PocketPAT

As usual, I've made a few changes since my last update. Ironically enough, upon reading my last update, it seems that I may have gone in circles a bit lol (albeit not surprising). Although, I maintain the thought that I've never wasted any time. Even while switching back and forth between swing trading and day trading; using dual SMAs or single, I've only ever progressed each individual strategy every time I've touched it. Nonetheless, I've reintroduced VWAP as a replacement for one of my dual SMAs these past couple of weeks. VWAP has always been a solid indicator for price-action at market open, and has repeatedly provided all that I'd ever wanted on momentum stocks: indication after market open of the day's long-term momentum. With an overall chart hypothesis, once the direction was confirmed by VWAP (typically around 9:45AM/10AM), I've been simply riding the wave until momentum has shifted. This is obviously best practiced on the stocks that I love, slow-moving Mid-to-Large Cap stocks. VWAP also protects me from the choppier segments of the market session, where people seem to be fighting over whether or not the price-action breaks above or below it. Back-testing VWAP as an SMA replacement on multiple stocks, this will also serve me when I eventually trade higher priced stocks as well. There are some nice benefits to using the second SMA over VWAP, but the cons outweigh the pros; so this is the direction til further notice. I'm reminded that I'll likely always be tweaking my strategies, as I'd not realized that these tweaks may be due to market environment changes (not simply because the strategies themselves did not work). Still, my goal will continuously be to narrow my strategies to just a few universal methods of trading. I've also decided to maintain trading from 9:45AM. The biggest struggle with this is FOMO, but back-testing has proven it most profitable to wait the first 15 minutes on slow-movers. I'll miss out on a few nice runs, but as stated before: these quick moves are typically too volatile anyhow. 9:45AM seems like the sweet spot for a confirmed direction and controlled momentum. I've made a few changes to my scanning filters. At first, I'd created a few variations for future equity milestones; but I've seemed to have found a single set that will satisfy all of my needs going forward. I'll only be scanning and trading stocks with the following filters: ADR 0.75-2.50, AVG Vol 3M+, MKT CAP 1B+, Last $20-100. While this currently provides a nice 146 results, I'll be maintaining a watchlist with these filters even while some of the solid charts wont be used any time soon. This will serve me as I grow my account from $30k to $50k, to $100k, to $200k, to $500k and beyond. I'll always sort my watchlist by the highest ADR, to achieve profit goals the easiest. I've also decided that after $500k, I'll look to switch to either 1/2 swing trades + 1/2 algorithmic day trading, or (if algos are much better than swings) I'll go 100% algorithmic. Lastly, I've been using a detached TOS "Dashboard" for Bid/Ask, set to "always on top" of ETrade Pro. It's been working out beautifully as a cute little box that fits just below my active position "Last". Things are still moving along =)

Join now or log in to leave a comment
PocketPAT

+1350 (MGM) ::: A few tweaks and realizations today. First, it's come to my attention that ETrade Pro's Bid/Ask is D-E-L-A-Y-E-D..... This was never a problem before, as I would simply use ThinkorSwim's integrated B/A on the chart. However, with WeBull FINALLY upgrading their software to access 2-minute charts, I've let go of ThinkorSwim (due to it's memory hogging) in favor of WeBull's elegant and streamlined platform. Since WeBull STILL doesn't have B/A on the chart, I'd decided that I could simply use it on ETrade Pro to make quick entry/exit decisions. This morning, however, I'd noticed that the B/A on ETrade Pro would periodically be a bit far from the last price. "Not a problem" I thought, as these slow-moving large-cap stocks can sometimes jump around a bit. Then, I'd notice it more before wondering "How is that even a thing? How is the price so far from what people are bidding and asking for? That's ridiculous." Upon checking TOS, it became clear that I could no longer rely on ETrade's Bid/Ask for real-time quotes. The interesting thing is that ETrade's "Last" price is completely accurate and on-time....???? Why then is the Bi--- whatever... I removed Bid/Ask from my Positions columns and the "Last" has served me well throughout the day. Secondly, things are moving right along for my strategy! I've altered the 2xSMA (dual sma) back to different colors; as I've realized that when one SMA is pointing downward, while the other is pointing upward (both heading towards a cross), this almost ALWAAYYS indicates either a long or short play. It only serves as an additional confirmation for my trade biases, so that I can breathe easy knowing that I'm more than likely on the right side. I'd thought of sizing a first half on the SMA break and a second half on the actual 2xSMA "X" cross, but I don't like how it compromises my average and it's often unnecessary with my tight stop (being a reversal crack of the 2xSMA or 10-cents, whichever comes first) with the fact that these slow-movers tend to follow through on my SMA setup after the crack has been initiated on the 2-minute chart. I'll keep my daily goal at $500, but as expected, the profit potential has consistently been $1000+ on even the not-so-busy days. Day at a time, day at a time. #Focus

Join now or log in to leave a comment
PocketPAT

+1750 (BILL, FSLY) ::: After 20 months since I’d begun tinkering with the stock market, the strategy is now complete. I’d spent the first nine months following Tim’s patterns. They’d work, but I’d come to realize that their extreme volatility and sporadic nature were simply not for me. I’d watched all 5,000 video lessons at the time, 15+ DVDs, hundreds of YouTube videos and even attended the 2019 Trader & Investor Summit. Sometime between September and November 2019, after nine months of garbage trades and back to back red months, I’d decided to stray off of the beaten path to find what would work for me. I had no idea how long it would take and I certainly wasn’t going to start counting the days, but all I could do was build on the things that made sense along the way. It all started with FNMA. I’d noticed how clean and clear the chart was while Tim Grittani traded it on “Trading Tickers”. It was almost magical compared to the choppy and violent low float/low market cap penny stocks that are typically traded in the chat room. How could I find consistent price-action like FNMA? It slowly became clear that I could only find this with slow-moving Small/Mid (but usually Large) Cap stocks. I now filter my scan to only include tickers trading at least three-million shares per day on average, with market caps above one-billion. I am also targeting tickers between $20 and $100. The price-action gets cleaner and safer as the market cap goes up, but the higher prices are the key to their ultra-clear trends. I suspect that this is due to the lack of penny stock gamblers and beginner traders that would typically either scoff at prices that high or simply find their charts not volatile enough for big profits on small accounts; since the volume isn’t even that busy on one-minute candles, yet the price-action is still so easily trade-able. It almost feels like I’m with a smaller, more exclusive group of traders that are shooting fish in a barrel and clinking beers. SIDENOTE: One thing I’ve always heard is that Large-Cap stocks are “impossible to trade”, because of “all the algorithmic bots” that play emotional games to shake out real traders. Perhaps I have never dealt with this due to my not using Time & Sales or Level 2 and now using wide “Dual-SMAs” for customized entry and exit signals. Any shakeout games are typically caught BETWEEN the two SMAs, leaving my own personal entry/exit signals BEYOND both SMA only (more on that later). Then came a CHANCE discovery of Heikin Ashi candles, while perusing YouTube in bed, around 3am one night. These have “turned on the lights” for me. Suddenly, the crappy and unpredictable candlestick charts that I’d been trained to follow now made perfect sense; providing obvious trends which paired PERFECTLY with the slower-moving stocks that I’d grown to love. After figuring out which stocks to focus on and how to read them, I’d now needed proper entry and exit signals. That’s when the third leg of the journey started: determining which indicators to use. I’d eventually settle on TWO SMA lines, buying and shorting only when the price-action was beyond BOTH. While the first SMA was tight enough to provide early entry and exit signals, the second SMA was wide enough to give sort of a “second opinion” on whether or not the trend had truly changed. Making them both the same color, their constant intertwining keeps the strategy consistent for both long and short plays. While I’ve had to tweak them to find which lengths are best, the most consistently profitable signals seem to come from the 100 and 125 Combo on 1-minute charts. The fourth objective was to create a method for finding the tickers which would give me the most profit potential. These past two weeks, I’d dabbled with using earnings and news as catalysts. While both are effective, the most consistent method for MY strategy has been to simply sort my scanner by the Highest Average Daily Range. The logic here is that it doesn’t matter WHY the stock is moving, but only where from, where to and most importantly: how FAR it consistently goes. Sorting by Highest ADR focuses me on the tickers that have consistently PROVEN to provide ample range for big profits on even small share counts. At that point, I can simply choose the charts with the cleanest and clearest trends, following the Dual SMAs for each run. The last objective was to confirm the safest yet most profitable risk-management strategy. Trading the most volatile slow-movers, I’d needed a stop-out that was both comfortable and wide enough to rarely be triggered. At the same time, I needed a share-count that would still provide enough profits to make the trades worthwhile. I’d gone back and forth between sizing-in twice and sticking to single entries; but struggled with deciding on how many shares to use and at what price range. In the end, I settled on using two single-entry positions of 125 shares with a 1.00 stop-out (on two simultaneous Highest ADR tickers). I’ve found that sticking with this static share-count and price range not only provides me with a consistent flow of clean and clear (yet volatile) tickers, but also allows me to always utilize the exact same risk-management approach for every trade. I can always use the same stop-out and expect the same profits for every dollar-per-share that is earned. Also, using the “Dual-SMA” approach and back-testing on multiple tickers, the 1.00 stop-out is almost never triggered before the SMA reversal; meaning that I’ll typically be exiting the trade on the technical signal before the max loss. At the same time, raising the price range and setting the ADR minimum filter to 3.00+ gives me tickers that consistently provide a 5:1 or even 10:1 risk/reward throughout each day. The key has always been and will continue to be focusing on CLEAN AND CLEAR price-action, with tickers that have consistently flowing all-day runs/cracks. Sometimes the tickers provide a few dollars in each direction or all in a single direction, but the “Dual SMA” system has been guiding my entries and exits in a way that avoids both shakeouts and premature profit-takings. Lastly, after 20 months, I’ve finally reached PDT =) ... While I’d known that it was inevitable, my main goal was to confirm a solid strategy that I’d be prepared to fully exploit once the chains were broken. I’m still waiting for the funds to settle, as I suppose that ETrade wants to make sure that I’m good for the deposit before releasing the PDT count. Though, by next week, I expect to be trading on all cylinders and will continue to use day trades until then. After my account is released into the wild, I’ll finally get back to posting trades with charts for review =) #LongTimeComing

Join now or log in to leave a comment
PocketPAT

+2300 (EQT) ::: It's occurred to me that there's definitely more potential in focusing on cheaper stocks (between $10 and $15) with the potential to afford 2000 shares instead of 1000. I'd first noticed this when setting my default size to 1000, but realizing that I was not using all of my equity since the stocks were often between $10 and $15 per share. I typically wouldn't be going "all in"; but with slow-moving Mid-to-Large cap stocks, which only move 1-5 cents per minute, it's almost CRITICAL to use all of my equity with a small account (to realize the most profits). I'll be taking double the gains, with the average single providing $300-500; but I'd have to accept a 5-cent max stop at -100. Stop-outs typically take place on mid and late-day SMA reversals, but I find that I'm typically stopped out on a technical signal well before my actual mental stop. Even still, a -100 stop is well worth the typical gains that most runs seem to provide. I've been tossing around the idea of which method is best for watching stocks. Should I focus on one ticker all day? Switching between a small group of others after SMA alerts? Which time intervals are working best and how many charts should I set up? Should I use the 4-Grid and watch four at the same time? Maybe a 2-Grid? Today, I had a new brilliant idea. I'll pick the "Fantastic Four" during premarket (using TradingView) and set all four 1-Day/1-Minute charts (scaled to show the entire trading day) in full-screen on the LEFT monitor. I'll then shuffle between them using my MacOS "Mission Control" hot corner upon any SMA crack/cross alert. I've been using hot corners for productivity over the years and they're just as priceless as my ability to cycle-click between windows. This allows me to have an unlimited amount of charts in FULL-SCREEN (for ultra-wide perspective) yet easily cycle between them with the flick of my wrist or a single mouse-click. Priceless... I'll also keep all four 3-Day/5-Minute charts on the RIGHT monitor, cycle-clicking between them in full-screen when necessary. This keeps all four charts (eight total) up and ready at ALL TIMES throughout the day; so that I don't have to type or search for watchers after SMA alerts get triggered. I can LITERALLY have both the 1-min and 5-min charts up in full-screen (and pre-scaled) within 1-3 seconds. The only thing I'll have to change is the ticker symbol on ETrade's order entry, as the quantity would always be the same. So, essentially, I can get alerted, pull up the charts, read the play and enter the trade all within about five seconds. Until today, I'd not realized that one could create custom-scaled charts on ThinkorSwim. I was under the impression that the chart views were "pre-sized" only, based on using the magnifying glass. After "pulling" the bottom time-scale left and right, I realized that I could precisely fit the entire trading session of all 1-minute charts in view; meaning that I no longer have to move charts around during the day; I can simply shuffle to the chart in question and immediately see the entire trading day (market open to market close) in 1-Minute ticks... Priceless... Ironically, today was more of an exercise in observation. While I'd thought that I was at the point of "rinse and repeat", I'm reminded that I'll likely always be tweaking my strategy to push the envelope just a little further.

Join now or log in to leave a comment
Page
of 41