Day trading YM day 2 and revised strategy

By Paul | Published: January 12, 2008

Made one short trade today on YM with a profit of $110. It was a very good call, on both entry and exit timing. I went in as TRIX is above zero and slowing down. Stochastic slow has just crossed its MA line. Also the 5 min chart shows similar reveral signals from overbought zone. In addition, the fundamental was good because yesterday’s up run was overzealous and unjustified (Bernanke’s hint of rate cut in Feb) in a sea of financial troubles lately. All signs pointed that today’s market would be down and the charts showed a good opportunity.

I exited when the stochastic bearly showed sign of upturn. The price rebounded slightly. Another less probability chance for short came on the 2nd mid level Stochastic cross under. I could have re-entered after a small bounce at that point and made a lot more on the 2nd wave. Lesson learned. When the stars are aligned, it’s good to be greedy.


I’m using TRIX and Stochastic Slow now. CCI gives more or less the same signal as Stochastic but lags a bit more, so I got rid of it. TRIX seems to complement Stochastic well because it gives a trend. I’ve been working on a new system. It also has a few new tricks too. Such as a window of opportunity feature so both signals doesn’t have to happen on exactly the same bar for the conditions to meet.

I watched the market for a while today but didn’t make any trade afterward. I didn’t want to lose my winner from today. Plus, I prefer to use an automatic system. So I continued to develop my new TRIX + Stochastic system today based on these 2 days’ experience.

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