CFD Mechanical Trading Short Term

Overview

Mechanical trading sytem developed for DMA CFD trading

This Mechanical Trading system is mechanical by nature; meaning that all human emotion and judgment are eliminated.

The concept is to identify pattern recognition in short term trend momentum which uses statistical measures to generate long or short entry signals.

The driving mechanism is statistically engineered on basic grouping tools and indicators which include Bar Chart price analysis, Oscillators, and Support and Resistant levels, making this Trend - Stop - Reverse System dependent towards daily price action and chart analysis.

Full entry is only made if all conditions are met.

After months of testing and backtesting the system is finally up and running. The opening trade began on the 31st July 2008.

All trades are real and have CFD contracts to validate this.

Thursday, September 18, 2008

STOPPED WBC AXA SGP

Stopped WBC @ 22.00 nett loss $652

Stopped AXA @ 4.90 nett loss $687

Stopped SGP @ 5.05 nett loss $668

Wednesday, September 17, 2008

WOW Nett Profit $484

Met Taget on open today with WOW @ $28.45 with nett Profit $484.00

Long WBC SGP AXA

Long WBC 23.50 - 420 vol - Stop 22.31 - Target 24.69

Long SGP 5.39 - 1900 vol - Stop 5.13 - Target 5.65

Long AXA 5.25 - 1900 vol - Stop 4.99 - Target 5.51

Tuesday, September 16, 2008

WES PROFIT $547.00

Achieved target ith WES today on open @ 29.00
Nett Profit $547.00

Monday, September 15, 2008

EXIT STO ON REVERSAL

Sold STO on open($18.64) on System Reversal Conditions nett LOSS $67.00

Wednesday, September 10, 2008

SHORT WES

Short on open today on WES $30.69 - 330 vol - Stop - 32.21 - Target 29.17

Tuesday, September 9, 2008

TOL PROFIT LONG STO

Target $7.55 met today on TOL with a Nett Profit $468

1 entry today on open.

Long STO $18.70 - 550 vol - Target 19.61 - Stop 17.79

Monday, September 8, 2008

LONG WOW

Long WOW (27.00) on OPEN 360vol - Stop 25.61 - Target 28.39

Tuesday, September 2, 2008

Profit WBC Loss NCM LONG TOL

Over target on open with WBC ($24.00) nett $529
Stopped on NCM ($25.43) Nett Loss$539

Long on TOL at open $7.19 - 1400vol - Target 7.55 - Stop 6.83

Monday, September 1, 2008

WES loss $38

Had a reverse signal last thursday and friday therefore the rules opted me out at the open today at $31.64 with a slight nett lose of $38.00.

Risk & Return Management

The trades will be entered and exited at the opening auction periods and only 2.5% of previous close. This means I can still get in a trade if it opens higher than 2.5% and then drops to my entry point. If entry is not hit that day the trade will be a non trader.

There ia a strick 5% risk and return setting on every trade of $10 000.
This means for every $500 put at risk there must be evidence of a $500 return.
Trade volumn = $10,000
Profit Target = $500
Stoploss Exit = - $500

All open trades will be exited on the next days open if there is a reversal within system conditions the previous day.