I know a trader (not me, unfortunately) who uses nothing but trendlines on the 233 tick ES with 20 cars and makes over a $1 million a year. He started drawing those lines by hand but now lets technology do it for him. He has an intuitive sense of which ones will work and which ones will fail.
there is an arrogance that only size can afford, understand that term? when one gets so profitable, one can endure more losses until something that is thrown upon the wall to stick, and work.... the person of whom you speaks is highly arrogant! would we all wish!, we could be too
Huh? Arrogant? Are you referring to his lot size? If so, he started trading this method with 4 contracts and built up when it proved to be consistent. The guy is one of the most humble, understated people I know, especially given his success.
that's what we called it in class, arrogance of size, what a small trader does pales in comparison, what a large trader does, he can do, and a small trader has to stand back and watch, if he's that fortunate enough to be able to observe up close, this never refers to personality, but trading capacity sure would like to spend time observing a trader like the one you're talking about.... many (former) floor traders often comment about not being able to sense the crowd when they move upstairs and not being able to make the transition to off floor (retail) trading...when they would describe the massive (size traders) who would "move the pits", that's where the term "arrogance of size" comes from... cheers
Rolex- On my 11-17-2008 chart i drew arrows pointing directly at the points where price either passed the bottom horizontal line(to buy) or passed the top horizontal line (to sell). but now i think ill use white circles instead of purple to make it easier to see. In other words, short when price gets above top of intersection and is between diagonals, buy when price gets below bottom of intersection and is between diagonals. The intersection is made up of atleast 4 lines(2 diagonals + 2 horizontals). The moves im looking for would show up as a wedge-like pattern if you moved to a longer time frame. I havent decided exactly how to exit yet. Mike- you are right, with all those lines something is bound to happen. Im taking advantage of that fact, thats the whole point. thanks for confirming my belief
Just an observation on my part. But what's the point of asking for opinions or advice if you're simply going to dismiss it out of hand or rationalize that it "supports" your preconceived notions?
So, you're subscribing to the "if you throw enough shit against the wall, some of it will stick" system. Do yourself a favor and don't allocate to much money to this experiment. That way, the pain you will surely experience will be short lived.
its multiple confirmation using rising support/rising resistance/falling support/falling resistance/flat support/flat resistance. thats not shit on the wall, and if it was then that would be some nice shit.