[Trading Article] Carter, John - A Systematic Approach - Using Volatility to Create Winning Trades.pdf

AA SystematicSystematic Approach;Approach;
UsingUsing VolatilityVolatility toto CreateCreate
WinningWinning TradesTrades
JohnJohn CarterCarter
.
BackgroundBackground
„ II havehave tradedtraded activelyactively forfor 1717 yearsyears
„ FullFull TimeTime TraderTrader SinceSince 19961996
„ StartedStarted financialfinancial marketmarket researchresearch firm,firm,
. inin 19991999
„ CTACTA andand PrinciplePrinciple inin RazorRazor Trading,Trading, aa privateprivate
moneymoney managementmanagement firmfirm
„ StartedStarted offoff asas stocksstocks andand optionsoptions trader,trader, nownow
tradetrade mostlymostly futuresfutures
AA SystematicSystematic Approach;Approach;
UsingUsing VolatilityVolatility toto CreateCreate
WinningWinning TradesTrades
ƒ AA largelarge partpart ofof whatwhat dictatesdictates mymy intradayintraday tradestrades
isis determineddetermined byby thethe actionaction ofof thethe keykey intradayintraday
indicatorsindicators thatthat II . TheyThey areare asas follows:follows:
ƒ TICKTICK (measures(net sellingselling NYSE)NYSE)
ƒ TIKITIKI (measures(net sellingselling DOW)DOW)
ƒ Put/CallPut/Call (measures(measures thethe ratioratio ofof callscalls . puts)puts)
ƒ TRINTRIN (measures(measures up/downup/down volumevolume onon NYSE)NYSE)
ƒ TRINQTRINQ (measure(measure up/downup/down volumevolume onon Nasdaq)Nasdaq)
ƒ SectorSector SorterSorter ListList (measures(measures sectorsector performanceperformance
andand overalloverall marketmarket strengthstrength oror weakness)weakness)
TICK 5 Minute Chart
Audio Alerts at +/- 600, 800, 1000 and 1200 Ticks
TICK TIPS
ƒ ++ oror –– 400400 isis noisenoise andand cancan bebe ignoredignored
ƒ PayPay attentionattention overover +600+600 oror --. IfIf youyou areare onon
thethe oppositeopposite sideside ofof thisthis closeclose youryour positionposition
ƒ IfIf youyou areare longlong andand youyou getget aa +1000+1000 ticktick reading,reading,
closeclos