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Old 05-27-2009, 06:29 PM   Nav to Top  #1
AndyB
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Default SPX Dow Day Trading - 20 Period MA continuation strategy

Hi all, I thought I'd share a quick and easy strategy to day trade the indices. I trade the S&P500, the Dow and sometimes FTSE100 using Spread Betting in the UK. If you can't access futures/index accounts then you can also trade indices using leveraged ETFs in an equities account.

The strategy is simple. When a big move occurs, the 20 period simple moving average takes some time to catch up with the index. When it does, a strongly trending SMA "Pushes" the index in the direction it is going, causing a continuation. This is your short/long entry (depending on whether its an uptrend or downtrend).

Before


After


Boom! Easy money!

Just note I've seen this work intraday on 5min, 15min and 1 hour moving averages in uptrends and downtrends. The 1 min is pretty weak and will not give you much of a push but it should still be taken into account.

You should also note that this strategy can give more than one continuation as the index can repeatedly get pushed by the MA's, however after a few touches the index tends to overpower the average and get on the other side of it. If you haven't already, that's the time to exit the trade.
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I'm using a stoploss at my break-even on SFEG. Production is delayed.

Last edited by AndyB; 05-27-2009 at 06:33 PM..
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Old 05-28-2009, 08:00 AM   Nav to Top  #2
DanB
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Hi AndyB, Did you post your usual quality, annotated graphs, with this as it'll really help to see what you have explained.
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Old 05-28-2009, 08:45 AM   Nav to Top  #3
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Hi Dan, can you not see the graphs in the post above? I can see them on my computer.
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I'm using a stoploss at my break-even on SFEG. Production is delayed.
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Old 05-28-2009, 10:59 AM   Nav to Top  #4
DanB
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it's working on my iPhone. Strange. I'm back at work later tonight and will have another look from their. It could have been my browser unless the images at not hosted on stock rants and the proxy filter kicked in. At least I can see the noted charts now. :). Good work
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Old 05-28-2009, 03:10 PM   Nav to Top  #5
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Yep, Darn Proxy filtering.... Your hosting the images from photobucket.com, which blocked from my corporate connection (good job I have another connection :)
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