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Lessons Learned Thread

  • #61
  • Sep 27, 2011 2:03am Sep 27, 2011 2:03am
Trade 2

Order executed
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The Thief of Wall Street
  • #62
  • Sep 27, 2011 3:27am Sep 27, 2011 3:27am
Quoting Chicky
...there is a difference between thrill and fear. If you are riding a roller coaster, it is thrill, not fear. This thrill will change to fear as soon as you find something wrong with the safety system of roller coaster. .......
http://2.bp.blogspot.com/-KookCKauxv...er-coaster.jpg
The Thief of Wall Street
  • #63
  • Sep 27, 2011 7:14am Sep 27, 2011 7:14am
Trade 2 - Concluded

TP hit. 1%+Spread
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The Thief of Wall Street
  • #64
  • Sep 28, 2011 2:05am Sep 28, 2011 2:05am
Information
This is not some kind of a Trading Journal. Its a trading method thread. We are just trying to test application of a method described earlier in this thread. All recent posts are part of a demonstration showing how to apply that method.

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Waiting for the next opportunity. We are not in a hurry. We can only take chances on opportunities presented to us. Because:

Quoting Chicky
................
No matter what is our edge, it is not definite and is very small. We cannot afford to lose this meager edge. But the good thing about this market is that we live in a very rich land. Plenty of opportunities show every now and then. If we have a system that is not reliant on big size of the moves, we can afford to watch opportunities develop and vanish without feeling left behind. There is always another opportunity not too far...........
The Thief of Wall Street
  • #65
  • Sep 28, 2011 2:14am Sep 28, 2011 2:14am
Quoting Chicky
Information
This is not some kind of a Trading Journal. Its a trading method thread. We are just trying to test application of a method described earlier in this thread. All recent posts are part of a demonstration showing how to apply that method.

-------------------------------------------------------------------

Waiting for the next opportunity. We are not in a hurry. We can only take chances on opportunities presented to us. Because:
We have to wait because pa is trying to enter a zone where there was some big selling earlier. Again even it penetrates this zone and fights with sellers, there is a strong resistance just above that (the pink line at 1.3664). The selling earlier was so strong that it did not allow the pa to touch 1.3750 which is the middle of 1.4000 and 1.3500. But we can also not go short from here as pa is moving up.......... We will enter once things get clearer. We will be either right or wrong but at least not confused.
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The Thief of Wall Street
  • #66
  • Sep 28, 2011 10:22am Sep 28, 2011 10:22am
Trade 3

Buy order placed at 1.3575. But minutes after we placed this order pa started moving up. We therefore may have to revise this order because we do not want pa to hit this order on its way down.
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The Thief of Wall Street
  • #67
  • Sep 28, 2011 1:00pm Sep 28, 2011 1:00pm
Quoting Chicky
Trade 3

Buy order placed at 1.3575. But minutes after we placed this order pa started moving up. We therefore may have to revise this order because we do not want pa to hit this order on its way down.
Trade 3

I wasn't watching and our order was executed. Let's see how this trade turns out.
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The Thief of Wall Street
  • #68
  • Edited 9:33am Sep 29, 2011 9:22am | Edited 9:33am
[quote=Chicky;4995991]Trade 3

How many times it's going to miss our tp by a couple of pips?
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The Thief of Wall Street
  • #69
  • Edited Sep 30, 2011 3:15am Sep 29, 2011 9:58am | Edited Sep 30, 2011 3:15am
[quote=Chicky;4998973]
Quoting Chicky
Trade 3

How many times it's going to miss our tp by a couple of pips?
Trade 3

One thing about this system is the Balance. Many times one gets tempted to break self-defined rules but if we allow ourselves to do these violations there will be no method left to follow. By Balance I mean, there are times when pa:

- misses tp by one pip but again it also misses sl by one pip.
- soon after hitting sl turns around and goes in our desired direction, but again there are times when it hits our tp and starts going in the opposite direction
- Hits our tp of 100 pips and then goes in the same direction for 600 more pips, but again .........................................

The most important safety device we have in this system is 1% risk: 1% reward rule. That rule helps us following all the other rules. One reason I always say: "Keep your position sizes small". This rule has countless advantages for short-term traders.
The Thief of Wall Street
  • #70
  • Sep 30, 2011 3:06am Sep 30, 2011 3:06am
Trade 3

I am going to bed. The week is over for me.

Third trade running, but I am not very excited about this trade.

We took three trades during this week. Two winners and one yet to be decided.

Here is the latest position:
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The Thief of Wall Street
  • #71
  • Sep 30, 2011 5:00pm Sep 30, 2011 5:00pm
Trade 3 - Concluded

Stoploss hit. -1%
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The Thief of Wall Street
  • #72
  • Edited 2:34am Oct 2, 2011 1:40am | Edited 2:34am
Trade 4

Pending buy order placed.

Information
This is not some kind of a Trading Journal. Its a trading method thread. We are just trying to test application of a method described earlier in this thread. All recent posts are part of a demonstration showing how to apply that method.
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The Thief of Wall Street
  • #73
  • Oct 2, 2011 3:37pm Oct 2, 2011 3:37pm
Quoting Chicky
Trade 4

Pending buy order placed.

Information
This is not some kind of a Trading Journal. Its a trading method thread. We are just trying to test application of a method described earlier in this thread. All recent posts are part of a demonstration showing how to apply that method.
Trade 4

Another pending buy order placed.
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The Thief of Wall Street
  • #74
  • Oct 2, 2011 4:02pm Oct 2, 2011 4:02pm
Quoting Chicky
Trade 4

Another pending buy order placed.
Trade 4

Inserted Video
The Thief of Wall Street
  • #75
  • Oct 2, 2011 4:59pm Oct 2, 2011 4:59pm
great posts above.
i dare not challenge your effort if sober, so you may consider i am not .
if i understand you are trying to display your concept by adapting a strict 1% win or lose situation.
but you see, once again price plays a game with your TP. in the previous trade it hit it, in the last one it took your SL. but in a real situation would it be wise to leave your original SL in place and to NOT at least BE after the price almost reached your expected TP?
what i want to say, is in a real situation not losing is almost as good as winning, no?
i'm just asking because i play around with my own exit rules which i consider to be more important than my entry and protecting my ass when the trade has gone considerably my way is rather high up in my list.
  • #76
  • Edited 5:47pm Oct 2, 2011 5:26pm | Edited 5:47pm
Quoting asos101
great posts above.
i dare not challenge your effort if sober, so you may consider i am not .
if i understand you are trying to display your concept by adapting a strict 1% win or lose situation.
but you see, once again price plays a game with your TP. in the previous trade it hit it, in the last one it took your SL. but in a real situation would it be wise to leave your original SL in place and to NOT at least BE after the price almost reached your expected TP?
what i want to say, is in a real situation not losing is almost as good as winning,...
Asos, thanks for taking interest in this thread.

You are absolutely right. If it wasn't for demonstration, I would have closed Trade #3 soon after it bounced down from our tp by less than a pip. But that would have been an exception based solely on experience and nothing to do with the method itself. But I am trying to discourage such exceptions.

Since all trades under this method are short-term (in the range of 60 to 250 pips), does not focus on minimizing risk and maximizing profit. Even normal noise would be enough to take out several SLs of 10, 20 or 30 pips. After few such SL hits, we would need to go beyond our maximum pip target of 250 to make that trade work. We do not bring sl to BE but our profit includes spread.

The only edge this method relies upon is the ratio between number of winners and number of losers at a constant risk/reward of approximately 1% and therefore moving to BE may disturb this ratio.

There are many other reliable methods, but I find this one to be least stressful, moderate but consistently rewarding. This is my favorite method with the exception that I many times go for less than 60 pip trades at strong support/resistance levels.

Since this thread did not discuss technical details how to determine support/resistances and their probable strength, we have taken a bit conservative approach by widening our profit/loss targets in number of pips. If you notice, I am gradually adding trendlines to my demo charts indicating support/resistance levels.

Ps - Trade #4 is also a risky trade looking at this chart. I want to keep this thread moving and therefore taking this chance. Using the supports/resistances in this chart, the next long order should logically be at the lowest blue trend line. Since our profit/loss target is very small (1% of account balance) we can take few such chances.
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The Thief of Wall Street
  • #77
  • Oct 2, 2011 9:31pm Oct 2, 2011 9:31pm
Trade 4

This support seems to be holding.

It may hang around 1.3325 until London Open.
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The Thief of Wall Street
  • #78
  • Oct 2, 2011 9:48pm Oct 2, 2011 9:48pm
Trade 4

Narrowed down first order by about 100 pips. Just above the week-end "Gap". Such "gaps" are considered good support/resistances.
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The Thief of Wall Street
  • #79
  • Oct 2, 2011 10:45pm Oct 2, 2011 10:45pm
Trade 4

Going to bed. All orders set. Safety net of 1% risk/reward in place. Don't expect more posts until tomorrow.
The Thief of Wall Street
  • #80
  • Edited Oct 4, 2011 1:11am Oct 3, 2011 9:25pm | Edited Oct 4, 2011 1:11am
Trade 4 - Concluded

SL (S)hit. -1%
The Thief of Wall Street
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