Trading Strategy

[thealphabreed]

I love this platform. So many helpful posts , strategies and indicators. Thanks to @BenTen and others for sharing selflessly.

I have a few questions for Day Trading (not Swing Trading) low float stocks in the $1- $15 price range :

1. I have tried a few indicators from here: MACD BB, EMA VWAP. Super Trend, TTM Squeeze etc. In Hindsight all of those make sense. But during live trading, often I dont see a clear picture. Based on your experience, which ones are proven to be more accurate than others (if you guys have backtested).
2. Time Frames: Do you guys have any suggestions for trading on 1min vs 3min vs 5min etc for Day Trading?
3. Level 2: Do you guys see TOS Level 2 accurate as against other platforms'?

 

[rad14733]

@thealphabreed In reality, only you can find the answers to your questions and determine what works bet for you... I could tell you what I do but my trading style could be entirely different from yours, even for day trading... As for Level 2, again, that would be a subjective answer... For timeframes, I see 1m as too short and prefer 2m, 3m, or 5m, depending on asset and current market volatility... So, again, it comes down to what works best for you...

 

[thealphabreed]

@thealphabreed In reality, only you can find the answers to your questions and determine what works bet for you... I could tell you what I do but my trading style could be entirely different from yours, even for day trading... As for Level 2, again, that would be a subjective answer... For timeframes, I see 1m as too short and prefer 2m, 3m, or 5m, depending on asset and current market volatility... So, again, it comes down to what works best for you...

I tend to agree with you. I see too many false moves and noise on the 1min even for scalping. I have been trying the 3min lately.

 

[Alex]

@thealphabreed Personally I wouldn't recommend you to trade low float stocks as they are highly manipulated and can act erratically very quickly especially if you're looking to trade them on a shorter time frame.

 

[thealphabreed]

@thealphabreed Personally I wouldn't recommend you to trade low float stocks as they are highly manipulated and can act erratically very quickly especially if you're looking to trade them on a shorter time frame.

Thanks bro. However, I don't trade large cap due to their large range. I like stocks with 10-30c range. Low floats work best for me

 

[zeek]

I love this platform. So many helpful posts , strategies and indicators. Thanks to @BenTen and others for sharing selflessly.

I have a few questions for Day Trading (not Swing Trading) low float stocks in the $1- $15 price range :

1. I have tried a few indicators from here: MACD BB, EMA VWAP. Super Trend, TTM Squeeze etc. In Hindsight all of those make sense. But during live trading, often I dont see a clear picture. Based on your experience, which ones are proven to be more accurate than others (if you guys have backtested).
2. Time Frames: Do you guys have any suggestions for trading on 1min vs 3min vs 5min etc for Day Trading?
3. Level 2: Do you guys see TOS Level 2 accurate as against other platforms'?

Hi, i trade lowfloats and based on my experience and backtesting you need to look at higher timeframes if you want to catch the big waves. 1 or 2min is too much noise so i would recommend at least 3min but preferably 5min or even 10min sometimes if volume is very high to see the intraday trend changes.

 

[thealphabreed]

Hi, i trade lowfloats and based on my experience and backtesting you need to look at higher timeframes if you want to catch the big waves. 1 or 2min is too much noise so i would recommend at least 3min but preferably 5min or even 10min sometimes if volume is very high to see the intraday trend changes.

Yeah I have been playing with entries on 3min and looking at 5 and 15min for trend. But i kept going back to the 1min . Trying to build discipline using the 3min. What I find challenging on 3min is when there is a spike in volume, I dont see an entry until that 3min candle closes

 

[rad14733]

Yeah I have been playing with entries on 3min and looking at 5 and 15min for trend. But i kept going back to the 1min . Trying to build discipline using the 3min. What I find challenging on 3min is when there is a spike in volume, I dont see an entry until that 3min candle closes

Split the difference and try 2m... It took time but I finally realized that 1m is just to short of a length of time, with candles and volume too erratic to make solid trade decisions... And after using 5m and 3m the moves were too broad... In the end, 2m serves as a happy medium that I can comfortably live with... Not too long and not too short even for scalping... For day trading I can go 5m, depending on the asset, and also monitor 2m or 3m for sudden movements prompting an exit...

 

[thealphabreed]

Split the difference and try 2m... It took time but I finally realized that 1m is just to short of a length of time, with candles and volume too erratic to make solid trade decisions... And after using 5m and 3m the moves were too broad... In the end, 2m serves as a happy medium that I can comfortably live with... Not too long and not too short even for scalping... For day trading I can go 5m, depending on the asset, and also monitor 2m or 3m for sudden movements prompting an exit...

For breakout, do you take the entry/exit on 2, 3 or 5min? And same for pullback entry to the EMA or vwap?

 

[rad14733]

For breakout, do you take the entry/exit on 2, 3 or 5min? And same for pullback entry to the EMA or vwap?

I don't use VWAP and don't solely rely on EMA... I monitor several different trading systems... Entries are timed on the 2m and most exits are based on profit targets when scalping... For day trading the exits are based on a combination of things including multiple timeframes and systems... One thing to consider is being more interested in maximum number of winning trades, not on maximum profits... One begets the other in the long run...

 

[thealphabreed]

I don't use VWAP and don't solely rely on EMA... I monitor several different trading systems... Entries are timed on the 2m and most exits are based on profit targets when scalping... For day trading the exits are based on a combination of things including multiple timeframes and systems... One thing to consider is being more interested in maximum number of winning trades, not on maximum profits... One begets the other in the long run...

I follow a similar style for profit taking. Would love to discuss more with you some time

 

[rad14733]

I follow a similar style for profit taking. Would love to discuss more with you some time

I am on the Discord channel using the same handle...