Finding & Analyzing a Profitable Trading Strategy

Trading May Be Hazardous to Your Wealth

About Sunny Harris

·         Retired at age 30, traveled the world, raised my kids and learned to invest my own money.

·         Author:

o        “Trading 101—How to Trade Like a Pro”

o        “Trading 102—Getting Down to Business”

o        “Electronic Day Trading 101”

o        “Getting Started in Trading”

o        “TradeStation Made Easy”

o        “Grading the Gurus”

o        “Does Technical Analysis Work?”

·         Articles:

o        “Testing, Testing, 1, 2, 3…”—Data Broadcasting Exchange

o        “Working for a Living” —Futures Magazine, February 1997

o        “Optimal Trading”—Futures Magazine, March 1997

o        “Nuggets of Profitability” —Omega Magazine, Spring 1998

o        “Asking the Right Questions for Trading Success”  —Cover Omega Research Magazine, Summer 1998

o        Weekly Articles on Melanie Griffith’s One World Live website

o        Active Trader Magazine

·         Appearances:

o        Frequent guest of Richard Saxton on Channel 22 KWHY TV in Los Angeles

o        Radio Interviews

o        Online Chat Sessions for and

o        Online Investor Expo (a Money Show production) —December 2000

o        Futures West

o        International Online Trader Expo

o        Online Investor Expo

o        Equis Online Trading Summit —January 2001

o        “Get Off the Floor”  —Chicago Mercantile Exchange —July 1998

o        Market Technicians Association Symposium —Chicago, November 1998

o        “Electronic Trading” Chicago Mercantile Exchange —January 1999

o        Futures South —February 1998

o        Futures West —September 1998

o        TAG 19 —November 1997

o        Omega Research Group of Dallas —1997

o        Omega Research Group of Orange County —1998

o        Omega Research Group of San Diego —1997

o        Omega World 1

o        Omega World 2

o        Online Investors Expo

o        Barnes & Noble book signings

o        Omega Research Users’ Groups

o        AAII groups

o        The Winner’s Edge” —Orlando, FL, March 1996

·         Video Tapes

o        Trading 101  —by Futures Magazine Group

o        Trading 102  —by Futures Magazine Group

·         Associations and Affiliations

o        Member —Market Technicians Association (MTA)

o        Member —Market Analysts of Southern California (MASC)

o        Member —American Association of Individual Investors (AAII)


Getting Started

Plan Your Business

Product Analysis

Skills Assessment

Personality Assessment


·         Tools vs Systems

 Basic Technical Analysis

The Road to Success Involves

  1. Develop a systematic approach
  2. Test the system before trading it
  3. Prove the system can profit
  4. Follow the system

Goal Setting

Technique#2:  Copy Success

System Design

·         Tom DeMark

·         Joe Krutsinger

·         Larry Williams

·         Jake Bernstein

·         Linda Raschke
p103 “Street Smarts”


Today the market must gap lower and not fill the gap

Over the next three trading sessions, have in place a buy stop one tick above the high of the gap-down day

If filled, place a protective sell stop at the low of the gap-down day

Protect any accrued profits with a trailing stop. 

If not filled after three trading sessions, cancel the initial buy stop. 


·         Barry Rudd
p169 “Stock Patterns for Day Trading”

High Probability Dip and Rally

5 minute bars

Consolidation at the high of the day

The narrower the range from high to low the better the trade

Buy the breakout

MOC exit


·         Joe Krutsinger
p97 “The Trading Systems Toolkit”
5-minute S&P 500

Entry {EST; V=total tick volume for the bar}

If Time > 1500 and V >45 then Sell at Low[1] stop;

If Time > 1500 and V >45 then Buy at High[1] stop;


Stop at $150 {wider if necessary}

Exit MOC


·         Larry Williams
p141 “The Definitive Guide
to Futures Trading”

High-Low Trading System (reversal)

Filter = S&P 500 * 0.0172

Round off to 1 decimal

Entry=Subtract filter from Close for short

Hold position until price moves 0.0172 from any day’s close, where you would reverse


·         Joe Ross
p114 “Trading by the Book”

The Ross Hook

In a strongly trending market, or one that is chopping around but making sharp turns and corners, whenever I see the market do the following, I immediately place a buy or sell order at what would be a continuation of the shaft of the hook.

The hook can be traded as a breakout of a one-two-three high or low

Be sure to trade in only in an established trend

Set an objective and then get out


·         Cynthia Kase
p 109 “Trading with the Odds”

Exhaustion Gaps

Late-comers speculative push in the direction of the trend

Filling the gap confirms it

Exit or short


Goal:  to Make Money

·         PHW™ Analysis

·         aka Where’s the Money?

·         Should I be trading or investing?

·         Buy & Hold

·         Calculating PHW


Sunny’s PHW Indicator ($495)

·         Don’t try to tell the market anything


Another Favorite Technique:
Look for Congestion


Study, Study, Study
Classic Technical Analysis


System Testing

CPC Index


CPC Index


If this weekend isn’t enough Give me a call. 

Sunny Harris


fax 1.760.859.3057



We do private consulting, small hands-on seminars, distance education and are happy to help you in getting started.