Day-Trading 2.0 for small traders

Discussion in 'Trading' started by jjrvat, Jan 5, 2008.

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  1. He said on the previous page enter long on a bright green bar, exit long on a dark green bar. Short on a light red bar, cover on a dark red bar. That's specific entry and exit rules.
     
    #701     Jul 1, 2008
  2. bilbod

    bilbod

    I must have missed that but it definitely conflicts with his 5 pip profit target.
     
    #702     Jul 1, 2008
  3. There is no conflict.

    I can either take a fast 5 pips or I can wait until the bar changes color.
     
    #703     Jul 3, 2008
  4. No pumping from me at all.

    I never mentioned how to obtain my indicators but you just did.
     
    #704     Jul 3, 2008

  5. I am NOT creating anything. I have no control over how others choose to react or respond. I am NOT responsible for the actions of others.

    My posts were merely to show another way of looking at jjrvat's method by using the MACD. I have not suggested altering his method at all. The color bars just show you when the trend switches which is no different than using the MA line that changes colors.

    But some people will always find something to complain about.
     
    #705     Jul 3, 2008
  6. I will respond to conversations and debate about learning HOW to trade. I will not address negative comments and I expect others not to either.

    In the event we find ourselves in the midst of a disgruntled trader, we need to ignore and move on. Deal?

    Debate is healthy, arguing is not.
     
    #706     Jul 3, 2008
  7. josch

    josch

    This is a very helpful thread. And mostly contributors were trying to be helpful.

    I do NOT hope, that now will establish some guerilla warfare about any miracle indicator or sponsoring.

    Also I believe, that in this business all are adult enough to ask, if necessary. Some posts are garbage, some average, some excellent. That's life.

    And - there are some points mentioned, to which no reply would be the better decision, for sure.
     
    #707     Jul 3, 2008
  8. umitd

    umitd

    This is my first post here. Thanks to jjrvat and others contributing to this thread.

    Speaking of exits, my question is this:

    Shouldn't exits be according to price action as well?
    I mean, instead of taking profit at a fixed number of ticks or pips, shouldn't we be watching the price action such as price not being able to move beyond a
    resistance or at least not taking the profit as long as the
    candles are green?

    In other words, if the price action is the king for entering the trade, shouldn't it be so too for exiting?

    Happy trading all..
     
    #708     Jul 3, 2008
  9. jjrvat

    jjrvat

    A POINT OF ORDER

    It’s amazing how often we small traders tend to lose perspective during a discussion on trading. During the past few years I have found that most of the forums arguments end up dealing with the same issues “the technicalities of trading” which in my opinion obviously reflects one of the key problems that stop day traders to pass to the next level: PERSPECTIVE.

    I read the last few pages, there are some very good comments that I will try to comment later and some other that are out of context and I will ignore, but in general I think the thread is losing north for the same reason mentioned above LACK OF PERSPECTIVE.

    As a point of order and to try to regain focus for a more constructive discussion I will go, once again, to what is for me one of the basic principles in daytrading:

    It “doesn’t matter” how do you pull the trigger as long as you apply consistent price analysis, “know” where do you have more probabilities for a successful trade and you are willing to accept without hesitation the cost of doing business. In other words, the order of analysis will change the end result and it’s impossible to run a business without accepting the cost need it to make it profitable (sure you could aim to reduce “costs” but it’s impossible to completely evade them).

    To avoid repetition with previous posts I will use 2 charts this time based purely on entries.

    1. A typical Holy Grail system that looks amazing at first glance:

    INDICATORS FOR ENTRIES:
    50 WMA
    12 EMA
    Slow Stochastic with SMA (10,3,3)
    Momentum 7
    Standard Deviation Bands Top (HIGHS) Bottom (LOWS), (25 Smoothed Mov Avg, multiplication factor 1.780
    MACD Linear Regression (11,18,8)

    RULES:
    Shorts when: 50 WMA>12EMA, MACD diff RED and below 0, Stochastic moving from overbought and change slope to red below 70, Momentum < 100, Std Bands on the bottom half but with a gap big enough to the lower band.
    Longs when: the opposite

    PERSPECTIVE: NONE. Who cares this is a valid trade !!!

    [​IMG]

    2. The most basic system that looks as good as the previous one

    Indicators for entries:
    21 WMA

    Rules:

    For shorts: Slope is RED + a close below the WMA when price has close above but hasn’t change slope.

    Perspective: Not much but at least you know when you are in long or short mode.

    [​IMG]

    Which entry is better? The results are the same regardless of the trigger, so what is the point of indicators?....

    The answer is very easy a valid trade is a valid trade no matter how hard we try to “tweak” or improve or indicators to tell us that there is a trade where is not. Therefore, the key for successful trading is not “how” but “when” we have more probabilities for a good trade. That is why the whole wave analysis and macro direction and not the specific details on the technicalities of trading.

    The problems arise when overtrading, leverage, psychological fears, lack of discipline, capital, wrong timeframe for risk and time of trading, etc, etc, etc lead a small trader to the endless vicious circle of tweaking indicators for potential solutions for sometimes contradictory goals: “perfect” entries and exits with minimum drawdown, huge profits in short timeframes, small profits in long timeframes, low risk with high profit, etc, etc. The end result is always the same, after a couple of weeks a trader end up trading indicators and not price with more doubts than solutions.

    …I’ll continue later

    jjrvat
     
    #709     Jul 3, 2008
  10. Thanks jjrvat.

    I agree with you on PERSPECTIVE.

    To, it's funny how SOME PEOPLE try to prove something doesn't work. They'll spend hours, days, weeks, etc... running backtest so they can proclaim they proved you wrong.

    SOME PEOPLE see my indicators and freak out. They seem to think I have a HIDDEN AGENDA. I have told people over and over that I do NOT sell indicators. I write them to help me understand a method. If I don't understand the method, then I can't write the indicator. Coding is one of the ways that I learn.

    You'll hear SOME PEOPLE say, "Well, if it is so easy then why isn't everybody doing it?" I call that SHEEP THINKING or HERD MENTALITY.

    At the same time, there are those who read, listen, study and do whatever it takes to learn and apply the teachings. Those are the ones who are successful.

    LIFE IS CHOICE. What you choose is up to you.

    Thanks again, jjrvat, I appreciate your time.
     
    #710     Jul 4, 2008
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