My Intraday Approach

[sohan1_1 10]

I trade with the below approach.

 

I need suggestions on senior members here.

 

I make consistent profit with to this but still would like to know more on this.

 

THE MOST IMPORTANT THINGS TO TRACK IN DAY TRADING

Previous days range (difference in days high and days low) the most important

That days’ high and that days’ low at 10:15 am after the start of markets

 

PDR = PDH - PDL

F1 = 0.4333 * PDR

F2 = 0.7666 * PDR

F3 = 1.3333 * PDR

 

Opening Range = High – Low (at 10.15 AM)

 

If F1 > Opening Range

Factor = F1

Else If F2 > Opening Range

Factor = F2

Else If F3 > Opening Range

Factor = F3

 

Buy Stop Order for Long = Intraday Low + Factor

 

Target for Long = Buy Price * 1.005 (0.5 % gain)

 

Stop for Long = Buy Price * 0.99 (1.0 % Loss)

 

Sell Stop Order for Short= Intraday High - Factor

 

Target for Short = Sell Price * 0.005 (0.5 % gain)

 

Stop for Long = Sell Price * 1.005 (1.0 % Loss)

[daedalus 10]

Without looking at it too closely why are you using a risk factor of 1 and a reward factor of .5?

 

Unless your hitting like 90% win rates it will lose money in the long run will it not?

[BlowFish 10]

I would have though greater than 66% would be profitable?

 

Absolutely nothing wrong with 2:1 risk reward. Interesting system I like how it compares opening range with yesterdays range. It seems to have several nuances how these two parameters will place your triggers.

 

Do you play first touch only? Will you reverse if an opposite trigger is hit?

[gboos 10]

Sohan .... I'm confused. If you are trading with your calculation and entry rules you should have zero/one/two trades in the year. Please check what you have written here.

 

Right from the statistic I've never seen a day like the OR was grater then prev. range multiplied with 0.7666 or 1.333 or I could say .... OF COURSE THE F2 is most of the time larger then OR and F3 IS STILL HIGHER THEN OR.

 

I think the mistake is that you changed the rules ..... Calculated levels with F3 are support an resistance levels equal to known calculation for a possible ATR support/resistance .... Or you want to calculate the buy/sell level with the OR high/low instaed of the daily high/low.

 

I think you have to check that and to think about again.

 

Something goes wrong with this rule ....

 

If F1 > Opening Range

Factor = F1

Else If F2 > Opening Range

Factor = F2

Else If F3 > Opening Range

Factor = F3

 

Buy Stop Order for Long = Intraday Low + Factor

 

Target for Long = Buy Price * 1.005 (0.5 % gain)

 

Stop for Long = Buy Price * 0.99 (1.0 % Loss)

 

Sell Stop Order for Short= Intraday High - Factor

 

Target for Short = Sell Price * 0.005 (0.5 % gain)

 

Stop for Long = Sell Price * 1.005 (1.0 % Loss)

 

 

I think more explanation is needed. Maybe you want to buy at level like HOD - Factor and to sell at LOD - Factor. With your explanation the ENTRY levels are still the levels with factor = F3 (magenta & cyan or fat plotted) in my chart. The dotted levels are the levels calculated with F1 - F2. The fat plotted levels are the levels with factor = F3. You can see that F3 levels are supports and resistances. In 2008 I had 3 trades only wich where successfull trades with a buy @LOD+F3 or sell @HOD - F3.

 

If you would change your buy & sell rules I would understand what you are doing. A chart is attached.

 

Regards.

 

Mike

Edited March 10, 2009 by gboos

[sevensa 10]

Sohan .... I'm confused. If you are trading with your calculation and entry rules you should have zero/one/two trades in the year. Please check what you have written here.

 

Right from the statistic I've never seen a day like the OR was grater then prev. range multiplied with 0.7666 or 1.333 or I could say .... OF COURSE THE F2 is most of the time larger then OR and F3 IS STILL HIGHER THEN OR.

 

I think the mistake is that you changed the rules ..... Calculated levels with F3 are support an resistance levels equal to known calculation for a possible ATR support/resistance .... Or you want to calculate the buy/sell level with the OR high/low instaed of the daily high/low.

 

I think you have to check that and to think about again.

 

Something goes wrong with this rule ....

 

If F1 > Opening Range

Factor = F1

Else If F2 > Opening Range

Factor = F2

Else If F3 > Opening Range

Factor = F3

 

Buy Stop Order for Long = Intraday Low + Factor

 

Target for Long = Buy Price * 1.005 (0.5 % gain)

 

Stop for Long = Buy Price * 0.99 (1.0 % Loss)

 

Sell Stop Order for Short= Intraday High - Factor

 

Target for Short = Sell Price * 0.005 (0.5 % gain)

 

Stop for Long = Sell Price * 1.005 (1.0 % Loss)

 

 

I think more explanation is needed. Maybe you want to buy at level like HOD - Factor and to sell at LOD - Factor. With your explanation the ENTRY levels are still the levels with factor = F3 (magenta & cyan or fat plotted) in my chart. The dotted levels are the levels calculated with F1 - F2. The fat plotted levels are the levels with factor = F3. You can see that F3 levels are supports and resistances. In 2008 I had 3 trades only wich where successfull trades with a buy @LOD+F3 or sell @HOD - F3.

 

If you would change your buy & sell rules I would understand what you are doing. A chart is attached.

 

Regards.

 

Mike

 

I think you don't understand the logic of "if, else if, else if" and assume that that because the last "else if" will almost always be true, that F3 will almost always be used. Once the first "if" is true, the "else if's" are not evaluated hence the use of "else". The system is similar to an OR type breakout system based on a fraction of the previous day added/subtracted from the high or low of today after 10:15. on the OR compared with a fraction of the previous day.