Trading The SPI - NON-Gann Techniques

[Edwood]

Hi All,

As I mentioned previously I am a bit of newbie when it comes to the SPI and I have a question for you all regarding a (fairly basic) strategy I'm trying.

If close is at 5550

I'd put a buy order in at 5560 and a conditional sell order in at 5570
I would also put a sell order in at 5540 and a conditional buy order in at 5530.
I would leave these overnight.

The theory being that a movement in either direction is likley to be >10 points.

This has worked well for me several times in the past however I do understand that there is significant risk in that if the market moves past my buy price (ie 5560) but not past my sell price (ie 5570) then I am left exposed.

I also realise that my gain is generally limited to 10 points (20 if there is a large amount of volatility) , whereas my loss is unlimited.

Does anyone have any comments or suggestions ?
And as I said im fairly new to trading indexes so pls be kind !

morning Freddy - its not the sort of thing I follow, but the posters here who trade around pivots etc might(?) if you think your loss could be unlimited then it doesn't sound like a very good strategy to me. why not back-test it then paper trade it? (which you should always do with any new ideas). hope this helps!

 

[Bronte]

Yes, great post Edwood.
Very pleased that you have stayed with us.

How did you go with the "Pivot Points" Freddy I ?
The original 'Trading the SPI' had some useful info.
As well as the formula to work them out.

Todays Daily Pivot points are:

R3 5735
R2 5717
R1 5686
PP 5668
S1 5637
S2 5619
S3 5588

 

[Bronte]

Yes, great post Edwood.
Very pleased that you have stayed with us.

How did you go with the "Pivot Points" Freddy I ?
The original 'Trading the SPI' had some useful info.
As well as the formula to work them out.

Todays Daily Pivot points are:

R3 5735
R2 5717
R1 5686
PP 5668
S1 5637
S2 5619
S3 5588

S1 is holding for now
5634 Low

 

[Freddy I]

Hey guys,

Yep taken on the advice re the pivot points and so on.

Some interesting reading.

I'll make sure ive got my stop losses nice and tight until ive done a fair bit more research.

Cheers for your help.

 

[Freddy I]

Wow bit of a dip this arvo from 3550 to 3535.
Anyone know why ?

 

[Bronte]

Glad we helped Freddy
Nice idea about "Tight Stops"
SFE has had some "issues" today
You can see 5635/7 held for a while:

 

[Freddy I]

Cheers for the chart.

Not a great deal of direction from how I see it.

How could anyone make money trading that ? You'd have to take some pretty large positions on some pretty small point ranges or it'd be a waste of time...unless im mistaken

 

[Euler]

The daily numbers are 24, 41-19. The larger pictures shows value has congregated at the 37 level with 53 and 17 being the extremes. Beyond this 5594 provides a line in the sand below which we will see major lows tested.

ps. don't listen to anyone else ... do your own research

 

[Bronte]

Thank you Euler.
Pivot Point 5632
S1 5610 R1 5647
S2 5595 R2 5669

 

[Bronte]

Todays Pivot Points:
PP 5645
R1 5664 R2 5685 R3 5703
S1 5624 S2 5605 S3 5584

 

[Sean K]

Todays Pivot Points:
PP 5645
R1 5664 R2 5685 R3 5703
S1 5624 S2 5605 S3 5584

Just out of curiosity, how did yesterday's 'pivot points' work out? cheers.

 

[Bronte]

Thank you Euler.
Pivot Point 5632
S1 5610 R1 5647
S2 5595 R2 5669

Yesterday's SPI Day chart:
PP worked very well 5627 Low
R2 worked very well 5667 High

 

[Bronte]

Todays Pivot Points:
PP 5645
R1 5664 R2 5685 R3 5703
S1 5624 S2 5605 S3 5584

Out "Pivot Points' certainly worked well again today:

 

[Euler]

Fair value on a 3 day basis has developed an interesting formation. From being concentrated over a specific tight range centred around the 5650's over the last week or so, it has now spread more thinly to include the 5720's. So far today, the price action has further filled gaps in the range. Depending how it performs on the SYCOM tonight will see whether those gaps are completely filled or whether it heads in a new direction (ie. moves to either end of the now wide range). Given it is ETO and LEPO expiration tomorrow, it is unlikely to break to the downside unless something spooks the world markets.


PS ... just my rambling thoughts ... do yr research and trade as you see it.

 

[professor_frink]

morning Euler,
all time highs made over night, should be an interesting open. Will be watching 5741/42, the 58-63 area and 5780 for trading today

 

[Euler]

morning Euler,
all time highs made over night, should be an interesting open. Will be watching 5741/42, the 58-63 area and 5780 for trading today

On 3 day basis it has now broadened further. The value sitting on the mid 5720's. The 40's are good and 63 sits well. Beyond that will be a waiting game for me.

 

[professor_frink]

On 3 day basis it has now broadened further. The value sitting on the mid 5720's. The 40's are good and 63 sits well. Beyond that will be a waiting game for me.

very good-that lines up with what I'm seeing well. Always nice when that happens

Or it could be bad for both of us

 

[Euler]

very good-that lines up with what I'm seeing well. Always nice when that happens

Or it could be bad for both of us

lolol .... got to get back to trading!!

 

[Bronte]

Nice 'Gap Open'
The SPI is now trying very hard to Close the gap.

 

[Sean K]

Spi, your box is full.