20120510
Sunny s Dynamic Moving Average
SunnyBands
Today We Will Compare and Contrast Simple Moving Averages Exponential Moving Averages Bollinger Bands Keltner Channels SunnyBands
Introduction After 30 years of trading and research, Sunny Harris has developed many strategies both for herself and for clients. More important than developing the strategies, Sunny has developed testing methodologies that have stood the test of time, and have become the defacto standard in the trading community. In this webinar Sunny will share some of her more profitable trading concepts, and some of her proprietary trading indicators.
My Credentials Sunny J. Harris BA, MS, PhD Mathematics Trading since 1981 (30 years) #1 Rated trader by Stark Research 1993 & 1994 (365% & 178%) Research: Programming & Testing since 1981 Teaching others to trade since 1986
Books I Have Written: Trading 101 How to Trade Like a Pro Trading 102 Getting Down to Business Electronic Day Trading 101 Getting Started in Trading TradeStation Made Easy! Working on Grading the Gurus and more after that
More about Me For a list of appearances, past and present and a list of published articles, click here to go to www.moneymentor.com then click on Seminars and then Editorial
Now for the Good Stuff How to make money trading The Steps The Indicators The Strategy
Setting Your Goals Not everyone can trade the same system. What s good for the goose, is not necessarily good for the gander. I might like 1-minute bars, and you might like Daily bars. You might like 15-minute bars, and I might like Weekly bars. Your system MUST be configured for YOUR personality.
How do you find your Time Frame? Before finding the right time frame, you must first find the right instrument Bonds have a rhythm of 45-minute swings, while the emini has a rhythm of 15-minute swings. Currencies swing on a daily chart. Mutual funds swing on a weekly chart. You must find the right rhythm
Different Rhythms
Finding the Right Symbol Don t tell the market what you want to trade. Let the market tell you where the money is. Start with screening the larger markets Dow 30 Nasdaq 100 S&P 500 Russell 2000
Doing both in Conjunction At the same time you query the universe of symbols, you must still keep in mind the Time Frame. At the same time you consider Time Frame, you must still consider your own personality. For instance, I have clients who: want only to trade in the first 2 hours only want to trade near the close want to place a trade and walk away want to do Mutual Fund switching
Everything at Once You must consider Time Frame Time Constraints Universe of Symbols You must ask yourself: Where is the money? Where is the action?
Start With Scanning the Universe of Symbols on a Daily Basis RadarScreen setup:
Another PHW Scan S&P 500 Sorted w Highest PHW on top PHW Tells You What?
What Does PHW Tell You? PHW stands for Potential Hourly Wage It is for you to evaluate whether you could make more money trading or working at McDonalds. It only makes sense to trade if you can make money doing it Some people trade for the challenge Some people trade for the excitement These people lose money
A Stock with a Low PHW S: Sprint Nextel Corp
A Stock with a High PHW GOOG: Google
Then pick a stock you can afford Filter by Price and by Volume (RS) ~ ~ IF Close >= j_pricebottom THEN BEGIN AND Close <= j_pricetop AND V >= j_volmin Plot1( Close, "Price", white) ; SetPlotBGColor(1,OKColor); Plot2( Volume, "Volume", white) ; SetPlotBGColor(2,OKColor); END; If Close < j_pricebottom OR Close > j_pricetop AND V < j_volmin THEN BEGIN Plot1( Close, "Price", white) ; SetPlotBGColor(1,BadColor); Plot2( Volume, "Volume", white) ; SetPlotBGColor(2,BadColor); END;
Filter by Price & Volume Blue areas meet our criteria:
Setting up the Filter Put in the Symbol Lists Insert the PHW Indicator Sort PHW from Highest to Lowest Select symbols within your price filter that have the highest PHWs
Filter PLUS PHW Qualifying stock must meet both filters (High PHW and blue)
How Much Is Enough? How Do You Know Whether Your Test Generates Enough Profit? What is Possible? Should your chart generate $500, $5,000, $50,000 or $100,000 or $500,000? You better know this before you begin Don t just trade something because you feel like it
How Much Is Enough? That problem always perplexed me Until I invented an indicator to tell me On any chart, any time frame, any symbol Here s how it looks on a chart:
PHW Indicator at 0.01
How Much Is Enough? This is one of the most important indicators in all of my work For 2 reasons 1. How Much Is Enough? 2. Does My System Match the Dots?
PHW Indicator at 0.02
To see how much is enough: Give the chart space to the right Read the data on the right hand edge
Now that you ve found your Symbol How shall you Analyze It? Simple Moving Average Exponential Moving Average Bollinger Bands Keltner Channels SunnyBands
Simple Moving Average
Exponential Moving Average
Bollinger Bands
Keltner Channel
SunnyBands
Now that you ve found your Symbol Put SunnyBands on the chart Tailor the settings
Tailor the Settings Password Value OHLC OHLC FastDMA Length SlowDMA Length Fast Smoothing Factor Slow Smoothing Factor Color of Fast Line Color of Slow Line ATR Distance to Top Band ATR Distance to Bottom Band Thickness of Top Band Thickness of Bottom Band Thickness of Fast DMA Thickness of Slow DMA Password Text Precision of Calculations Return Value: do not change
Different Band ATRs: 2.0
Different Band ATRs: 1.5
Different Band ATRs: 1.2
Different Band ATRs: 1.0
Different Band ATRs: 1.2 w 2.0
ABA: Always Be Asking What Is True? What Is Happening? How Far is the Current Market Moving? What Happens When the Band is Touched? What Happens if the DMA is Moving Sideways? What Happens If the 15-min is Signaling Short While the 1-min Signals Long?
If There s Only a Dollar TAKE IT! Don t try to tell the Market where to go. What s the Diff?
Read the SunnyBands Values From the Right Hand Edge
SunnyBands on Any TimeFrame 1 Minute
SunnyBands on Any TimeFrame 5 Minute
SunnyBands on Any TimeFrame 15 Minute
SunnyBands on Any TimeFrame 30 Minute
SunnyBands Combined w DMA
Take Signal from Longer, Entry from Shorter time frame SunnyBands
Bands Over Bands
What Are My Rules? 1. Take 1 st Clue from VP-Prediction 2. Take Setup from 15-min and 30-min Charts 3. Take Entries from 1-min and 5-min Charts 4. Enter Long when LT chart is red/magenta & below lower SunnyBand, and ST chart is also red and below lower SunnyBand 5. Take Profit when Attractor is reached, or Upper SunnyBand on LT chart is penetrated upward and then back downward on red bar
VP Prediction on MoneyMentor.com
More of My Rules 6. When the DMA is long the bias is to the up-side. Therefore, don t expect a short trade to drop further than the midline. 7. If the DMA is flat, stay w the first entry of the flat period until the DMA finds a direction 8. If I got a short signal (blue/green going up turns to red below Band) and blue/green continues on up, reverse and go long. This will likely be strong.
More of My Rules 9. Opposite is true for Shorts 10.Wait for it. 11.Wait for Proof (ie move in the expected direction) 12.There is always another trade 13.Take Your Losses FAST
Wait for Correspondence 1 min & 5 min Charts
Actual Trading Day 1 minute emini S&P (ESU11)
Actual Trading Day It takes TIME for profits to build. Larry Williams
Example of Strong Up Move
Time Sequence: July 4
July 5
July 6
July 7
July 10
July 11-12
What Are SunnyBars? Wider Bars Show Increased Volume:
SunnyBars: 5 min (Any Timeframe)
What Are SessionBars? Can be set to any Open & Close times
What Are Attractors? Support Resistance Pennants Moving Averages Congestion Areas Draw them & set Alerts
Attractors (1 min):
Attractors (Daily)
Pennants as Attractors
Where s the Market Going? Daily Dow
Where s the Market Going? Monthly Dow 14,000
and Don t Forget
That s IT, in a NutShell For more information, or For consulting or tutoring Call me at (760) 908-3070, or Skype (760) 444-4174 Fax (760) 859-3057 Email me at: sunnyharris@moneymentor.com And visit www.moneymentor.com QUESTIONS?
Special for Attendees of Webinar For all those who attended the 6/8/12 TradeStation Booth presentation I offer the following: All of my products (except the book) at 50% OFF the prices listed on my website (www.moneymentor.com) until 6/31/12. Thanks to all who attended. Remember that I m happy to accept phone calls: (760) 908-3070 PST. Call me & we will set up a tailored mentoring/coaching program.