Experiments in Day Trading: Calling Dr. K

[nickola.pazderic]

Like others, I've ventured into short term day trading. My results have been mixed. But I've hit upon a strategy that I'd like to share for consideration and critique alike.

First, my Short-term Market Direction Model:

1. 30 minute NYSE tick.
2. 30 minute chart with ATR
3. A screen of the NASDAQ 100, showing the intraday advance decline of each equity.
4. A core sector's list


Second, an Active Trader Screen with

1. One minute chart
2. 50 minute SMA
3. 100 minute SMA
4. Pivots
5. Average (20) volume indicator

Third, BUY when

1. the MDM is on the side of the trade (either TNA or TZA are my preferred tickers)
2. a pocket pivot signature appears. (in particular I look for a green volume greater than any single down volume in the previous 10 bars).
3. the price has crossed over or touched upon the simple moving average lines or if it has lifted from or crossed through a pivot.

Fourth, SELL when

1. A red volume bar appears equal to or nearly equal in size to the original pocket pivot buy signal bar.

Fifth,

1. Remember only trade in the direction of the market.
2. This is a trend system. So the following applies: Trend traders show a mean aversion to mean reversion.

OK. Done.

Now I know something about developing a system.

I expose it to the world in the spirit of levity and scientific inquiry.

And once again, my appreciation for those who have worked out systems increases