Bride of If You Can Draw A Straight Line

Discussion in 'Journals' started by dbphoenix, Oct 28, 2013.

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  1. boru

    boru

    I know a lot of you only trade until 11 or so but we could be approaching some ample supply at 60
     
    #421     Nov 8, 2013
  2. babe714

    babe714

    took this trade small loss
     
    #422     Nov 8, 2013
  3. MadeMan

    MadeMan

    #423     Nov 8, 2013
  4. dbphoenix

    dbphoenix

    If you're interested in this and you're in the right place, your entry was 2.5pts too late.
     
    #424     Nov 8, 2013
  5. niko

    niko

    Ok, I will focus on that. Thanks.
     
    #425     Nov 8, 2013
  6. Is this how you would have chosen your entry?
     
    #426     Nov 8, 2013
  7. babe714

    babe714


    Thought process was ..wait till it breaks out of chop ...but yea the run was a bit extended by then ..thanks
     
    #427     Nov 9, 2013
  8. dbphoenix

    dbphoenix

    I understand. And within the context of your trade, you are correct. However, this is a case of trying to make something out of crap, and not only is that unfair to you as a trader but it's somewhat unfair to the approach.

    The important move here was from the open to the lunch hour. This is one of the chief reasons why I like the NQ: the important moves tend to take place during the first three hours. This enables me to take care of business in the morning and take the rest of the day off (the romance and adventure of trading all day is long gone). Therefore the question is not how to take advantage of a high-risk, low-probability environment but how to select a better environment. Like getting out of an unsalvageable relationship.

    Even so, one can see that this approach, if applied correctly, will save the trader from himself in the event that he finds himself in a situation better left alone. Even if one enters above the chop and exits late, as here, the loss is minimal. And if taken where it should have been taken, at 59 or 58.5, the trade may actually yield a profit, or at least breakeven.
     
    #428     Nov 9, 2013
  9. dbphoenix

    dbphoenix

    Me? No. I would have drawn the lines that Babe drew. This is not to say that one cannot draw the lines as you have drawn them. However, if one is excessively tight with regard to tracking demand and supply, he will quickly find himself tracking micro-moves for micro-trades yielding micro-losses and micro-profits, though if this is what he chooses to do he's going to have to use something less than a 1m bar interval to find the necessary retracements. If he can do this for several hours, more power to him. But why bother?

    One of the chief objectives of this, if not THE chief objective, is to enable the trader to achieve a high win rate and a high profit:loss ratio with as little risk as possible. That is next to impossible to realize if micro-trading. The commissions alone will eat into whatever profits are realized. This is why I suggest avoiding chop. The profits one might realize by trading chop are zip compared to what one can do trading the more muscular trending moves. But even if one chooses to trade the chop anyway, the losses will be minimal, though the end result for doing so may well be breakeven or better, assuming the trader can keep his ego out of it and can recognize chop when he sees it.
     
    #429     Nov 9, 2013
  10. babe714

    babe714

    was doing some replay tonite . I really think this is a great system , don't let my ineptitude in implementing it make anyone think it doesn't work. Will just focus on the first few hours after the open .
     
    #430     Nov 9, 2013
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