Wednesday, October 24, 2012

COP - Concept of Price Rhythm - Marcus Tay

More seminar update at

1.       Trades only emini Russell 2000 futures
2.       Aim for only 1 point profit target per trade (1 pt = USD100), profit target of 1 pt entered by default once a trade is initiated, but stop loss is placed manually (usually above resistences or below support)
3.       Risk:reward ratio is typically around 1:3 ( but not fixed as stop loss is dependent on support/resistence levels).
4.       Trade only 2 hrs per night (from 9:30-11:30pm). 
5.       Usually can find between 6-8 trades durng this 2 hr period, each trade lasting an average of 5 – 15mins (but many more lasted only about 1 min+).
6.       Use Volume-based (not time based) charts, ie every bar represent, say 100 contracts. (VXcharts charting software is used, subscription is S$50/m)
7.       5 strategies will be taught but can concentrate on just 1 or 2 if preferred (some of his students trade only 1 strategy and is highly successful).
8.       Accuracy is around 70-80%
9.       Startup fund is USD3000.  Start with only 1 contract and aim for around USD200 profit a day (ie 2  profitable trades a night), however over a one mth (22 trading days) period, expect net profit to be only around $1,500 - $2,000 due to some losing days.  When become consistent, can slowly increase # of contracts traded. (he emphasized it shld be gradual, from 1 to 2, then after a while, 2 to 3 contracts etc).
10.   Course fee $3,500  (Day 1 & 2 on Nov 10-11), then a one day bootcamp session on 24 Nov. 
11.   Class size limited to 25.
12.   There will be live chats and he will also make trading calls (he didn’t say and we forgot to ask if there is a time limit to this hand-holding period).

Marcus “divulged” 2 of the strategies during the course.   
1.       The first (LSD strategy, a counter trend strategy) is based  on divergence (similar to stock divergence but he uses a different indicator (not sure what it is) to spot the divergence between the volume based chart  and the indicator.  There are also 2 volume-frames (compare to multiple “time-frames”  when we use time-based charts, eg daily and weekly charts) involved.  He may be looking at a certain volume based chart for the general direction to trade and then drill up to a lower volume chart to look for divergence to enter the trade. Once entered, decide on the stop loss (based on resistence/supports) while target is pre-fixed at 1 point.
2.       The 2nd strategy is trend following.  He uses some strange indicator and only take a short trade if that indicator is red, long trade if that indicator is blue.. (a bit like black box..?? ).

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