How I earned $2 970 in one month spending one hour a day
From 25. march 2008 to 21. April 2008 I have earned $2 970. Every possible tax is already included and it is still paper trading. Here is my method, what I am using.
First of all, I use %R indicator by Larry. R. Williams. Beauty of %R is, that it is so simple to use and that it is based on psychology of bunch of people. I will not describe this indicator, you can read a lot of about it after searching by Google.
The second step is based on watching trends. I watch trend using %R indicator and low and high prices of some long trade time interval - for example two months. And now, if I see some %R rates above 20% or below 80% I put my eye on the chart.
Bullish trend (price is coming up)
If it is the day with “price top” (local maximum) in the chart before day, when %R is crossing down -20%, I find another signal. Another signal is, when it is the day with “price bottom” (local minimum) in the chart before day, when %R is crossing up -80%.
This price turn I call period. Whole point is to find two periods in the chart of “price top”, “price bottom”, “price top”, “price bottom”. If this pattern is close to bull trade (I will figure my patterns later), when prices are coming up, it is time to put order to buy conctract/s.
For bearish trend I use analogue periods, but with order: “price bottom”, “price top”, “price bottom”, “price top”.
December Corn 2008
Simple introduction to my trading method we have passed, then, how I earn $2 970 with trading december 2008 contracts of corn.
How I said, I have found “price top” on 15. January 2008. Then %R crossed down -20% rate on 15. January 2008. “Price bottom” was on 23. January 2008 with %R crossing up -80% rate on 24. January 2008. Another period started on 13. March 2008 with %R crossing down -20% rate on 14. March 2008. Another “price bottom” was on 19./20. March 2008 and on 20. March 2008 %R crossed up -80% rate. And that was signal to put order for buy one contract of december corn of 2008 (C Z8). I put buy order one tick above corn close price of 24. March 2008 - 539,75/bushel. So, I bought one contract on 25. March 2008 at the price 540,00/bushel.
Stop-loss I put so as my loss is only $230 if trade will be going bad. But, trade wasn`t going bad and I have earned $2 970 in one month. Picture below ilustrate this trade.
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This is nice. Maybe I’ll try it
Thanks
Thank you. I have prepared more posts about my technique. Stay tuned ;-).
Aug 16th, 2008 at 0:47
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