PPT trading = MMM Money Making Machine

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It is great to be part of IBC and 12631. I have learned so much from all the traders on here.  Just the fact that you post your trades here in front of your piers makes you think twice before you enter a trade.  I am trying to be a trader and shake off the gambling side.  Some would say it is all gambling but I see it more like a Poker game where math, skills and psychology makes the difference.

With help of PPT I am developing a completely new trading strategy that so far has been profitable. I am up about 13% for the year but could have been up much more if I had invested a higher percentage of  my funds. I have remained in 70-90% cash position since October 2010. But when trying a new trading style you like to take small trades to make sure it works.

Since January 2011 I  have mainly traded on overbought or oversold PPT signals. The PPT Hybrid score has been unbelievable on spot all year long. How I trade depends on where in the trading range we are and if we are in an uptrend or down trend. Without a clear signal I sometimes don’t trade at all and that can sometimes be the best trade.

Since March we are between 1350 and about 1050. 1350 with multiple tops and 1050 with a double bottom. The range always like to narrow so lately we have been between 1150-1250 then 1225-1175 giving me a pivot point of 1200. So currently when we have the O/B and O/S signals I will Short a O/B signals above 1200 and cover when we get O/S or usually a little sooner. When we were below 1200 I would buy dips on O/S and sell rips on O/B signals or usually a little sooner.

I try to avoid fast moving leveraged stocks like TZA/TNA.  SDS/SPY works in a much more manageable speed giving you a chance to correct.

Depending on the strength of the signal I go in 1/10 or 1/4.  If a trade goes against me I wait for strong support or resistance before adding another 1/10 or 1/4.  So far this year I never got to trade my last 1/4 or 1/10.

If you are not a member of IBC and 12631 sign up. It is the best money you could ever spend.

Special thanks to Ragin Cajun, ChessNwine and Fly for sharing their site and knowledge and also thanks to everyone else who put in their 2 cents everyday.

10 Responses to “PPT trading = MMM Money Making Machine”

  1. If PPT is a money making machine, how come Fly bought VXX on the rally? He lost 30% on his VXX trade. How come swine is always on the opposite trade? Woodshedder pulls out a new indicator every other day which makes no sense.

    I am not saying anything out of the extraordinary. I am just reflecting what we are reading on this ibankcoin blogs.

    • Fly does not always follow PPT. Fly keeps positions much longer in general. I think if Fly would have trusted PPT more this year he would be up 100%. We all have our trading style and all use the PPT in different ways. End of the day the PPT just nails it and if not the same day it happens with days.

  2. Based on todays O/B signal I added to $SDS @ 19.28 on closing. Still holding $TBT up 6.8% today.

  3. We are getting closer to the major resistance levels. 1300 will be hard to crack. Instead I think we will spend some time between 1260 and 1300. I will try to take advange of the swings in between. Prefer doing it with shorts close to 1300 and cover close to 1260. Just in case we get some more bad news from Europe. Can’t trust any of the PIIGS. Things will get worse.

  4. It is amazing how much small caps >$5 and $5-$10 are lagging compared to the more popular names. But yet again the popular names having a hard time living up to their hype $AAPL $AMZN when it came down to it. Next time Greece report on their progress they will be behind again. Same with the Italians and the Gerrmans will get pissed. All the European GDP will be killed by this austerity putting them further in debt. The GDP in Eastern Europe already in the toilet. Just wait until The Congress has to increase the debt ceiling again in the US later this year then we will get downgraded again. France by the way is about to get their downgrade. Xmas sales will disappoint in particular for Walmart. Popular gifts will be sold by $AAPL and $AMZN Phones and pads without sales tax and free shipping. Great for $UPS and $FDX. Bad for cities and counties who again will lose even more tax revenue this year…….. What happens if OCCUPYWALLSTREET succeed in boycotting $BAC and they lose 20% of their deposits. If BAC needs more capital again ooh wee look below. Then there are the missing jobs and housing crisis. So any significant rally will be killed sooner or later for any or many reasons. But isn’t that the plan anyway. That is how suckers are born. Make believe.

  5. Great blog Vegas. As a member of 12631 agree totally!

  6. question, rewinding the last couple of weeks.
    oct 14 we were ob, I added a partial of tza.
    on the 17th (Monday) we closed ppt @ 2.46
    I thought the precise os was 2.45
    I held, still holding tza, now avg of about 33 and sold the nov 33 calls on Friday.
    please critique if you can or was this just the breaks of the market sometimes. I do see your point of trading spy related ETFs instead of the 3 x guys…
    thx

  7. oh, an added point and question, if you are up 13 on an average cash position of 80 percent, that is 65 percent on risk capital which is awesome.
    how did you handle the aug volatility ?

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