I've created this thread for any IC investor users out there to discuss trading with this software. What setup do you use for trading in IC? What scans do you use to find trading opportunities?, Do you have the optimiser or little book of scans, how useful have you found these?
Hi kerosam. Which course did you complete? Was it the CFD course? I found this course to be pretty good. The BMI scans seem to yield too many returns so sometimes it was hard to know which trades to take. I found the doji scan with Bollinger to be pretty good.
The course I took was merely a chart reading course using the software. I just signed up for the CFD one in Nov. I'm reading a book on candle stick chart... not very familiar with candle stick charting yet.
Have you tried all the indicators? As I'm new to charting, stuff like Hull & Elders are new to me including Gann & Darvas Box. Not too sure where to read up specifically.
No black boxes! Have I read your threads on the chartist?... great forum... anyway
I paid $990 - not so bad and included a year of data, which can include US data if your request it, though they don't pay for it so reliability not great (I wouldn't use it - just look at the US index charts)- is delayed 20mins.
It is the only software I have used so can't compare to others - amibroker sounds like what I would like from reading the chartist threads as ability to backtest is very limited with IC... which is a shame. There are some good points about the software and some not so good...
The main drawcard for me was a scan called the 'Ellis Big Money Index' which you have no doubt read about from the website. If not, worth a read. It shows aftermarket and off market transactions in the form of 'unusually' (for that stock) large parcels being transacted. I believe the guy who bought the rights to the data and developed the scan consults with ASIO (counterterrorism) and ASIC (insider trading). Clearly this scan is aimed at long positions). When a big announcement is made you can very often see there has been lots of Big money entering the stock roughly 21-28 days before (outside the range to be in danger of insider trading). And often a few days before. I traded Gunns for example before there was a very favourable government announcement last year - the stock shot up 20 odd percent in 2 days. There has been a truck load on CSL in recent months and also FMG - the question is more on how to trade it. IC offers courses which I have not attended - maybe others have. I feel the best play is to use this scan in conjunction with VSA, but am still learning...
However, there is a lot of noise with the indicator and I am yet to master it - at the moment use it to assist positions taken. The fact that you can't backtest a system makes this even more difficult.
Has a massive array of scans (overwhelming I suspect) and you can write your own as well. Can scan sectors or your own lists which I like, watch list management is very clunky and a pain in the **** - you have to scroll through the entire ASX list to add a stock to the watch list. Drawing tools are limited, portfolio management OK, alarm management OK, but cant be linked to watch lists (as far as I know). Has a great trade management window next to each chart that allows Risk rewards to be calculated, including brokerage and has a number of SL calculation options including the 2% rule - there is also a part in this section (using a tab) that allows you to make more detailed notes than you'd write on a chart.
can get real time data I think and have alarms linked to SMS messages - not for me - EOD trader
Any other Q's - happy to answer them and also would like to hear about your software
I think you have mixed me up with somebody else on that so called charting page (forum?).
But thanks for your detailed post, I can see you plut plenty of effort into such a reply so again Thankyou.
I myself have started only really started to read alot of books to try to get up to speed with the some of the many things that there are on offer, and having been a more of a long term trader for most of my experience, I have only just started a few months ago trading and taking shorter positions. As this current maket seems a little different compared previous markets years ago.
Have been doing a few demo's of some programs and have found only lots of frustration in these demo's so not going to splash out big bucks only to see if I will be further dissapointed.
I do alot of reading as I say, and watch alot of TA type online movies which is also freely available from many places around the internet.
I use have started using AmiBroker and for whatever reason, I seem to take to it more Naturally for some reason compared to other programs.
I also use some of the Free Charting programs such as Pro Charts Egoli & Incredible Charts as they are very handy and a no hassel setup that involves Data or EOD. Actually, Pro Charts by Egoli gives you free 20 minute delayed data which is cool, but unfortunately you only get to view the data on the Egoli Server but very handy NonTheLess
Having a read of a few different forums, I think people sometimes need to complicate things and why people need as many of the tools they say they do, meaning, if whatever tools they use adds to their success, or has it made them successful can be questionable at times.
Anyways, its all good fun and hopefully time will make us all a little more wiser and ready to deal with whatever we hope to take on.
I am a current subscriber of IC Investor & past subscriber of Nick's.
I had some success with IC Investor using EBMI & bollinger bands. I was quite successful when it was a bullish market. I would recommend reading Jody Ellis' CFD Trading to further educate oneself.There were indeed some stocks very reliable with EBMI.
Then I heard about Nick & tried his website for a month. Found it to be very educational & very worth it. I'm still trying to catch up with my knowledge of Elliot Waves (reading his book 'adaptive analysis'), cos he uses EW to track trends (someone correct me if I'm wrong). I have followed his recommendations (can be long or short) a few times and the returns were far more than the $77/mth I paid for. Will be back subscribing to Nick's very soon.
Good to hear from someone who knows IC. Have read Jodis course on Cfd trading. Am interested to know what stocks you followed as reliable ig bomeny - am currently creating a watch list of reliable big money stocks - PM me if that's better.
I highly recommend Nick. Has started a new service included in the membership called 'powersetups' - there should be some info on this on the chartist website. Elliot wave is not discussed or used in this part of the analysis and it has been very worthwhile. I also know very little about EW theory but find I don't really need to (and am picking up bits as I go along too) with his analysis as it kind of makes sense from a volume spread analysis perspective anyway - find his analysis of indices very useful.
1. Triangles. If I see triangle formation in the chart, I'll shortlist it and check it with EBMI. A recent example is GDA.
2. Support & Resistance.
3. Bollinger bands. If the chart is trending, I use the bollinger bands as a channel & hopefully in time to pick a low or high. Again, I'll check it with EBMI. Some EBMI indication are not completely an accurate signal.
I'm reading Nick Radge's book 'Adaptive analysis' to further tune up 1 & 2.
Have just ordered Nick's book and very much looking forward to it. Think I am ready for it now...
Can't see a tradable triangle that relates to the big money on GDA really - could you give me more details about it? I notice a big spike of big money on 25 feb clearly before a good news event and the recent gap, but since it did gap, couldn't see a suitable trade? Did you trade this?
How's the big spike of big money on ZFX on 20 feb??!! - some people are just really lukcy aren't they?? Think the BM is a great tool - just still learning how to use it...
before the recent spike for GDA, there was a triangle forming & EBMI.
I did not get into the trade though i kept a look out for it. I think it went up 40% recently. not sure about the SP now. another was SML & RIM.
not sure about ZFX. will have a look tomm nite & let you know. off late night shopping :P
Thanks for the response. Sorry, I see the triangle now - think there is a more technical term for it that I am not aware of - maybe a pennant? You may know. I am waiting for a friend to get back from SA so I can borrow some software that will help me post charts - will let me explain myself better...maybe we can discuss some charts and setups that we see with BM? I only look at the top 300, because of liquidity, but the theory should be the same nomatter the stock. It might be a good way to learn from each other? (when we have time)
My problem with GDA is that it gapped up out of the triangle, so there is the possibility of the gap being filled and sellers (already in the stock) entering to take a quick profit (specifically those that caused the BM indicator in the first place). In fact, you can see sellers have come in in the last 2 days - closes on both days well off the highs on signifcantly increased volume. Anyway, having a stop limit order in would eliminate this problem (of gaps up) I suppose.
I suppose if you use the recent highs as a target and the low of the triangle as a stop, the R:R is still 1:2.2 which is not bad... but my anecdotal feeling of the big money is that the upside is short and swift and that it is often followed by heavy selling on announcement, so having the recent high as a target is probably unrealistic.
I see the same thing happened with RIM (the gap up that is) although this one kept on climbing.
Hope the shopping was good - can we expect some retails stocks to climb tomorrow?
I thought something might be cooking in CVN. Note: I don't hold. It just appears in today's EMBI scan. With a bull-ish outlook for oil, I guess its no surprise. I have also drew lines that indicate earlier EMBIs just to be sure that its not 'wasted money' going in.
Don't have a chart to attach... sorry. But this is fun, anyway. My observations:
-BM looks great - this is exactly the type of BM set up I like too. It has only had 2 previous spikes in EArly August, which I also really like, and they were followed by the recent uptrend - nice!
But...I can also see a possible head and shoulders top formation, although the neckline is slanted down to the right
Plus, the killer for me is the risk reward.
-To me the SL has to go at 0.415 below the recent low - that's not negotiable.
-the entry could be a) on break of trend, b) on break of the recent pivot back down at 0.465 (therefore entry at .47) of c) on break of the small resistance at 0.485 (therefore entry at .49. For me, I like 0.49 best - think .47 is stetching cutting it too close and there is that resent resistance at .49 above to get through.
-so that leaves the target. I like to use the fibonaci retracement to 50% of the recent move as a target, which in this case is 0.56.
So... using my preferred entry the risk reward ratio is 1:0.9 so doesn't cut it despite 'looking good'
what are your thoughts? what entries exits and targets do you use?
Have attached a chart of MMX - big money on it today. Things I like about this trade:
1. The risk:reward is 1:2, with reasonable target, entry and stop I think
2. The recent pullback has occurred on low volume (not many sellers)
3. It is in a big longterm uptrend that has just completed a 3 wave correction
4. Not much other big money on the chart
What I don't like:
1. The head and shoulders possibly forming - but thats what the stops for I suppose
EMBI- there were BM on the 8/1 to 10/1. But SP dipped & it wasn't till 25/1, the investor could only break even. Small spike on the 5/2 ($3.89) slight drop but rallied to $4.64. BM spikes on the 13/3, 14/3 and 18/3. Personally, BM on MMX is QUITE reliable but it won;t be immediate.
I see support at $3.52 & price below 10 day MA. I would long this one till price crosses 10 day MA to confirm.
Check out COK. Quite reactive to BM. Merely looking at the history of COK with BM, the SP reacts quite well (21/9, 20/7, 19/12, 21/12, 27/12, 14/3 & 18/3). Let me know what you think.
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