Archive for January, 2010

29 Jan, 2010

Saturday, January 30th, 2010

This was an excellent winning trade in wheat, when the market changed bias and moved to the down side.

28 January 2010

Friday, January 29th, 2010

I ended up with a “No Trade” session in wheat today. I never let this frustrate me, because in trading there is an endless progression of opportunity!

27th January 2010

Thursday, January 28th, 2010

Today it was wheat’s turn to shine, with a simple winning trade.

26th January 2010

Tuesday, January 26th, 2010

Wheat continued its choppy performance. I scored a win with my conservative strategy, but ToA clients with the default settings would have lost.

 

Beans and Corn both gave winning trades:

 

 

25th January, 2010

Tuesday, January 26th, 2010

Sorry to be rather late with this update. But it’s Australia Day, and I’ve been out and about since the crack of dawn!

Wheat was disappointing last night, and served up a loser – regardless of the ToA (TradeOnAuto) parameters you may be using.

 

(However, I’ve mentioned before what a superb start to the year we’ve had with the Australian SPI, and that continued on Monday!

 

There was a lot of profit on the table in this one! Those of you who have purchased ToA and would like to try the SPI should contact Stuart to get the parameters that work best in this market (although the standard settings have done incredibly well this month!).

22 January 2010

Saturday, January 23rd, 2010

Wheat didn’t do a whole lot today, but fortunately it did enough for me to get a good win using my "conservative" strategy. It would have fallen just short of a win for those using the 0.5/1.5parameters.

So this week has been pretty good – two good wins and two small losses (I was too busy to blog on the 20th, but that was a small loss).
Overall, January is turning into a stellar month!

21 January, 2010

Thursday, January 21st, 2010

Today’s wheat market was a good one for seeing the difference that chart time periods can make. Here’s the usual 2 minute chart:

Most of my clients ended up with a "No Trade" on this chart. (The "conservative" strategy I’m using at the moment took a long entry and ended up with a small losing trade.)

But now here is the same chart using one minute candles:

Those of my clients who prefer the shorter time period got an early entry to the Long side, with just enough room to book a nice profit!

TradeOnAuto lets you choose any time period you like – from 5 seconds to 3600 seconds in 5 second increments! (It would be impossible to trade, say, a 15 second chart manually because (a) you don’t have a 15 second charting option in TWS and (b) it would be just too fast to avoid making errors.)

While the one minute chart was better today, it is not always so. Sometimes the two minute chart is superior – there is no way of knowing for sure. The important thing is to be consistent in the way you trade, and not to constantly switch from one to the other.

 

 TradeOnAuto

Many thanks to those of you who have ordered or even just sent comments about TradeOnAuto. After all the hard work, it’s wonderful to be getting so much positive feedback. If you haven’t watched the new demonstration video yet, I encourage you to do so. If you had difficulty playing it yesterday, there is now a Windows WMV format version available on the download page.

 

 

19th January

Tuesday, January 19th, 2010

Wheat opened down, before turning back up for a while. That was enough to get a successful long trade away.

My colleague (Stuart) and I have been working very hard getting organised for the launch of the TradeOnAuto software tomorrow. There has been a tremendous amount of interest shown, and a lot of questions asked. We are hoping to get a new video finished today which we will put on the TradeOnAuto web site – hopefully it will satisfy the many requests we’ve had for more detail on the trading process and how TradeOnAuto works.  We welcome all feedback, questions and suggestions as we work through this process!

15th January 2010

Saturday, January 16th, 2010

The week ended with a hot trade in wheat.

Depending on the size of stop you are using, some people may have been stopped early in the trade, but I am trading conservatively with a wider stop, so held in there to enjoy the benefit of the downtrend!

14 January 2010

Friday, January 15th, 2010

Sorry I’m a bit late with this post. We were away overnight yesterday, taking my little boy up to the Sunshine Coast to visit Australia Zoo.

The great thing was it didn’t make any difference to my trading. I just set up TradeOnAuto before I left, and everything happened as normal – on autopilot. I’ve just got home and checked the trade which, as it happens, is a loser. But I’m delighted with the way TradeOnAuto handled the whole thing.

13th January 2010

Wednesday, January 13th, 2010

I picked up a winning short trade in wheat at the open before the market started rising for the rest of the session.

12 January 2010

Wednesday, January 13th, 2010

I’ve had a bit of feedback from a couple of you, as well as my partner, that I should not be taking more than one trade per day, as that is a central theme in my book, and important advice for all beginner traders who tend to overtrade.
So I have set up a simple, conservative strategy in TradeOnAuto to trade the wheat market (my favourite), and I will focus on that.
It turned out to be quite a good move, as last night was a nice little winner.

You can see that there was a big move at the open, and in fact all the grain markets took a nose dive yesterday. I’m not sure why – no doubt the effect of some fundamental news surprising the market. With my kind of rules based trading, you don’t really care!

11th January, 2010

Monday, January 11th, 2010

I am reminded of my comment a few days back that it is wise to take the rest of the month off once you are more than 10% up. The SPI trade today was a loser, and beans was not that good. My daughter in law had a really good trade with wheat (again!).

As you can see, the short trade in the SPI was stopped out pretty quickly.

 

Beans were interesting. I trailed my stop and was stopped just short of break even for a small loss. This was one of those occasions where not trailing the stop would have given a win…

 

Wheat gave a good short trade, before reversing and ending positive for the day…

 

 

8th January 2010

Saturday, January 9th, 2010

There wasn’t much happening today. 

I got into a long trade in the SPI that looked pretty promising for a while, but then fizzled out. TradeOnAuto was configured with a loose stop, which took me out of the trade close to breakeven.

Beans kicked off with a big price drop, but then quietened and no trade opportunity developed during the first hour (after which I’ve set TradeOnAuto to stop looking for entries).

Overall, it’s been an excellent week. 

I hope you are enjoying the charts. Don’t hesitate to contact me with feedback. I’ve been fielding a lot of questions about TradeOnAuto this week – there are certainly a lot of people excited by the prospect of letting their computer trade for them. 

Remember, the TradeOnAuto software will be available to the public from 20th January, and a 20% discount is available during the initial promotion until the end of February.

In response to some of the more frequently occurring questions:

1. No, we do not offer a free trial period. The program does what we say it does, and we are only interested in clients willing to make a serious commitment. (Otherwise we will be tied up providing endless support to people who are just playing with the software.) Of course, if the program fails to perform properly for any reason attributable to us, refunds are available.

2. Yes, it is possible to adapt the way the program works to fit your own trading style. However, if software changes are required, then they will be charged for separately and may be expensive. Even what may seem like small changes can be time consuming, because they have to be thoroughly tested.  
In general, my advice is to try the software "as is" for six months, and if at the end of that time you still want changes, request them then. 

3. Yes, there is a user manual. In time, this will be augmented by a series of "how to" videos on the TradeOnAuto web site.

4. No, we do not support links to trading platforms provided by other brokers. To use TradeOnAuto you need an account with Interactive Brokers.

5. No, we will not be reducing the price! In fact, our plans are to progressively increase it. Frankly, if you do not have the resources to buy a TradeOnAuto license AND fund a reasonably sized trading account, then this product is not for you. That is not to say you can’t trade, but you should consider gaining experience by trading manually. After you’ve done that for a while, give some thought to how much you would have to pay a reliable person to do that work for you, day in, day out with no holidays – and no mistakes! We firmly believe that TradeOnAuto is cheap for what it does!

7th January 2010

Friday, January 8th, 2010

I broke my run on the SPI today. TradeOnAuto went short at 4918 but was pretty quickly stopped out for a small loss.  (This setup is not covered in my book, but is fully described in the TradeOnAuto documentation.)

 

Beans settled into a good trending day later, but TradeOnAuto found no entry in the first hour when the market was a bit aimless. So no trade today.

 

Overall a small loss on the day. 

6 January, 2010

Wednesday, January 6th, 2010

The SPI continued its stellar start to the year with another solid result.  Short at 4928 and exited at 4920 with trailing stop.

Soybeans were not so good again. Short at 1055.5, but my stop was just caught at 1058.

 

Just a small profit over the two trades.

5th January, 2010

Wednesday, January 6th, 2010

Well, TradeOnAuto got off to a great start today with the Aussie SPI contract. It went short at 4931 and bought back around 4910 for a full profit.

 

Beans didn’t do much; TradeOnAuto monitored it for the first hour and found no entries.

 

Of course, my daughter-in-law, who sticks to wheat, had a great short trade!

 

I’m up well over 10% for January (closer to 20%) and if I were following the advice I give to clients, I would take a holiday for the rest of the month. I find having a goal of 10% per month gives people focus for their trading. Quite often, when a month starts like this, you spend the rest of the month going backwards or standing still. However, that wouldn’t make for very interesting blogging, so I’ll keep going!

4th January 2010

Tuesday, January 5th, 2010

Now that I’m using my TradeOnAuto software I’m trading two markets each day.  Soybeans during my night time, the Australian SPI during my day time. I’m using longer targets, five times my risk, and loosely trailing my stops – it’s all built into the software, so it’s only taking me a couple of minutes each day to set up.

 

The SPI was good, getting me in at 1864 for a long trade which showed a handsome profit.

Beans didn’t work so well. I hopped onto the early move to the long side, which was stopped out when the downward trend set in.

Still, I can’t complain, I’ve made a handsome profit for the day.

 

 

An exciting announcement!

Saturday, January 2nd, 2010

Many readers contacted me during the last six months asking why I had stopped blogging. The reason is that the project I mentioned in my final blogs last June – writing a program to automate my trading process – just kept on growing. Having got an initial version of the software working for my own use, I was persuaded to start again and build a commercial version for sale. The time commitment has been huge, but I’m pleased to say that the project is now complete, which means that I’ll be able to get back to blogging in the new year!

We’ve called the software which automates the trading process "TradeOnAuto" and we are very excited to be launching the product on January 20th.

Visit tradeonauto.com to find out more about this amazing program and see video clips showing it in operation!