5 Min Index Trading

Hi jackozy
Just wondering if your clued to the screen all day whilst trying this system out.
Updata has a function that will test the historical prices based in your system. I think it's the system tester.
You can also tweak it by optimising for best results.
Obviously I'm not with Updata any more but I know they have that facility for you to use.
Have fun

Yes, that was following the same rules.

Hi Jackozy, Are you still trading counter trend?

Today's trading results are:

8 trades in total.

5 winning trades for 64.8 pts

3 losing trades for -18.6 pts

Total gain +46.2 pts


FTSE day's trading range 6365 - 6302 = 63 pts, FTSE open to close 6359 to 6333 = 26 pts.

I forgot to add the following in the results:
--'
Of the 15 trades, only 5 were profitable which is only 33%. Without the counter-trend trades the 5 winning trades would represent 62.5% of the trades.

For the last 2 days I've been trading a simple moving average system on the FTSE 5 min chart. I'm using the 5MA and 10MA cross-overs to enter long and short. I've been doing it with £2 per pip trades rather than paper trading it as that way I get an exact figure for the pips and it includes oversights, distractions and other "real world" stuff. It's not a new system by any means but I thought I'd share the results with you.

Here's the chart covering the period I traded:



dl.dropbox.com/u/20815047/FTSE5minsystem.gif

First, since I wanted a "pure" result, my rules were as follows:

1) Take no account of the prevailing trend on the longer timeframe (eg hourly) chart.
2) 5MA crossing above 10MA triggers a buy AND a short close (if a short was open).
3) 5MA crossing below 10MA triggers a sell (if a long was open) AND a short open.
4) Do not wait until the 5 min candle is complete. As soon as the signal appears, take it.

That's it. I had to go out at 2pm yesterday so I stopped at that point when I closed my last long. My opening trade was a long at 10.25am yesterday and my last was a close at a limit order of 6375 due to the 6377 resistance where I had orders to go short based on normal resistance.

The results are:

15 trades (including both longs and shorts) for a total gain of 47.5 pips.

When considering the prevailing trend from the hourly chart, I can strip out the counter-trend trades by ignoring pips gained/lost by going short since the trend was up. I've still closed longs at the sell triggers and then re-opened them at the buy triggers. The results then would be:

8 trades for a gain of 71.5 pips. That shows that counter-trend positions cost 24 pips, approximately 50% of the with-trend plays.

Overall FTSE gain during the period was 6375-6284 = 91 pips.

I will continue to run this trial and am currently short based on the sell trigger at 6377 abd will provide an update in a week or so.