Fun with Fibbonacci Revisited

Discussion in 'Strategy Building' started by profitseer, Dec 6, 2002.

  1. If you were trading fib breakouts today, you would have used 905. After the high at 909, then a dip below 23.6% or 905 sets that up as the new breakout level. You trade that till you get burned and then move down to trading long breakouts at 38.2% or 903. Or you can redraw the high and start with a new 0% line.
    #11     Dec 6, 2002
  2. Well, I would use 904.5, but that's a small difference which only shows that you can make money even if there are differences like that. I don't use 23.6%, I prefer the price to get closer to 38.2% and to show signs of reversal or being in some S/R area if possible.
    #12     Dec 6, 2002
  3. I deleted my post.

    The posts I usually delete bash other members, stray off-topic, or contain obviously inappropriate vulgarity.

    So if I deleted a post of yours for one of those three reasons, I don't apologize. But if I deleted a post that was just one of your usually humorous one's that did not fall into the aforementioned policies, I do apologize, and I was wrong.

    Wisecracks are always welcome. Just not inappropriately vulgar, member-bashing, off-topic ones.

    #13     Dec 6, 2002
  4. It's more like 905.9 something on my chart. At any rate, it keeps you out of all that crap up there at 910. Or if you are in there, you are long from 905-906.

    So to get in, once the retracement is broken, you just set a stop at 23.6% and hope foe the best. You need enough money to keep you in below 38.2% or use tight stops and keep trying.

    I got burned really bad on this not too long ago, so I haven't tried it since. I got burned because it was not in keeping with the scalping I was doing. So I had all these small scalping trades, and then this one big loser breakout trade and it messed my whole week up.
    #14     Dec 6, 2002

  5. I don't think you have to worry wally...:D This has been working
    since Leo figured it out 800 years ago and it'll still be working
    800 years from now when you and I are long gone.

    Anyway, I've always believed the the reason most traders fail isn't because they don't have some secret method, it's because they cut their profits to soon.

    I would be willing to bet that your typical trader averages something around a 1:1 profit loss ratio. How many times have you put on a trade, got out for a small profit and then a hour later said..."damn, if I had only held on!"

    Here's a nice link if you want to read up on leo.
    #15     Dec 6, 2002
  6. Well I wish I knew how to delete posts. I've got a whole bunch of them I posted that I wish I could delete. Most of them have something to do with a great new way to make money.
    #16     Dec 6, 2002
  7. That's a pretty interesting observation. In fact, I keep my stop-losses pretty liberal, but I thought that I was an exception. I guess you are the only other guy on this board who adheres to this kind of thinking.

    No, I am not afraid that it will stop working. In fact, I have mentioned these things several times on this board with not much success, so I am not afraid I will convert too many for this to stop working.

    But, I am afraid that it may get 'simplified' :D and then no-one will ever remember what it was originally about.

    Thanks for the link to Uncle Leo, was he Jerry Seinfeld's relative? :D
    #17     Dec 6, 2002
  8. breakout, Here's something I was thinking about for daytraders.
    Your first trade is 1:1 and you hit. Now is your second trade 1:1? Or since you are already up 1, does that make it 1:0, and if you hit again, is the third trade (since you are up 2) now 1:-1?

    But to answer your question, of how many times that you exited at a small profit could you have re entered same trade at a better price? My guess is about 99% of the time.

    And many times I re enter at the same price. I put it on and say, "Wasn't I just long here a few minute ago?"
    #18     Dec 6, 2002
  9. LOL :D :D

    Just goes to show you, one man's trash is another man's treasure.

    Most of your "great new way" posts validate the kind of simplicity I depend on.

    #19     Dec 6, 2002
  10. Actually, that was a typo...I meant traders cut their "profits" to soon.
    #20     Dec 6, 2002