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Hello, and welcome to realityfuturestrading.com.
This is Ray Burke here, and in today's video, I am going to
be covering some basics on maybe how you can develop your
own strategy.
What I'm going to do is basically just
concoct a basic strategy.
There are some folks out there that maybe they're just
getting started in day trading and they're looking to create
their own strategy.
So hopefully this video will give you some ideas as to
maybe how to create your own strategy and
your own set of rules.
Real quick, what I'm going to do is I'm just going to dig
into my indicators here.
And I'm a real big fan of moving averages.
So I'm going to scroll down and I'm actually going to use
our ultimate moving average.
And I'm just going to use a pair of those.
So, for my first moving average, I'm going to go ahead
and I am going to choose my favorite, the RMA, and I'm
going to use, say, a 10 RMA a there on that one, and then
for this RMA, I'm going to go ahead and I'm going to use a
20 period RMA.
Now, I'm going to want to denote which one is which.
So for the 20 period RMA, I'm going to use a dashed line.
That way, I can tell the two apart.
The next thing that I'm going to do is I'm going to add an
oscillator.
And one oscillator that I really like to use is actually
part of the Bollinger Band Suite.
So I'm going to go ahead and highlight that, and I'm just
kind of arbitrarily adding these things to give you an
idea of really where to get started as far
as creating a strategy.
OK.
At this point in the video, what I'd like to talk about is
really what is a strategy.
A strategy is a set of rules that you create and a set of
parameters that, once all the rules and parameters are met,
then you take the trade.
Let's go ahead and see what we can do with what I've added
right here.
Now, I've got a couple of simple RNA moving averages,
which is just a real smooth moving average, and I've also
got my oscillator down here at the bottom.
As I said, what we need to do is we need to
create a set of rules.
Let's just cover a long trade for this video.
We can see that the oscillator is moving up.
We're going to notice that any time the oscillator is moving
up, price tends to move up with it.
That being said, let's go ahead and I'm going to create
just this simple strategy.
First rule is going to be that price needs to cross above my
20 RMA, which is my dashed line, in
order to look for longs.
Ideally, I also want to have my 10 RMA crossed above the 20
RMA as well.
And I'm going to add another rule that my oscillator here,
part of the Bollinger Band Suite, needs to be above zero
in order to take a long trade.
So we've established those things in order to take or
look for a long trade.
What I like to do is, I like to wait for a pull back of my
Mean Renko Bar, where price pulls back somewhere pretty
close to the 10 RMA, and then, upon close of the bar, moving
away from the 10 RMA, provided my oscillators are still
lining up, which they are, I'll go ahead and I will go
long, take the trade.
What I'm trying to do here is just give you an idea of how
easy it is to create a simple strategy with just a few day
trading indicators.
So in this case, I'm using, of course, my Mean Renko Bar, a
simple set of moving averages, and I am using my Bollinger
Band Suite.
And just using these few things and creating a few
simple rules, I can have myself some decent trades.
All right, well I hope you found this video to be
informative, and I hope it gives you some general ideas
on how to create your own day trading strategy.
If your own day trading strategy is not your cup of
tea, if you have any questions regarding creating your own
strategy, maybe you need a little bit of help or maybe
you're interested in a day trading system that has
already been created, please feel free to email me and I'll
do my best to point you in the right direction.
Thanks and have a great day.