We have an operational fractal... the 5 min. We use 1 min for anticipation. We learned to "tape" to the trend operating fractal. The price bars fill the "Tape" and we treade there using our signals from our indicators. So far we have only gone to the slower fractals. Today you get to see how to deal with FAST paced trends. There are markets and there are trends. Each has a pace and don't think about the differences or similarities... It's NIKE time... just do it. Today just pounce on the 1 min and do the trades. I am not a predictor. But soon I will figure out here, how to post in such a waythat you can read in advance what is coming up for you to make trades. ET has a built in lag. In the past when i was a healthier person, I would do a Yahoo voice thing running 5 to 15 min ahead of the market and someone would transcribe thelitany as a preserved log of events. I have done post series on raging bull (like narrating a day's trading on a stock that went from 22 to 11 and back up to 16 all in advance of each upcoming signa). Today you get to see the market operating at a pace that gives you fast trends, each of which can make you what you have been making per day. The point is this: I want you to be in fractal heaven. I am getting you to a place where you can dicern what fractal to be on by looking at the performance of the indicators signals we use to make money. This intellectual transition is a killer. You are finding out that for all trend paces, the indicators work exactly the same IF YOU AREON THE CORRECT FRACTAL. This is not something I can just drop on a person on day one. However, once you see this, you are going to henceforth be in a KISS groove. Unfortunately none of this stuff is in books nor do mant people get to this level of iterative refinement. I just had to let the market run the show for a few weeks to get you to this place by example. It has done everything I needed finally. Now, we can play ball. You start on 5 min. You see synch and you see the prior day carry over. This puts you on a "tape" fractal. You also have the next fasteet for anticipation. THe indicators always work the same way and they always generate the same sequence of signals. Now you must learn the sequences in the manner of driving a car. You will find they are automatic when driving, You do the same sailing on water. You do the same flying You do the same skiing on black diamond trails or through racing slalom gates. You do the same doing acrobatics in a glider. We are going to review, forever, the important sequences for differing market and trend paces. I have a very deep reservoir of everything that is possible and I have distilled it into a tree of paths that eliminates what isn't possible and, in turn guides you along an optimum route for continually making you money. We will have to repeat this stuff for equities as well because you will have to lay off money there as it builds up past the operating point of eminis. I am going to take Gekko through this capitalization problem once I fix him a little bit if he wants fixing. As you know the familiar is a very save place to operate and it is difficult to give up the safety of a successful survival technique once you really have survival down where you choose to live. A lot of people can't read what I write because I am screwed up. Over time, I have learned that it is easier to read what I write. reading what I am saying can often give you a feeling of not being in a safe place. At least, you have to say it's very unfamiliar. After that you get to see some humor once in a while, maybe. LOL.... the next post is going to be a pain.
To get in a groove , repetition is a good helper outer. What's below may appear to be a pain. I guess everyone has their own way of trading and doing things. It may be helpful to separate the wheat from the chaff. But everyone decides what is wheat and what is chaff. If you want to spend a little time during the weekend break it might help to run multicopies of each page and do a cut and paste with one of the copies and keep the other in a chron file. I might do it too. If you can divide stuff into piles that relate to your algorithm, then just cut and paste an abreviated power point type of thing for main thoughts, you then have something to leaf through and add to occassionally. I think the problem with what I do is that it doesn't fit into how people are set up in their way of doing things. If you work on stuff for forty years you definitely do wind up in left field somehow. Here are some topics to stash stuff in if you want to use my point of view. Making Money I go by tiers: Easy: These are fast rocket trades. Intermediate ice berging. Slow: The nice 10 points a day trends operating fractal based. Steady: The slaloming stuff where you rhythmically pull it down. Monitoring: Indicators Signals Sidelining Sequences of signals. The tree for trading. Principles: P, V relation A/D Fractals Tool box. Beginner 20/80 Tape Rocket ships Scoring Point 1,2,3 Channels Intermediate Volatility Taping to get Fractal MACD Taping Ice bergs Stop and trading log Advanced Saloms The Matrix and probability. Software Equities System (C language) Commodities flow charting (30 sheets) Mental and Emotional repairs and maintenance Capital growth requirements picture work (NLP) Quick cures (4 stepper) Chapter 20 (18 common mistakes logging) Chron file. The chron file is a quasi road map but I do go to where people are to eliminate road blocks and stuff. This is highliter heaven. A majot wheat location. Put in colored sheet for every time your inital capital multiple goes up one. Red is best; use green then blue later. Trading Stop logs. Do about one three ring binder a money. 3 to 5 pages a day including C&R's.
Starting to get the hang of this...I think... Using the 5-2-3 stochastic, and the +1 or â1 MACD signal. 12:17 Short @832.00 12:50 xxxxx @827.75 Entered looking for an âIcebergâ When volume dried up at the previous low for the day, and with the MACD spiking lower, I took profits. 01:27 Short @ 830.25 01:35 xxxxx @ 830.25 02:00 Short @828.25 02:10 xxxxx @827.50 Both trades were an attempt to âreenterâ the âIcebergâ. With volume on the low side, I had very little tolerance for any thing but a favorable quick move â it just didnât happen, so I bailed. In hindsight, it looks like I played the day perfectly â OK, so maybe not perfect, but pretty good. Bottom line: 3 trades â 2 wins â 1 wash â plus 5 points. For the week: 16 trades â 8 wins â 5 losses â 3 washes â Plus 11 points. My wife, who usually sobs uncontrollably when I report the dayâs trading results, has been in much better humor this week â she has even started talking to me again! Thank you, Jack â I have you to thank for that. With another profitable week, she may even start cooking again. (Dare I even think about what she might start doing again with an entire month of profits?)
What time frame are you using for these? It's hard for me to match them up with Jack's method...but then I may be a bit behind in the reading. g
Tampa, Your first trade...did you feel stress at 12:21 est when you got the macd +/- dry up...and the 1min macd cross up? Could you share with us what held you in the trade...was it becauseyou were iceberging it? Michael B.
Stress? Yep - lots of it Yes, the trade was put on as a potential Iceberg. As for the one-minute chart, it's history. While it kept me out of some bad Rockets, it also took me out of too many good trades. I don't know if I will ever be able to look at it again. So what kept me in the trade? Blind faith, and an eye glued to the price-volume relationship - the same thing that took me out. For me, much of this is a "feel" for what is going on. The indicators rule for entries, but then the price-volume action takes over. I would prefer that some nice wiggly lines told me exactly what to do - but I don't think that's going to happen. Two weeks ago, today would have been a disaster - but now it turned out to be a fair day. Admittedly, I am far from relaxed at this point, but I hope that will change with time. I don't know why this thread caught my attention, but it is teaching me a new way to look at things. Maybe there are a lot of traders who would look down their noses at an 11 point week - but I ain't one of them! Just imagine, had I been trading a hundred cars, it would have been a $55,000.00 week
Tampa, I find your posts helpful. I thank you for your honesty. But I need to advance to a level of no stress, and no skirming in the seat. Michael
That ain't gonna happen until this (or something else) becomes second nature. Hang in there...you'll come around.
Five-minute, 5-2-3 stochastic, +1 or -1 MACD. The last two trades were an attempt to reenter the Iceberg, based on my "feel" FOR THE DOWNTREND RESUMING. (BASED ON THE hISTOGRAM AND VOLUME ACTION)
Run over to a trading thread called: "DEtermining trend". I did a quick and dirty set of 12 sequential charts for the time from pre open until after midday when the raw chart pooped out. I will do a souped up version for the journal on two fractal pairs. one for ES and one for making money on equities using the "natural" cycle. I am not a hot shot at this graphic stuff. So it will improve and others here can redo the stuff to make it super. You need to do this for your binders. I am going to put scoring into it as well. I will give you a really hot way to handle level II stuff as an exercise in how A/D works as well. A?D means accumulation /distribution. This is the third variable after price and volume on how markets work. I know there are people who think volume doesn't matter. Just be patient a little on this matter. I feel you need the opportunity to consider it from the viewpoint of risk management and also anticipation. we are going to slip into a modus here where we will be picking up on improving money velocity in chunks. A chunk will be a doubling or the existing rate that is contemporary. Where did the back testers go??