Day Trading Lynas

[Gringotts Bank]

Another paper trading journal. Will try this also for 2 weeks.

Stock is LYC. Position size per trade will need to be $20-50K. The minimum amount will still allow 1 tick to be profitable. The maximum amount shouldn't be too hard to dispose of given the liquidity of LYC intra-day.

Long and short. Will try to post real time and volume entries/exits.

Discretionary entry/exit based upon combination of market depth and intra-day chart of XAO (pretty standard DT approach). XAO chart will have range candlesticks with a bar range of 1. Aiming to be in and out within an hour (max) each day.

[DB008]

Why not try something with more liquidity?
Something like BHP/RIO/MQG?

[tech/a]

Another paper trading journal. Will try this also for 2 weeks.

Stock is LYC. Position size per trade will need to be $20-50K. The minimum amount will still allow 1 tick to be profitable. The maximum amount shouldn't be too hard to dispose of given the liquidity of LYC intra-day.

Long and short. Will try to post real time and volume entries/exits.

Discretionary entry/exit based upon combination of market depth and intra-day chart of XAO (pretty standard DT approach). XAO chart will have range candlesticks with a bar range of 1. Aiming to be in and out within an hour (max) each day.

GG
It appears your strategy is to buy or sell on market depth and intraday 1 min chart of XAO
Is that it?

[Gringotts Bank]

yes, with more emphasis on the depth.

danny I find the depth impossible to read on big blue chips.

[tech/a]

yes, with more emphasis on the depth.

danny I find the depth impossible to read on big blue chips.

Will be interesting
Always found that trending price action is pushed by buying or selling at market.
Placing orders in line have little influence on direction--- well that was my findings 12 or so years ago--- perhaps things have changed.

Look forward to your commentary.

[Gringotts Bank]

Interesting day to start. Lowest volumes in a long time.

B:1.21

[Gringotts Bank]

S:1.18

[nomore4s]

Another paper trading journal. Will try this also for 2 weeks.

Stock is LYC. Position size per trade will need to be $20-50K. The minimum amount will still allow 1 tick to be profitable. The maximum amount shouldn't be too hard to dispose of given the liquidity of LYC intra-day.

Long and short. Will try to post real time and volume entries/exits.

Discretionary entry/exit based upon combination of market depth and intra-day chart of XAO (pretty standard DT approach). XAO chart will have range candlesticks with a bar range of 1. Aiming to be in and out within an hour (max) each day.

I personally think you've taken a bit of a backwards step here.

You've gone from having a clearly defined strategy which had testing results which showed if you could nail your entries you could make money, to a system which now relies on you nailing both your entries and exits. You couldn't get your entries correct with the other method so I'm not sure what you have changed which will allow you improve your entries now.

IMO you would have been better off sticking with the last strategy but work out a more clearly defined entry criteria incorporating stops.

Day-trading a stock in the manner you have outlined is probably one of the hardest gigs around, you would be better of trading the SPI in the same manner, certainly more profitable with more opportunities and a hell of a lot cheaper brokerage wise.

[skc]

You've gone from having a clearly defined strategy which had testing results which showed if you could nail your entries you could make money

Not sure that was a clearly defined strategy to start off with...

To me GB simply calculated that Close - (Low+1.5c) is profitable... It wouldn't take much to that sort of analysis on any number of stocks/instruments.

Not to mention that fact that LYC is the wrong arena to apply his market depth reading skill (if he develops such skill)... the right arena probably changes everyday.

[Gringotts Bank]

Thanks for the comments. I'm taking into consideration what you're saying, both.

B: 1.165

[Gringotts Bank]

S:1.175

Changing Range Bar to equal 8 for XAO intraday. Will post what it looks like.

[Gringotts Bank]

Here I have curve fitted XAO range bars to indicate the turning points, and will use the same tomorrow.

Note the time scale at the bottom (it is not linear), and compare with LYC price at same time.
ie. 11.16am LYC = 1.205
2.17pm LYC = 1.165
4pm LYC = 1.17

[Gringotts Bank]

Bid: 1.11

[Gringotts Bank]

B: 1.12

[Gringotts Bank]

S: 1.14

My new XAO chart helped get a me a better entry today. Only problem with widening the tick range is that the candles re-paint themselves.

[Gringotts Bank]

short: 1.13

[Gringotts Bank]

cover 1.125

[Gringotts Bank]

buy: 1.13

sell: 1.125 whipsaw mcgraw

[Gringotts Bank]

Possible long entry on chart now.

Since the tone is generally bearish, I'll skip this and only trade short today.

The whipsaw could easily have been avoided by trading only in the direction of the day's broader trend, which was likely to be downwards, even before market opened. Note to self: decide this before the day begins.

[Gringotts Bank]

Broad market sentiment is a strong negative open with a possible bottom in the making?
So I wouldn't rule out going long somewhere later in the day.

Only thing that would make me wary of shorting at open would be a big gap down.