Congratulation on finallly somebody starting this journal. I was thinking of it, but Volente should have done it. Anyway good luck, some observations: This is not true. Actually, overnight the Ro10 tends to work even better, since the range is usually smaller than the day's range, so there is a better chance of trendchange after 10 points.... Now one thing to consider and I think the OP missunderstands the concept: The Ro10 is an entry signal! It doesn't say it is going to move 10 points in your favour from your entry (although it might), it says after 10 points move from a previous low or high, there will be a reversal. That is it. The exit is completely up to the trader, it could be 3 points, 5 points, whatever. That's why it is hard to judge the concept, because it just gives one side of the trade. It could work for one and doesn't work for someone else. Also a way of avoiding missing an entry after let's say 9.5 points move is to have half of the position at 9 points, another half at 11 points of the move... Anyway, good luck... P.S.: I assume you are not up all night, so we could assume that you have an automatized strategy that enters during the night after a 10 points move. Just an idea...
At this point we have been stopped out at 1278.75 around 8:30 EST on 8/7/08. This is a drag because the price went to 1289.0 around 5:30 EST before reversing. In other words, 2.75 pts. from the 10 point objective. Jagmot, what trade is put on now?
Am I understanding this correctly....this is basically a counter-trend trade? i.e high 89 ...buy when 79...stop at 76...profit goal +10. If I am correct (not often) ....would it not have been of the high from yesterday?Say, 91.75. Not trying to be a spoil sport , but it seems like a straight forward gamble unless there is some solid data that justifies this method of trading. Good luck anyway.
Actually my entry would have been this morning 1279 long because the overnight high was 1289, but it still would have ended in a loss, because we went below 1276.... Edit: Just like Now and Now said...
I have never changed my rules other than using a 3 point stop instead of 2. KISS, 10 point intervals, from either a reaction low or high. The reaction high yesterday was 91 ish so the next signal was 81. The last reaction low was 1281, so your signal was 71. This simple rule gets you in the trade, How you manage it is up to you. Please keep in mind this rule does not fare well on a trend day when a huge move is made. Luckily those days do not happen very often. With your 10 point target jagmot, you will probably see many winning trades turn into losers versus scaling out some at smaller gains and getting a much higher winning percentage.