Sunday, February 1, 2009

Ideas

Ok. So I am working on turning my edge into a strategy.

I understand two strategies.

1. There is a market leader, and the rest follow this leader. The leader is always changing. Also, if the others don't follow, take the opposite position. Look for who is stalling, who is moving, and who has recently made a big move. This is known as ticker tape reading. Usually used to scalp, but I think the strategy can be applied fundamentally.

2. Trend is your friend. Ichimoku is a trend indicator that I know inside and out (spent over a year learning this system).

Now I need to combine them together to create a stratagem. Considering using a basket trading style, where I decide fundamentally on a leader, then begin to place positions based on 1st line, 2nd line, etc. Where larger positions are placed on leader, smaller on the lower volatility followers. Risky, Yes.

Currently in the process of unpacking after moving into a new place. Will get back to this later.

No comments: