Profitunity (Chaos) Trading System by Bill Williams

Thank you. This has been very helpful.

I agree with what alligator and donfriday have said, wave count is very important. Also, using the fractals should be all you want to do in the beginning. Div bars and the AO signals will make more sense as you can count the waves properly.

ealas, about your 4h ES trade. You did it correctly. The only mistake I see is that you enter way too late. Your entry seems to be at a fractal in the middle of the trend. At this point, there are people taking profit already. This should only be an add-up entry for you. And if you check the higher timeframes you see that we are not merging into a downtrend but what you traded is just a correction.
So what you should look at is how you could get in earlier. A good entry would have been the fractals at 1307 and 1305 (guessing those prices from your chart.)

I found a good setting to use Gator Oscillator... 17 pips anyone?

how does your think work? What is AIMS?

Hi!

Two new trades. Circle is the signal. I've entered where a trend line was crossed. I know that signal of DBA according to Bill Williams rules is not active, however, i tooks this trade.

Lets see what will happen.

Are there anybody trading this system? Very quiet over here.

Ok my FDX trade is going very nice. Rules were telling to go long and i did it. Waiting for new signals.

DBA is not going the right way as i thought about it. However, I traded against profitunity system, because i opened a long position when alligator was above long fractal (we can not do this in this system). But i believe in agriculture and will keep it until it gets below 33.45 (it will be a short signal).

Right now i am keeping an eye on one more stock HAS. I've uploaded a chart. Waiting for a break out signal.

yea it's usually more than quiet around here. dunno why, I guess people are thrown off very quickly with this system since you need more (imo) than just the stuff mentioned in TC2. Talking about the waves here... as i posted in reply to your comment on my blog already, if you have a good grasp on the waves, you know much better what the market is doing and where to get in and where not.
If you like to chat about trading more, come to IRC

about your trades .. the HAS you are looking at is pretty much exactly what you want. Even though it looks like you could be in this one already, the breakout up there looks like the perfect signal to me. Not so much on your DBA. You entered too soon in my opinion and you are in what looks like a wave 4. those are killers. I usually give the market a lot of time to set up a nice buy fractal before I get in again. That usually takes some time. Especially since the previous trend went on for a pretty long time, you can expect this wave to go sideways for longer than you might like ...

gl anyhow and see you around!

Closed my DBA trade. I opened this trade against the system rules. It didn't went the way i thought it will, so i closed the deal. However, FDX trade is working very well (bought at 90.51, last price 93.18).

Also I've found another interesting trade CSCO. As far as I understand EW (i don't know a lot about it) it is developing a 5 wave. However, i am looking for a long @ ~17.70.

Just entered CSCO on a 5min chart 17.31. Hope to see at least 17.40 for a quick profit.

perfect day trade

so what made you exit on this daytrade?

Slight, you are right. There were not any signal to exit, however, my target was 17.40, moreover, i decided that i will close this position before the end days. I didn't wanted to leave it overnight.
Although when it will reach 17.70 I will open a longer timeframe trade

What do you think about my trades? Do you see any flaws?

ok good argument. if i daytrade i too exit before the market closes not matter what. holding a low timeframe trade over night doesn't make a lot of sense imo.

i like your fdx, has and csco intraday trade. notice that on all of them it looks like the market has found the bottom, then rises, creates a fractal above the alligator, corrects, then takes that up-fractal. that is the ideal situation to buy.

i dont like the other 2 trades you have. your daily buy on csco has not made an upmove and given a fractal. you are entering on an up-fractal that is the high of a correction within a downmove. in these cases oftentimes the market goes lower and stops you out. at least that is my experience. even though you traded it like williams says, the safer deal is to do it like on the above mentioned underlyings. the same happened on the dba trade where you exited already...
all in all pretty good though

Slight, thanks for your comments! They are very valuable.

FDX trade is going just perfect. Check the jpg in this post.

Moreover, I've found a very interesting setup at F. This setup is very similar to FDX and HAS. Price was consolidating in this lever for a while and right now AO is showing bullish divergence, moreover, we have a fractal BUY signal. So I will keep an eye in this position. I'm planning to open a position in F at ~15.20. However, there is plenty of opportunities in intraday charts so I will be watching them also.

yep all looking very nice the buy on F is also upon the above described buy fractal. i love those entries the most.
btw, you do realize that your alligator is not displayed correctly ?!

What do you mean?

its not smoothly running. the lines are "hopping" around too much. should look more like this e.g. on DBA

you probably didnt apply the right settings for the smoothed moving averages or put in an exponential MA with the wrong settings ...

I've just copied the code from this webpage http://mikelapp.blogspot.com/2010/03...d-fractal.html

Well.. I don't know how to solve this problem... Mhmm.. :/

ah yea i see. i didnt get it working on thinkorswim either.
i didnt try using the alternative display with EMA's (exponential moving averg) though. maybe try that.
the settings are: blue line: 26, red line: 16, green line: 10, future offset as usual (8,5,3)

This is what I see at DBA