Trading The SPI - NON-Gann Techniques

[Freddo]

For Freddo and TH, did you guys start off scalping as many trades as you are now because that was your system, or did you modify your system over time so that you could take more trades?

Regards,
Julian

Hi Julian,

I used to swing trade off a 4 minute chart.
Overtime I started watching DOM more and the most appropriate way of describing I guess is I picked up old style ticker tape reading skills.

I scalp best in the mornings and especally if it is a Gap day

I am no where near as active scalper as TH.

Regards
Freddo

 

[Freddo]

No trades today.

Too busy to scalp, no entry for my EOD.
Still looking for a short.

 

[treefrog]

waiting to close short, enter long - target is green arrow zone

 

[Joolean]

Cheers Freddo,

it must be a pretty intense few hours. What do you mean by a gap day?

TH, in NT, everything is either a stock, future, index or currency. When I import my historical tick data from a text file, it always imports it as a new stock instead of a future. The difference being that you can't specify the point and tick values on a stock. I have posted the issue on the ninja trader forum.

Can someone tell me if I've got this right. With CMC, each tick is $1 whereas on the spi it is $25. If the spi is currently at 5000 points, a single contract would cost $125k with the margin for this ~$6k?
To wield the same position size with CMC which has a margin of 1%, you would only require $1250. Each point move would then be worth $25 just as with the spi.

Is that right?

 

[Freddo]

Cheers Freddo,

it must be a pretty intense few hours. What do you mean by a gap day?

Can someone tell me if I've got this right. With CMC, each tick is $1 whereas on the spi it is $25. If the spi is currently at 5000 points, a single contract would cost $125k with the margin for this ~$6k?
To wield the same position size with CMC which has a margin of 1%, you would only require $1250. Each point move would then be worth $25 just as with the spi.

It's intense but I love pressure !

By Gap day i simply mean the open is either higher then the high of the previous bar or lower then the low of the previous bar , so i should really say a Gap Open Day since if the gap closes then there is nolonger a gap between the 2 bars.

RE: your question about the SPI, the ASX lists margin amounts but brokers often state their own. I have heard current ranges of $6,500 to $12,500.
Overnight positions have the higher margin levels.

Don't know anything about CMC sorry

Regards
Freddo

 

[treefrog]

entry long at green arrow on price after confirmation that downtrend on momentum had stopped.
hold trade now until up momentum breaks or another fib target reached

 

[Edwood]

Can someone tell me if I've got this right. With CMC, each tick is $1 whereas on the spi it is $25. If the spi is currently at 5000 points, a single contract would cost $125k with the margin for this ~$6k?
To wield the same position size with CMC which has a margin of 1%, you would only require $1250. Each point move would then be worth $25 just as with the spi. Is that right?

not sure of the exact details of Aussie CFD's but it sounds about right Joolean.

I trade UK spreadbet with CMC which is similar to CFD. Stakes start from 1 pound per point with margin 30 pounds per point x stake. So for me to trade a comparable position size as the SPI with CMC - i.e., around 10pounds per point - x the 30ppt margin requirement is 300quid margin. or about AUD$700. Compare that to IB's SPI contract which requires around $6,200 in hours and goes up to around $10k thereabouts out of hours

CMC is pretty good value - but its cheap for a reason Unlike IB they don'always t have to make a price, at turns you'll suddenly find you can't get a fill, in fast markets fills can be unreliable & sometimes you'll see dodgy spikes to take out stops. But if you can make money there then you'll probably be fine going direct access.

Personally I use IB intra-day for the benefits of direct access, faster execution, accurate stops & tighter spreads with no skew. But I still use CMC out of hours because its so much cheaper. Not sure what the CFD spreads are like out of hours but CMC spreadbet is always 4pts - unlike SPI which can get up to 10+. & the margin reqt is only $700 v's $10k

 

[Trembling Hand]

TH, in NT, everything is either a stock, future, index or currency. When I import my historical tick data from a text file, it always imports it as a new stock instead of a future. The difference being that you can't specify the point and tick values on a stock. I have posted the issue on the ninja trader forum.

You need to set up the contract first in the Instrument Manager. Then import the data.

 

[treefrog]

entry long last night at 5488 on 50% fib retrace level - this bounce petered out with this morning's open - was also the 38% fib bounce up after yesterday/last night's run down
exit and reverse short at 5505 - should have quit long at the fib level as it was waiting there with today's open to come
anyway running short now with favourable price action but momentum starting mid stream is not so good - best if can reverse in O/B, O/S areas

 

[treefrog]

fib tatrgets this leg
A 5450 - got
B-5400 - looks ok
C-5310 - previous low

 

[Joolean]

Thanks TH,
I got it sorted.

Freddo, what is the benefit of a gap day?

Cheers,
Julian.

 

[treefrog]

ending this little session of swing trading (its the weekend so am taking my last lot off the tabel)
move south stalled and reversed at the second fib target of 5400 (first lot of three off at first target of 5450, second lot off at second target of 5400.
but it then retraced back up to fib 38% (5447)
as mentioned earlier staying in the market here was without indication of momentum trend so things are less assured.
took last lot off 5430
moving to fourex in an hour or few when europe opens

 

[Freddo]

No trades today.

Too busy to scalp, no entry for my EOD.
Still looking for a short.

Got my short as per previous post.

 

[Freddo]

Freddo, what is the benefit of a gap day?

Cheers,
Julian.

I seem to read DOM better and therefore scalp much better on where the day opens with a GAP.

Just a simple case of when there is a Gap at the open I seem to be able to judge how the market should react.

I simply study the EOD chart and try and picture how is everyone reading this? Where will stop loss order and new entry orders be?
Then I get up early and check what happened on Sycom.
If it has a big move and we are likely to open with a big gap i Love it!.
I have slightly different approaches depending if the Gap is with the trend or against however mostly it just having a suspicion where the morning will go and watch the DOM for it unfolding and scalp it.

Regards

Freddo

 

[Trembling Hand]

Good high volume punch up going on today. May see an unusual large range this week. Oh sorry unusual in the up sense?

 

[Trembling Hand]

Boy oh Boy there was some angry buyers today. Don't tell me I didn't warn you

 

[Edwood]

strong day alright TH. imagine a few opening-gap-faders were driving it up today. gap above from the 17th closed too

 

[Trembling Hand]

strong day alright TH. imagine a few opening-gap-faders were driving it up today. gap above from the 17th closed too

I got the feel today that the big players where in and in strong. Not the normal day trading locals but the Boys that swing hard, long and strong if ya know what I mean.

 

[Edwood]

Aus has a lot of catching up to do too - still around 20% off the 2007 highs - compared to say FTSE which is only 11% off its high

 

[treefrog]

Aus has a lot of catching up to do too - still around 20% off the 2007 highs - compared to say FTSE which is only 11% off its high

not sure of your logic there Ed - maybe the Oz mkt should be down more (percentage) because it ran harder for 4years