Rule of 10 Journal

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

  1. From a personal point of view, I thought there was a trade BUY at 76.25 -10 from Wed high 85.25 under the 9-11 model,(my PP @78.75) which would have have been dumped @ approx 82.50 before the report.
     
    #641     Aug 28, 2008
  2. Pekelo

    Pekelo

    My next short would be 90.50 from the morning plateau low, but I am not going to take it because I expect a rally day....
     
    #642     Aug 28, 2008
  3. yet again you can adjust rules constantly that make any rule or way of trading appear to work. some days on the rule of 10 we use highs and lows from the after hrs but other days we use reaction lows from the previous days official hrs trading day. we basically use the rules that in hind sight worked. thats the problem with "hard" systems. trading changes all the time and one must change with it and thats why a hard system is just yet another piece of the puzzle. in addition human emotion is a huge part of trading and thats why most mechanical systems fail. for instance if you use a concrete rule of 10 system and you get stopped out 5 times in a row the chances are great you'll start doubting yourself and tinker with it .
     
    #643     Aug 28, 2008
  4. Thank you....now that makes perfect sense.
     
    #644     Aug 28, 2008
  5. I understand your point of view...if there is abenefit to my PP is that I am trading with the confirmation that the market is either weak/stonger ,by reversal, of the existing position....

    So in effect, the market (PP) has to do a complete reversal again for me to get knocked...and it can happen..

    For instance , I should got a SELL @89/25 s/l 92.25. I will do my usual Buy286.25 mit for 2/3s.
     
    #645     Aug 28, 2008
  6. Knocked out 92.25.
     
    #646     Aug 28, 2008
  7. Stop moved to 1905; still holding for 1925.

    Stop moved to 1913; still holding for 1925.

    Bear flag = move stop to 1915; still holding for 1925.
     
    #647     Aug 28, 2008
  8. 1915 out.
     
    #648     Aug 28, 2008
  9. Pekelo

    Pekelo

    Next short is 1298 from the morning sideways lows....
     
    #649     Aug 28, 2008
  10. Now then based on the 2x10 rule there would have been a short @ 95.50 s/l 98.50....9-11 94.50 s/l 97.50 ..96.50 s/l 99.50

    All are in play.

    I'm out for the day as I had an earlier loss...my PP has yet to confirm this trade.
     
    #650     Aug 28, 2008