Technical Guru - My Winning Trading Systems
I've been using the 100 tick charts on IG Index intraday which means I get a
candle at intervals of every 100 orders regardless of the order volume. Over the past week or so the time period per 100 orders has increased from around 3 minutes to about 8 minutes at mid morning. So trading has decreased sharply.I don't know the significance of this but perhaps investors are finding less value to be had but are comfortable holding for dividends. Whatever, there is no rush to buy or sell at the moment
I also use tick data, 1 minute and whatever time frame the tick candles equates to. I use several spread trading strategies but the most profitable are price breakouts on the TICK chart:
Enter 1 position on the breakout with my initial stop at the Tick chart average true range (3.5 points on ftse as I type). Now I switch to the 1 min chart and follow the 20 period Wilder m/a. I close half of my position on the price crossing back over the 20 wma or hitting the stop.
The other half of the position runs on the tick chart. Here I use 20 period tema set to red down colour and black up colour. I close half of my original position on the tema colour change.
I will sometimes gamble and exit some or all of my spreadbetting trade after a good run at a pivot level, a macd price divergence showing against my trend or if the day's trading range has reached the daily ATR.
I have rules for re-entering the trade but there are quite a few if's and but's so not easy to explain in detail.
I have also tried a separate 150 period tema but it runs withing 2-3 points of the 20 wma with which I am established. It is useful though for setting an up and down colour to detect trend reversals on the three or five minute chart. Then wait to trade the next price breakout on the Tick chart.
Other Profitable Trading Systems
Second most profitable trading system that is working for me is reversals of market flow (higher high/higher low patterns)
Third most profitable system I'm using is trading ranging market reversals using 20 wma +/- deviations for support and resistance levels along with tema colour (up/down) change reversals. They get more complicated to explain but again Tick plays a major roll. It does not give massive profits but at least it allows me to trade on quiet narrow ranging days instead of sitting there getting frustrated at absence of breakout.
For intraday spread trading I now find little use of any indicators other than moving averages and MACD price divergence (as a warning - not a signal).
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