Trading Rules /Checklist September 11,  2017

                                   Cardinal Rules STUDDD

                                        Mechanical Only

Stock                                                                                     Date

1         2

Mind

Stay sober, follow rules phfl and call in/screen 0800, AA, literature , pray , sponsor , and meditate

Phone and fax must be off

Avoid discussing trading and social media in general-1

Avoid counting money/approximate during the day-1

Exercise, sleep, and diet (low fat/high fiber) are priorities

Control emotions-1
Meditate and works all steps ie 12 steps (apply to trading and everything else)

Don’t count money during day/approximate relax don’t get anxious-1

Decrease  to 10------15 mg at 3 pm and 10- 15 mg at hs- otherwise I may not be able

 to concentrate /focus

Method

Chart equity curve, action plan, and diary daily- 1

Don’t trade the news/fight the crowd -1
***Units (4) gradually decreasing in size-2 (must separate by price and time preferably 36’ and

enter with a stop “buy” or stop “sell short”-1). Consider a quicker wind up with the larger stops required-2 .  with  xyz 3 units of 1500/1200/1000/300 would make 173 vs 115.00 (with 4 units of a 1000 shares) ie with a 7 cent move from the 1^st unit. Actually the 300 share unit should be combined with the first 3 units ie 1600,1300, and 1100 shares.  

***Diversify 5-6 positions for now

***Don’t trade the open/hold the close 100x AM. Look for a “non”

hot DM

***Decide whether to trade or not (trend /counter trend, positive rules-1, DM, ema’s, and patterns and SS).

 Must either go long, short, or stand aside-1 (based on patterns, 180’ trend indicators, news, and futures.

MUST CONSTANTLY DETERMINE THE TREND/TIDE -1   (pattern, EMA’S, DM’S,  SS)

0900   1000   1100   1200   0100   0200   0300

V

0900   1000   1100   1200   0100   0200   0300

AD   

 0900   1000   1100   1200   0100   0200   0300      

RSI    

0900   1000   1100   1200   0100   0200   0300      

MD  

0900   1000   1100   1200   0100   0200   0300     

S/R  

0900   1000   1100   1200   0100   0200   0300          

                              R/C  

0900   1000   1100   1200   0100   0200   0300          

contrary opinion (at extreme?)           

EW  

0900   1000   1100   1200   0100   0200   0300          

                              FR   

0900   1000   1100   1200   0100   0200   0300          

R/L/T  

0900   1000   1100   1200   0100   0200   0300          

CTB 

0900   1000   1100   1200   0100   0200   0300     

Gaps 

0900   1000   1100   1200   0100   0200   0300

price objectives (along with standard stops). This goes into the “limit” ie R leg of the OCO order.

What are the price objectives of the patterns?

Assess whether the oscillators are overbought/over sold

0900   1000   1100   1200   0100   0200   0300

Are any divergences apparent on the oscillators?

0900   1000   1100   1200   0100   0200   0300

***Complete Triple Screen-1  abc/def pos./ neg. rules (DM / SS).

 If not entering at top ef’ SS, must at least use a 36’ trailing

buy/sell stop ie entering in a ongoing trend ie if entering

wo waiting for a SS peak /dip. Also consider roc, V, AD ie momentum,

and time.

A entry later in the day is not like to be as profitable ie with lower V

as earlier in the day

 in/out at 20-30 and 70-80 SS in general though-1.

If trend is weak and day is a range get out quick.

Get in at 20-30 and 70-80. Watch wide opening ranges -1  and

trade appropriately (ie use much tighter stops ie protect more profit). Never go against the abc/de pos /neg rules ie if the opening range is high, you should not try to fade it (unless/untill the full triple screen/indiators gives the go ahead).  May go long /short at top /bottom, but must “probe “ entry by waiting for a higher ef ss/lower ef ss ie above/below the last highest /lowest high/low. In this case if next ef’ open is contrary ie in a long scenario open below the prior close, get out immediately ie do not wait for the stop. This is only to be done at ghik T ie second bar ie with tighter stops and profit protection. Ie if open is above (prior close -in a short scenario) above the prior close, get out then ie immediately (the exception being if I am now following a 1, 2,3’ etc chart because i have protected all 4 units). If I enter a trend at beginning of day ie defg  and then in de min ie ,  thepqrt bar opens such that profit is in question or not at least at prior close get out and wait for the complete triple screen ie complete wave/counter trend move and then a TB/SS. Only one entry per ef min bar ie must wait to see if the high/low is penetrated with the next ef’ bar to reenter a intraday trend. If ef’ bars cease (at any time going in a positive / negative direction (after the open with a L/S trade), I should stop trend following and wait for the counter trend to declare itself and then use the TB/SS to enter (but if for example pqrt bar is contrary to the first bar, but then goes back with the def’ DM trend, I can enter Iff the following bar AND the next bar (2 consecutive bars) are in the trends direction ie def DM. the entry would be in a long scenario as follows. (def DM is up), bar 1 up, bar two down, bar 3 up, then the next entry probe would be bar 4 (if open is over the high of bar 3’s high. Again because volume may be dropping now ie at 1118 am, stops and goal should be more conservative.

If L/S and have sold /covered, I may probe another entry in the same direction ie must wait for a higher/lower ef ss ie from the prior low /high. I should not do this unless the ef’ bars have been “continuously” increasing – see above – at least 2 consecutive bars in the 1pqr DM direction. In general the “second “ bar should begin closer to the high of the previous bar. If the open of the second bar is near the bottom of the first bar, you will be a long way from the TB/SS ie high /low of prior bar. This becomes more important as the bar matures (second ie already stopped in). As the second bar matures, the close should ideally be at a point where it is increasing and near its mid to ideally top end. Here momentum ie ROC, AD, V, whether DM 36 is hot or not, even ab’ RSI, SS, and WR position should all be taken into account ie if entertaining the idea of tightening goal/stops.

Entries later in the day/ with lower volume, hot DM, lower ROC, SS at extremes etc need to be protected at the third unit (ie after the third unit follow with 1 minute charts).

OCO orders see below for stop and limit ie goal. For entry a stop should work (long of short ie above /below market). Market and limit orders are also a option for entry. In addition, to catch a stock within a potentially rapid moving range a stop limit is a entry option.

Money

***Stops  15.00 (12,8,4,2 cents),     22.00(15,10,5,3 cents),   35.00(26,17,9,5 cents),  and     42.00 (28, 19,11,5.5 cents) ie adjust with each unit entry (must adjust and push “forward” only). Must set a goal pre market (based on VIX, futures, slope of trend, and previous days moves. As the day progresses and the V decreases/lunchtime/time advances, goals will need to be reduced.  With abc and defg set a goal based on best guess and use standard stops. With hij, k, lmn, and op, lock profit at 4^th unit ( ie because with these, the profits have ranged/ 22 day retrospectively between 37.00 and 105.00 .  I must hit the goal or take the loss (currently strategy with ---/--) with --- ---- ---, I should take profit at 4^th unit. Then I should follow 1 minute charts until 3 and 5 min charts lock in more profit (and I have locked this profit in). the above strategy ie --- and --- vs -, -- ---, and --- apples to ----- or later first entry or complete triple screen ie with TB/SS’s. entries with a wide opening range ie at 1006 should be tighter ie stops and goals.

Specifically at 8/30/17 --- 17/12/7/4 cents, ---- 47/37/27/15 cents, ---- 15/10/6/3 cents, - 9/6/3/2 cents( these work with F but only generates 56.00 a day), -- 26/17/9/5 cents (but only averaged 37.00 a day for last 22 days- hypothetical), and --- 26/17/9/5 (only made 104.00 a day).

When looking at 36 minute bar high, low, open and close, the decision to hold the stop or protect the current unit ie 1 st, 2^nd, 3^rd, or 4^th should depend on 36 DM (hot or not), roc/ momentum, volume, ss direction/position etc.  ideally the bar opens and continues up and then I can protect the 3^rd or 4 th unit and proceed to following 1 minute , then 3-5 minute charts etc. the main point here is deciding whether or not exiting before the full stop is hit or not is a good idea.

additionally with being in 3 units, I should begin to follow the 1 minute charts closely.  This idea ie 1 min charts is important ie as the 4^th unit is hit. If the 1 min trend is good, I can set a stop a few ticks under ie cents the 4^th unit ie onse im 3-4 cents above /below it (short) and go for anther unit’s worth of money ie the goal point can be then reset. Other wise, I would need to sell/cover right at the 4^th unit (and who would be the point of buying/selling a 4^th unit anyway ie if im going to sell/cover right away?

I only see a 10 % difference with --- (full stops versus the stop/goal “compression” strategy here. With a 92 vs 102.00 difference and --------- at 257/198.00 per day, I’d be better off with focusing on higher sensitivity stocks as

Consider limit/stop limit entries especially with ------, and ---, where profits seem to be less than ----- and or moves are tight.

I will need to explore higher sensitivity stocks ie by hypothetically trading them with above rules. Right now amat, and hpq are great. I would like to find something better than ncr 100, bac 90, f 56, and gm 35 dollars a day. I will need to continue (as Edwards and magee suggest look for the higher sensitivity issues.

series of paper trade hypotheticals

0900   1000    1100   1200   0100   0200   0300

Also must set a goal (immediately upon entry) within the limit part of a OCO order

Stops-protective should be the left side of the OCO order ie for protection- long or short. Limit order for goal is the R leg of the OCO order for long or short

Consider break even at 3^rd unit (once near full equity, go to 1 minute charts to protect

profit and push stops)

Always hold stop/or push forward – never push in contrary direction

Currently at 2 times equity, may increase with experience

Approximate $, don’t count it during the day!

               references:

              1-Trading For a Living/Come Into My Trading Room Alexander Elder, MD
2-Technical Analysis of the Financial Markets- John Murphy
3-Technical Analysis of Stock Trends- Edwards and Magee