T-Rex, As much as I would like to give you the benefit of the doubt it does seem seem as though you are dancing around here. This thread began with a daytrade based on overnight high and low, then without explanation or warning moved to " System Variation Method", and now again without explanation or warning into a position trade. What's the story?
I don't get it??????? What is wrong with your order? It is perfectly o.k. to set a 3pt profit target and be done with it. I confirmed your order with you and it was fine. Remember, the methodology can be adjusted to the individuals needs. Some people would rather than placing a "Mental Profit Target" such as I do to just place the buy or sell limit profit target orders and be done with it! There is nothing wrong with that. However, as to what MY plans are. I think I was quite clear as to what I was hoping to accomplish with this trade. Please do not confuse the "Day types" or rules. Today was not a "GAP-MOVE" day it is a "BREAK-OUT" day. Please review the definitions of the 3 day types. Also please PM me so that you and I can chat off line. Our conversation should be separate to what this thread is trying to accomplish.
I may be wrong but I don't recall any "definitions" (or more importantly criteria) given for these three types of trades.
First of all let me clear up a few things here. My original intent was to walk you through the methodology step by step and each day focussing on a different aspect of the system along with what to watch for and some trade secrets I've picked up over the years. I see that I have lost some of you so let me DISCLOSE a truth for a moment. Let me give it to you straight! The correct name of the system here is the "VOLATILITY BREAK-OUT SYSTEM"!!!!!!! The system is based on several different methodologies roled into one. Believe it or not I designed this system to trade on different time frames with different strategies for each time frame. the system is centered around 2 market types: Trending & Non-Trending. 3 types of Entry Days or "Market Set-Ups: GAP-MOVE, BREAK-OUT, & TRENDING. My intent was to create the "HOLY GRAIL". My quest began back when I was a Futures Broker. I had clients that had limited time horizons, those with longer term horizons and those who wanted the right now! In order to accomodate them all I had to have 3 different types of systems going constantly. They all worked very well so I decided to program a system that was robust that could trade: STOCKS, STOCK INDEX FUTURES, FOREIGN CURRENCY, & BONDS & COMMODITIES. The result was "Volatility Break-Out System".
I have made a mistake and did get confused. I must do this in private with t-rex. Excuse my comments in this thread....I got upset, which I very rarely do publically. I apologize to the thread and the moderators. T-rex has many systems and methods...and I honestly do not know how he keeps them straght. I must contact him about the stop loss amount....perhaps it is only 5 points for my style of trading. Michael B.
The great thing about my methodology is that it can be tailord to the individual's trading style and needs. That's why I set 3 pt profit targets on "GAP-MOVE" days with 4.25 - 7.25 stop losses. That's why I use "Volatility Stop Loss" on "BREAK-OUT" & "TRENDING" days. Volatility Stop Losses can very depending on market conditions. I understand that most traders on these boards are horrified with the concept because it doesnt cater to a daytrading mindset ALL the time. the signals change from day to day. The system was designed to adapt to changing market conditions.
My system is "Private" so I dont get into calculations and what not. However, I do share basic consepts and theory behind each trade. I have despirately tried to convey my thoughts as clearly as possible. I have even posted a "WHIPSAW" thread to inform those of some of my thoughts on the overall market unrelated to this thread. just my basic opinions. I must admit I do believe that MOST of the time my coments outside of this journal go IGNORED!!!! so I keep my opinions to myself and just consentrate on banging out the trades and watching my profits grow. Work with me. I can only reveal but so much without confusing things so I just try to keep it simple. I'm open to suggestions that you all may have that could make this a much more clearer journal. Thanks for all of your constructive feedback.
That is correct. I have no intention of "selling" a system to the public. I just want to prove that you CAN be a winner and a BIG WINNER AT THAT!!!!! I know I got skillz! Im just here to prove it!!! I dont like to brag I like to prove......in REALTIME! unlike the so called gurus. Im no guru. but I can show people how to trade.