Perhaps I'm using too broad a definition of HFT trading. I'll need to consider that before I post further regarding time frames. Even so, I don't understand why Q believes that lower time frames are no longer tradable because of HFT. That's what I was trying to show in the charts. All 3 had good trades in their own rights, IMO. I will agree with Q that the 15 and higher certainly would provide for larger gains, though, using the same methods Brooks discusses, but larger stops, as well. I think the definition of a good play is relative to the goals of the individual trader. A 60 pip move on a one minute time frame could be a monster move to the one minute trader, but an insignificant play to the daily or weekly trader.
This is similar to what Brooks has indicated, though he hasn't stated (to my knowledge) that they let prices fall to create the impression of an ending trend (in a bull trend example). They just want to buy back at the lower price, and will stop buying if they think there may be a reason for lower prices to occur, and are probably taking profits at prior R, or for some other reason unknown to anyone but them, that helps that reversal or pullback occur, (and as you know, there are institutions on the other side of the trade that will also affect the counter move for reasons of their own.) He concludes that almost all price action is the result of institutional trading, including HFT, regardless of the exact definition.
http://www.zerohedge.com/news/2015-09-10/what-happened-612-am-morning This is an example of pure HFT dictating price movement, the EURUSD move linked to earlier is not an exclusive HFT move, although they appear to often start the domino effect that other algorithms and a handful of non-computer traders play off of. Regarding Al Brooks' strategy of fading near where you think traders are placing their stops, recent <5min price action on the ES futures has shown that HFT/algorithms are quite skilled at fading those who try to fade the stops of traders as well, prior to a mean reversion in price. This means you need an extremely large amount of capital and risk tolerance and experience or one should just trade at a higher timeframe.
Brooks does not advocate trading below a 5 min chart for the simple reason that you can't make effective decisions quick enough and without emotion at lower time frames. Best to leave that trading for the computers that can.
Another point that Brooks makes which i completely agree with (i don't agree with everything he says, far from it) is that the markets are comprised of 95% institutions and maybe 5% retail. This means that in effect the institutions are trading against each other. They have NO INTEREST in the retail 5% simply because there is not enough money there for them to bother with. Contrary to many comments on elitetrader, no institution cares about your stop loss orders or your trading. The institutions only care about taking money from each other.
Don't know where he came up with those specific statistics nor how old they are... Yet, Bloomberg every year and several professional trading magazines have talked about the decline, death of the retail traders since the 2008 - 2009 financial fiasco. There's also an increasing number of brokerages that cater to retail traders that have closed shop, reshaped their business model because the costs of trading has become more expensive. So yeah, its the institutions, funds and such that move the markets and they regularly trade against each other. They do not worry about retail traders, their stops and so on because its pocket change to these firms. Therefore, the markets are not like the 1990's or early 2000's where it was common knowledge that the pros went after the retail folks trading habits. Today's environment, the pros are worried about what other pros are doing and they are competitive against each other. They offer jobs to the competitors top traders, top quants, top fund managers and so on...offering company cars, luxury condos, stock options, big bonus performance and many other perks. These firms are in the boxing ring against each other...not against retail traders because in their minds (they know the stats too)...retail trading is dying and maybe one day it will become a type of trading only for well-capitalized traders. Seriously, look at some of the fees for software and platforms being charged today. Its crazy and its sparking more interest for retail traders to move from day trading into swing trading and more traders moving from futures/stocks into forex...cheaper costs. Last time I saw a transition like this was when they came out with the "pattern day trading rule". There was a switch move of the retail day traders from stocks to futures. Further, other rules by the government and exchanges took away many edges for the stock trader. Forex markets still the largest trading markets in the world. If there's any rule changes or new laws for futures traders...we all know where most of the futures traders will go...Forex.
He does, though he has indicated it can be used to time entry for the 5 minute. He also indicated in his books (and possibly in the vids) that there are traders who can trade the 1 if they are personality types that can deal with stress or are fast thinkers. He's mentioned the 3 minute if one finds the 5 too slow. And, Q3, he has stated there is absolutely nothing wrong with trading 15 or 60 minute charts, if that is the preference. If that's the case, it's irrelevant if one believes success is no longer possible on shorter frames.
Just because institutions do not have the intent of running retail stops and that institutions' main focus in on the trading patterns of other institutions does not have any direct relevance to the fact that institutional trading activity instantaneously calculates all open and filled limit orders, stop orders, and market orders and, more importantly, institutions trading against other institutions can often create a hostile environment that will negatively affect retail traders' returns, specifically at lower time frames. Watch Brooks' 2014 Las Vegas Trader's Expo speech on Youtube, he makes all sorts of glib statements about 3 minute charts being tradable, "5 minute charts are good. Tick charts are good." Plenty of howlers for the whole family to enjoy.
So if I place a limit order below a bear bar during the first pullback in a trend and get filled using the low of the prior pullback sometime earlier in the trend for my stop, thus adjusting my size accordingly based on that initial risk, using 1/3 of my position for the first limit, and THEN, a deeper pull back occurs and I place a second buy limit below another bear bar and get filled on the next bar, the institutions will intentionally try to take the market to the prior low of an earlier pullback where my stop still sits? It won't be because of my stop, if they do that. Large amount of capital is not necessary for using limits this way. Large amounts of discipline and proper risk and position size, is, however. Entering a possible breakout earlier by using a smaller time frame signal and breakout pretty much achieves the same thing, but then you are more likely to use the most recent low (of the signal or BO bar), and yes, you will have a much more likely chance of being stopped out. Brooks is clear that fading entries in trends is riskier because the market may go much further than anyone knows in a pullback, which is why you want to use smaller size until and if you do get an anticipated BO. He doesn't advocate trying to enter trades this way with inexperienced traders, but simply indicates it is a technique used, as he indicates about other techniques such as scaling, countertrend scaling (where Brooks agrees more with you regarding capital), and so on. I don't know if he goes through so much detail in the videos since I only quickly viewed them before delving into the books. I'm taking my time with them now, so later I can elaborate on that...probably toward the end of the year. It still seems to me that he covered most of the items you have brought up, including trading the 15 being completely fine. I bought this two leg set up on the 15 Wed. I faded my first entry, tried to fade the second leg down, but had my order too far away, and moved the limit to above the bar prior to the signal (after the 2nd pullback leg down, and after the signal closed), where it filled. The downside, I only had 2/3 of my size on the play, but better than nothing. If that adjusted 2nd limit hadn't filled I might have bought at the market, but look how much closer I would have been to the 1rst target, a prior high + 200ma, if I had bought above the signal close. Even though this is the 15, this type of setup was all over the one minute chart I posted last night. By the way, the second outside up bar 2 bars after the 1rst OB after the bottom of the selloff was the one I got burned on that I mentioned in an earlier post (2nd OB above and to the right of the text "initial stop"). I shorted at market (market order) below the prior bear doji bar before the OB had closed. Very bad decision, even though it was coming off the 20. Big outside up bar two bars prior at the end of a shrinking stare + weak signal bar. That made me the mark. There was 1 minute left in the down OB when I shorted. It then rapidly reversed to the up OB you see. But what if I had placed a limit buy where I shorted (which is what I should have done)? Always looks better in the rear view mirror. Speaking of outside bars, look at that one after the first leg down of the H2 setup. Nice! My reason for placing the limit buys where I did? Look at the doji signal before the outside bar I got burned on. I believed that the high of that would be tested, and later though it possible the low would be.
just in case you want your refund, it is well advised that you do not wait until the last day or two. just as soon as you decide that the course does not satisfy your trading needs, notify them in writing and keep a copy of the correspondence. some of the fine print does require a 30 days or so waiting time, so on and so forth. good luck and let's know, if the course meets your expectations and trading needs, K? have fun searching for the particular mother goose that might lay some golden eggs.