Rule of 10 Journal

Discussion in 'Journals' started by jagmot, Aug 6, 2008.

  1. volente_00

    volente_00


    2 x 10 from 83
     
    #301     Aug 19, 2008
  2. volente_00

    volente_00



    This is a very flawed exit strategy unless your entry is filled at the very low or high of the reaction. Using this style you were looking for a 12 point move from the reaction in order to exit.
     
    #302     Aug 19, 2008
  3. jagmot

    jagmot

    V,

    At the time of the trade, the last reaction high was 1274.75 (9:35AM EST 5min bar).

    Are you referring to the absolute bottom at 1262.75? I've stated that I ignore price action once I'm in a trade. I probably sound like a broken record but here goes one more time. Unless I hit the exact low or high tick with my entry, I will always be reversing my trade before I hit my 10pt target.

    Since we are on the subject, how is it possible for you to get a runner of 20+ points that you have claimed in the past. Perhaps you can explain why you sometimes reverse and sometimes don't.
     
    #303     Aug 19, 2008
  4. volente_00

    volente_00


    So you are saying your target on this was really 1262.75 + 10, even though you posted it was 1274.75 ?


    :confused:



    As I have always said getting in the trade is easy, the exit is the hardest part. I use a number of factors, such as is there a gap above or below for the day, a predetermined day bias, due to factors such as how many days is the market up or down in a row, option influence, volume spikes, 9, 18 ma's on a chart can help predict a trend or chop day. As long as I am right side and see the grind materialize I will slowly trail the stop down. If I am not on the right side of the trend I will take a loss, or end up with a lot of stop outs at break even or for small gains of ~ 3 points while fighting the trend. These are the worst kind of days for me, mentally they will wear you out. So to answer your question, 9 years and 1000's of hours of watching price action plays a big part on how I manage the trade once in it. This experience is something you will never be able to program into a computer. My work on rule of 10 is used as a signal to enter, you are the one who decided to use 10 points as the objective. Attached is the very chart that I used to determine monday was a trend day. Notice what the simple ma's show. Tues was an example of a trend day that I was not on the right side of and I had to fight and the result is small gains per trade and lots of breakeven stop outs on partial positions. As a contrarian, I prefer chop over trend.
     
    #304     Aug 20, 2008
  5. The 83.00 being the high...so when I had a buy @ 73.00 which got stopped @ 70...then the next low buy is/could be 63.00 ,because it was the 2 times the 10 from the high of 83.00?

    That is simple enough to follow, so I would get a second bite of the apple ()BUY). Would have worked overnight, too.
     
    #305     Aug 20, 2008
  6. So today we start off with a BUY @ 65.00 s/l 62.00 as overnight high was 75.00.

    Jagmot had a winner!!!
     
    #306     Aug 20, 2008
  7. Pekelo

    Pekelo

    I think now 1261.50 should be a long entry

    Edit: Would be out with breakeven, it reached 64.50 then dropped back...
     
    #307     Aug 20, 2008
  8. Knocked out again...didn't take long. The irony of this trade was that it was the EXACT opposite of the real trade I had taken!!

    This the third successful loss...I will stand back and wait for the 2 multiple =55.00.
     
    #308     Aug 20, 2008
  9. Why would that be?
     
    #309     Aug 20, 2008
  10. volente_00

    volente_00


    reaction high was 71.75
     
    #310     Aug 20, 2008