Unholy Grail to Success

Discussion in 'Strategy Development' started by saliva, Nov 14, 2008.

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  1. This thread is created in the hopes of answering numerous inquiries I've received about my trading system and, in the process, share what little knowledge I might possess with the general public. My trading system is comprised of two very important strategies: PMT and TRAP.

    PMT is an acronym for Price, Momentum, and Time. TRAP is an acronym for Trend Reversals and Pullbacks. These two strategies are used in conjunction to one another. First, allow me to regurgitate what has already been written on the subject of PMT elsewhere:

    TRAP is a strategy that I use to find potential reversals. If PMT happens to be a driving instruction for my car, then TRAP is the map that provides driving directions. It's worth noting that while it's necessary to trade with just one or the other, it's still not sufficient. TRAP provides what is lacking in PMT. TRAP involves a three-pronged approach: retro, macro, and micro. On a "retro" level, a daily chart is used to spot the high and the low for the next trading day. There are many variables considered in this approach, which I will outline later. On a "macro" level, we're dealing with intraday trends. Here, we're solely concerned with prominent trends that occur throughout the day. On a "micro" level, we're focused on what I call individual price swings that collectively make up the trend. These concepts are not easy to articulate, but I hope to make them more clear in due course.

    Needless to say, feedbacks are always welcome.

    Important note: Allow me to be blunt. I don't like to bitch anymore than I have to but there's a good reason why this thread was written in a chronological order. If you're new to this thread, start from page 1 and don't skimp on details!
  2. apak


    I can't for the life of me trade that way

    I can only trade when mechanical system tells me when to buy when to sell

    this sup/res in your eyes can be different in someone else's eyes

    your way of trading CAN NOT be taught, it is too discretionary
  3. Imba


    Just my 0.02c.

    the real grail systems must involve max 2 conditions to mak a long/short. All these gambling about either 529 indicatos system, or iehter "no indicators needed, just watc he price action" (see amother populat thread on that forum) - IMHO is waste by 90%.

    a)any system which involve more then 2-3 indicators, will just kill yur brains, because most of the time, yu get is something like that: "Mkay, here i will go short, hm... lets see, MACD is right to do it, ohh my good, wait, RVI on 1h chart is overrunned,.. ad.. hmmm... 4hour EMA is flat, well...... oouuch.. and euro-dollar`s CCI and RS is downthndeing. Damn wtf i suppose to do?!?!?!!" etc...

    so, i strongly advise not to fall in love with any kind of systems, which have waaay too much indicators\entryes settups.


    About so much loved (by some ppl) S and R levers trades... well.... i doono really, it might work for some ppl, and might not for te others. Theproblem here is that you may guess (draw) a support line on 1 poin, and another person will do it on another point. SO, try to guess, how much intraday/swind support and ress levels may 10000 traders draw on a chart? ))

    In the end, most smart thing whic was discussed dozens of tme on each forum, is that the real GRAIL system is that system which work FOR YOU and which suit yur size-market-habbits nicely. So, go for it.

    PS: After about 10 months of live trading on US market (and 2 year on Russian market) and spendin my free time onto "system developement" i comes to.... quite weird results. The simplier the system - the better it is.

    I maked the way from R_S level based entryes to a 20 indicators system, and "news waiting" systems. But, in the end, what i have is a system which based on 1 MAverage + 1 indicator. Its simple as a hammer. Only 3 possible mode here: long, short, flat. No "gesses", no thinking, only long-short-flat and wise money-risk-management.
  4. ctrlbrk


    Interesting, I am always open to learning more and look forward to some examples and more details.
  5. Imba


    100SMA on 30min chart.

    Last days ES trades:
    865 long. 28/10
    981 (reversal). 05/11
    933 (rev onto long). 07/11 (at midnight).
    945 (trailing-stop close) 10/11.
    926 short. 10/11/
    875 (rev onto long). yesterday. and now im in that long.

    this is not some kind of David Blaine..... its just SMA.

    Its not my system even, it was describer on another Forex forum. I guess i cant post link here onto that thread.
  6. Imba


    by the way, you muse realize, that by no means i`ve tried to say that SMA is some kind of that holys**t grail.

    You may use any MA, or any other indicator, or i guess you may even use your dog midnight barking as an indicator. Just make a few (less) titan solid rules, when you do what, backtest it, launch it on live account, and if it working, dont even shake your mind with all these endless thoughts "why is it work/dont work?".

    Iehter its not working and then you dont care much about it, iether its workin, so.. dont broke it with human brains involved. Let it be so.

    THAT was my acctual advice basicly.
  7. ctrlbrk


    I agree on keeping it simple. I try to just use MACD and SMA, then I use Keltner for trying to get best entry/exit.
  8. Imba


    Sorry, cant help you musch on it, i dont even get a clue what is it :cool:

    Btw, check your mailbox, i sended a msg 2 u there.
  9. If you're trading the US markets, you can add buying/selling pressure if you can read market dynamics, because if you get a reversal pattern and the market internals are either supporting or contradicting it, you can use it as a filter for entry or for trade monitoring.
  10. Imba


    885 (close by a stop).
    872 (short). (883 SL).

    And here we goes lower....

    Apes IQ brain required really :p
    #10     Nov 14, 2008
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