame......& closed OUTSIDE of that high.....what if you sold that h number for a retracement move? .......Answer......study the charts. If it was the l brking & closed OUTSIDE that l........what if on the 3rd frame you bought the l number for a retracement move. For how far you ask? Well look at mutiples of the number 10. How much do I risk? .........remember the number 10?

more later.......

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Seventh......a lesson in brkouts. Wouldn't it be safe to say most traders when thinking of playing a brkout it means brking out of the h/l range?

Sure.......so if that's so good.......how come MOST lose their A$$ WITH THAT APPROACH?

Critical thinking question.....why not reverse that strategy?

I did. Instead of a brkout of the h or l ........my "brkout is I sell the h & buy the l & never risk more than our magic number "10".

Ahhhhh.......outside the box isn't it ?

Your next question is "well when do you do that move"?

I'll get more into that later but for now let's just suppose instead of a brk of the h/l up & down you reverse that theory & buy every low & sell every high & risk no more than 10 points.

Remember.......10 point risk.

Now mind you this IAN'T the exact approach but do your damn homework & look at a 5 min. min-dow chart & EXCLUDING the 1st & last hour watch the h/l 10 point range.:cool:

I cover more tomorrow........

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First....5 minute chart ONLY. Real & dependable. 2 computers. 1 for transactions & 1 for data feed. It's a way to "check & balance" cause it's 2 different sources. They MUST run in tandem. If they aren't, don't trade.

please explain. are you saying here use one broker and platform for data and analysis and another one for placing orders? also why ONLY 5 minute chart?

 

thanks

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FORGET THE ANALYSIS.......just the DATA. That's a golden rule. And I never talk to my broker unless there is a glitch in connection or something like that.

 

Again........a trading platform. That's the location you will use for your transaction. A data feed unrelated to the transaction platform. 2 SEPARATE feeds. That's the check & balance.

If the numbers are in tandem.......one of those feeds is wrong. It's a simple way to make sure your information is real time & functioning properly.

I have a trade platform & my data feed is with another source. They are on my desk...side by side.

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Seventh......

 

... I'll get more into that later but for now let's just suppose instead of a brk of the h/l up & down you reverse that theory & buy every low & sell every high & risk no more than 10 points.

Remember.......10 point risk.

Now mind you this IAN'T the exact approach but do your damn homework & look at a 5 min. min-dow chart & EXCLUDING the 1st & last hour watch the h/l 10 point range.:cool:

I cover more tomorrow........

 

Thanks a lot for sharing, randini. Please continue.

 

1. This should work well in a ranging market. How do you deal with (avoid) trends?

2. "10 range" - do you refer to any 10 tick move, say 10 ticks from last 5 min low, or round numbers like 13220, 13230...?

3. How do you deal with changing volatility? Some days DOW moves 50 pints, some 200 or more.

 

I like your approach and am looking forward to further explanation of how it works for you. Maybe some chart examples. I am contrarian by nature and tried quite a few things like that... still not there yet. :crap: Hope I can learn from you.

 

Thanks,

Boo.

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Ok...where was I ? Oh...I'll answer a couple of questions first. Why 5 min. frames? Cause they work & there are lots of em intra-day. I don't believe in marrying a position that larger frames will try to talk me into. I'm either right or wrong & have an answer pretty quick.

How does this apply in a trending market ? I don't think there is any such thing a a trend. I just want volume & movement. And I don't care which way it's moving........just as long as it's moving.

Trying to DETERMINE a trend will cost you your life. It's BS.

Eight.......Have you noticed how this market moves in in multiples of 10? Look at the number of highs & lows that just meander in & out 5 to 10 points. Most 5 min. frames don't brk more than 10 points. Especially between the end of the 1st hour & before the last hour starts.That's 9:30 central until 2 central.

For every time you show me 1 failing trade I'll show you 5 that paid.......;)

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OK those that have been doing their homework raise your hand. I don't see many hands. That's not good.

How do you expect to be a decent trader if you don't apply yourself?

Oh...you want me to show you. OK.

Ninth.......Have you noticed how the min dow ranges 5 to 10 points from the highs & lows? Talking 5 min. frames here.

So what can we do with that you ask?

Here's exactly what I do. And this is only for those that don't trade scared to death.

I'll take a 5 min frame & after it closes I sell the h or buy l . How do I do that ?

It has to be like this.........say the High is 12750, and on the next frame it trades above that number. I wait until it has come back UNDER 12750 & I place a sell LIMIT at 12750 cause I don't want slippage from a SELL STOP. When it goes to 12749 I place my sell limit @ 12750. If I'm picked up I will sell another @ 12755. I won't risk any more than 12761.

Now......listen to this. Say it goes to 12749 & my limit is suppose to be 12750(sell)...lots of times I cheat on my number & go 12752 & my next level will then move to 12757 & I still will not risk outside of 12761. Cheating on the numbers pays more with less risk when it's ranging. And this market tends to range in 10 point increments.

Follow?

I made 48 points today trading from 1 to 3 lots with this approach.

It's there every day.

Remember.......entry on with LIMIT ORDERS !!! :cool:

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Can u believe it ? It's too easy. No...I mean it's too easy to make things too difficult.

I haven't had one single question in days. So I suppose that means everybody's doing fine & MAKING $$$ with no problems ???

I doubt it. So you just keep losing yer a$$ & working at a "real" job.........lol...when all you have to do is fade the high or low Of a 5 min. frame between the 1st & last hour of the day.

But that's too easy.........."oh..you need indicators"

crackheads.........

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