I caught sight of Larry Connors' system for intraday trading. Figured by eye — it seems that in recent days she earned more than she lost — at least on those promotions, which I have chosen at random. But that doesn't mean anything – check over a long period of time, on a large number of shares and not by sight, but mechanically. But for this you need to code it all.
All in all, the essence is
For longs:
1. We apply the system only for promotions, which are now in a strong upward trend. Indicative, this can be represented on daily charts as ADX(14) > 30 and +DI(14) > -FROM(14)
2. First 15 minutes of the session just watching the selected promotions
3. After graduation 15 minutes we place a buy-stop order one tick above the 15-minute high.
4. If the buy order is triggered, place stop loss one tick below the 15 minute low.
5. Connors takes liberties here.. Writes, that profit-taking is a personal matter. Perfect option — trailing stop or fix half of the position to start, and the remaining trail.
6. Close all positions at the end of the day.
For shorts, do the opposite..
Moreover, for trading stocks, he advises choosing stocks with a value higher 40 dollars and with 100-day historical volatility of more than 40%.
Connors does not describe money management for this system as he probably assumes that this is clear to everyone.. But I'm thinking, that those who just naively trade always on 100 Shares, this system will bring many surprises in terms of MM, because stop is not easy to put here 5-10 cents from a lantern, and under a 15-minute low. Therefore, in this case, the position size should be calculated depending on the size of the stop and the amount, which you are ready to lose in one trade. This also primarily concerns the academician-dropout Amadeus from masterficus, which teaches you how to calculate profit in pips regardless of the number of shares, their price and stop size, what is like crossing a bulldog with a rhinoceros. I would also advise his students, also pay for lessons not with money, and pips. OK….
Example:
Your deposit is 5000. In one trade, you are ready to lose 2% from the deposit amount. That is, you are ready to lose 100 Dollars. (interest, I hope everyone can count).
You open a long stock at a price 50,45. Stop at a 15-minute low. 50,05. I.e 50,45 – 50,05 = 0,4 — you have a risk 40 Cents.
Calculating the size of the position to be opened 100 / 0,4 = 250 Shares
I.e, in this example you should buy 250 stocks to comply with the rules of your money management.
Here is such a system.
And these are examples:
A good example — closed at the end of the day with a profit:
Bad example — stop loss triggered:
