My Facebook Friend Evan C. wrote:
“Its too bad amazon doesn’t sell wine, I owe you a bottle for the wealth of info I’ve gleaned from your posts! Would it be possible to get a screenshot of DXO for 2.6.09 with the elite indicators? I am curious how they would have rea/played it.”
So, here is every day from 2009/02/05 to today, in Powershares DB Crude (NYSE: DXO):
The 5th and 6th (click the image to enlarge):
The 5th
Here we have a short trade right into Alla’s Average. I always tell people not to trade right on top of Alla’s average, because it is such a powerful turnaround/chop zone. If you took this one, despite all of my advice, you’d take a loss. But, don’t worry, because the second trade is a really nice win (note how end-of-trend in the bottom panel tells you where to trail your stop and take profits). The third trade doesn’t really go anywhere, and you’d scratch it at the end of the day.
The 6th
Beautiful! One big win in the middle of the day long. And, one scratch trade that doesn’t go anywhere at the end of the day short. This is the day Evan was asking about, and I can’t help but think he’ll be pleased with this.
Next, the 9th and 10th (click the image to enlarge):
The 9th
A nice, quick winner long in the morning (notice volume pressure and end-of-trend tell you when to take profits). Then a sweet short trade down to Alla’s Average (compare this with the trade from the 5th that didn’t work as well… it pays to have some air between you and Alla’s Average when you trade counter-trend to it, and then you can take profits at Alla’s Average). Then a scratch short trade at the end of the day (end-of-trend tells you when the move is over, once again).
I’m getting the feeling it doesn’t pay to trade oil at the end of the day…
The 10th
It keeps telling you to get short all day, and price never really runs against you… so you’d either hold on short until the payoff, or keep scratching the trades until the payoff. Either way, you finish the day smiling. Note that, once again, end-of-trend catches the end of the move.
Next, the 11th and 12th, uglier days (click the image to enlarge)…
The 11th
Here, much like on the 5th, is a trade right into Alla’s Average. See why I don’t ever take those trades?? :-) At least this time, end-of-trend came up and told you to take profits while the trade was still flat. Anyway, my suggestion is that if you trade on top of Alla’s Average, at least reduce your size.
Then, you have a nice short trade, and once again end-of-trend catches the bottom of the move. Nice.
The 12th
Let me repeat again, be very cautious when trading right on top of Alla’s Average. This time, the long trade does pop up, and end-of-trend does come up to tell you to take profits. So, it works out ok this time.
Then, you have a short trade with the trend again, which is a small winner if you choose and exit while end-of-trend is high.
Summary
I don’t cherry-pick this stuff. Some dude on facebook asked for the stock, and I showed several consecutive full days. All the indicators are set exactly the same as they are on all of my simple-stock-system posts. I’m way too lazy to optimize inputs to take some freaking screenshots. I chose the volume chart setting mechanically based on the 30-day average daily volume on DXO, just like I do on all of my stock posts. The arrows you see are not hand-drawn, but are an indicator that tells you where your entries should be, automatically.
Bottom line: this stuff works. And, I offer it to people through eotpro for Tradestation, Ninjatrader, Multicharts, and eSignal (and maybe more by the time you read this… check the site). If you are tired of losing all the time and want to step up and make some money, maybe you should investigate… :-)
Good work. :)
E.