3SOF

The chart below says it all, NDAQ (the Nasdaq Stock Market) has a short term technical target of $51, because it broke out of a symmetrical triangle.

I will buy NDAQ at today's open for the Fast Portfolio, $5,000.

It's easy, take profits at $51 for a 29% profit or take a 5% loss if the stock prints $37.48.

White candle on NDAQ = Positive development. The plan stays the same:

1) Take profits at $51
2) Take a loss if the stock prints $37.48

I don't find short term trading all that fun anymore, as my eyes and head complaint all the time. I designed the Fast Portfolio to be strickly technical oriented.

On NDAQ we have a symmetrical triangle breakout, which gives me a technical target and a stop less. The plan remains:

1) Take profits at $51
2) Take a loss if the stock prints $37.48

Chart pattern within a pattern....

Good or bad: NDAQ plans stock offering.

Quote from: David Randolph on January 13, 2006, 08:49:51 AM
I don't find short term trading all that fun anymore, as my eyes and head complaint all the time.

Day Trading is a very hard game and that is why I want to try it and opened a short term trading account.

My target is 6% - 8% gain per month consistently.

I am in the process of developing a mechanic trading system and it will automatically generate buy-sell signals.

So, you don't have to stay on screens all the time. You can play, eat and the system will beep you to buy or sell.

It will be the most advanced trading system in the world. Right now, the basic building block has been constructed and another few months it may put into trial.

The system will:

1. scan the whole market every 10 seconds to identify sudden price/volume move and bring related news on the screen and take action;

2. automatically identify support/resistance level and its strength, identify reverse signals then take action;

3. use probability to find out the wining chance before taking position like the world pork game is doing now;

Made one trade NDAQ today: in $37.9 out $39.15.

Many times, sudden down provides a good chance to make money short term.

TTWO warned few days ago, it stock dropped at open then reversed to squeeze the shorts. SIRI DOWN TO $5.80 then goes up to $6.44 yesterday.

So identify sudden big down and take position at proper time is a good wining strategy for short term trade.

Bah! I got stopped out.

Should I get back in?

Shawfund , If you could write into your software That if there was news as a reason for a reason for a stock increase or decrease and be able to respond within a minute, let alone 10 seconds. your software would be invaluable. I can think of no way to do this, but if possible...
something to think about. Another idea, to set a trigger would be institounal buying or selling.
Is this possible?

QuoteQuote Shawfund: It will be the most advanced trading system in the world.

Wow that's a bold claim Shawfund, good luck with your development. Your trading results speak for themselves so I am sure you will be succesful in what you put your efforts into.

Personally I don't think black box trading solutions deliver really what people 'wish / 'hope' they will, and I find it hard to believe a day trading black box (which is basically a time critical application if ever there was one) can change that view.

I do a few day trades from time to time, but I find the effort to reward ratio non compelling for me.

Good luck with it though.

This kind of software already exists.

Big institutions use it as a tool for "program trading".

Bloomborg, the mayor of New York city, developed trading terminals which are used by most of WS trading firms to do day trading.

I, myself, used such tools before but found many problems.

What I am going to do is to add new advanced features:

1 use the latest price modeling technique;

Price modeling will consider all possibilities and establish the proper price for each possible case (for example, if the company missed one cent, what will be the proper price....)

2.use probability theory to win the game.

That is, at any time, the probability of winning a long or short for a particular stock will be calculated in real-time and displayed on screen.

If you watch TV pork games, you know that the percentage of winning a hand of pork for each player is always displayed on screen in real-time.

We will do the same thing. We will take a position only when the probability of winning a trade reached 85% or more.

Of couse, even with 99% of chance of winning, it is still possible to lose a trade, but the chance will be small.

That is the basic idea for the system.

Take yesterday's NDAQ as an example, when it opened gap down at $37.19, its probability of winning reached 99%.

When the price gradually reached to $39.20, the number has reduced to almost zero.

That is the beauty of the system.

We are constantly improving the accuracy of the system.

Quote from: AussieTrader on January 13, 2006, 09:08:31 AM
Chart pattern within a pattern....

Applause, Aussie.

Also within David's pattern is a "W"-Bottom breakout.  Target: 42.55 is IN PLAY.

EDIT: Forgot to mention that on Friday, NDAQ had a Bullish Cross of the Tenkan-Sen (solid Green line) above the Kijun-Sen (solid Red line), and the stock closed above both of them.  That's a positive. 

I welcome the interesting discussion on trading systems, I had a lot to say about it, but unfortunately I don't have time now (I would recommend Tradestation Securities to trade stocks based on a mechanical system - good luck, it is a very interesting topic).

Well, unfortunately I was stopped out on NDAQ on Friday. I'll just put that trade on the portfolio.

I did not put a stop in on this, and I got killed after hours.  Anybody have any thoughts about bailing at a market order at the bell, or holding tight for a rebound.  I'm in at 39.20.  I can't be at my computer until noon.  Any thoughts would be appreciated.