Here is a neat little day trader system that takes advantage of what some technicians call a “CLEAR OUT” trade. Basically traders push the market through yesterday’s high and then when everybody jumps on board they pull the rug out from beneath you. This strategy tries to take advantage of this. As is its OK, but it could be made into a complete system with some filtering. Its a neat base to start your day-trading schemes from.
But first have you ever encountered this one when you only want to go long once during the day.
I have logic that examines marketPosition, and if it changes from a non 1 value to 1 then I increment buysToday. Since there isn’t an intervening bar to establish a change in marketPosition, then buysToday does not get incremented and another buy order is issued. I don’t want this. Remember to plot on the @ES.D.
Here’s how I fixed it and also the source of the CLEAR-OUT day-trade in its entirety. I have a $500 stop and a $350 take profit, but it simply trades way too often. Have fun with this one – let me now if you come up with something.