Parabolic SAR - that's all!

[Tess]

Originally Posted by dpaterso

Anway - 'Tess' - while I've got you 'on the line' or if you see this message - I want to ask you something:

Have you ever had a look at Wilder's Swing Index System?

Have you ever had a look at this stuff or 'put it to the test' in any way?

No Dale, sorry.

Neither I, nor my siblings have ever bothered with anything other than (naked) price structured models I'm afraid. We're just plain, simple folk!!

I prefer to keep things as clean as possuble, & you don't get much cleaner than pure bars/candles.

I like to dodge in & out of the 3 Ducks & IB type threads every now & again, but then they're just thinly dressed price action trigger mechanisms anyway.

Hope the NFP's are friendly to you later

[dpaterso]

Now DO NOT say that I don't give you guys (and 'dolls') anything!!!

I have attached a WinZip file to this post. In the WinZip archive is a small little application called 'bopcalc.exe' that I just wrote to make my life a little easier (I can't take credit for the 'system' itself but I DID write the application).

Download it and extract it to any folder you want - put it on your desktop - and run it.

Basically - the idea is this:

You enter YESTERDAYS - PAY ATTENTION - YESTERDAYS Open, High, Low, and Close prices and the application will calculate the High Break Out Point and the Low Break Out Point for you FOR TODAY - PAY ATTENTION - FOR TODAY!!!

THEN - all you do is this:

EITHER:

Place a Buy Stop Order at the price given by 'High Break Out Point' and a Sell Stop Order at the price given by 'Low Beak Out Point'

OR (if you're at Delta you can do this)

Set up eMail or SMS alerts to alert you when the price hits the 'High Break Out Point' and when the price hits the 'Low Break Out Point' (by the way the eMail and SMS alerts DO NOT work on demo accounts so don't contact me if you have demo account at Delta and 'whine' that you did not get an eMail or SMS alert). Once you get an alert you immediately place a Market Order (as opposed to a Stop Order) as detailed above.

How it works:

The basic 'theory' is that if the price has reached either of these two points at any time during the day (and DO NOT GO USING THIS ON SMALLER TIMEFRAMES BECAUSE YOU WILL GET 'F****D') then the instrument or pair has 'broken out' into a trend and we all know that 'the trend is your friend' right!!!

Anyway - if your Buy Stop Order is hit and executed - you IMMEDIATELY cancel your Sell Stop Order and place your Stop Loss at the 'Lowest Low' of the preceding two candlesticks or bars and if your Sell Stop Order is hit and executed - you IMMEDIATELY cancel your Buy Stop Order and place your Stop Loss at the 'Highest High' of the preceding two candlesticks or bars. These stops you update EVERY SINGLE DAY IN THE SAME WAY until stopped out which is almost always a profit!!!

If - at the end of the day - neither of your orders have been executed - you continue repeating the process every day - one day - the price will get hit - be patient. Actually - at Delta - you can place orders that are valid for a day (as opposed to a 'GTC' or 'Good Till Cancel' order) - and I'm sure that you can do this with a few other (good) brokers as well. Oh - and you'd be well advised to use this system with a brokers that does not 'slip' each and every single stop order you place!!! I know of a good one that NEVER 'slips' stop orders!!! Guess who???

NOW - this 'system' does NOT do many trades AT ALL - BUT - the trades that it gets you into are almost always profitable as already stated above.

Also - it is NOT the type of 'system' that you can 'forget about' i.e. you have to be able to at least access your trading platform the moment these orders get hit so that you can set your stop losses and cancel the opposing order (I suppose you could use OCO orders but I never have) otherwise you could quite easily land up in a situation where your Buy Stop Order is executed, the price retracts and your Sell Stop Order is executed, and the price then retraces again and you're now TOTALLY at a loss without any stops in place!!!

This 'system' IS time consuming as it has to be maintained DAILY the moment your daily chart 'ticks' over at whatever time and at whichever broker you use.

Also - do not use this 'system' on a pair that is ALREADY trending or that has good directional movement - and a good way to 'check' for this is to have a look at your ADX and / or ADXR values (remember those??? We're SUPPOSED to be using them you know!!!) - they should BOTH be below 20 (but you could 'stretch it' up to 25 is you're getting desperate for a trade.

Do not ask me for the formula - copyright and all that you know - suffice to say that I did not come up with it (but I'll give you three guesses as to who did)!!!

Now that I have finished this little 'Break Out Point Calculator' I'm going to place these orders on all 44 pairs every day (night) and see what happens (I tried to do this manually with a calculator or spreadsheet every day but it would pretty much result in me NEVER sleeping beacuse of the time taken to do the calculations)!!!

Have fun - and if Parabolic SAR lets you down today - this will get you your capital back - albeit after some time!!!

This is a price based 'system' - kind of like 'where the rubber meets the road' - that's why when it give you a trade - it's normally a very good trade.

Again - like everything else - it requires patience - probably EVEN MORE than our Parabolic SAR 'system'.

Regards,

Dale.

Oh - by the way - did I mention that I accept no responsibility for any losses incurred by you should you decide to use this 'system' (sorry - had to state this)!!!

[dpaterso]

Thanks 'Tess'.

By the way - nice to see you have a sort of 'family' trading business - I can't even TALK about what I do in my house!!!

Actually (and this is addressed to everyone):

I was watching something on ETV (E! Entertainment Television) (actually cannot STAND this channel - Paris Hilton and all that you know - but someone else called me to have a look) about the lifestyles of the 'rich and famous' Wall Street 'elite' or something like that i.e. the 'top' or MOST highly paid Wall Street Hedge Fund Managers. Man - I don't know if anyone else saw this programme but I'll tell you that it's encouraging!!! It amazed me that one of them (I don't remember or know their names) was actually a New York cab driver and then started trading etc. etc. and is now worth BILLIONS of USD!!! (Don't get me wrong - I've got nothing against cab drivers - but I'm just trying to make a point here). The other one was a school teacher - also worth BILLIONS now.

What I was left wondering after seeing the program was if these people went through the same emotions that we are going through RIGHT now and how and where did they 'find the answers'. I mean - I know that NOW - because they are Hedge Fund Managers - their HUMUNGOUS earnings are made up of commissions BUT they ALL started out as traders.

OK - admittedly - it was an old program - I think that ALL of these chaps are going to be 'crying a little bit' this year because I believe that this is quite a 'big thing' at the moment on Wall Street i.e. some of the Hedge Fund Managers have to forgo their commissions this year because of 'sub-prime woes' BUT - HEY - so what if you lose a couple of 'mil this year - it's a 'drop in the ocean' if you're already worth BILLIONS and have a couple of your own private jets and fifty million acre properties all over the place (although I suppose the upkeep of all of this NEEDS an income - I'll let you all know one day)!!!

Actually - that just reminded me of Billy Connolly (and I quote):

'Now people will say to you - money brings it's own worries. F*****g rubbish!!! I'm loaded!!!'

Hey Morgan Stanley - I'm here - I need a REAL job!!!

Regards,

Dale.

Edit:

Actually just had another thought:

Can you imagine what a transcript of THIS thread would be worth if I (or any one of us) landed up as a 'Hedge Fund Manager Elite' on Wall Street!!!

I suppose it's very clear that I have nothing better to do today until the NFP data comes out!!!

[dpaterso]

'SH*T' - I nearly forgot to look!!!

WELL - EUR/RON my good and trusted and learned friends - is dropping VERY nicely this moring. THANK YOU THANK YOU THANK YOU!!!

Of course - as 'luck' would have it - I'm STILL 'screwed' - thanks to Gold, Silver, Oil, and just to finish things off nicely - some 'commdolls'!!!

Dale.

[capt.findus]

dear diary,

i kept eur/usd overnight with -34pips and now is +20
i closed gbp/usd with -32

this morning i jumped on usd/chf long

I hope in usd revenge...

[dpaterso]

'dear diary'???

You're kidding!!!

Dale.

[Hypechic]

Good Morning Folks.

USD/DKK has improved to about -138 pips. EUR/USD to -16 pips.
GBP/CHF is at +79 pips and EUR/GBP is at +27 pips. Let's see how things go later in the day.

Still watching USD/CAD & AUD/USD.

[dpaterso]

Is THIS the time to start work!!!

[Hypechic]

Originally Posted by dpaterso

Is THIS the time to start work!!!

ROTFL. No, this is the time to do my personal business on the company computer during company hours. I sure hope none of my bosses are on here or I'm definitely getting fired.

[dpaterso]

Don't worry - soon - we'll ALL be working at Morgan Stanley!!!

Hey - check out our new 'sideline' system (a few posts behind this one) and tell me what you think.

By the way - if you've already downloaded the software - you need to download it again - it's been updated!!!

Regards,

Dale.