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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #38,941
  • Mar 26, 2018 7:26pm Mar 26, 2018 7:26pm
Quoting PipTrendz
{quote} Well what do you know, I am actually off work that day, so looks like I will be attending my first live stream!! +47 on the day today (all on here apart from a morning trade for +12) {image}
Good trading well done! Hope to see you at the live stream then.
If you fail to plan, you plan to fail.
  • #38,942
  • Mar 26, 2018 7:31pm Mar 26, 2018 7:31pm
Quoting Null00
Hi Mr Pip, I am a totally newbie here & there's so much for me to learn. And thanks to you, my learning curve has shorten a little bit. Now, I'm in my way watching all your vids & posts. But something comes up & I really wanna ask you about. In your newest Livestream, you had mentioned that, with only 2000 is sufficient for one to start. I have tried to calculate a bit. Well, with $2000 & 2% risk per trader, you can risk only $40, and consider ym price is $5/point. Does that mean you can only risk max 8 points per trade? That is too small, isn't...
What I mean is that if you have a daily positive average then I would consider you a trader with a positive expectancy. Having achieved that then having a 2K account would mean that trading one contract would leave you with $1,500 of margin for P/L more then enough. I never looked at a % of risk. At $5 a point would have to lose 200 point before you have trouble. You should be fine once you have a positive expectancy (daily positive average).
If you fail to plan, you plan to fail.
  • #38,943
  • Mar 27, 2018 4:33am Mar 27, 2018 4:33am
riding NQ and YM 233 charts, NQ moved to BE, YM almost taken out
Attached Image (click to enlarge)
Click to Enlarge Name: NQ 06-18 (233 Tick) 2018_03_27.png Size: 106 KB

Attached Image (click to enlarge)
Click to Enlarge Name: YM 06-18 (233 Tick) 2018_03_27.png Size: 70 KB
  • #38,944
  • Edited 5:08am Mar 27, 2018 4:57am | Edited 5:08am
closed NQ for +90 ticks, traded earlier NQ 89T got -29, total today +61
YM moved to BE+2
edit: YM stopped at +2, today +63

Attached Image (click to enlarge)
Click to Enlarge Name: NQ 06-18 (233 Tick) 2018_03_27-2.png Size: 106 KB
  • #38,945
  • Mar 27, 2018 5:38am Mar 27, 2018 5:38am
Quoting Mr. Pip
{quote} The chart below explains the trade. Basically there were clear areas that the sellers needed to defend and they did not. This was my reasoning on my first intraday long I knew this market had a very high chance of going up and the intraday order flow over night was very bullish but it is what it is . I capitalized on the longer term. Let me know is you understand my chart or need further explanation? {image}
Hi Mr. Pip, Good morning.
Can I also take into consideration for your premise this?
Swing 1 reached 161% extension and swing 2 reached only 127%. That denotes weakness in the sellers because they were not able to reach 1: 1 downward.
Also the retracement of swing 1 was only 50% and swing 2 was more than 78%. Buyers are being able to make deeper corrections.
Thanks!
Attached Image (click to enlarge)
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  • #38,946
  • Mar 27, 2018 6:38am Mar 27, 2018 6:38am
Quoting Null00
Hi Mr Pip, I am a totally newbie here & there's so much for me to learn. And thanks to you, my learning curve has shorten a little bit. Now, I'm in my way watching all your vids & posts. But something comes up & I really wanna ask you about. In your newest Livestream, you had mentioned that, with only 2000 is sufficient for one to start. I have tried to calculate a bit. Well, with $2000 & 2% risk per trader, you can risk only $40, and consider ym price is $5/point. Does that mean you can only risk max 8 points per trade? That is too small, isn't...
Hi Null00 - I have been trading futures live on YM using Ninjatrader and my live account is with Dorman trading. I use 1 contract per trade and have been trading YM (mini Dow) only. This is $5/point. I try to keep potential stop losses below 50 pips on average but sometimes I can accept a higher potential loss if there is sufficient risk/reward. If the cost is too high I do not place the trade. I am new and learning however I have noted that if I hit say an 80 pip loss on a trade (like yesterday where I lost 78 pips on one trade) this equates to a 80 x $5 = $400 loss.

I started with an account of $20,000 and thus this represents a loss on an 80 pip losing trade of 2% for me ($400/$20,000 = 0.02). This is at the upper limit on what I am happy taking on.

If you had a $2,000 starting account $5/pip would be too expensive in my opinion however you can apply the methods to other instruments such as Forex where I know in the UK you can trade at either 50 pence / pip or 0.50 cents/pip with many brokers. I know that many posters on the thread show many more instruments which I suspect have lower entry costs /pip. Sheeep44 posted his UK100 share (Post 38,878) for instance and KensTrader posted a USDJPY chart recently (Post 38,920)

I hope this helps!
  • #38,947
  • Mar 27, 2018 7:18am Mar 27, 2018 7:18am
Quoting Sheeep44
{quote} How are the 8 hour charts going buddy? I see you made the switch from YM to Forex.
Hey Sheeep44,

Thanks for asking. Doing well. Things are a bit more predictable but certainly glacial compared to day trading YM.

Still working on exits. I've had a few taken out at BE+ but admittedly these have been trades near fib exhaustion on the long term. To follow a trading plan on the long term means to watch 300 pips turn to 100 pips on pullbacks. That's a special type of pain.

I'm enjoying the micro currency futures as well but, again, very very slow. Given my home life and lifestyle, not being locked to a computer for 2 or 3 hours a day is good as family and business stuff seems to prevent me from being able to trade at least a few days a week. It's hard to maintain a momentum when your not in the race everyday.

Attached are some forex trades and pics of account numbers. I started this experiment with a little less than $500. While I have you here, Sheeep44 I have a question about margin. I usually try to limit myself right now (given my risk on each trade which is less than 5%) to 4 open positions at one time. I have an extra trade snuck in there right now. As you can see my margin is up to about 25% used. Since I'm still relatively new, that 25% has been my arbitrary max and I'm wondering if that's way too high in your opinion, or just right, or could I go to say 35%.

Also, please ignore the ichimoku cloud on the screen caps. I don't recommend it for anyone. Just a personal preference and I'm still trading based on Mr. Pip's ideas. I use the cloud to help visualize support/resistance/structure. I had it up one day during one of Mr. Pip's webcasts and was amazed at how he was able to see the same things without all the squiggly lines. Maybe with practice I'll be able to ditch ichi.

Thanks again, Sheeep44!
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  • #38,948
  • Mar 27, 2018 7:26am Mar 27, 2018 7:26am
Quoting AzizLight
{quote} Hey Sheeep44, Thanks for asking. Doing well. Things are a bit more predictable but certainly glacial compared to day trading YM. Still working on exits. I've had a few taken out at BE+ but admittedly these have been trades near fib exhaustion on the long term. To follow a trading plan on the long term means to watch 300 pips turn to 100 pips on pullbacks. That's a special type of pain. I'm enjoying the micro currency futures as well but, again, very very slow. Given my home life and lifestyle, not being locked to a computer for 2...
Nice results buddy, happy for you.
I personally don't know where you are from, if you are fom the US, I believe the max leverage you can get on a forex account is 1:50. I use 1:500. Because I have to have less money in my account to keep my positions open. But your risk is pretty high in my opinion, 5% is really a lot. Maybe think about increasing your total account size and risk less p /trade. Since you are risking 5% or so a trade, 35% margin isn't uncommon. It is more personal preference. Also i don't know how many pairs you trade, but just be carefull you don't get your trades closed because of a margin call. So depending on the variables, every trade, depends if it is a day trade and my R:R and everyhing should vary. If I am risking 10 pips or 100 pips, my margin is going to depend. YOu can use margin calculators online if you would like to calculate your margin. Hopes this helps.
"Luck is when opportunity meets preparation"
  • #38,949
  • Mar 27, 2018 7:44am Mar 27, 2018 7:44am
Quoting Mr. Pip
{quote} Shake it off
Thanks for encouragement. New day - fresh start.
  • #38,950
  • Mar 27, 2018 8:08am Mar 27, 2018 8:08am
Quoting Robadub
{quote} Hi Mr. Pip, Good morning. Can I also take into consideration for your premise this? Swing 1 reached 161% extension and swing 2 reached only 127%. That denotes weakness in the sellers because they were not able to reach 1: 1 downward. Also the retracement of swing 1 was only 50% and swing 2 was more than 78%. Buyers are being able to make deeper corrections. Thanks! {image}
Yes of course this let's you know that there is breakdown of the bearish order flow and to expect complex and or deeper corrections.
If you fail to plan, you plan to fail.
  • #38,951
  • Mar 27, 2018 8:13am Mar 27, 2018 8:13am
An update on the trade I took yesterday. Trailing on minor structure. I don't think I will survive long we will see but guaranteed 474 points or roughly $71K
Attached Image (click to enlarge)
Click to Enlarge Name: YM 06-18 (1597 Tick) 2018_03_27.png Size: 66 KB
If you fail to plan, you plan to fail.
  • #38,952
  • Mar 27, 2018 8:19am Mar 27, 2018 8:19am
Quoting Mr. Pip
An update on the trade I took yesterday. Trailing on minor structure. I don't think I will survive long we will see but guaranteed 474 points or roughly $71K {image}
impressive
Time is an illusion, timing is an art.
  • #38,953
  • Mar 27, 2018 8:25am Mar 27, 2018 8:25am
Hello Traders, we have about 15 days till the next live stream which gives us plenty of time to identify topics that might need revisiting. Getting back to basics is always a great way to stay sharp and reinforce some of the weaker areas of our process. Let's come up with a list of your headaches and I will see if I can help you make them go away.
If you fail to plan, you plan to fail.
  • #38,954
  • Mar 27, 2018 8:28am Mar 27, 2018 8:28am
Quoting Mr. Pip
An update on the trade I took yesterday. Trailing on minor structure. I don't think I will survive long we will see but guaranteed 474 points or roughly $71K {image}
Very nice trade!
  • #38,955
  • Mar 27, 2018 8:31am Mar 27, 2018 8:31am
Quoting Mr. Pip
Hello Traders, we have about 15 days till the next live stream which gives us plenty of time to identify topics that might need revisiting. Getting back to basics is always a great way to stay sharp and reinforce some of the weaker areas of our process. Let's come up with a list of your headaches and I will see if I can help you make them go away.
Hi Mr. Pip, One area I struggle with is selecting when to move my trade to Break even. I have in past moved too quickly and found that I have been taken out by 1 pip only to see price make the expectation and on other occasions I have seen 25+ pips profit erased back to the stop loss without protecting.

For instance I have traded just a moment ago and hit break even +5 and have been happy to do so as price would have hit my stop loss.
Attached Image (click to enlarge)
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  • #38,956
  • Mar 27, 2018 8:35am Mar 27, 2018 8:35am
Taken out at trail on the longer term
If you fail to plan, you plan to fail.
  • #38,957
  • Mar 27, 2018 8:44am Mar 27, 2018 8:44am
So a very nice payday today with those 474 on 30 contracts came out to $71,100
If you fail to plan, you plan to fail.
  • #38,958
  • Mar 27, 2018 8:48am Mar 27, 2018 8:48am
Quoting PeteH
{quote} Hi Mr. Pip, One area I struggle with is selecting when to move my trade to Break even. I have in past moved too quickly and found that I have been taken out by 1 pip only to see price make the expectation and on other occasions I have seen 25+ pips profit erased back to the stop loss without protecting. For instance I have traded just a moment ago and hit break even +5 and have been happy to do so as price would have hit my stop loss. {image}
We will definitely talk about this and on your specific trade it was against the expectation.
If you fail to plan, you plan to fail.
  • #38,959
  • Mar 27, 2018 8:50am Mar 27, 2018 8:50am
Quoting Null00
Hi Mr Pip, I am a totally newbie here & there's so much for me to learn. And thanks to you, my learning curve has shorten a little bit. Now, I'm in my way watching all your vids & posts. But something comes up & I really wanna ask you about. In your newest Livestream, you had mentioned that, with only 2000 is sufficient for one to start. I have tried to calculate a bit. Well, with $2000 & 2% risk per trader, you can risk only $40, and consider ym price is $5/point. Does that mean you can only risk max 8 points per trade? That is too small, isn't...
This is a good question and it is related to your risk of ruin one of the most important concept in trading. If you want to form your own opinion i recommend to test different scenarios using a simulator like this one (http://bettersystemtrader.com/riskofruin/):
  • #38,960
  • Mar 27, 2018 8:51am Mar 27, 2018 8:51am
Nice start to the day. +80
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