dowTrader: Trading the Dow Jones

Monday, June 05, 2006

Trading the Dow Jones

Several members of our Dow Trader service have asked us to set up this blog to share thoughts on our favorite market of choice - the Dow Jones Index which we trade daily using the Dow Mini.

Members know through witnessing themselves the consistent success of our trading system, with a full set of recorded trading results - every single trade, both winners and losers - published since Jan 2006 on our home page.

In this blog, we want to share member thoughts, our updates, bulletins, bits and pieces of info we feel our members [and potential members] will benefit from.

As you know, core to our trading system is our unique Inter Market Strength [IMS] Indicator, a powerful minute by minute analysis of the Top 30 Stocks which make up the Dow - the inter-relationship between the internal 'trend' dynamics of these stocks, ultimately provide one, all powerful, unique measure/indicator, which we call the IMS. Look at the results - the power/profitability of this method is self-evident. Through this blog, we hope to share a multitude of experiences.

Members are invited to participate in this blog. It allows you to view the very latest in our own trading, developments, ideas, etc., and provides a means to post your own comments/suggestions...

790 comments:

«Oldest ‹Older 1 – 200 of 790 Newer› Newest»

Anonymous said...: Hello
Congrats on a faster service - much appreciated.
I hope a similar upgrade will be made soon to the FTSE100 index.
Best wishes
Rob; September 19, 2006 12:21 PM
The Dow Trader said...: The FTSE 100 is not a 'primary' index as we define it, as it oft takes its cue from the Dow Jones. The Dow is arguably the prevalent index which all others watch and 'react' to, hence we prefer trading the Dow instead of any other index. Hope I am making sense?; September 19, 2006 1:21 PM
Zad said...: Hi, I have tried many trading systems and i know that yours is the only one that produces result consistantly. well done and keep up the good work.; September 19, 2006 3:03 PM
Anonymous said...: I quite agree this is a very pleasurable system to use one thing I would like to see though is a synchronised clock on the Clickvolume page to show times between the Dow and the Footsie to make it easier to be ready for the volatility the Dow creates when it opens for business for those of us that also trade the FTSE 100; September 19, 2006 3:36 PM
Jhon said...: How about a day trading system on the dow, do you plan making that?
The dow moves at least 25 points in each direction on any given day and somtimes more then 100 points. so there's a lot to capture in one day.
Maybe your system would work in day trading too.; September 19, 2006 4:19 PM
Dave said...: You guy's have really done a great job with the Dow Trader. I have been a member for almost a year, so I have seen all of the changes and your latest change by far is the best. I use you Dow Trader in a little different way. I will take your long and short signals and buy call and put options of the DIA Diamond Trust. I buy the front month with a Delta of 70 or above. I am hitting about 90%. Thanks for all of your efforts you are helping me to make a lot of money.; September 19, 2006 5:35 PM
The Dow Trader said...: Dave, thanks for your contribution - this is great! While I personally only trade the Dow Mini future, I suspect many of our members may prefer trading ETF's and DIA Options to profit from the Dow. It would be wonderful if you continued to contribute any tips/comments on trading Dow Options as you develop your experience using this instrument.; September 19, 2006 5:50 PM
The Dow Trader said...: Msg for Jhon - Day Trading is a forte we tend to shy away from, largely due to the stresses involved in watching the market all day - it ain't much fun after a while - but everyone to their own. We are happy [and consistently profitable] with swing trading [holding positions for a few days]... this allows us to capture sizeable swings as opposed to scratching a few points at a time. This is simply an opinion.; September 19, 2006 5:53 PM
The Dow Trader said...: That's it for today - I am now going to go away from my screen and get some sleep - back tomorrow to see how the day progresses. We are currently short the market since earlier today - my expectations are we may see a slight recovery tomorrow but I will be keeping 'short' until the screen signals 'Go Long'... Take care - good trading!; September 19, 2006 5:56 PM
Keith said...: Dave, I agree with the comment above. Can you give us some tips on
trading Dow options?; September 19, 2006 7:28 PM
Keith said...: Dow Trader,
I agree with your comments about
day trading. I would not want to sit in front of my computer all day.
I work a 9-5 job and am very happy
with swing trading the Dow Trader.; September 19, 2006 7:38 PM
Anonymous said...: Hi, I think this is a great system. But, do you have time constraint on trading mini dow futures? Say you went long late August with September Dow, would the indicator give signal before the settlement day? The future is already expired now, have you closed the trade of Auguest 29? Also, why do you use closing price for performance, since the signals are generated overnight, I think the openning price would better mimic the actual trading, right?; September 19, 2006 8:24 PM
Shawn said...: I would have to say the best constant system out there.. non-emotional... I use it to trade the DJIA E-mini futures when I am not playing with the R2K futures...

Would like to see it updated at close for the next day's trading...

Check out my E-Mini Index Futures Trading Blog; September 19, 2006 8:32 PM
Raymond said...: I am new to the system and have a couple of question. Is there somewhere on your website that shows the "go long", "go short" during the trading day or do we have to wait until after the market close? I am trading the DIA but will consider the options on DIA as Dave suggested he is having good success. Keep up the good work!; September 19, 2006 11:55 PM
The Dow Trader said...: Msg for Shawn [great blog btw] & Raymond - We are updating every 10 mins throughout the day. Ideal entry is to check around 10 mins pre-close and enter the market depending on whether the signal states "Go Long" or "Go Short". If it says "Stay" Long/Short, don't do anything. Hope this helps!; September 20, 2006 3:43 AM
BB said...: Hi,
I've been a member for a few months and have had great results.

Couple Questions:
1) If the Dow is the "leading" index, would it not make sense to trade an index that follows the dow? Wouldn't you be getting in and out of trades with better position in a lagging index?

2)The "Learn it" button in the members area is still under construction. Do you have an idea when this will be functional?

Thanks for the feedback.; September 20, 2006 5:47 AM
Anonymous said...: Hi John,

please ignore my last email, the superb blog page answered all my questions and subsequent questions, this is a super system in terms of transparecny, user friendliness and good old fashioned simplicity itself!. I am sure you heard the terminology: K.I.S.S............ KEEP IT SIMPLE STUPID

I am profiting with small amounts of money at present ( lets's learn to walk before I run), and early next year to do larger scale trades, but in the mean time I intend to accumulate a consistent stream of profits/income .

Keep up the great work!!

All the compliments I wish to give to you and your staff have been covered on the blog already !!

all the best
Anthony; September 20, 2006 5:57 AM
Anonymous said...: Hi

I am new but the system looks great! and simple couple of questions.

I start trading during GMT hours before DJI opens. For example today the DJI futures is +28/31 etc. Does this have a strong influance when the market opens in NY?

In cases like this should one hedge the DJI or just wait till NY opens ?

Best wishes
Kevork; September 20, 2006 8:29 AM
Anonymous said...: The 10-min update is a great improvement to your excellent trading system. I also trade the TSE 60 ETF (XIU) and would certainly appreciate your maintaining coverage of this index on a daily basis.; September 20, 2006 10:02 AM
Anonymous said...: Your program is educational, simple and fun! The Inter Market indicator is an awsome tool! What a blessing. ONe question: Does the Inter Market indicator reflect the movements or moods of the actual futures DJIA futures? I have noticed that over the past few days, there has been a big point spread between the Dow points and the E-Mini. Keep up the fine work and thanks for adding the 10 minute update feature!; September 20, 2006 10:34 AM
Anonymous said...: Anyone trading other index futures? Interactive Broker has a nice platform for trading the Nikkei, Dax, FTSE and a number of other global equity index's. I particularly like the bracket orders which allow you to set up an entry order and if it is executed, it also executes a hard stop or trailing stop automatically, which is nice if you are sound asleep!; September 20, 2006 11:36 AM
John-David UK said...: Oops, that was a reversal today!! But what a system thankyou! two questions, I'm in the UK, what time zone is the Dow at, and where is the Dow 30 screen gone? You probably gather I've not traded before, but now have the wherewithal to begin doing so without losing my shirt as it were. This seems the safest system to begin with at least.
Finally, do I understand that you never close your positions, only buy long or buy short?; September 20, 2006 12:51 PM
jahn said...: this system is excellent. i've been a member for a number of months but not until the "dow-trader" was introduced was i really motivated to use the system. i'm paper trading futures right now, anyone care to give some tips?
- when do you enter the market?
- what sort of orders do you use?
- any recommended brokers?

great, simple system!!!

cheers; September 20, 2006 1:35 PM
Anonymous said...: Great improvements to the system. Thanks for all your hard work. Let's hope Uncle Ben turns this baby down today.; September 20, 2006 1:48 PM
Burlington Boy said...: I just like to say that what a great idea a blogg page is, and how it will help the new kids on the block like me. Is there any one out there who uses this simple system to spreadbet the dow, and what results are they having ?

If you are spreadbetting are you using Dec Dow Contract or are you using the Dow rolling contract as the trades are only lasting a few days.

Look forward to comments.

BB; September 20, 2006 2:39 PM
The Dow Trader said...: Msg for John-David [UK] - The Dow Screen is there - simply click on Dow Trader on top left menu. Dow is Eastern Time [New York], around 5 hours behind UK GMT.; September 20, 2006 2:48 PM
The Dow Trader said...: Msg for Jahn - ideal entry into the market is around 10 mins before the close - as I said earlier in this blog, "the trick is to wait until around 10 mins before the close. If the signal is a "Go Long" or "Go Short" signal at that time, then enter the market, if it is a "Stay" [long/short] signal, then hold."
Orders are always 'market' orders as the Dow is extremely liquid and you would have no trouble getting a fill. There are many good brokers out there - check out the comprehensive list in the manual. Thx for the positive comments!; September 20, 2006 2:52 PM
The Dow Trader said...: Hot off the press - Dow Trader is a father again!!! Mother and baby are fine - means I will not be able to spend as much time on this blog as I would like to but please keep those comments coming - it would be great if 'experienced' members might like to contribute and answer/respond to any beginner questions/comments on this blog - we want to try and create a community where we can interact and help each other!; September 20, 2006 3:01 PM
Abiodun said...: Well for the second time what can I say than well-done, Impressive result...! Keep up the good work!; September 20, 2006 5:21 PM
Anonymous said...: This is a great site and your new Dow Trader is working very well for me trading Calls and Put Options with the DIA. I get a little nervous watching the 10 min update, but your post of looking at the Dow Trader about 10min prior to close is really all I need to do. Can you update your main page "history" of your trades more often? Thanks, Jim in Seattle; September 20, 2006 7:33 PM
Michael said...: Hello,
Firstl i must say this is a great system that with responsible trading makes alot of money.

I would like to see how the indicators (long/short) are arrived at would also like to configuration parameters for the signals so users can prgramme it; September 21, 2006 5:11 AM
Anonymous said...: Hi

This is for BB. In short spread betting Dec or Roll is almost the same. You can buy sell either one as many times but in my case the platform I use the main difference is the spread. Dec has 9 points spread rolling has 5 points spread. That does not bother me much except the overnight interest you pay or receive. I normally sell rolling and buy three month(Dec).

Spread betting is fine specially now that we can get trade signals from Dow Trader before the close.

Rgds
Kevork; September 21, 2006 5:33 AM
ron-uk said...: hi - been paper trading and impressed by results now the faster system will make for more timely entry/exits. however what level do you suggest emergency stops on entry (ie distance away from entry) on long or short; September 21, 2006 5:57 AM
Anonymous said...: hi guys,
I trade the dow through spreabetting and to reply to an earlier question here is what I found. It is best to use the dow roling daily if we are short or selling because you will be paid an amount of money for holding your position overnight. Also the spread is tighter on the rolling daily, 4 points as opposed to 8 on the december contract.When going long, I choose the dow december as I will not be charged for holding my position overnight although there is a wider spread to pay. I think spreabetting is a great way of trading the dow and more importantly it is TAX FREE which as a Frenchman gives me great pleasure !!!
Didier UK; September 21, 2006 6:48 AM
The Dow Trader said...: Quick note to all members - the "Learn It" button on the Dow Trader screen is now updated and fully operational - provides important information on how to use the screen... take particular note of the "10 mins before the close" entry system.; September 21, 2006 7:23 AM
The Dow Trader said...: The FAQ section is now also updated and live - it answers many of the popular questions for members. This will be updated regularly to form an archive of solutions - accessible simply by clicking on the FAQ/Support link on the left hand side of the main Dow Trader screen. The Dow is expected to open up today - we are LONG the market so should be a good day! Discipline and persistence pays in the long run.; September 21, 2006 9:11 AM
hst1001 said...: I've noticed that there are IMS indicators for the NASDAQ, London and Toronto as well. I've been paper trading the NASDAQ for about 3 months with a positive result. They don't seem to be advertised so are they "experitmental"?

Congratulations on the new addition!; September 21, 2006 10:04 AM
Dave said...: When I buy DIA option I will look at calls or puts depending on the Dow Trader signals. Before I execute I use the 30min opening range to confirm the signal from the Dow Trader. This has worked quite well for me. Using this morning as an example the opening range would have kept me from executing a call option. Opening Range works for stocks or options.
Dave; September 21, 2006 10:19 AM
Anonymous said...: Can someone explain speadbetting on the Dow?; September 21, 2006 12:59 PM
The Dow Trader said...: Spreadbetting is covered in the online manual: go to http://insight.net/dow-online-trading-manual-13.htm; September 21, 2006 1:13 PM
Burlington Boy said...: Thanks to Kevork, for your expanation of the contract to trade with spread bets.; September 21, 2006 2:34 PM
RC said...: Question for Dave. Can you explain opening range? Does this mean that you are waiting for 3 (every 10 minutes)updates after the market opens to get confirmation to do OR not do the trade? Also, what expiration month would you buy now, October?
Thank you,
RC; September 21, 2006 3:58 PM
The Dow Trader said...: We are looking for some feedback from current members - a plan to roll out an 'email' version of our online Dow Trader screen, 3 times a day: 10:30, 1:00pm and 15:30pm. We feel this will better serve members and protect from any server downtime risks, which thankfully do not but can [very rarely] occur. In order to make this possible, members will need to ensure they have reliable email addresses which they should double-check. More information on this service will be posted in due course.; September 24, 2006 3:38 AM
mrahfaldt said...: This is a fantastic system. Very easy to use, yet profitable. Question though, can you clarify the times that you will be updated the Dow Trader? Please include the timezone which you are refering to.; September 25, 2006 8:28 AM
Anonymous said...: Its a good idea if there is a risk of server going down. The times suggested is also good because as you mentioned erlier 10 min should be just as an information rather than trading.
Rgds
kevork; September 25, 2006 11:06 AM
Incorrectness said...: I think the e-mail backup is a great idea. I would suggest a 3.45 to 3.50p m e-mail time though.; September 25, 2006 11:26 AM
Anonymous said...: What I will say, well done Mr. Insight. Keep it up.; September 25, 2006 1:15 PM
Shawn said...: Emails would be great....3 might be a bit much daily... but 2 (10:30 & 15:30) is an excellent idea...

Keep up the good work! We really appreciate your hard work on this.. Blogging was an excellent addition to your site.

Readers, Check out my E-Mini Index Futures Trading Blog if you are into Russell 2k action.; September 25, 2006 1:19 PM
Tim said...: Hi. I have just joined as a new member. I know the system is designed for end-of-day trading, but in the manual it says that some members use it for day trading. Has anyone got any such experience? How did it go?
Many thanks,; September 25, 2006 3:43 PM
Anonymous said...: I am new to insight but not new to trading. I have been trading for 4 years and have spent thousands of dollars on many other complex trading software. I love insight because it's easy to use and I can still work for a living. Also, I just wanted to share my plan with other insight users. Since the S&P 500 follows the dow I plan on using the dow trader signals to trade S&P options.
-Kevin
Chicago,IL; September 25, 2006 4:19 PM
Anonymous said...: Hi, this blog is great! But it's kind of hard to follow, with the current timestamp which shows the post time only, not the post date. Would the moderator please enable or configure to show both date and time of the posts? Thanks!; September 25, 2006 7:13 PM
forex1665 said...: I like Dow Trader trading system. I have been trading Index, Option and Forex for 10 years. This is the best system I found.
Since we use daily chart and check the system signal once a day after market close, 1 E.mail 1 few minute or after market close will be enough for clints to confirm signal in case service is down. Intraday signal or e.mail will not make any sence. We don't need anything conflict with trading signal or anything which will be changed after market close.; September 25, 2006 8:29 PM
phertz1 said...: anonymous kevin-
why are you switching to S&P for using the dow signals? What about options on DIA? If the system works, why fiddle with it?
-Paul; September 25, 2006 9:11 PM
Denis said...: I like the idea of e-mail updates for members. Barring that, it would be very nice if we could access the current site on our hand held devices (like my TREO 650). The strategy is so simple that it should be possible to make trades remotely. The e-mails or some adjustment to the way the site loads would do the trick.; September 25, 2006 11:09 PM
Anonymous said...: The Dow Trader is a very neat program, is it possible for you to set up the site so that it can send an e-mail to members, every time the trend indicator changes direction. This would really be helpful for someone like me who is always on the go, but can access e-mail via palm/blackberry; September 26, 2006 7:16 AM
Burlington Boy said...: Great idea to have a email verification service, would help the novices like me. A bit of hand holding. Keep up the good work.

BB; September 26, 2006 8:47 AM
rlsm said...: I am relatively new to this system and I am impressed. Starting to get some real results. Dow Trader, is it advisable to wait until the end of the day even if a "go long" or "go short" signal was generated earlier in the session?; September 26, 2006 9:23 AM
Anonymous said...: Phil in UK asks;

Does anyone know of a UK brokers office through which you can trade the DOW call/put options

Thanks in advance; September 26, 2006 9:49 AM
Anonymous said...: hello:
I am very impressed with the recent changes to the Dow Trader site

I would love to have the required knowledge to allow myself to trade options on the DIA with confidence.
I would love to have a further explanation from Dave's post at 2:35pm. "I buy the front month with a Delta of 70 or above". - What does this mean exactly and where do I acquire this info on a going forward basis?

Thank-you in adavance, to all who reply.
Ken.; September 26, 2006 11:48 AM
Anonymous said...: Hi,

Another suggestion....I ran across the new proshares ETF's that go both long and short the DOW. You can also buy these ETF's as "2X" funds which double the gain (or loss) relative to the index. They are still a bit thinly traded, but I just traded a lot and had no problem getting filled. This might be a solution for people with IRA's who cannot short stocks.

Denis; September 26, 2006 3:08 PM
The Dow Trader said...: More feedback requested from : A suggestion was made by one of our long-time members to see trading results whereby we ONLY TRADED WHEN THE IMS WAS ABOVE 70 [short signal] or BELOW 30 [long signal]. If all the other signals were ignored [eg when IMS is between these bands such as 60, or 42 etc.] then we are out of the market. Well, we have researched this and have found that this would have kept us out of all losing trades in 'choppy' markets. Results would be: 20 trades since Jan 2006, 15 winners, 5 losers. Total winning points: 2798, losing: 598, net profit: 2200 points. The great thing with this is that we are not entering new positions when the IMS is somewhere in the 'middle', but onlytrade above 70 or below 30. Once we enter a trade, we exit if the IMS turns around at any point [even midway, but do not initiate a new reverse position unless IMS is <30 [long] or >70 [short]. We would welcome members input on this. If this is favorable then we will publish the new signals based on this tweak/improvement.; September 27, 2006 3:58 AM
The Dow Trader said...: An additional development is the pursuit of the 'ideal' stop loss point. From our research into ALL our trades, we have found that a 1% FIXED stop-loss point provides protection while [most importantly] allowing ample room for our trades to move. Visit the web page www.insight.net/imsXtra.htm which posts the results of the IMS system based on applying the 1% stop-loss rule AND the IMS filter whereby you only trade LONG if IMS is below 30, and SHORT if IMS is above 70. Check it out - give us your comments!; September 27, 2006 6:34 AM
Burlington Boy said...: I tend to agree with forex1665. The beauty of the dow trader is it is simple to follow, and you want to keep it simple. One e mail at the end of the trading session confirming the signal for the following day is all that is needed IMO. To many emails /signals would only complicate things for new members/novices like myself.

I like the idea of the tweak, could members have access to these results before they are published on the website ?; September 27, 2006 6:45 AM
The Dow Trader said...: The results of the improvements are published at www.insight.net/imsXtra.htm; September 27, 2006 7:07 AM
Anonymous said...: Dow Trader, your suggestion of trading long only when the IMS is below 30 and short only when it is above 70 sounds like a good way to limit losses. Are the results you showed based on historical data similar to the current system track record on profits? If so, I would say that such a loss limiting tweak would be a good change.; September 27, 2006 7:35 AM
Anonymous said...: Hi guys,

This is to reply to Phil in the UK. I trade from the UK also and I couldnot find a UK based broker for trading options on the Dow. However I was able to open an account with a firm called optionsXpress based in the USA.They are excellent and also have a very neat virtual trading platform which you can access without actually opening an account with them. Hope this helps and don't forget that as a british citizen you can spreadbet !
DidierUK; September 27, 2006 8:09 AM
Anonymous said...: Dowtrader--I quite like the idea of using the IMS 30 long and 70 short. The indicators would seem to generate stronger signals for the trade, creating more profitable results with fewer narrow range trades.
As Edwin Lefevre said, "it is the Wall Street fool who thinks he must trade all the time"; September 27, 2006 8:28 AM
Anonymous said...: I love the new look of the site as well as all of the new ideas. I think the <30, >70 IMS rule is a great idea. It would help if the IMS chart were a bit more detailed so that we could see exactly when the indicator is at 30%. Also, why were trailing stops ruled out as a rule in favor of a fixed stop?; September 27, 2006 10:10 AM
Anonymous said...: Wow! What a great system, so simple. Are your trading results using the 70-30 and 1% loss rule based on intra-day trades or at the close?
Keep up your good work.
RC; September 27, 2006 10:11 AM
rams said...: I have backtested the DOW TRADER history from Jan 3, 2006 to Aug 29, 2006. The strategy I used in the backtest is buying calls and puts on DJX. I bought at the money calls for going long and puts for going short with at least 30 days to expiration. The max risk was $4K per trade, in other words I would buy no more than $4K worth of options on a single trade. Contract size was from 15 to 40 contract based on the price of the option. To keep thing consistant, I would buy at the ask and sell on the bid (worst case). Every time the indicator would change I would sell the existing trade call/put (close the trade) and buy (open a new trade) put/call. The results were amazing, with a profit of over $40K in this 8 month period.
Has anyone considered using this strategy or am I dreaming or doing something wrong. It sounds like it is to good to be true. By the way I am an experienced options trader, and new to the DOW TRADER. Thank you for any comments and feedback; September 27, 2006 10:50 AM
Tim said...: Hi everyone
I have an Excel spreadsheet which shows a staking plan for spreadbetting. I have applied it to the "revised" results issued by Dow Trader, showing net gains since january of 2788 points. It starts with a stake of 2 pounds per point on the first trade and builds up with success, reinvesting profits OR withdrawing them as required. After 21 trades to date and no withdrawals, the Bank is at 67,000 pounds. If anyone wants a copy of the spreadsheet (free, of course) drop me a line on timdwilliams@wanadoo.fr

Happy trading,

Tim; September 27, 2006 11:09 AM
Anonymous said...: I agree with the concept of the 30/70 screen, however, your data suggest maybe a 35/65 screen to capture all the signals you show on the test result screen. For example, May 10th Signal Date shows an IMS of 68, to go short. If screened out att 70 a large gain from the short would have been missed. Good concept to screen out trendless noise unless IMS is at the extremes.; September 27, 2006 11:55 AM
Anonymous said...: Hi guys,

Following dow trader suggestion not to trade when the IMS is between 30 and 70% and using a 1% stop-loss,I have looked carefully and mathematically at the new result table and have made the following observations :
Under the "old system" we would have achieved a profit of 103.43 points per trade made which represents a 71.42% rate of success.
Under the new system, a profit of 122 points per trade made (winning and loosing ones) would have been achieved turning into a 76.19% success rate. I think the figures speak for themselves and bearing in mind that fewer trades would have been made, broker's fees would have also decreased resulting in more profit for us. Well done to the dow trader for an excellent fine tuning tothe system.
Didier UK; September 27, 2006 3:22 PM
The Dow Trader said...: Thank you for all your feedback - this is very important to us. There is yet to be a scientist who can measure the synergy created when minds that think alike, come together. It keeps us on the right track. Looks like we will be working through the night - so we can go live with the new updates BEFORE tomorrows open being Sept 28th 2006. The updated system will include "Go Long", "Go Short", "Stay Long", "Stay Short", "Exit & No Trade" and "No Trade" signals. Check it out tomorrow - and before we go - a BIG thanks to our dedicated programmers without whom none of this would be possible!; September 27, 2006 4:02 PM
Anonymous said...: great update with the stop loss and entry into trade rams technique with buying options sounds great maybe rams could ellaborate ie.. why you chose 4k and if this is the dia options and at least 30 days to expiration would mean an option probably two months out. ie for sept would be nov options hope im understanding this right any input would be appreciated; September 27, 2006 8:48 PM
Anonymous said...: I really like the idea of a 1% stop loss if the numbers work. In the event we have major league negative event such as 9/11 or the Crash of 87, we will be saved! I think that is a huge benefit from a risk standpoint. It certainly reduces the anxiety.; September 27, 2006 8:57 PM
Sam in Alaska said...: Hi, I am new to the system and am very pleased so far. I have 1 question; Can someone explain how an open contract changes during off hours?? After hors trading I expect but could someone explain??? Thanks - Sam in Alaska; September 28, 2006 8:35 PM
Sam in Alaska said...: Hi, I am new to the system and am very pleased so far. I have 1 question; Can someone explain how an open contract changes during off hours?? After hours trading I expect but could someone explain??? Thanks - Sam in Alaska; September 28, 2006 8:36 PM
kjeb said...: Sam you should take a look at the CBOT web site www.cbot.com to understand more about the mini Dow futures.

Good Luck,
Kevin; September 29, 2006 8:21 PM
Anonymous said...: Hi...,
Excellent system you have put together here. Results are very impressive and the tweak on the entry is good. Like many people on here I trade the UK market and i appreciate many people have mentioned using the system for ftse. Maybe you should do a back test on the ftse and dax and let the subscribers decide whether to trade it or not. Further more the trade would give a good feel as to the general direction of the markets/stocks. regards D; October 01, 2006 3:32 AM
The Dow Trader said...: Sunday Oct 11th: Ok - I think we will get to work this coming few days and test the signals on the FTSE, and S&P, Russell 2000, and Nasdaq 100 Index. If anybody out there wants to help out it is a very simple process... Take each and every Dow signal we have provided to Go Long/Go Short/Exit, and calc number of points gained/lost, number of winning trades vs losing trades etc. As soon as we have objective, checked/verified results, we will publish these on separate web-pages... Happy Trading!; October 01, 2006 1:57 PM
Anonymous said...: Greetings to all:

I ran a backtest on the Nasdaq 100 (symbol NDX)based upon the trigger points provided on the Dow Trader. The Opening price was used to buy and sell the Nasdaq 100 index (NDX).

Total completed trades: 21
Total winning trades: 15
Total losing trades: 6
Total winning points: +672.45
Total losing points: -55.52
Net Profit: +616.93
Overall percentage of success: 71%; October 02, 2006 2:03 AM
The Dow Trader said...: Monday Oct 12th: The Dow signal have been tested on the DAX [thanks Tim!]... Results below...
1675 DAX points, which when pro-rated up to the equivalent of Dow points = 3256.
13 winners, 8 losers.
2089 winning points, 414 losing points.
Can anyone also test on the FTSE, S&P, Russell 2K?
Thank you also to the person who did the test on the Nasdaq/NDX last night [see blog above].
Quick note: You should follow the Dow signals to test any other index. Reason: The Dow index is primary, from which most other indexes take, to some degree, their 'cue'. Hence we stick to the Dow signals, and apply them to any other 'secondary' index such as the Dax, FTSE, CAC, etc.
Happy Trading, and please be patient - sometimes a 'no trade' [our current signal/position] is better than being in the thick of a choppy market!; October 02, 2006 8:36 AM
Denis said...: Just for clarity...are all the backtests being run with the 1% stop against the original entry? I'm amazed that the NDX seems to be doing a quite a bit better than the DOW from my calculations (net points against the current index price).; October 02, 2006 10:43 AM
Anonymous said...: Greetings to all:

This is Kenny Caleb with some more back test information however this time on the S&P 500 vs. the Nasdaq 100.

Once again this is utilizing the signal we receive from the Dow. All purchases and sells are done at the opening of the S&P 500 Index (symbol: spx)

Total completed trades: 21
Total Winning Trades: 16
Total Losing Trades: 5
Total winning points: +415.13
Total losing points: -21.45
Net Profits: +393.68
Overall percentage of success: 76%; October 02, 2006 4:12 PM
The Dow Trader said...: Tuesday Oct 3rd: Firstly apologies - last datestamp on my post should have been Oct 2nd, not Oct 12th. Thank you Kenny for the S&P backtest - this just gets better!...
We may now consider adding pages for S&P, Nasdaq 100 indexes on to our site - all based on the Dow Long/Short/Exit signals - this is the primary signal we follow and - based on our original hunch [now backed by research/findings] - can absolutely, be used to trade all the major indexes.
Markets remain choppy - it seems like the market is creeping into 'spooky' October with a lot of caution. In any case, we are presently in a 'No Trade' signal [thank goodness], and await the next Long/Short signal - maintain patience - its all part of discplined trading! Keep well.; October 03, 2006 5:47 AM
Tim said...: Hi, Tim here.
I tested the DAX against Dow signals - see results in a blog a few above. However, the stated results were raw results without stops. I have since added a stop calculator whereby you can choose the level of stop and the results for each trade will then be calculated automatically.
The DAX is MUCH more volatile than the Dow, and a 1% stop reduces the DAX overall performance to under 1000 points (still not bad).
In order to get the best result from the DAX, you need to use a stop of around 3%!! However, decent results (DAX 1455 points) would have been achieved with a stop at 1.75%.

Once again, if anyone wants my DAX spreadsheet, just let me know (timdwilliams@wanadoo.fr). Please put DAX in the subject, thanks.

Happy trading,

Tim; October 03, 2006 8:06 AM
Anonymous said...: Comparing results by backtesting systems can be fun, particularly if we compare the original Dow Trader system with the most recent version.
Let’s assume we are a moderate trader, trading three contracts of the mini Dow (YM) at $5.00 each, i.e. the stake would be $15.00 per point of the miniDow future. The profit / loss per trade is simply $15.00 multiplied by the difference in closing prices for the days we enter and close the trade (ignoring slippage and commission).
Thus using the original criteria, i.e. taking every signal regardless of the value of the IMS, we would make 30 trades to date with the following results:

YM Original
Net Longs $38,600.00
Net Shorts $26,325.00
Net Profit $64,925.00
Winners 22
Losers 8
av win $3,831.82
av loss -$2,421.88
Risk / Reward 1.58
% Wins 73.33
Biggest Win (Short 10/5 to 23/5) $15.225.00
Biggest Loss (Short 24/4 to 5/5) $ 5175.00

If we compare this with the revised system, i.e. we only trade Long if the turning point of the IMS is below 30 or only trade Short above 70, we would make 21 trades:

YM 02/10/2006
Net Longs $32,025.00
Net Shorts $31,375.00
Net Profit $63,400.00
Winners 17
Losers 4
av win $4,425.00
av loss -$2,956.25
Risk / Reward 1.50
% Wins 80.95
Biggest Win (Short 10/5 to 23/5) $15.225.00
Biggest Loss (Short 24/4 to 5/5) $ 5175.00

The biggest wins and losses happen to be identical short trades in both systems. The new system would save on broker fees and has the better percentage of wins, but interestingly a poorer risk/reward.
I hope that these results confirm what other traders have found – if not I am sure the blog will tell us so.
Good Trading.
Rob; October 03, 2006 11:56 AM
Anonymous said...: Comparing results by backtesting systems can be fun, particularly if we compare the original Dow Trader system with the most recent version.
Let’s assume we are a moderate trader, trading three contracts of the mini Dow (YM) at $5.00 each, i.e. the stake would be $15.00 per point of the miniDow future. The profit / loss per trade is simply $15.00 multiplied by the difference in closing prices for the days we enter and close the trade (ignoring slippage and commission).
Thus using the original criteria, i.e. taking every signal regardless of the value of the IMS, we would make 30 trades to date with the following results:

YM Original
Net Longs $38,600.00
Net Shorts $26,325.00
Net Profit $64,925.00
Winners 22
Losers 8
av win $3,831.82
av loss -$2,421.88
Risk / Reward 1.58
% Wins 73.33
Biggest Win (Short 10/5 to 23/5) $15.225.00
Biggest Loss (Short 24/4 to 5/5) $ 5175.00

If we compare this with the revised system, i.e. we only trade Long if the turning point of the IMS is below 30 or only trade Short above 70, we would make 21 trades:

YM 02/10/2006
Net Longs $32,025.00
Net Shorts $31,375.00
Net Profit $63,400.00
Winners 17
Losers 4
av win $4,425.00
av loss -$2,956.25
Risk / Reward 1.50
% Wins 80.95
Biggest Win (Short 10/5 to 23/5) $15.225.00
Biggest Loss (Short 24/4 to 5/5) $ 5175.00

The biggest wins and losses happen to be identical short trades in both systems. The new system would save on broker fees and has the better percentage of wins, but interestingly a poorer risk/reward.
I hope that these results confirm what other traders have found – if not I am sure the blog will tell us so.
Good Trading.
Rob; October 03, 2006 11:59 AM
Anonymous said...: What about backtesting the DIA options? Has anyone tried that?; October 04, 2006 3:19 AM
Anonymous said...: Re the mini Dow trades
Did you spot the error? My spreadsheet was set up for trading 5 mini Dow contracts and I quoted these results as if they were for 3 contracts. Apologies all round. Corrected tables below updated to 02/10/06.

Original System taking every signal and trading 3 contracts:

Mini Dow (YM) Original
Net Longs $23,160.00
Net Shorts $15,795.00
Net Profit $38,995.00
Winners 22
Losers 8
av win $2,299.09
av loss -$1,453.13
Risk / Reward 1.58
% Wins 73.33
Biggest Win (Short 10/5 to 23/5) $9,135.00
Biggest Loss (Short 24/4 to 5/5) -$ 3,105.00

Latest System, only taking signals above or below 30/70 and trading 3 contracts:

Mini Dow (YM) Latest
Net Longs $19,215.00
Net Shorts $18,825.00
Net Profit $38,040.00
Winners 17
Losers 4
av win $2,655.00
av loss -$1,773.75
Risk / Reward 1.50
% Wins 80.95
Biggest Win (Short 10/5 to 23/5) $9,135.00
Biggest Loss (Short 24/4 to 5/5) -$ 3,105.00

Rob; October 04, 2006 5:55 AM
The Dow Trader said...: Wednesday October 4th, 2 hrs before New York Opening: Important - I don't know if many of you have noticed, but despite the relatively low number of stocks trending up [IMS reading registered only '42' yesterday evening], the Dow surged to new highs. Is this a good sign? I am not sure... but we will wait and see. It appears only a few stocks were fuelling the rally yesterday [Tuesday] while the underlying mood was quite negative as shown by the IMS reading - could this be a precursor to an impending correction/pullback in the market? Optimism appears high but is it? Certainly, judging by the IMS number there is no real underlying substance to the rally. Let's wait and see - today's developments should be interesting. Keep well!; October 04, 2006 8:24 AM
davidg said...: Wed 4th October.
I have been a member if Insight for some time and I have to say that the Dowtrader produces some excellent results and is the best system so far. However I did not play exactly by the rules. I was not happy to trade without limiting my exposure and in analysing the figures I decided that a stop loss set at 100 points away fom market would provide an acceptable level of risk whilst allowing for movement. I therefore knew that the maximum loss of any one trade was 100 points and this would equate to 20% of my account balance in money terms allowing for five losing trades in a row before losing the lot. 5 lsong trades in a row seems unlikely and has not happened in the past.
Recenlty I was also looking at how close the IMS changes in direction were and how close the figures were to the 50 mark and was not conviced that the underlying trends were significant enough to provide a good indicator so on 15th Sept I closed at 11588 and decided to wait until there was a bit more movement.
I am somewhat heartened that the advice given now is to set a stop loss of 1% and to not trade until the <30 >70 levels are achieved first as this greatly substantiates my thoughts and findings.
Well done everybody.
David UK; October 04, 2006 9:24 AM
joel said...: Hi Dowtrader,
I wondered about the IMS/ price divergence too. Nice to see a minority of uptrending constituents had enough to crack the all time high and see the IMS pushing back in the same direction :-); October 04, 2006 3:57 PM
Anonymous said...: Does anyone have any experience trading the profunds that trades two times the market with this system? Thanks

Shahnam; October 05, 2006 10:49 AM
The Dow Trader said...: Dow traders should take an active interest in constructive market commentary, dissecting the facts versus over-optimism in the current markets... one such interesting article caught my eye today - take a look: http://www.forbes.com/2006/10/05/dow-theory-confirmation-pf-guru_in_rm_1005soapbox_inl.html?partner=yahootix
[copy/paste URL to your browser]. Markets overstretched, clinging on to the pursuit of 'record' highs? Or it it losing steam? What do you think?; October 05, 2006 5:09 PM
rbp44 said...: Here are four trading outcomes based on these assumptions: Opening capital, $6000; minimum to trade one contract, $3000; commissions/fees/taxes to open/close one contract, $14.
ORIGINAL PROGRAM:
21 wins, 10 losses, 67.7%.
Net profit, $97,915, 16.6% average return, last trade of 32 contracts.
ORIGINAL PROGRAM w/100 pt Stop:
21 wins, 10 losses, 67.7%.
Net profit, $144,956, 17.8% average return, last trade 47 contracts.
70/30 PROGRAM:
17 wins, 4 losses, 81.0%.
Net profit, $77,599, 22.9% average return, last trade 26 contracts.
70/30 PROGRAM w/100 pt Stop:
17 wins, 4 losses, 81.0%.
Net profit, $125,580, 24.7% average return, last trade 41 contracts.; October 07, 2006 10:26 AM
Anonymous said...: 9 Oct 2006
Thanks rbp44,
I was getting anxious since we haven’t had any trading for some time.
Since the IMS was so close to 70 on Oct 6th at 66, I was considering entering a trade if the IMS changed direction. But after reading your latest blog comment, the evidence is clear that I should stand aside until I get into the 70/30 regions.
Thanks again for your work and your data. This Blog is the best for teaching new guys like me!!!; October 09, 2006 2:55 PM
avid learner said...: Oct 9, I've been using the trade trend for a couple of months with individual stocks and had good results.

I'd like to use the dow trader as well, prefer to trade DIA. I'm uncertain as to how to short the DIA beyond buying a put. If that's the best way, suggestions about atm v. otm are appreciated.

thoughts on shorting the stock v. buying a put appreciated.

thanks

B; October 09, 2006 9:09 PM
Anonymous said...: Great post rbp44!

Based on your figures, it's remarkable how much better the whole system fares when the 100 pt stops are used.

Drew from Toronto; October 10, 2006 6:59 PM
Anonymous said...: To Dow Trader
This is for your info if you think there is an interesting point to follow.

Trading your signals at 70/30 and 1% loss but in between opening and closing trades I included 0.75% hedge and following the signal trend until closing hedge position. The results showed net profit of 3007 points.

I have it on spreadsheet if you are interested I can email it to you. I don't think I can attach it here.
Rgds
kevork; October 11, 2006 4:30 AM
Anonymous said...: Hello,

I am new to this site but I have been reading extensively about this system and its results. I just wanted to know if anyone is using this system to trade options on the DIA? If so, how are the results? or is the general idea to stick to the mini-Dow?; October 11, 2006 12:59 PM
apt444 said...: Would love a copy of your spreadsheet. Where do I send my request?
Thanx in Advance
apt444; October 11, 2006 1:48 PM
Joe said...: KEVORK,
Yes, I would like a copy of your spreadsheet. Kindly email it to me at bodega0@cox.net.thanks.

Joe; October 11, 2006 2:28 PM
Anonymous said...: Yes, Please kindly sent your spreadsheet to me, thanks in advance! jingrliu@msn.com

Jing; October 11, 2006 3:31 PM
Anonymous said...: Message for KEVORK,

I would like to have a copy of the spreadsheet you are using. Please e-mail it to sgabay242@yaoo.com; October 11, 2006 4:27 PM
Anonymous said...: Yes I too would like your spreadsheet. Could you tell more of the background of the hedge? I'm new at this.

Hugh > hughh@sbcglobal.net; October 11, 2006 4:38 PM
Anonymous said...: I would appreciate copy of the spreadsheet. please use anil@ptd.net.; October 11, 2006 4:43 PM
Anonymous said...: KEVORK,
Yes, I would like a copy of your spreadsheet. Kindly email it to me at: "infonewspromo@yahoo.com".

Thanks.

Drew; October 11, 2006 9:30 PM
GRNMCHN said...: Hello
Have been using your system for 4 months and really appreciate the upgrades. Quick question. Have you thought about an auto trader system at think or swim brokerage like so many of the Trading Letters? I have a day job and meetings and can't always check for the signal at 3:50 pm. Please check out www.thinkorswim.com. I have no affiliation with this Company other than my account with them. I just want to simplify my life and I am more interested in having someone else execute the trades so I can monitor the performace at night or on the weekends. Autopilot baby.. please make it happen. Thank you.
Scott; October 11, 2006 10:07 PM
Anonymous said...: To apt444 and others who are interested for the spread sheet.
my email: talrafzak@aol.com
Rgds
Kevork; October 12, 2006 1:22 AM
Anonymous said...: Hey KEVORK,
please send me a copy of your spreadsheet as well. tigerec@yahoo.com thanx.; October 12, 2006 8:27 AM
karatem said...: The new 70/30 system certainly seems to work on past figures. I too was tempted to enter when the IMS was at 66 on the 6th Oct. But I decided to abide by your rules and will wait. It certainly teaches discipline.
Kind Regards
Karatem; October 12, 2006 10:48 AM
Anonymous said...: It has been 17 days since a trade signal. That is the system. It is wise to follow the system and not make exceptions. There will even be longer days between trades in the future...and that's OK.
Also, I don,t find much(if any) difference between taking the signal at the close or the next opening...at least with the DIA(Diamonds).; October 12, 2006 12:13 PM
Anonymous said...: Kevork:

I would also like to see your spreadsheet along with how you are trading the signals. You can send it to my email address at: kcaleb3@yahoo.com.; October 12, 2006 1:31 PM
Anonymous said...: Hi kevork,

Could I see your spreadsheet as well? Thanks Petra

synovial@excite.com; October 12, 2006 5:37 PM
Anonymous said...: Trading requires patience and picking your battle. As I look back when we got our last signal exiting a trade back on Sept. 19, 2006 the Dow was trading at 11,540.91. From there the Dow has traded within our 70/30 extreme signals marks upward 406.79 points leaving us with no signal. This is where it get challenging because you want to be in the market. It could continue this channelling up for awhile before getting another signal.; October 12, 2006 7:36 PM
Anonymous said...: I would love to see your spreadsheet ... please kindly send spreadsheet to liou@comcast.net thanks in advance; October 12, 2006 8:50 PM
dowcash said...: With all the action the Dow is showing I do not understand why there is no trade signal. However I guess it is better to do nothing than to lose money.; October 13, 2006 10:56 AM
Anonymous said...: I have had quite a few emails and I think I answered them all.

Just to clarify that I use the IMS signals exactly as the Dowtrader recommends 70/30 and 1% loss and now I am waiting for next signal to trade.

The only reason I tested the Hedging (ie. Reversal) at 0.75% loss because I thought the system being so good (it’s the best I have seen from many believe me) that if there is a major reversal something has gone a miss! So at 1% loss is too long to wait and less than 0.75% is perhaps too premature and thought that 0.75% is enough to reverse the trade. Following the signal trends exactly as we do until signal changes. I applied this through all the trades but it only created 3 reversals and a good result too.

As I said it is just a test and I am hoping that other experienced traders and the dowtrader will put their views.

Rgds
Kevork; October 13, 2006 12:17 PM
mukesh patel said...: Kevork - Appreciate if you can email me your spreadsheet at:
m100patel@yahoo.com

Also, you mention 0.75% hedge. Appreciate if you can explain to novice like myself.

Thanks; October 13, 2006 1:16 PM
Anonymous said...: Has anyone used the Dow Trader to trade CFDs.; October 13, 2006 2:22 PM
Anonymous said...: KEVORK,
Yes, I would like a copy of your spreadsheet. Kindly email it to me at mbaditya@yahoo.com

thanks.

MS; October 13, 2006 4:51 PM
Anonymous said...: Kevork
I would also like a copy of your spreadsheet. I am also new to this and would love to learn all I can.
Thanks!! send to: richnjolene@verizon.net; October 13, 2006 5:46 PM
Anonymous said...: hi Kevork

Thanks for the sheet,Great work. but one question in my mind, I am
just wondering why you didn't do hedge on the 29th of August, the
closing point of that day is 11369.94, there seems a nice profit to make if you hedge on that date. Is there a particular reason orconcern you have for that trading day?

Raymond; October 15, 2006 5:28 PM
Anonymous said...: This blog is superb. I would only suggest a small addition to it. It is not easy to know how recent the massages are because there is no date attached to the individuals messages. Is there a way in which each message can be date stamped?

This one is dated at Oct 16 9:56 AM ET.; October 16, 2006 10:04 AM
Anonymous said...: Hey guys,

Can you please recommend a good broker who does 1pt spreads on the Dow (prefferably in the UK)

I've tried worldspreads.com and cityindex.com but they only do 4pt spreads :(; October 17, 2006 9:37 AM
Anonymous said...: It is clear why there is no signal since the DOW is quite confused about this new upward move as the move is not being participated in by all of the 30 stocks (sometimes less than half) and so you might miss a significant move but I'd rather be in a move that all/most of the DOW stocks aree moving in the same direction as than a half hearted move; October 17, 2006 2:39 PM
ivo said...: Hi KEVORK

Could you please email me the spread sheet pelase to ivo.ivanov@london.com

Also to answer Phil Re: Trading options from UK.

You can use www.iii.co.uk or www.finspreads.com but they dont do Doe e-mini contract

You can as for the spread on the Dec Dow 12100 options contract and use put or a call depending on the Dowtrader signal.; October 17, 2006 3:34 PM
ivo said...: Hi KEVORK

Could you please email me the spread sheet pelase to ivo.ivanov@london.com

Also to answer Phil Re: Trading options from UK.

You can use www.iii.co.uk or www.finspreads.com but they dont do DOW E-MINI contract

You can ask for the spread on the Dec Dow 12100 options contract and trade that using put or a call depending on the Dowtrader signal.

http://www.iii.co.uk/spreadbetting/?type=learn#sbexamples; October 17, 2006 3:38 PM
Anonymous said...: Hello
As a newcomer to Dowtrader I hope that someone could help me!! I have an account set up with "Worldspreads" but am a little puzzled as to which Contract to trade. Would I be best on the Daily Rolling Futures (1 point spread during Market Hours) or Daily Rolling Cash (4 points)? Thanks in advance for your help. My e-mail address is
peter.mccormack@homecall.co.uk; October 18, 2006 7:23 AM
Anonymous said...: Kevork:

I was looking at your spreadsheet and believe I now understand how you are utilizing your hedge trades, however, I would like to verify for myself as well as all of our fellow traders. Your hedge position is not to trade on both sides of our signal but rather if a trade goes against our signal you enter a hedge and hold such position until the next signal?

I was looking at the spreadsheet and it appears that on 8/29/06 you could have entered into a hedge (meaning the signal was to short on 8/23/06 while the dow was trading at 11,297.90 however the trade went up vs going down and on 8/29/06 the dow was at 11,369.94) therefore if you would have entered a hedge (buy long) the next day you would have entered around 11,382.91 and could have exited on 9/19/06 at 11,540.91 for a total of 158 points.

Kenny; October 18, 2006 1:53 PM
The Dow Trader said...: Thursday Oct 19th: A question I noticed gets asked quite often is, "Can I use the IMS to trade intra-day?". I have touched upon this in previous blogs. I will provide more detail here on how we calculate the IMS which will [hopefully] further traders' understanding of why the IMS we publish at 15:30 each day is 'final' and the strongest signal... I would not recommend intra day trading using the IMS. Let me explain. As soon as the market opens, we 'start' assimilating data that comes into each [of the 30] stocks, including amongst other data-capturing, the time/sales sheets, the bid/ask pressure on each of the 30 stocks, intra-day tick-trends, etc. At 10am the IMS is calculated based on this information but the signal at this specific time is 'weak'. If you cn imagine it to be likened to say, researching the effects of a new drug/medicine... Over time, the more information comes in, the more accurate the analysis. This is what is happening with the IMS. At every update throughout the day the IMS signal becomes 'stronger'. This is why the final analysis at 15:30 provides the 'strongest' signal as it takes into account the information assimilated over many hours, thus providing a much more accurate reading. There is slight confusion amogst traders due to the fact that we update the IMS throughout the day, every 10 minutes. However, only the printing of the IMS at 15:30 should be the final signal. Hope this makes sense. Happy Trading!; October 19, 2006 2:35 AM
Anthony said...: Dow Trader , Thank you so much for the clarification of intra day trades . " Let Caution Be The Better Part Of Valor ". Especially now , in times of uncertainty. Thank you .; October 19, 2006 9:39 PM
KJEB said...: Significant results going long during neutral signal periods...

I was curious to see what would happen if we were long during periods when the IMS signal was in neutral territory.

If we go back to the beginning of 2006 and we were long the DOW each time the signal was a No Trade we would have added another 477 points on top of the 2562 points the system has already racked up this year. That does not include the 470 points that the market has added since we went neutral back on 9/19. So if we employed this strategy back in Jan 2006 and exited today we would have added a total of 947 additional points to our impressive 2562 gain for the year. Also note that the 1% stop loss was not triggered during any of these periods. Here's how it breaks down:

03 Jan - 12 Jan +115 points
09 Feb - 21 Feb +186 points
10 Apr - 13 Apr -4 points
05 May - 10 May +65 points
22 Jun - 26 Jun +26 points
29 Jun - 05 Jul -39 points
29 Aug - 12 Sep +128 points
19 Sep - Today +470 points?

Looking at the Dow-Stock-Trends IMS data as far back as it reports from Nov 2005 to Jan 2006 it looks like another 300-400 points would have also been gained if we were long during neutral signal periods back then.

We know as history shows that there is always an overall longer term positive bias to the markets and the DOW. Could it be that when the IMS indicator is in neutral territory we should ride the positive bias? Does the data support this going further back or am I reading too much into this?

KJEB; October 20, 2006 9:55 AM
The Dow Trader said...: Tuesday October 24th: Just a quick note - in the next 2-3 days we will be going live with some valuable enhancements to our service - 100% free of course, to all our present and future members.
Currently, we publish long/short opportunities based on the 30-70 bands which we use in our trading. Now, as you know, the rules for the 30-70 parameters are: Buy when the IMS starts rising from below 30, and Short when the IMS starts dropping from above 70.
IN ADDITION to the 30-70 signals we currently publish, members will now be able to also view, the long/short opportunities based on different parameters...
These parameters will be:

0-100 [ie., No Bands!]
25-75
30-70 [current default]
35-65
40-60

To access any screen, you will simply click on it [eg., "Dow 30-70 System" or "Dow 35-65 System"] from the left hand side menu.
We hope to go live before the end of the week - and would love to have your feedback on this.
Happy Trading from all at DT!; October 24, 2006 10:42 AM
Anonymous said...: Kevork,

Please if you would send me your spreadsheet on the 0.75% hedge trades you are looking at.
And thanks in advance, jim

jbmann@sbcglobal.net; October 24, 2006 2:41 PM
Abiodun said...: Fantastic improvement Dow Trader, lets hear what others think. I look forward to seeing that....

Well-done!; October 24, 2006 3:05 PM
ivo said...: I would very much appreciate that new system. It would enable people to trade in between 30/70 should they chose to...; October 24, 2006 5:12 PM
Njan said...: Oct 25. Great Job! Thank you Dow Trader.; October 25, 2006 1:46 PM
The Dow Trader said...: Wednesday October 25th: Well, I said it less than 24 hours ago, but thanks to some exceptionally talented programmers, we have worked through last night, and rolled out all five systems screens today - all 100% free to our members.
You can now check signals [opportunities] based on different IMS filters: 25-75 bands, 30-70 bands, 35-65 bands, 40-60 bands or no-bands at all.
To add additional value to this as suggested by a valued member, we will also be publishing performance results on all five systems. There is a link on the left hand side "Performance Record". The page is under construction, and should be ready over the coming weekend. It will show key information on all 5 systems: Number of Trades, Number of Winning Trades, Number of Losing Trades, NET Points Profit.
Thx for all the feedback - signing out - DT.; October 25, 2006 3:13 PM
Anonymous said...: Regarding the new updates to the site: would each individual parameter have its own "Stay Long", "Stay Short", "Exit", "No trade", etc, daily signals?; October 25, 2006 5:59 PM
kjeb said...: Nice job folks!; October 25, 2006 6:44 PM
JC said...: KJEB,
I concur with some of your observations. I believe it is possible to trade even when signal is neutral under the 30-70 band. However, this requires combining information from the equally impressive trend index in the Dow Stocks Trends chart. The current positive bias is reflected by the yellow and grey bars forming consecutive peaks above the x-axis. Notice how the "Highs" of each new peak is at least 50pts above the previous peaks "High". By targeting to enter a trade at 50pts below the last peak's "High",and placing an exit limit order at 50pts above the last peak's "High" one can obtain at least a 100pts per trade.

Likewise, when the market has a negative bias or trending downwards, the yellow and grey bars of the trend index chart forms consecutive bottoms below the x-axis. Each bottom is typically at least 50pts below the previous bottom's "Low". By placing a trade at least 50pts above the last bottom's "Low" and placing an exit limit order at 50pts below the last bottoms "Low", one can also achieve at least a 100pts per trade.

Hopefully, the Dow Trader can look into the merits of above observations and perhaps even incorporate it into the current system.

Posted on 26th Oct 2006; October 26, 2006 4:39 AM
The Dow Trader said...: Friday October 27th: Performance tables have been published for all 5 systems - view: www.insight.net/performance.htm
Have a great weekend! DT; October 27, 2006 7:21 AM
VJ said...: Fantastic and good work DT with the new approach. I think this is definitely value for money for me.; October 27, 2006 12:44 PM
Joe said...: JC
I enjoyed your input on the "50 points above or below " x-axis but am unsure of what you mean by the x-axis.Could you give me an example?
Thanks
Joe bodega0@cox.net; October 28, 2006 11:38 AM
Anonymous said...: Message for KEVORK,

I also would like to have a copy of the spreadsheet you are using. Please e-mail it to zbworks@yaoo.com

Thanks!; October 29, 2006 1:36 AM
The Dow Trader said...: Monday October 19th: Message for valued client KJEB...

We have been looking closely at your observations, regarding the possibility of trading "long" through neutral "No Trade" periods, and [per your calculations] adding some 900+ pts to the 2500+ pts already achieved.

Our initial thoughts on this were 'cautious'. While such a theory might be productive during bull runs, it would likely be much less effective during bear markets. However, the spark has not burnt out on this theory...

We plan to ADD an additional system based on these rules, and are currently working on a way to decipher [using existing tools & IMS] the 'trend' of the overall market. Once the trend is found ['bull' or 'bear'] then and only then, if we apply the following rules, the system would, we believe, be much more complete/rounded and profitable...

Rule 1:
IF we are in a BULL market, THEN all NO-TRADES become LONG TRADES

Rule 2:
IF we are in a BEAR market, THEN all NO-TRADES become SHORT TRADES

Effectively, we would ALWAYS be in the market. Once we have tested this, and it proves to be [even more] profitable then the current 30-70 System, we will publish this as an additional System [including FULL signals/performance history report], which members can use.

Ongoing developments will be posted on this blog. Best regards - DT; October 30, 2006 4:34 AM
RJT said...: Greetings,

Very impressed with ALL of your improvments! I can tell that customer satisfaction is number one with the DT.
Quick question; The DT basis all of its trade signals on the Dow, but the CBOT mini dow is open almost 24 hours. Should I be concerned with the time differances between the market hours of operation?; October 30, 2006 10:01 AM
Anonymous said...: Hello all,

Im fairly new to the this trading system .I have been pretty much waiting for an indicator to jump in.Honestly I cant wait.So here is my question I did some math on a scenario of using 6 contracts starting with the first trade back in Jan 06' using the 70/30 program.What I found is that by keeping all profits riding in the form of additional Emini contracts that to date my initial investment of about 15,000 would be worth 625,000 today ....can this be right ? I mean if this is possible and you extend this scenario out over 3yrs we are talking about multiple millions...Can someone verify this for me so I know that my math is'nt screwed up?; October 30, 2006 11:34 AM
JC said...: joe,

The x-axis is the horizontal line that cuts through the zero point on the trend index chart. The yellow and grey bars will appear either above or below this line. You can see this more clearly by going to "Dow Stock Trends" and selecting Dow Jones. Then choose "Trend index" for Indicator #1 and "240" for Number of bars. Hope this helps.

posted on Mon 30th Oct 2006; October 30, 2006 12:38 PM
mrahfaldt said...: The performance numbers certainly validate the 70/30 system. It takes more discipline to wait days or weeks for a signal, but then again self discipline is rewarded in trading:); October 30, 2006 4:43 PM
kjeb said...: I couldn't agree more about maintaining discipline.

It is relative to the trading system. It can take just as much discipline (or maybe more) to stay in the market as it does to stay out of the market.

Thanks to DT's efforts we have several trading disciplines to choose from and perhaps more to come.

KJEB; October 31, 2006 11:44 AM
The Dow Trader said...: Wednesday November 1st:

We have had mixed reaction about publishing the 5 current IMS systems.

We published the five systems to provide a broad perspective on how the SAME IMS READINGS perform, given different filters.

As you know, all 5 systems are profitable - the results were published at: www.insight.net/performance2.htm

However, it is very important for us, and our members that we don't 'overcrowd' the IMS with multiple methods of trading.

Our members are right - too many systems can potentially create confusion and loosen discipline - eg., which particular system should I follow?

This is why, today, we will simplfy our service to just 3 key systems:

System X, System Y and System Z.

System X = Dow IMS xWave Trader [an exceptionally profitable, stop-loss based system]
System Y = Dow IMS 30-70 System [as before]
System Z = Dow IMS 0-100 System [as before]

Other systems [25-75, 35-75, 40-60] are not necessary and - while profitable - add unnecessary clutter. They will be removed.

To read more detail about each of the systems [X, Y & Z], please visit the relevant "Learn It" pages...

System X: www.insight.net/trading-system-X.htm
System Y: www.insight.net/trading-system-Y.htm
System Z: www.insight.net/trading-system-Z.htm

Full performance figures are published at: www.insight.net/performance.htm
Pay particular attention to System X performance

More about System X...

In my last post, I mentioned our research into...
Staying 'Long' through bull-market neutral periods, and staying 'short' through bear-market neutral periods...

The basis of the Dow IMS Wave Trader [System X] is that we allow ourselves to maximize profits through an entire 'wave'...

In other words, we go long and we STAY LONG through the full IMS up-cycle from an IMS below 35 right up to an IMS above 65. We only exit [and reverse to short] if our fixed 1.0% stop-loss is hit through this move.

Similarly, if we are trading 'short': we go short and we STAY SHORT through the full IMS down-cycle from an IMS above 65 right down to an IMS below 35. We only exit [and reverse to long] if our fixed 1.0% stop-loss is hit through this move.

These rules mean that we are ALWAYS in the market using this system, either Long or Short... NEVER out of the market. The system was developed and tested through 2006, with excellent results.

Performance results [since Jan 2006] repeated below:

Total Number Of Trades: 24
Total Number Of Winning Trades: 17
Total Number Of Losing Trades: 7
Total NET Profit Points: 2,947

Next week, we focus further on System X. We will apply the EXACT SAME long/short signals to other major indexes:
FTSE 100 Index
Nasdaq 100 Index
S&P 500 Index
Russell 2000 Index

Tables will be published on the 'performance' page.

Thx for all your valued feedback - DT.; November 01, 2006 5:56 AM
Incorrectness said...: I went through and reviewed the trades for the system X trading mechanism. The results are even better if you actually have the stop-less set in your trading program to get you out of the trade when the stop is reached.
Great work DT.

Yours,

Incorrectness.; November 01, 2006 8:31 AM
Anonymous said...: Dear Dow Trader'

What a fantastic system, well done!!

I have watched it for some time now. Where is the best to start with your very first trade. In other words when do I enter the system?

Once again well done Dow Trader.I am looking forward to the other indices. Is there any chance what so ever to have the Johannesburg Stock Exchange - ALSI 40 - in this system for your South African clients??

Kind Regards

Danie
trader247@worldonline.co.za; November 01, 2006 10:26 AM
simacj said...: Great work DT. New system looks great and does take the confusion out of previous incarnation. I guess proof of pudding is in the eating but it sure smells good.; November 01, 2006 3:09 PM
whitehylite said...: Wednesday 1st November 20:00
Hi, I only joined Dow Trader one week ago and I must say I am most impressed with the efforts and suggestions that have been made to improve the site in that time and future focus on other Indices sounds great. Keep up the good work!; November 01, 2006 3:13 PM
Anonymous said...: 1 November 2006
Dear DT,
Pardon my ignorance.
I did a little more reading of your materials about the 1% stop loss.
Is that 1% stop loss actually baked into the IMS indicator.
Therefore all I have to do is watch the indicator and not worry about any math? You do it all for me?
Thanks.; November 01, 2006 8:52 PM
Anonymous said...: Now we have basically three system all utilizing the same signal but each very different from each other. The participation within the blog section is great and we appreciate all of your hard work Dow Trader. Great Job

Kenny C; November 02, 2006 12:42 AM
Anonymous said...: 2 Nov 2006

Hi

Congratulations on a simple and profitable system.
I live in Australia and it is not practical to trade the signal 10 minutes before close. Are there many people who trade the signal after hours?

Johno; November 02, 2006 2:17 AM
VJ said...: I am extremely impressed with the new strategies put up and would like to express my appreciation to all those who have shared their spreadsheets,knowledge and insights to shape into profitable trades. I am new to this but am highly impressed so far.Hats off to DT for the effort put in getting so far and am sure the future looks very bright. Good luck to all.; November 02, 2006 4:22 AM
Anonymous said...: Dow Trader,

Thanks for all the updates, great work!!
Have you back tested these results going back a couple of years? Also, one can make more money going with an ultra ETF that doubles the results (both positive and negative). Has anyone considered doing this? Thanks.; November 02, 2006 6:32 AM
The Dow Trader said...: Thursday November 2nd:

Thanks for all your positive feedback [VJ, Kenny C, KJEB, Johno...] - I think we have got it dead right with the new layout [System X, Y, Z].

Quick point about the stop-loss in System X - yes, this is built into the signal generator, so if a stop is hit, the system will let you know automatically and provide the appropriate long/short signal... all the math is done, so you do not need to worry about this.

Also note, we have now attached a different 'time' format into the blog comments, so you know exactly which date and time they were posted. Sorry to take so long - sometimes we just prioritize things in various orders of importance.

Much of the important work has been done now with System X fully published. We are watching the markets closely today, in anticipation of the jobs reports. But despite this [as always] the IMS system will take precedence. We are asked quite often how 'fundamental or economic news/data will affect the markets.

The simple answer is - nobody can ever predict economic/news announcements with any real degree of accuracy - only take a calculated guess.

Point in hand, as traders our job is not to predict, but to adapt our position in the market if need be. We follows a systematic [IMS] approach to trading and build into it, a mechanism for accepting both winning and losing trades. We have a stop loss of 1% baked into our system, so if we are wrong, we have to be ready to take it on the chin.

This is all very much about attitude, maintaining discipline, admitting when we are wrong [stop-exit], and confidence in the systems 'overall' ability to produce sizeable gains in the long run [always look at the larger picture].

Best regards - DT.; November 02, 2006 7:35 AM
Anonymous said...: hi

could somebody explain what an ultra EFT is and how does it double results. Great work DT on new system

tks; November 02, 2006 1:56 PM
ypref said...: Hello Dow Traders!

Using Tim's staking spreadsheet I have been following Dow Trader results for a while and papertrading until I am ready to jump in. In that spreadsheet it became quite obvious that the 4 Stop-Losses encountered with system X have been reached while keeping a Go Short position. 4 out of the 5 Go Short losers have reached the Stop-Loss. The other 2 losing trades were Go Long and they were smaller losses.
Would there be a way to verify this trend going back a few years?
I take for granted that you guys have analyzed the 1% Stop-Loss thoroughly and that it is wiser to stick with it... but perhaps there could be a smaller stop-loss for Go Short positions if it proved to be a verifiable trend.

Just my two cents from a non-expert such as myself.

In any ways, thanks for everything you guys and keep up the outstanding work!
Cheers,
Yanik; November 02, 2006 2:50 PM
KJEB said...: I ran the X-IMS Wave signals against historic mini DOW open/high/low/close data from CBOT for all of 2006.

Assumptions:
Open contracts are rolled over 2 days prior to expiration.

Placing trades at the close of mini Dow trading (4pm Chicago time) about 1 hour after the DT signal...

Trades:24
Winners:18
Losers:6
Net Profit Points +3092

Placing trades at the re-open of mini Dow trading (6:15pm Chicago time same day) a little over 3 hours after the DT signal...

Trades:24
Winners:18
Losers:6
Net Profit Points +3175

This is good news for those who are not able to get to a computer to place a trade as soon as a signal is issued. Note that some brokers don't actually let you place "after hours" futures trades.

I have also been looking for an automatic stop-loss level for risk management purposes that does not interfere with DT's signals or built in stop loss.

Looking at the daily futures high and low prices vs. our signal directions for 2006 I found that this stop would have to have been set at a minimum of 2% against the actual futures price so as to not interfere with any X-IMS DT signals.

KJEB; November 02, 2006 3:57 PM
Anonymous said...: Hi guys,

Can anyone please recommend me a good broker for spread betting whi offers 1pt spreads on the DOW?

All the ones i found in the UK trade at 4pts or more.

Many thanks!; November 02, 2006 8:13 PM
Barry said...: There is no one, no,not one of us, that is as smart as all of us,except for the creator.The creation is never greater then the creator.I am new to DT and looking forward to using and following this system as layed out,exactly as it is designed.Barry.; November 02, 2006 11:35 PM
Anonymous said...: Can someone confirm that 1% stoploss equals 120 points if the Dow is at 12000?
Therefore set SL 120 above when short and 120 below when long.

Thanks; November 03, 2006 6:46 AM
Anonymous said...: DT,

I am a very satisfied subscriber. The new additions look like dramatic improvements on an already great system. So, it is with some reluctance that I ask the following question, based on some recent posts:

What if your trading system is based in part (or entirely) on the "gold" signals on your DJI trend index? How would that perform?

Doug; November 03, 2006 11:26 AM
Anonymous said...: Apples says: Yes
120 points at USD 120.00 = 1%; November 03, 2006 11:46 AM
Anonymous said...: The stop loss is a safety measure to limit losses when trading. A trader will decide on the maximum loss he/she can tolerate per trade, mostly calculated as a percentage of his/her trading capital. For example if you opened a long position of just 1 contract on the mini Dow ($5.00 per point), and your trading account was $1,000, then if the Dow future went down by 10 points from your starting point, the loss would be $50.00. This would represent a loss of 5% of your trading capital. Thus if your stop loss was placed at just 1% at the opening of the trade, the Dow could only drop by 2 points before you would be stopped out. As likely as not, the index would then regain its levels and sail past the stop loss point to cause much anguish to the trader.
If you were in a winning trade, however, the stop loss can be adjusted upwards to ensure that only a certain percentage drop (in a perfect world) would be lost on the high point of your trade.
The Dow Trader’s 1% stop loss will (I am guessing) be based on a trading capital of many thousands of dollars so that the index would drop far more than 2 points before 1% of trading capital would be lost and the trade would reverse.
In a sense we are in a trading co-operative, benefitting from a hypothetically large “pot”.
System X will save us all a bit of heartache by having more tolerant stops than we could set on our own. Good luck to all of us who will share the exhilaration of trading this new system.
Rob
PS not used to blogging - hope this doesn't appear twice; November 03, 2006 12:53 PM
jmac said...: Hi I just joined and think this is great.; November 03, 2006 3:45 PM
Tigere said...: This post has been removed by a blog administrator.; November 03, 2006 5:44 PM
Anonymous said...: Hello,

I'm considering joining but would like to communicate with several members who have been using this system for more than three months, I have some questions. I would prefer to speak on the phone or via e-mail. If you could e-mail me your information I would appreciate it. Thanks! chris_trader7@yahoo.com; November 04, 2006 10:44 PM
KJEB said...: I believe (and DT may want to confirm this) that the 1% stop loss calculated by DT is done at the END of the trading day only. It is not triggered by highs or lows occurring during the trading day.

So if you are planning to set a 1% automatic stop with your broker you will most likely exit too early.

Based on calculations using actual futures data for 2006 (see above) if you had set an automatic 1% stop loss you would have exited too early on 6 occassions costing you 1340 points! It would have helped you only once +93 points!

I think the best solution if you always want a stop in place is to set an automatic stop higher maybe 2% - 2.5% and let DT's signal handle the 1% stop trigger.

Also you should be using position sizing as well as stops to manage your risk.

KJEB; November 05, 2006 1:31 PM
Anonymous said...: Hi

"KJEB" said use position sizing as well as SL, what does this mean.

JP; November 05, 2006 4:04 PM
Anonymous said...: Hello,
From what I've seen this sytem is great! I have just one question: How long do you plan to keep the dow trader available to the public? I would hate to ever see this sytem not to be available.; November 05, 2006 11:59 PM
Anonymous said...: Hi kjeb,

You might please expand on what you mean by positional sizing as i have not come across term before; November 06, 2006 6:22 AM
Anonymous said...: have you tried to use the system on forex trading end of day..say starting at 12 am till 12 am for 24 hours... do you thing the 30/70 thing would work?? has anyone tried??? is any one even interested in finding out ??? am i the only one that has thought of doing this ??? does this even sound like it could be done??; November 06, 2006 8:31 AM
Anonymous said...: Just signed up. What a great program. Thanks. I love the new system X and all the feedback. Great job.; November 06, 2006 10:44 AM
John said...: Hi All,

I have been viewing the history for System X and noticed that the system called for going long around Oct. 16th. Since then the system has been saying to stay long but in the interim the IMS % has turned down and subsequently reached under the 35% line. Now the IMS % has turned positive from beneath the 35% line. The system says to stay long but could I take this movement of the IMS % indicator to be as good as the system saying Go Long? In other words can this be considered a good entry point? It would seem so to me. Thanks for any feedback.

John; November 06, 2006 12:40 PM
Anonymous said...: John, I agree it sure looks to me that today would be a viable enter point since the IMS is climbing from below the 35% line.

Kirk; November 06, 2006 2:24 PM
Anonymous said...: Apples says: If you check out FAQ number 6 on the site, it explains exactly what the 1% stop is and when the check is made. Briefly, it is as "tiger" has already said, a function of the dow itself. And the stop is checked once a day 30 minutes before close.; November 07, 2006 10:15 AM
tractorwood said...: Well, for those of us who went long yesterday, the trade is looking good so far.

Out of curosity I looked back to see how the trades did when the DOW moved 100 or more points on the same day a signal was given. There were 6 such trades and the total DOW points gained for the 6 trades was 135 or an average 23 points per trade. The overall average gain per trade for the entire 24 trades was 123 points. Granted it is hard to draw a conclusion from only 6 trades, but it may be that signals that occur concurrent with large DOW moves are not the best trades.

Anyway, based on the above I decided to go long with a smaller position than I otherwise would have.

Now we will wait and see what the result is.; November 07, 2006 2:21 PM
Anonymous said...: Hey Dow Trader,

This is a great service. I have had it for over a year. I did not do much with it until you made some of the new updates. I'm still used to trading the "Old" way of 123 tops and bottoms. This works well and has been very profitable for me lately. Thanks so much for your hard work on it!; November 07, 2006 2:30 PM
Diana said...: To the Dow Trader geniuses
(Great Job to you All)

...prior to the new X, Y & Z system, the final IMS number displayed at the end of the trading day represented calculations based on the percent weighting of all 30 stocks in the Dow.

If we are now using another method of calculating that IMS number ....will the results be the same?

Were the IMS numbers calculated with the old (percent of weighting) method used to back test the new X, Y & Z systems.

Shouldn't we now test the New Systems numbers agagaint the Dow. I may be totally of base but could someone clear this up for me?; November 07, 2006 4:02 PM
IVO said...: WorldSpreads offers 1pt spreads on the Wall Street Futures (Dec) and also the same on the FTSE 100 Futures (Dec)

Note that 1pt spreads are ONLY available during market trading hours!

IVO; November 07, 2006 5:28 PM
Bob said...: I'm a new subscriber. Should I jump in to this rally or wait for the next signal? Please get back to me at Rburke07030@optonline.net

Thanks!; November 07, 2006 7:03 PM
Anonymous said...: Good Day Dow Trader:

I just love your system. Could you clarify something please. We must take action as per the signal about 30 minutes before closing of the market. That is 15:30 in New York. If I update the Dow Trader the time of the signal is +/- 30 minutes delayed. Do I wait until just before the actual close or do I trade 15:30 with a delayed signal?

Kjeb I would appreciate it if you will contact me at:

trader@worldonline.co.za

Regards

Danie; November 08, 2006 2:25 AM
Anonymous said...: I would like to know if anyone has tried DIA and DJX LEAPS with the DT and the results. I am a novice but have attended some options trading classes. The DT trading system looks very promising.; November 08, 2006 6:44 AM
Girltrader said...: Well, I have been watching your site for almost a year now, and I have finally gotten off my tush and signed up! I have been reading through your manuals, but I can not find the list of brokers that you mention in the FAQ, and also, I can not find where it tells me the best time to enter the market. Please help, thanks.; November 08, 2006 8:57 AM
Anonymous said...: Following up comments by KJEB on the 1% stop loss and so on.

I want to stress that, all those who were interested, and had a copy of my spreadsheet on the 0.75% reversal, it is based upon my trading platform. IE. I spreadbet and the lows and highs are not as high and as low as the DJI daily.

So, it is a very valid point to be careful that you check your own trading system how it works.

Alternatively just 30 min before close one could apply if any at all!

Rgds
Kevork; November 08, 2006 9:58 AM
deadduck said...: Hello, to girltrader, you need to read the trader manual to find your ansewers.
deadduck; November 08, 2006 6:08 PM
Ivo said...: Hi all,

I have revised the popular dow trader spread sheet which calculates your P/L, stake, spread and so on...

The revised version now includes:
Long/Short column;
Dow Close position
- Dow Open postion
= Gross
- Spread = Net pts

New column for GSL and the Profit/Loss field has been adjusted to deduct the Grtd Stop Loss fees (if any) from you broker giving you precise P/L minus spread and minus GSL fees.

If you want to make use of it you can download from here:

http://www.nordicwhite.com/DOW_trader_sheet.xls

Regards,
IVO; November 08, 2006 8:07 PM
Anonymous said...: This is the best program I have ever used and I think the comments from members are excellent.
May I make a suggestion which I think will affect all of us at some point in the year. Would it be possible to have a telephone link so that if we are away from the computer say on holiday/business or whatever, we could phone and listen to a recording of the end of day instruction? We would then be able to let our trades run and not be worried what is happening when we can't get to a compuuter.
Keep us the good work. CFG; November 09, 2006 4:37 AM
Carol said...: Think the program is great best I have ever used. Could I make a suggestion which I think all of us would use at some point. Could you set up a telephone link so that if we are away from a computer ie. on holiday/business or whatever, we could telephone and listen to a recording of the day's instruction so we can let our trades run while we are away and not have to worry what is happening? Keep up the good work. Regards Carol; November 09, 2006 4:45 AM
Anonymous said...: Hello.

New to Dow trading, coming from Forex. The dow values are all based on the big Dow. When trading the mini-dow, it doesn't matter about when to enter the trade? Would you just follow the X signals for the big Dow? Thanks!; November 09, 2006 9:36 AM

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