Trading system using ADX

For several years I have knocked around a concept that I named 'The Daily Benjamin' (Benjamin is slang for the 100 dollar bill). The idea is to make a trade per day looking to make $100 each day, or around $2000 per month. It involves buying a significant dollar amount of stock (not applicable to options) and taking a small move. I plan to impliment this concept once I retire and have the cash to trade for real so for now I am simply practicing and refining my techniques. My results have been remarkable. I use options xpress virtual trading to simulate true market conditions and have far exceeded $100 a day. So, I like my simple system so much that I want to share it with you and perhaps someone might make some real money from it.

If anyone is interested, I will provide my code (Strategy Desk only but easily adaptable) and I plan to provide some signals around 4:00 each day for a while and then commentary the next morning on how the signals have faired

I practice trade using $50,000.00 use a watchlist of about 20 stocks so you will see the same stocks time and time again.

Yesterdays signals were (buy at close price)

WLT (Long) Buy stock @ 13.45 Sell today 13.80 High so far is 14.18 Using $50000.00 I only needed a .03 move to make $100 but I took .35 for a gain of over $1300.00

CERN (Long) Buy 55.16 Sell today 55.32 High so far 55.76 profit = 145.00


DIS (Long) Buy 74.44 Sell today 74.80 High so far 75.10 profit = 242.00

CELG (Short) Buy 167.04 Sell today 166.25 Low so far 165.09 profit = 236.00

Here is a chart of CELG showing past signals (candles are color coded to show signals). Keep in mind that only a SMALL move is needed. Red is for shorting Blue for Long





Edited 1 time(s). Last edit at 01/15/2014 12:24PM by mtut.

The only signal I am getting today is a LONG play on MO. Practice buying it at the close price (Some platforms have a "buy at close" option) then divide 100 (or your projected dollar gain) by the number of shares purchased and add (subtract for shorting) this amount to the purchase price. This is your target for tomorrow. Should sell out before 10:00

**** The $100 gain is based on $50,000.00 investment. If you trade less than this, then you must adjust the $100 goal. Example - $10,000.00 should make $20 or 1/5 of 100.00. You need a good amount of capital to make this profitable.

Bought 1355 shares at 36.90 with an .08 gain goal



Edited 3 time(s). Last edit at 01/15/2014 04:03PM by mtut.

I NOW HAVE CODE FOR TOS AS WELL!

Sold out of MO up .08 at 9:43 made 110.00

Two short plays today

BAC & GE

Thanks for the interesting concept and your input and posts

Screenshot of TOS

Made projected gains on both BAC and GE (look at the charts)

Signals for Friday are...

Short PFE

Long COP and DIS

Here is a photo of my OptionXpress Virtual account depicting my trades from yesterday. The trades with a yellow line over them are my mistake. I bought shares rather than shorted them this is showing the sell of those shares.





Edited 1 time(s). Last edit at 01/17/2014 03:25PM by mtut.

Result from Friday signals

DIS BOUGHT 73.94 SOLD 74.36 NET 283.92

COP BOUGHT 67.51 SOLD 67.88 NET 274.17

PFE SHORT SELL 31.08 BUY TO COVER 30.99 NET 144.81


TODAYS SIGNALS

CERN LONG

FDX LONG

WAG SHORT

Result from Friday signals

CERN BOUGHT 55.94 SOLD 57.03 NET 974.46

FDX BOUGHT 142.14 SOLD 142.52 NET 133.76

WAG SHORT SELL 58.72 BUY TO COVER 58.90 NET LOSS 153.18


TODAYS SIGNALS

LOW LONG

MO LONG

PFE SHORT

Your system is performing very well!

So far!!. Could just be the monkey throwing darts season effect

Result from yesterdays signals

LOW BOUGHT 47.75 SOLD 47.86 NET 115.17

MO BOUGHT 37.50 SOLD 37.31 NET LOSS 253.27

PFE SHORT SELL 31.32 BUY TO COVER 31.03 NET 462.84



TODAYS SIGNALS

BBBY LONG

SO SHORT

CERN SHORT

How to trade using this system (Please do not trade real money using this method yet. Needs testing through the summer time zone)

***ALSO I recommend the following stocks to be used with this system. I have tested many stocks and these work well. They will provide at least a trade a day

BAC BBBY BRCM CELG CERN CME COP DIS F FDX GE LOW MO NKE PFE PNY RL SO WAG WLT WMT YHOO

*** Be mindful of earnings and other stock specific events. DO NOT Trade a stock that announces earnings after the close today. TOS will display such information in the watch list. Check before you buy!!! The blue arrow shows upcoming events and column shows the signals. The candles are color coded to indicate a signal as well. Note that you would not have wanted to trade BAC on the 15th green candle due to the event show at the bottom of the chart.



1 Must use enough capital so that an anticipated small move in stock price will create the profit desired ($50,000 is default)

2 Using the signal, BUY or SHORT the stock as close too 4:00 as possible. Go all in, buy as many shares as you have capital for.

3 Determine you PROFIT expectation by dividing your profit target by the number of shares purchased
example $50,000.00 Stock price = $50 purchase 1000 shares profit target = $100 100/1000 = .10 move needed

4 MUST!!!!! be able to watch the market at the open.
At open - if price is at or above your target - SELL immediately!! DO NOT try to play the market. You have a goal and it was meet.
If it has opened more than twice your profit goal against you, then SELL or If you can watch the market all day you can watch the
stock to see if it comes back. It frequently does.
If no sale at the open, then place a GTC sale order for the target price and a STOP order at a price that will loose twice what you
want to gain ($200).

5 Close position around 3:45 if still in the trade. DO NOT carry over!!!

The $200 loss seem steep but the winning percentage and the fact that you often gap in your favor, more than compensates for the doubled loss amount. Request a look at my daily updated spreadsheet that documents my practice trades since January 7, 2014.

That's it. I live by the KISS (keep it simple stupid) thought process. No need to fix things that are not broken.



Edited 3 time(s). Last edit at 01/23/2014 05:07PM by mtut.

Great info and thanks for sharing and the continued postings

Result from yesterdays signals

BBBY BOUGHT 65.66 SOLD 65.80 NET 106.54

SO SELL SHORT 41.44 BUY TO COVER 41.22 NET 265.54

CERN SELL SHORT 56.44 BUY TO COVER 56.07 NET 327.82



TODAYS SIGNALS

MO LONG

WMT LONG

NKE LONG

Result from yesterdays signals

MO BOUGHT 37.36 SOLD 37.21 NET LOSS 200.70

WMT BOUGHT 74.57 SOLD 74.22 NET LOSS 234.85

NKE BOUGHT 71.85 SOLD 72.15 NET 208.80

2 OF 3 LOSSES - WORST TRADING DAY THUS FAR



TODAYS SIGNALS

MO SHORT

SO SHORT

Result from yesterdays signals

MO SELL SHORT 36.83 BUY TO COVER 36.63 NET 271.60

SO SELL SHORT 41.25 BUY TO COVER 41.14 NET 133.32


LAST POSTING OF RESULTS UNLESS REQUESTED. EVERYONE SHOULD HAVE ACCESS TO SETTINGS AND WATCH LIST SO THOSE THAT ARE INTERESTED CAN FOLLOW ALONG WITHOUT MY INJECTION.

RECORD SINCE JAN 7 2014

31 WINS 6 LOSSES



Edited 1 time(s). Last edit at 01/28/2014 10:43AM by mtut.

31-6 is a pretty good record my friend!

More power to you! nicely done