Day Trading Pattern Trading

A while ago, I saw a web page which was written in a kind of gibberish. But if you took the time to read the page it actually made sense. I forget the URL but if you know it, please drop me a line in the contacts page.

The point being that in day trading pattern trading, the human mind can recognize patterns, much better than a machine or a computer program. CRAWLER, is nothing more than several dozen lines of mechanical trading rules applied to e-mini price data. Even then it seems to work. Imagine what you could do with the mind's pattern recognition capabilities?

After looking at a few thousand charts, the one starts to transcend your pattern trading rules and you develop a more intuitive sense of chart reading and pattern trading "common sense".

InstinctiveTrader.com is an excellent resource focusing on this style of trading. Malcolm Robinson is an experienced pit trader who turned to screen trading. Mal is more of a counter-trend player.

Joe Ross however, is a master of day trading, pattern trading and chart reading. Following his trading patterns, one can really begin to 'pick-up' when a new trend is starting. While he has written several books, a combination of two his books,

(1) Trading by the Minute and (2) Trading is a Business and seperately

(3) simulation trading with NinjaTrader, really helped me gain the necessary trading mental references. His books are expensive but they are really full blown trading courses.

We continue to add examples, methods employed by both Joe Ross and Malcolm Robinson. Here we provide a 1 minute chart of the Hang Seng Futures Contract. Click here for day trading the Hang Seng.

Commando Trader prescribes another pattern trend trading method that uses a Tradestation based automated trading system. However this system still suggests manual verification of the emerging pattern. The developers have proven this system with a large library of historical simulated trades on the S&P contract.

For a relatively low cost the developers have also added Sharpshooter and C3 to their list of automated trading systems. Recently I had the pleasure to test drive C3 on the Hang Seng Futures contract, one of my favourite trading markets. Stay tuned for the performance strategy report.

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