Trading the SPI

[nat]

What ever did happen to battman? nathan

 

[Ageo]

boring day today,

hope tomorrow has more action

 

[nat]

yes is a bit ,was starting to get used to large range days ,so you think it mightnt pick up much today ?
Nathan

 

[mit]

So how would you go about doing that? I gather it would mainly revolve around fading gap openings with a target in mind(for example 4940 today).

And to the hard part- knowing when it's trending and when it's range bound. Well that would be getting close to the holy grail! For me, if I'm fishing for a top or bottom, then I won't be waiting around too long to find out just how wrong I am-even if it means missing the occasional move!

Prof,

Not even fading opens. It would be having limit orders shorting 5000 and going long 4900 at the moment, with additional orders at say 4850 and 5050 etc. You would leave the orders in until they hit profit or the bail-out point which could be 4750/5150 atm. As this is hell of a loose stop the orders would neccessarily be small individually but you would not have any losses until it hit the stops. Now for the following setup on the short side could be:


Short 1 at 5000 Cover at 4950 Profit 50
Short 1 at 5050 Cover at 4950 Profit 100
Short 1 at 5100 Cover at 4950 Profit 150
Stop at 5150

and at the long side

Long 1 at 4900 Sell at 4950
Long 1 at 4850 Sell at 4950
Long 1 at 4800 Sell at 4950


Now worse case it is it goes up to 5150 first time with no retracement back to 4950 with a loss of 150 + 100 + 50 loss or 300 pips, a bit rich for most of us on the SPI but CMC goes down to $1 per pip. The profit is that you get a number of bites of the cherry and make many relatively small wins and a very few large losses. You could also buy OTM XJO calls and puts to reduce the losses. Also if you have a long share portfolio the profits from your portfolio would cover the big loss.



I'm not saying that this is a particularly good example. The current 100pip range is unusual and will probably break one way or the other in a big way soon but it is a thought having an uncorrelated system


MIT

 

[professor_frink]

Interesting thoughts mit. Personally, I think swing trading off an hourly chart would give similar opportunities profit-wise, whilst allowing for much closer stops.

On the chart below, the green lines are weekly pivots, and there are potentially 4 good entries there, 2 long and 2 short. At least by setting up to trade off these levels, you can keep losses pretty small, and still catch the bulk of the swing.

 

[Bronte]

SPI is trying to get back to 4940 level
We have seen 4946 Low:

Did not quite make 4940
We only saw a 4942 Low
Doh! :homer:

 

[Bronte]

4940 seems to be the level for the week. Every major move this week has either begun or ended in this area!

Nice call professor

 

[Bobby]

Prof,

Not even fading opens. It would be having limit orders shorting 5000 and going long 4900 at the moment, with additional orders at say 4850 and 5050 etc. You would leave the orders in until they hit profit or the bail-out point which could be 4750/5150 atm. As this is hell of a loose stop the orders would neccessarily be small individually but you would not have any losses until it hit the stops. Now for the following setup on the short side could be:


Short 1 at 5000 Cover at 4950 Profit 50
Short 1 at 5050 Cover at 4950 Profit 100
Short 1 at 5100 Cover at 4950 Profit 150
Stop at 5150

and at the long side

Long 1 at 4900 Sell at 4950
Long 1 at 4850 Sell at 4950
Long 1 at 4800 Sell at 4950


Now worse case it is it goes up to 5150 first time with no retracement back to 4950 with a loss of 150 + 100 + 50 loss or 300 pips, a bit rich for most of us on the SPI but CMC goes down to $1 per pip. The profit is that you get a number of bites of the cherry and make many relatively small wins and a very few large losses. You could also buy OTM XJO calls and puts to reduce the losses. Also if you have a long share portfolio the profits from your portfolio would cover the big loss.



I'm not saying that this is a particularly good example. The current 100pip range is unusual and will probably break one way or the other in a big way soon but it is a thought having an uncorrelated system


MIT

Hello Mit,

Like your thoughts on straddle trading, Iv'e looked into a methology of going long & short SPI~ XJO or short & long on same time frame, so far quick time volatillity could chop such plan .

Bob.

 

[neo]

Morning All,
The Trading the SPI thread had been pushed off the lastest forum topic page........ Couldn't have that!

Sycom closed at 4972.
Commodities down.
DJIA up 42.66
S&P up 1.72

Any thoughts for the day?
If open is around 4972 ish I think there is the possibility of an upward move!
Any thoughts?

 

[Bronte]

Morning All,
The Trading the SPI thread had been pushed off the lastest forum topic page........ Couldn't have that!

Like your style neo
Only 933 hits.

 

[neo]

Anyone trading today.
I went long at 4974....bugger....Stopped out at 4969.
Short at 4960...hopefully better! So far so good!
RBA statement on monetary policy due at 11:30 ????????

 

[nat]

HI neo ,yeh i went long at 4977 on cmc,out for 9 point loss ,another lesson learned ,trying to bottom pick ,it really is best in lonng run of going with the flow

 

[Ageo]

HI neo ,yeh i went long at 4977 on cmc,out for 9 point loss ,another lesson learned ,trying to bottom pick ,it really is best in lonng run of going with the flow

nat even thow i didnt short today the open but as you can see if i placed the exact same trade today i would have locked in a $600 profit so far.

but i wasnt comfortable placing the trade due to uncertainty.

anywayz never the less we might see a spike back up to open.

 

[Bronte]

Anyone trading today.?

Bought Gann Support at 4959 +4
Then it let go -4
Bought 4936 +2
That's my week done

 

[nat]

hi ageo ,yes i c what you mean ,oh well there will always be another day ,NAthan

 

[Bronte]

Yes...The train leaves the station every day

 

[Sensei]

Bought Gann Support at 4959 +4
Then it let go -4
Bought 4936 +2
That's my week done

Bronte ... do I understand correctly that you went
1. long @59 sold @63?
2. then short 4
3. then long @36 for 2 points gain?
For education can you show on a chart please?

 

[Sensei]

For education can you show on a chart please?

OK thanks ... posts crossed

 

[Sensei]

OK thanks ... posts crossed

hmmmmm .... odd the original post didn't have a chart ... maybe my screen didn't update properly?

 

[nat]

hey ageo couldve been 1200$ by now ,i cant believe ive just watched it continue falling, wheres the bend at the end?Nathan