tampa's "short skirt" trades...

TAMPA: i would seriously consider trying to implement OLD TRADER's advice. Assuming you are doing correct trend analysis he has proposed an exceelent trading strategy.

 

Old Trader

What time frame are you talking about? Could you be a little more specific and point out where, in the last few days, you should have entered and rode the trend and how wide your stop should have been.

 

I'm not sure that any respect is due

There are traders, and than there are traders...for the way I was trying to trade, yesterday was a nightmare.

I was totally unprepared to take advantage of the situation. Perchance I could have used another arrow in my quiver?

...hmmm

 

I couldn't agree more.

But if I find it hard to stick it out for three points...get my drift?

You gotta crawl before you can walk - but it sure was a good post...

 

...details to follow...


(how's that for a tease?)

 

And he calls me a pervert?! (I'll be right over.)

 

Let’s be perfectly blunt – this ain’t workin’ as I had hoped it would. I’ve been sucked into bad trades, and faked out of good ones.

So I’m sitting here last night just going over and over the charts, and something pops out at me. It’s something I’ve seen before – lots of times. In fact I’ve even tried to trade it, but with very little success. Tons of small losses, and way too many breakeven trades.

But there it is, right in front of me, and it just won’t go away. There is obviously something to it – but how do I make it work?

And then it dawns on me.

You see, there’s this weird guy on the board who trades something he calls the Seat Of My Pants indicator –SOMP. I asked him once to explain it to me. He did. Well, I had to go sit down and fan myself. He was trading without charts, on a “feel” for the market.

Holy mother of God!

But it works for him – most days. And there’s a lot to the method that I like. Plenty of action, and a short trading day (fits into my nap schedule nicely).

But his M.O. ain’t for me – my mind doesn’t work that way.

So we’re talking last night, and he says: “I’ve never heard the term “short skirt”, but it turns out that that’s basically what I’m doing”.

What did he say? How’s that possible without charts, and on his ultra short time frame?

BINGO! The proverbial light bulb goes off over my head. I go back and look at the chart again. Now I am a visual kind of guy – strange for a man legally blind in one eye, and who doesn’t see so good out of the other – I need to see things. Things like set ups – entry points.

And there it is – right there on my charts! It’s the SOMP indicator – just as plain as the nose on my face!

Now there ain’t nuttin’ new under the sun. And all successful trend following systems basically use the same methods. The difference comes in determining what constitutes a trend, and the time frame one looks at to make that determination.

So today I decided to switch from Linda’s “short skirt” method to Mr. Subliminal’s SOMP indicator. I mean, why not? They’re basically the same thing. It just depends on how you look at it – right?

So how’s it going? Not too bad.

For the morning session: 5RT/ +5 points (should have been +9 ¾, but that’s another story)

4 wins – 1 loss (a quarter of a point)

So what exactly is tampa’s SOMP? Well let me trade it for a day, or two, maybe three. Then I’ll spell it out. It isn’t really anything special, and it sure as hell ain’t no secret. It’s simple, uncomplicated, and it works.

Thanx, Subbie – you may have helped me turn the cornor!

...oh my! Look at the time! More later, but it's nap time around here...

 

yes, yes, and YES

 

The Afternoon Session: 5RT/ +3 ¾ points

Total For The Day: 9RT/ + 8 ¾ points

Naw, naw, naw – I found the Holy Grail, and I’m not gonna tell you!

So how are you at begging and pleading? Can you grovel? Do you know how to use Pay-Pal?

(no nap today – I’m just being cranky.)

OK, simmer down...

The problem is that Subliminal says that I have to share. He says that others have helped me, and now...oh you know how the rest goes. And of course he is right.

So at some time over the weekend, I’ll write down the “rules”, and post them – probably late tomorrow (Saturday).

Since the method has been inspired in part by Linda (the “short skirt”), and in part by Subbie
(the SOMP indicator), maybe I’ll call it “short pants”.

It’s not the Grail. It’s not overly unique. There is nothing special about it, and it is not complicated. It requires no fancy-schmancy indicators, or off the wall software. I will warn you in advance that it is far from mechanical, and does require discretion on your part.

But I’ll explain all of that tomorrow – Sunday at the latest.

 

Just a little more detail:

10 trades...8 winners - 2 losers (largestr loss = 1/2)

7 of the 8 winners ran for 2+ points (obviously 5 of the 8 did so without me - old habits die hard)

09:50 Sold @921 +2
10:07 Sold @914 1/4 +3/4
10:43 Sold @912 +1/2
11:03 Bot @907 1/2 -1/4
11:11 Sold @907 1/2 +2

01:26 Sold @901 1/4 +1 1/4
02:07 Sold @896 1/4 +1/4
02:29 Sold @896 1/4 -1/2
02:32 Bot @895 1/4 +3/4
02:58 Bot @906 1/4 +2

I would post a copy of IB's execution file, but haven't a clue as to how...sorry.