DreamTai Trading Software Blog

Live Trades charts - Part 2 (contd.)

2011-06-26T18:48:00.006-04:00

Here is an update of the recent trades I have done. These trades are in Commodities/Futures market.
But, it does not matter if you are trading commodities or stocks or forex, as long as you trade with the trend and read the tape correctly and follow the laws of money management and risk control.

In short, follow your system faithfully without getting emotional.

The main aim of this post is to show the price pattern and the thought behind each trade.

1. LIVE CATTLE

Previously, i had shorted it at 103 and was stopped out at 106.
The reason I had shorted was that the trend was down.

After being stopped out, the prices went on higher.

I waited for the price to pause and retrace so that I can enter on the long side.
Why? Because now the market is trending up. All the three moving averages are sloping upwards.
I bought the contract at 113.
Currently, we have $200 profit.

Let us see how this trade goes.

2. E-MINI S&P

I had shorted two contracts at 1296 because the trend was going down and the price went below the support level. Also, the price went below the 1300 level which was a "round number". Any prices which end in "00" are major crossing points. Example: Dow 10,000

I purchased one contract at around 1276 for a profit of $1000.

I am now letting the profits run for the second contract. As of now, it has $1637 gain.

Two things:
Trend is our friend
Let our profits run.

3. WHEAT

I had shorted at 808.75 because the overall trend was down.

As of now, we have a gain of $7,387.
But, we have to let the profits run.

It is natural for us to to feel tempted to take profits.
We should not worry about the profits while we are in a trade. Why? Because it clouds the judgement. Rather, we should worry about our risk and check if every act we do is according to our trading plan.

4. SILVER

I had shorted silver at 35.19 because the trend was down.
It tried to go up again, but it failed miserably. It could not even cross the previous high.
Also, it crossed below the support level (shown by the red horizontal line) and also below the 35 "round number".

Currently, we have $1600 gain.
We will follow the trend and let the profits run.

5. SOYABEAN

I had shorted two contracts at 1336.
Why? Because the trend was down and also the price went below the "round number" of 1350.

I covered back one contract at around 1316 for profit of $1000.

I am letting the profits run for the second contract.
Currently, we have a realised profit of $1000 and a running profit of $1287

Let us wait and let the profits run.

6. CORN

I took a new position.
The chart of Corn was looking bearish and so i shorted it at 653.50.
Why? It was making lower lows.It went below the 700 "round number".

Currently, we have a loss of $175.
No need to worry. As long as the loss is below 2 percent of our total capital, we do not have to worry.
Just put a stop loss trade and RELAX and wait for the trade to work out or get stopped out!

Secrets of the Trading System by Market Master Ed Seykota

2011-06-23T03:53:00.003-04:00

Here are the secrets of the Trading System by Market Master Ed Seykota.

Click link here for details at Michael Covel.com website

http://www.michaelcovel.com/2011/06/22/larry-hite-ed-seykota-michael-covel-panel/

Five Live Trades using Price Action

2011-06-19T03:54:00.007-04:00

In this post, I will show you 5 live trades, out of which, 4 are profitable till now, while one trade got stopped out.

Rather than using any trading system software, the trading decisions were made using the price action.
I have added comments on the charts showing my thought processes.
Please feel free to ask questions.

It does not matter whether you are trading stocks or commodities. The basic price action principles remain the same. Once you learn to "read the tape", you can trade confidently in any market.

What will happen to these trades? Will they end up profitable or will they end up in losses? Who knows and who cares! That is because I have already placed stop orders to get out of the positions in case the market moves against me.

Also, the risk per position is less than 1 percent of total account size. So, i am not worried.

Here is the portion of my futures broker's Account statement listing the 4 active trades. One trade was stopped out and is not shown here.

WHEAT TRADE:

The prices were acting bearish. The bulls tried to make the price go up again and again, but they could not breach the 900 levels.

SILVER TRADE:

LIVE CATTLE TRADE:

I was stopped out of this trade.

E-MINI S&P TRADE:

SOYABEANS TRADE:

DreamTai upcoming releases + new DreamTai FaceBook Page

2011-06-12T08:44:00.006-04:00

Hi,

I am still working on DreamTai 5.02.15 Beta 2.
I had released 5.02.15 Beta 1 and got many useful comments and suggestions from the users all around the world.

Thank you very much for all your suggestions.
I will add them in stages release by release.

Beta 2 will have nicer looking charts.
Attached is a screenshot of the next version.
It is almost 80 percent complete.

Beta 3 (not yet started) will have multiple time frame charts, like daily, weekly, monthly.

Also in the works are the following features to be added:
[A] Ability to save settings like:

1. Risk Factor (currently defaulting to 2 percent of initial capital)
2. Chart Lines\Drawings
3. Chart Colors
4. Chart Type...bar chart, line chart, daily, weekly, monthly

[B] Rule based scanning..That is, scan the portfolio for stocks which fit a particular criteria.

Also, now DreamTai has a FaceBook page.

Go to http://www.facebook.com/pages/DreamTai-Com-Inc/214601045236928 to go to DreamTai FaceBook page, or just search for DreamTai on Facebook.

Please do join the DreamTai FaceBook page and give suggestions for features you like in Future releases.

Stock market status as of Feb 27, 2011

2011-02-27T22:31:00.001-05:00

The Dow Jones Index is in a bearish mode due to the Middle East problems.

Continue looking for new stocks to short.

Stock market status as of Jan 30, 2011

2011-01-30T18:13:00.002-05:00

The Dow Jones Index has just given a SELL signal in DreamTai, because of the unrest and violence in Egypt.

Please tighten your stops in the long positions and start searching for suitable stocks to short.

Stock picks as on Jan 23, 2011

2011-01-23T19:06:00.002-05:00

TXT

ORCL

CMCSK

CMCSA

CHK

CBS

ABC

Stock picks as on Jan 17, 2011

2011-01-17T19:42:00.004-05:00

XLK

XLI

WFT

TXN

NVDA

EMC

DOW

Stock market status as of Jan 9, 2011

2011-01-09T22:54:00.004-05:00

XLNX

XLI

VRX

UNH

MRO

LYB

DOW

Stock picks as on Dec 26, 2010

2010-12-26T19:30:00.004-05:00

DJI

The stockmarket is still bullish as shown by the Dow Jones Industrial Average Index.

Here are some uptrending stocks you may want to look at and buy if they retrace.

XLE

WFT

VZ

VLO

TER

SU

MRO

DOW

CBS

Stock picks as on Dec 19, 2010

2010-12-19T23:25:00.002-05:00

DJI

The Dow Jones Index is still bullish.

Here are some stocks which are uptrending and bullish and look like Buy candidates on pullback.

TSM

SLE

ORCL

It appears that Oracle is already pulling back. It has two RED candles going down.

EWT

EMC

CBS

Stock picks as on Dec 12, 2010

2010-12-12T14:33:00.004-05:00

DJI INDEX

The Dow Jones Index is still bullish as it is above the blue stop loss line.
Here are some bullish stocks to keep in mind and buy during pullbacks..

XLI

XRX

VZ

ORCL

CMCSA

ATML

Stock market status as of Dec 5, 2010

2010-12-05T19:09:00.003-05:00

Dow Jones Index

The Dow Jones stock index is bullish at present.

Here are some stocks in a strong uptrend.

By the way, the screenshots were made using DreamTai 5.02.15 ( the latest version, which is still under construction. It that version, you would be able to switch between Line charts, bar charts and candle sticks. )

XLI

XLE

TXN

TSM

SPY

SLV

Q

IWM

HAL

Stock picks as on Nov 28, 2010

2010-11-28T17:37:00.003-05:00

BEARISH STOCKS

TZA

TWM

GGB

BAC

BULLISH STOCKS

XRT

SLB

Q

NFLX

M

EBAY

AMZN

Disclaimer:
For education and entertainment purposes only

Stock picks as on Nov 21, 2010

2010-11-21T21:53:00.004-05:00

Here are some stocks that are moving up.

One reader had asked about when to buy the stock. If he bough a stock which is trending higher, then the next day, the stock retraces back. He sells the stock and after his selling, the stock again moves up.

Actually, any stock in an upmove does not go up in a straight line. It goes up a little bit, retraces down for some days and then resumes its upward journey.

So, the best strategy is to wait for a retracement to consider buying the upward trending stock.
But the risk of waiting for retracement is that the stock may never retrace and just zoom upwards.
Here is another alternative buying technique.

BUy just 20 percent of the stock now..(that is one fifth of the total quantity. Then, buy more when the stock retraces and then resumes its upward journey. Keep adding during each retracement.)
The advantage of this method is that the initial risk is low. Also, you have already made some profits on the first lot, when you buy the second lot on retracement.

The Dow Jones average has bounced from the 50 days average. The over all trend is still bullish, because both the moving averages are sloping upwards.

Here are the stocks moving upwards

TXN

SLB

KO

HAL

CAT

BRCM

* For education and entertainment only

Stock picks as on Nov 7, 2010

2010-11-07T18:41:00.003-05:00

SLW

SLV

PLD

PCS

M

JNPR

F

EWH

EBAY

DFS

ATML

Stock picks on Oct 31, 2010

2010-10-31T15:03:00.006-04:00

These stocks are in an uptrend with buying pressure.

XLP

XLK

VOD

VMED

VIA.B

SO

SLW

MO

LVS

LTD

KO

IBM

EBAY

AKAM

Corn Trade Analysis

2010-10-17T20:08:00.001-04:00

Here is a recent no-brainer trade in December Corn futures contract, I had done recently.

Look at the chart.
First, we check if the chart is bullish and the trend is intact.

1. The 20 day average line is above the 50 day average line

Yes!

2. The moving average dotted lines are pointing upwards (between 1 o clock and 2 o clock clock positions),

Yes!! Yes!!

3. The moving average lines should move smoothly upwards, almost parallel to each other.

Oh Yes!

4. The Power Ranking is greater than 3 (This is preferable)
Not applicatble..as I did not use DreamTai software for analysis.

Corn price moved into the bouncing pad area between the 20 days and the 50 days moving average.
Then, it rested for some time and started moving up.

I purchased two December corn contracts at average price of 496.50.
I placed the stop loss sell order below the bar low.
The Corn just zoomed up and reached around 576.

Now, I have moved the stop loss order just below 500. Why below 500?
Because 500 is a round number and ususally the round numbers (Numbers divisible by 5 or 10) act as powerful support and resistance.

For low risk trades, just look for a trending stock/commodity/forex.
Wait till it reaches the bouncing area between the 20 days moving average and the 50 days moving average.
Then place the trade and place the stop loss at the lower end of the 50 days moving average.(or above 20 days moving average if shorting)

Sit back, relax and wait for the cash register to ring.

See the video below:

Market Wizard Paul Tudor Jones in action: Rare video

2010-10-14T14:01:00.003-04:00

Here is a link to a very rare fantastic video about the Market Wizard Paul Tudor Jones in action.

Please check out this video before someone takes it down.

http://vimeo.com/9881971

CLICK HERE

Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash using methods similar to market forecaster Robert Prechter.

Although the video was shown on public television in November 1987, very few copies exist. Those that do are hoarded by traders who watch the hourlong movie in the hope of gleaning possible trading tips from Jones.

On the Internet, bids for the video start at $295. According to Michael Glyn, the video’s director, Jones requested in the 1990s that the documentary be removed from circulation.

The video surfaced briefly on YouTube at the end of July 2009, before being taken down due to alleged copyright violation.

Jones' firm currently manages $17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems.

Click here to know more about this market wizard

Dreamtai bug fix update released

2010-10-09T16:05:00.000-04:00

Oct 9, 2010
Hi,

I have released a corrected version.
I have repaired the bug about not
being able to set the Initial Capital.

Now, the Initial capital Setting is working.
Please download the software again
(same link as before) and re-install it.

Thank you very much for your feedback.

Sanjoy

DreamTai 5.02.14 Bugs to be fixed

2010-10-05T20:48:00.003-04:00

Hi,

Thank you very very much for contributing money for future development and feedback for the new version 5.02.14. So far, the response has been great for this new version.

Till now, two bugs have been uncovered.

The first issue about not being able to change the initial capital is a bug in the software.
DreamTai 5.02.14 is still in beta testing.
I will repair this bug and release the repaired version very soon.

The second item is about saving the status of the bar color selected.
At present, DreamTai does not save the bar color status, if you change the bar color.
So, if you re-start DreamTai, the bar colors will switch back to default colors.
I will code for this in the next release.

Thanks for informing me about these bugs. Also, please inform me if you like any other features to be added.

New features for DreamTai version 5.02.14:

2010-10-03T20:13:00.003-04:00

Thank you for your feedback for the latest version 5.02.14

There are many new features added in this version.

After installing the new version of DreamTai, the first thing you must do is to study the "Getting Started" webpage.

Check the following link:

http://www.dreamtai.com/docs/getting_started.html

Then, you should study the following webpage on interpreting the trade signals:

http://www.dreamtai.com/docs/trade_signals.html

DreamTai 5.02.14 Beta test version released

2010-09-30T20:38:00.005-04:00

[PIC: "A visit from Easter Bunny" by "aussiegall": http://www.flickr.com/photos/aussiegall/3431275844/ ]

Hi,

The beta test version of DreamTai (version 5.02.14) has been released.

Here is how to download it.

Start DreamTai and select a watchlist and click LOAD button and allow it to download the stock data.

You should see a message window pop up telling you about the new version and the link to download it.

You can also select File =>Messages from the menu to look at the message and get the download link.

This weekend, I will try to write an instruction manual on using the new version.

Please feel free to send feedback and suggestions for the next release.

[PIC: "John rescues bunny by SusanG2": http://www.flickr.com/photos/susang2/3073655290/ ]

[PIC:Bunny Snuggles: by Captainsubtle: http://www.flickr.com/photos/captainsubtle/4578686345/]

Stock market status as of September 26, 2010

2010-09-26T15:48:00.001-04:00

The stock market trend is still up, as shown by the green color bar.

Stock market status as of September 19, 2010

2010-09-19T19:50:00.002-04:00

The stock market is still in an uptrend, as shown by the green bars.

It just sliced through the first resistance level like a hot knife through butter.

Now, the next resistance level is around 10,790