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COPPER AND SILVER TRADING SYSTEMS Options
riskless1
Posted: Wednesday, August 05, 2009 4:00:01 AM

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I have just started to trade silver and copper etf's (for the silver etf I am using SLV and for the copper etf I am using JJC). For the silver system I am using exponential moving averages and for the copper system i am using a breakout system that I learned about in two technical analysis trading books. So far I am making good money. Any comments?

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Posted: Wednesday, August 05, 2009 4:00:01 AM
TraderJoe
Posted: Wednesday, August 05, 2009 5:15:07 PM


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What book were you reading regarding break outs? Just wondering. I have been reading the book from the 60's from Magee regarding DOW theory and support and resistance levels. It has some very good tips. Since most pros have to read it as part of some exam, it seems the overall "truths" still hold true today. Here is a download link to the PDF of the book.  I bought a used copy for $11. The book is released as a reprint of the 60's book each year for around $50. It is nuts to keep charging this price, it is the same book, regardless of the version since 1960.  Off of that.... okay back to break outs....

I like using Break-Outs myself. Recently it worked very well on all the indexes where major support levels were broken.  There is some risk to break outs since buying above a support level. Another form of break out I like is buying above a high price on lower support.

Recently traded SPY at the lower support level. Go stopped out with tight stops. Right now it is at another support level but waiting for the price to consolidate. Might be a bad move but I am going to wait it out.

riskless1
Posted: Thursday, August 06, 2009 2:14:45 AM

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The first book that I learned about breakouts (specifically Donchian Channel Beakouts, named after Mr. Richard Donchian who is a pioneer in the concept of commodity trend trading using mechanical systems) was a book by the famous Gerald Appel who developed MACD. The second book was Technical Analysis Of The Futures Markets by John J. Murphy. Copper and silver are better trading vehicles than the equity indexes because of their powerful trends. Regards--Stuart
TraderJoe
Posted: Friday, August 07, 2009 1:27:58 AM


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I will check out the books. I was reading "Entries and Exits" and one chapter was Appel discussing some good and bad trades he made. The development of the MACD was very impressive. I did not know Murphy wrote a book on TA for futures, just thought he wrote on stocks alone. I will check it out.

Thanks Stuart!

 

Patrick
Posted: Friday, August 07, 2009 1:34:32 AM


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Stuart,

I have been working on narrowing my focus watching the SPDR sector ETFs, top 5 stocks in each one, and the following futures ETFs

BAL
COW
DJP
GLD
GSP
JJA
JJC
JJG
UNG
USO
UUP
DBB
DBA
DBS
DGL
DBC
DBV
PAGG
PKOL
PSTL

Couple of issues I have found with these ETFs is  the low volume, and since the vol is low I really do not want to short these ETFs.  I have been thinking about getting back into futures trading (but it has been about 10 years). I do like the idea since you can focus on a few things, become somewhat of an expert and get in groove trading, and as you say, these typically trend well.

Anyway, what are you doing for shorts on futures ETFs? To be honest I have not checked if any of these ETF have PUTs but again, low volume may end up being trapped in a trade.

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