Trading With Tick Index: Early Detection Of Trend Buy Day (Signal ID – TICK Trend Buy)

By Lawrence

Trend buy day are the days where the stock market indices just keep going higher. Day traders are often trapped on the wrong side of the market on such days due to various price based measures telling them the up moves are over extended. What they fail to realize is that the market has been driven by the buying of the underlying components on those days thus the index future has no choice but to follow.

Being able to detect this undercurrent before it turns into all out rally can be a life saver for day traders. Tick index is one of those tools best at giving us such information early on. Following is a basic day trading model showing you how to capture a trend day with the NYSE Tick Index.

The Performance

Following is a net dollar gain chart of the trading model trading a single Emini S&P contract. Commission of $2.5 per contract per trade is already deducted from the net gain.

image

(premium member only content below)


Part of our premium service, login now or upgrade your membership to view this report

Share

Comments
  • smilingsynic October 25, 2013 at 12:25 am

    Interesting. System did extremely well in the 2008-9 bear market, even better than in bull markets. Somehow I doubt negative tick days (sell @ 10 am if avg tick < X) would have the same kind of profitability

    • Lawrence Chan October 25, 2013 at 10:25 am

      trapped shorts behave differently comparing to trapped longs

      so yes the trend sell version is not based on the same concept

  • rkalin November 24, 2019 at 7:20 pm

    You write “When appropriate filters are applied to this model, you can expect upward of 75% to 80% winning rate with minimal drawdown”. Do you have an article that discusses these filters in connection with $TICK Trend Buy rules presented in this article? Or are such filters discussed in your TSB or other training materials?

    • Lawrence November 24, 2019 at 9:56 pm

      Good question – originally I was writing on advanced breadth trading models several years ago and because of so much background information and fundamental trading knowledge has to be covered, I ended up breaking it up into 3 volumes. TSB is the absolute foundation of running a trading business. Emini Day Trading Course is the foundation of day trading strategies. And now I am working on the volume on advanced breadth trading techniques.

  • You must be logged in to comment. Log in