Click here to access the final part of our Big Saturday Interview: Trading and Day Trading Stocks and ETFs with Dave Steckler.
At the recent Trader's Expo in Pasadena, I was surprised at how many attendees were looking for day-trading strategies, especially for day-trading exchange-traded funds (ETFs). I directed them immediately to our Big Saturday Interview with Dave Steckler, who was generous enough to share with us one of his strategies for day-trading ETFs. We published that strategy in Part 2 of Trading and Day Trading Stocks and ETFs with Dave Steckler.
Just this morning, I received an e-mail from Dave Steckler talking about a recent trade following the methodology he shared with us last week. I am including it here as part of an introduction to this, the conclusion of our 3-part Big Saturday Interview with Dave Steckler. Enjoy!
With yesterday morning's sell off, the CCI on QLD, UWM, SSO and DDM all fell into deeply oversold territory. The CCI on all except QLD closed below -200 on a 30-minute chart while QLD's CCI fell to -195.
The technique calls for buying on a close above the 9-bar EMA on the 5-minute chart once the 30-minute CCI closes below -200, and to buy on the a close above the 50-bar SMA on the 5-minute chart once the 30-minute CCI closes below -100 but not below -200. Yesterday I went long UWM, DDM and SSO on closes above their 9-bar EMA on their 5-minute charts, at 19.96, 30.42, and 26.91, respectively. I went long QLD on a close above its 50-bar SMA on the 5-minute chart, at 38.29.
Once long, the system waits for the 30-minute CCI to close above +100 (use the stop placement of your choice). With all four ETFs that happened at or near yesterday's close. If the CCI gets to +100 but not to +200, before dropping back below +100, I exit the trade on a close below the 50-bar SMA on the 5-minute chart. If the CCI rises to close at or above +200, I exit on the first close below the 9-bar EMA on the 5-minute chart. In other words, just the reverse of the entry rules.
None of the CCI's have reached +200 but all closed above +100 before heading below +100 this morning. I sold QLD this morning at 39.15, for a 2.2% gain before trading costs. I'm still long UWM, DDM and SSO, which are currently up 5.3%, 4.3%, and 5.1% respectively.
As I conclude in Part 2 of the interview, you won't get rich on any individual trade but you can make profits consistently, which is the name of the game.
Dave Steckler is an investment advisor at Global Investment Solutions. In 2002 he developed the Alpha Rotation Program (ARP), a long-short market timing system using no-load mutual funds and exchange-traded funds (ETFs). He also trades a portfolio of stocks and ETFs using methods described in this conversation.
To access our Big Saturday Interview with Dave Steckler, click here.
