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Thanks @Symple for your kind words. Of course you are welcome to present your chart and thoughts to the world from your point of view.
My charts went to get slim and not overloaded with indicators. So I was really trading just with the trendline and the rule set for the DAX. As we can see it works in many cases. At least it gives some points per week.
How can I implement Artificial Intelligence (AI) into my daytrading?
This is the answer from Chat GPD
"Day trading refers to the buying and selling of financial instruments such as shares, foreign exchange or commodities within one trading day. The process requires quick decision-making and an understanding of market behaviour and trends. Artificial intelligence (AI) can play a valuable role in supporting day trading by providing data analysis and predictive models to support investment decisions. Here are some ways AI can be used in day trading:
Data analysis: AI can analyse data in real time to spot market trends and identify potential trading opportunities. It can also use historical data to perform market analysis and forecasting.
Sentiment analysis: AI can also help analyse online information such as social media, news and blogs to understand market sentiment and general investor opinion. This can be helpful in predicting market developments and identifying trading opportunities.
Algorithmic trading: AI can also assist in the development of algorithmic trading strategies. These strategies use machine learning models to make trading decisions and execute trades automatically based on a variety of factors, including market conditions and investor behaviour.
Risk management: AI can also help minimise risk by monitoring market conditions and automatically executing stop-loss orders to limit potential losses.
It should be noted, however, that AI alone is not sufficient for day trading and that human expertise and judgement are still required. However, AI can be a useful tool to support and improve day trading analysis and decision making. It is important that day traders receive thorough training in the use of AI tools and understand the risks and benefits of such technology."
I will be very brief, but I would like to say that these are topics from my active time, since I am not very active in the market at the moment. (Let's see how long it goes until I become active in the market privately). I will use the "I form" in what I write, because I still tick like before. Even today I do my analyses daily to keep myself mentally fit, among other things. What is briefly described is not suitable for every mabecause there are X trading approache which everyone can choose for himself.
I can divide a trading decision into three segments: Fundamental evaluation of the general situation, chart analysis and then the resulting trading strategy, which I then define as: Trend, strategy with entry and with the final exit from the market. Also here there are of course X ideas how to do it. I prefer mathematical goals in addition to the personal assessment of the, from my point of view, overall situation in and around the respective traded market.
Basically, I assume that the fundamental assessment of a market (country), when it comes to the respective country's policy (domestic and foreign policy) in connection with these economies, is about with all the same, as this facts are given the way they are. In Germany, due to these country-specific policies, there is inflation, combined with increased energy costs and increased prices in general for the whole life of the population. This in turn depresses the purchasing power of consumers and increases the cost of production for manufacturing companies. Without going into all the details here, since there are huge differences depending on the industry, the predicate "negative" for the economy in Germany applies. In addition, there is the lurking danger of war and the influence of the entire world economy, e.g. supply chains, etc., which does not improve this overall picture.
The above mentioned helps me, however, only limited when it comes to the daily business in the trade, because fundamental analysis is not implemented one to one in the market. But it helps, beside the chart analysis with the choice of the general trading strategy and in the personal assessment of the current situation.
In the chart analysis I am of the same opinion as @GFIs1 As few indicators as possible and if, then primarily only always the same, even if different markets are managed (portfolio). In which I always and over again the same ananlysis practizis, I become safer with each decision if it concerns the market entrance. As "Bruce Lee" once said: "I do not fear the one who knows a thousand different strokes. I fear the one who has executed the same punch a thousand times".
Below is a small, ongoing series of screenshots showing the Dax hourly chart for the last few days. With this way of working, I always keep an eye on the whole picture, also in my mental mind, so as not to worry about everyone deviate from the basic idea of the chosen trading strategy due to small movements in the market. However, this does not mean that no adjustments are made. Adjustments must of course be made if the situation requires it. In principle, however, the following applies here: The larger the time window of a selected chart, the less I have to correct the trading strategy I choosed for this time frame.
In this, the following example, I have zeroed in on a specific pattern. Absolutely personal selection, since one and the other certainly sees it differently.
Basic analysis with a perfect starting point of a "head and shoulder" pattern with a negative fundamental outlook. Entering the market with a "Long put atm" with a stop loss of 50% of the price paid. Decide for yourself how big your limits are. However, my risk when entering the market with a "Long Put atm" is smaller than with a "Short Future".
Then came the "Fake breakout", which, depending on the chosen trading strategy or the size of the stop loss, did not destroy the trade in this case.
The expected reversal came as this pattern is simply very strong. Fluctuations in the market can be observed. Since I couldn't see any change in the economic situation, I kept the put because my assessment was like said is "negative" for the "DAX".
Here again the question: should I sell the "put" or keep it. But since I saw a double bottom here, I decided to sell the now nice "In the money put".
Here's the next super trade opportunity with another "H & S" pattern with a trendline being scratched for the third time. Same game as before, because there is no fundamental change, so the outlook is "negative" and this means: Next "Long Put atm"
This is for once an alternative example to the opposite of "Short futures" trading. "Short futures" trading will bring much more profit, when handled correctly, but one has to be willing to take greater risk. For the sake of simplicity I don't have "synthetic strategies" here addressed how the market makers and large trading companies act, which of course were also available here as an alternative.
Have a nice Sunday and a good start into the new week.
DAX 9:00 to 16:30
entry @ 15288
exit @ 15432
result + 144 points
GFIs1
edit 10:30 - Remember a important rule:
On a Friday money is taken out of the daily market. Taking profit , being on the secure side, waiting for new following up moves.
On Monday we see a flowing in of parked money.
That is what we are having today - following last Friday's lows to change into a push long!
edit 10:40 - have set a TP @ 15525 which seems promising
