How to trade like a retarded genius - an actual strategy that works

I like my method, revealed here today
https://www.elitetrader.com/et/threads/spread-trading-stat-arb-with-stock-odds.368879/#post-5648849

 

Mr mcnoob, you started well defining how a price moves. If you are on the right path about orderbook strength, why do you use EMAs?

EMAs are simply that, averages. They won't tell you anything.

On the contrary as you very well defined, the pressure on one side will determine the trend. So you need VWAPs, Footprints and Market Profiles.

 

I only use emas so I have the larger trend in mind. I rarely get caught in reversals because I have a simple if then about lower lows in a down trend and higher highs in an uptrend

 

Yes but can a retarded genius trade it I think not

 

You actually got me until I read your suggestion that being a small fish in a big pond is the thing.

you better be a big fish in a small pond

 

Good info! Keep us posted on your stats...curious to see how your day job will affect your trading...it might improve.

 

I dont know about the rest of your post, maybe some stuff ist true, but it is way too much words for my taste for something as simple as trading.

But your points about risk, this is something that I think could turn around trading for many many beginners, who think about making hundreds or thousands in one day and then lose it all in one trade.

As a beginner, yeah, some SIM trading is needed, but after a while, you have to put real money on the table. But it has not to be much. Dont start gambling for 500$ per trade or something like this. The less the better. I think we would have many more profitable traders if they would slowly get into this, risking only something that really does not bother them, something like 5$ per trade. 1$ per trade, 5$ per trade, and then fire the trades out like a machine gun. Get rid of the fear from trading, the fear from pushing the button. Get away from that stupid overthinking of single trades. One trade means NOTHING, but people analyze for 1 hour if they should get into that trade now or not, and then if they finally get into that trade they are nervous and uncomfortable for another hour... thats not fun.
Trading should feel fun. Trading should make you feel in control, not like a prey hoping to not get slaughterd.
Reduce your size, to the point where you really dont care about a single trade, so you get used to blast out trade after trade. That way you wil learn quickly to make 50+ trades per day. With so many trades you will learn much faster, what works and what not, you will get so much feedback from the market. Screen time is fine and necessary, but there is active, "quality" screen time and there is screen time where you basically do nothing, no interaction with the market which is not the same as the time when you get really engaged with the market.

My post is directed to those who are/ want scalp trading, but since so many here dream about consistency and trading for a real income equivalent I think this is relevant for many of you, because scalping means consistency. You will never achieve the same consistency that you can achieve with scalping if you just do 2 or 3 trades in the ES or NQ per day. Simple math/ statistics.

 

Excuse me sir, but I do exactly that.
3 trades and I'm done for the day (average 30 to 100 ticks/trade)

I will have to disagree on the assumption that people
will last in this business trying to make 50+ trades a day.

I'm not an educator, but if I were, I'd help others
to build up their skill lever to TRADE LESS NOT MORE.

To be the predator and not the prey a skilled trader has
learned to WAIT until the odds are overwhelmingly in his
favor. Through much experience they've learned to trade
less and take positions only when they estimate a probable win.

EDIT: to prove my point - I have an buy order on NQ at 13273.75
Let's see if it gets me at least 30 ticks ( I expect more)

 

52 ticks taken. Profit $286.00
Not trying to brag, just trying to show that LESS is actually MORE.
Trying to trade 50+ or 100+ trades a day is what burns people out.
How many can make a living trading like that for the long haul?
Very few can handle that type of stress for a long period of time.

It's better to trade as few trades as possible for good risk management.

 

Nicely done. so when you set it up and run it for let's say three months, what is the average number of trades per day? What is the average profit per trade? Without any data there can be no understanding of its value or performance.