Help with a profitable day trading strategy

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Zedd

New member
Can someone share me with a day trading strategy that has worked for them. I have tried many strategies and used many indicators from this site but ended up losing trades or the strategy didn't work good enough backtesting.

thx
 
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tradebyday

Active member
Best strategy is your own strategy. You will not see the same set up as someone else, even if you're staring at the exact same charts and signals. Gotta put in the grind my friend. Also, you should be more specific on the style of trading and assets you trade so people can at least direct you to relevant sources. You know do you trade stocks, options, etc.....?
 
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TrueDepth

Member
VIP
I don't think there is one. Every indicator and strategy on here gives false signals. I just guess using these shitty indicators, and if it goes the right way i stay in, if it goes the wrong way I get out.
 
Z

Zedd

New member
appreciate the help. I am interested and trade emini's and stocks only. tried scalping but mostly ends up with loss or even. And then tried to look for intraday trend that I can ride for mins or even hours but its hard to predict. seems like the stock I chose to focus on with all the right indications that It will go my way takes an opposite turn the second I get in the trade.
 
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Trader Raider

Member
VIP
@TrueDepth, @Zedd, I don't mean to sound unsupportive, but you're in for a world of hurt if you think you can slap a couple indicators on a chart and become a successful trader. A good indicator confirms a decision to enter/exit a trade but shouldn't make those decisions for you. No strategy works on every time frame or every market condition. If you want to day trade successfully, you need to learn about price action.

For example, if the market is in a hard trend, a reversal strategy probably isn't your best choice. If you cannot identify what price is doing in a general sense, you cannot select the best strategy or indicator to confirm your trade decisions.

Also, no indicator can make a trading plan for you. If you want to succeed, you need a trading plan that is based on time of day, type of instrument, timeframe, price action, etc. You need to know when your trading style is likely to work and when it's a day to stay out. You need to know what your strengths/weaknesses are as a trader so that your plan is based on your strengths and has safeguards around your weaknesses. No indicator can make that self-assessment for you and build it into your trade plan.

I don't mean to discourage you. I just think it's misguided to expect indicators to make you a good trader. Your ability to understand what the market is doing will make you a good trader, not bells and whistles on the chart.

Finally, it seems unfair to call something "shitty" just because it doesn't give the results you hoped for. There is no shortcut to successful trading. It takes a lot of study, a lot of discipline, and the ability to make mistakes and learn from them. If you're serious about learning, please try reading some good books on price action. Instead of calling something "shitty," perhaps you could watch the indicator for a while and see what it tells you about price. For example, plot a DMI on your chart watch what price does when the (+) and (-) cross the ADX or the ADX flattens. Plot an Ehlers MAMA on your chart and watch what happens when the lines cross. I wouldn't use those as trading signals, but they may help you learn about price action and get a feel for what indicators can--and can't--tell you.

Best wishes.
 
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T

tradegeek

Active member
2019 Donor
VIP
Start here...

https://usethinkscript.com/threads/es-trading-strategy-on-thinkorswim.987/

Keep in mind even the best strategy will not work all the time. A profitable strategy for someone may not be profitable for you because it fits their trading style and the market they're trading among other things. Learn to spot areas of support and resistance and how price reacts around those areas. Make sure you're entering where your stop loss is the amount you're comfortable with losing to find out if the price doesn't hit your target. Lastly, wait for a pullback and trade in the direction of the overall trend. Money and risk management is key to staying in the game.
 
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bobomatic

New member
@Zedd I would concur with the above... I would also just say if you're going to trade the emini's without years of experience, I would suggest the micro's. There's simply too much leverage and fear factor involved with the emini without a lot experience. Learn on the micro's.... IMHO.
 
Vince Field

Vince Field

Member
Which of the custom indicators available in this forum would you recommend for day trading and scalping for a new trader? Which have you found to give the most accurate signals? Which do you personally use? Thanks!
 
scott69

scott69

Member
Bottom line, read all the books you can on trading. I've read hundreds of books. As you read, pick out strategies that sound like something you can live with. Can you sit and watch every tick? Will you swing trade, long term positions? There are some surprisingly easy emini systems that do work. Don't design the space shuttle if a model T will do the trick. And most importantly, losses are a part of the game. Controlling risk is what it is all about. If losses make you uncomfortable, you are in the wrong game. As all the other traders said, please put the work into your profession - trading. Good luck !!!!
 
mc01439

mc01439

Well-known member
2019 Donor
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Can someone share me with a day trading strategy that has worked for them. I have tried many strategies and used many indicators from this site but ended up losing trades or the strategy didn't work good enough backtesting.

thx
Been trading for many decades, trade for a living now.

As has been said there is no magic indicator or strategy. Keep in mind you are in a battle when you are trading! A battle for cash - in order for you to win someone is losing. With that said it is best to learn the game by doing.

I went years losing and breaking even. There is no one indicator that will make you a long term winner - the market is ever changing and you must use different indicators that work with the change. In closing you must learn how to read the trend and then create a method that is yours to take advantage of the current trend.

There are many people on this site that share their work - learn from them and then create your masterpiece for success. It may take you years but if you are wise with money management success will come.
 
rad14733

rad14733

Well-known member
VIP
My advice, based on over 35 years of following and trading the stock market, is to pick a certain number of stocks and get to know them intimately... I know some traders like to scan for stocks to trade every day but that is not a good method for beginners to practice... Back when I used a satellite dish and DOS based stock market software I narrowed my big list to 100 stocks and of those 100 I would rotate 10 - 12 stocks that I knew intimately into my short list... In doing so I knew the pulse of each of those stocks and could detect abnormalities as they presented themselves... If a stock went cool it was replaced with a stock that looked to be going hot... Trading was far different back then compared to now...

Back then a hedge fund manager and I ran similar algorithm's and we could even detect insider trading based on option versus stock activity and those showed up on a report that I coded and ran several times throughout each trading session... The problem with the hedge fund manager was that he had a terrible habit of sitting on his hands rather than believing what the algorithm's told him... He'd hold out for a better price and would miss out on profitable trade after trade... And in doing so he lost over 4.3 million dollars of investors money before picking a new career... But I digress...
 
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Six6God

New member
I'm a new trader. I desperately need an indicator to alert me when to buy and sell. My entries and exits are not consistent. Well, they're consistently terrible. I use a 1day 5min chart setup on TOS. 'm most comfortable with this setup. I read the posts on the forum and when I think I've found what I'm looking for; I continue to read and get confused as to what script is going to work for me. Someone here please help me. I don't want to give up trading.
 
BenTen

BenTen

Administrative
Staff
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@Six6God You shouldn't give up on trading but you should definitely try to do more research. There is more to just finding an indicator that will alert you when to buy and sell. If that is what you really want, there are plenty on this forum. But as you mentioned, that is not consistent. If you are basing your trading decision based on an indicator, that will not work. Learn to read price action, draw support and resistance levels, and risk management. Indicators should be used as a supplement.
 
MerryDay

MerryDay

Active member
VIP
Google 'best strategy' for whatever you are: a daytrader, swing trader, gapper, etc... to get some idea of what indicators others are using. DO NOT buy any indicators there are 100's of indicators built-in to TOS and custom scripts on here. And then spend a hundred hours paper-trading those indicators, observe, take notes, watch patterns. And READ READ READ. So many great books out there if you are looking to become a good technical analyst and maximize the use of indicators.

Like @BenTen said: you want to google how to draw your own support and resistance, and play with what moving averages work for you, plug and play all the standard indicators: MACD, RSI, TMO, Stoch, and some squeezes, etc.. see what appeals to your style and the amount of time, you have to devote to trading.

Know that no indicator works in all market conditions. So, develop your 1st strategy, know what market conditions are necessary for it to be used successfully, and limit which instruments you trade to just a couple whose behaviors you can learn to know intimately and whose news you can keep abreast of.

And lastly, know that losing is part of trading.

Besides the shelves full of books that I read; I think I read every post on this site even if it didn't apply to what I was attempting to do. The posters here share their successes and their failures which you can then watch for in your own trading. And the experts on here are truly phenomenal. By reading their responses to the posts on this site, I have learned more than I could ever have learned on my own.

No one can give you a strategy that will be guaranteed to make you money and if anyone promises to do, run don't walk in the other direction.
But by putting in the hours, paper-trading, you can train yourself, to recognize price action and the interaction with the indicators to help improve your trades.
 
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Six6God

New member
@BenTen I completely understand all of those things. I have some indecision. My indecision is screwing with my confidence. I'm not afraid to lose. But at the same time I'm not winning. I've taken paid courses to learn. I didn't go into trading without educating myself. But it's not the same. Maybe it's not an indicator I need. Maybe it's an alert? I keep missing out on stocks that run. Buy and sell, breakout, something. I can a successful trader. for some reason there are some dots i haven't been able to connect.
 
MerryDay

MerryDay

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@Six6God Do you want to share your chart set up and strategy and some examples of your trades? Include how you determine your support, resistance, entrance and exit strategy and what higher timeframes you are using for multi-time-frame analysis.
 
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Six6God

New member
@MerryDay I use a ! Day-5min chart. I have 9 ema, 21 ema and VWAP. I use MACD and RSI. I do not use higher time frame analysis. My strategy is to enter on what I think are confirmation candles above the 9ema. I exit on the first red candle below the 9 ema. I know what support and resistance lines are and what they mean. I know resistance can become support. I know the tradeline can become support, I know VWAP can become support. The trading guru ( group ) I paid has been a total letdown.
 
MerryDay

MerryDay

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@Six6God
  1. So I am guessing that you are scalping?
  2. What assets are you focused on?
  3. Before you can add more indicators, can you explain how your current indicators (MACD, RSI) are used in your trades?
  4. Again, could you provide a share link to your chart?
  5. And an image of your support and resistance drawings?
  6. And example of a trade that went south that you are having difficulty understanding.
It is difficult for anyone on the forum to provide any assistance when you don't provide the above details.

Here is a link to using multi-time-frame analysis to better define entry and/or exit; or you can just google, there is lots of info online
 
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Prison Mike

Prison Mike

Member
@Six6God @MerryDay

Was about to ask the same things.

I'm sure you have noticed trading is very mental. Assuming your strategy "works," it gives you reliable signals, you know how to execute them, and know what it looks like to get out I have a few thoughts on patience and management. Hopefully this isn't too clique, random and provokes some thoughts.

Love this quote, "people say they are trading for retirement, but trade like they are retiring tomorrow." Everyone has been infected with the get rich quick thing. It's those that are mature enough to fight it that are consistently profitable. Anyone can have a big winning day, but how many of those lose it by the end of the week? I know what my winning trades look like and it's when I trade against them that I regret it. If you miss an actionable signal there will be more. The pain of lost should out weigh the hope of gain.

Heard this said about management and stop losses: How far would you knowingly drive in the wrong direction before you turned your car around?
For there to be "profit" money made has to be more than the money loss. All things equal you can either earn more per trade or loss less per trade. I have been working on this. When a trade is knowingly going south, cut ties.

Basically how are you making sure you don't blow your account every 3 months?
 
rad14733

rad14733

Well-known member
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@Six6God As has been stated previously, only YOU can decide what indicators work best for YOU...

I know what you are going through... I got rattled not long ago, partly due to mild depression and social anxiety, and it drastically effected my trading... It seemed that I was making nothing but bad trading decisions... What I did was to take a step back, re-evaluated EVERYTHING, and watched the market without making trades... I didn't make any money, but I definitely didn't lose any either - which was the most important part... Once I was comfortable, and had convinced myself that I still knew how to trade, I started making very conservative trades and they became far more profitable... I went from nothing but losing trades to strings of days with only winning trades...

So, what did I do to renew my confidence...??? I reviewed every indicator I had been using and tested new ones... I put together a set of indicators that I was comfortable with and further tweaked them to suit MY needs... I stopped getting whipped into a tizzy and making bad decisions when I suffered a loss... I reduced my intended profit targets to help insure that more trades were profitable and wasn't constantly trying to catch falling knives by being too greedy... I'm now content making a $5 profit on a single option contract trade instead of always holding out for $25, $50, $100, $500 like I was regularly making back before the market plummet that gutted my trading account due to being over-confident and over-investing...

Now, all that being said, let me repeat that you are the only one who can decide what indicators work best for you... And the only way to determine that is to setup charts with various indicator sets and compare them using the same symbol on each to see the difference... One of those sets will click, or at the very least you will be able to weed out those that don't suit your style... It may take some time but will be worth the effort... You'll know when you feel comfortable enough to use a set for active trading and then start out slowly with that set and make small adjustments accordingly... Not one of us members can just tell you what indicators will work for you because we trade with different mindsets and skillsets... And our advice is FREE...!!! We won't charge you hundreds or thousands of dollars for the newest get rich quick indicator because there is no such thing... Trust me, if there was we'd all be using the same indicators and would be filthy rich...

As has been stated many many times, there is no holy grail... And remember, just because an indicator has wow factor or looks new an innovative doesn't mean it will improve your trading... You need to determine what works for you... Nuff said...!!!
 
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