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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

  • #41,801
  • Jul 13, 2018 9:55am Jul 13, 2018 9:55am
Update.
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  • #41,802
  • Jul 13, 2018 10:10am Jul 13, 2018 10:10am
Quoting Bruin813
Update. {image}
I'm in that one too Bruin813
  • #41,803
  • Jul 13, 2018 10:11am Jul 13, 2018 10:11am
how should i draw my fib for such case?

AB=CD. but CD is extended.

retracement target @ 61.8 of AD? or 61.8 of CD?
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  • #41,804
  • Jul 13, 2018 10:18am Jul 13, 2018 10:18am
1 trade today - YM +110

Week
6 trades
5 Winners (3 BE) = +138
1 Loser = -4
Total Points +134 points
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  • #41,805
  • Jul 13, 2018 10:26am Jul 13, 2018 10:26am
Quoting bmdenton23
1 trade today - YM +110 Week 6 trades 5 Winners (3 BE) = +138 1 Loser = -4 Total Points +134 points {image}
Well done!
  • #41,806
  • Jul 13, 2018 11:30am Jul 13, 2018 11:30am
So I have a question on the attached chart, Mr. Pip. At the beginning, price breaks structure and then starts moving bullish. Would you follow the order flow like the yellow lines seeing how once price broke above the 2nd high it started moving in smaller swings? Any and all comments are welcome.

The red just shows that the smaller swing could be considered part of the larger swing.
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  • #41,807
  • Jul 13, 2018 11:49am Jul 13, 2018 11:49am
Hello Traders, here is the link to the live stream. Let me know what you thing and if the content has value. Have a great weekend!

https://youtu.be/ggxHmJxu1Kk
If you fail to plan, you plan to fail.
  • #41,808
  • Jul 13, 2018 11:51am Jul 13, 2018 11:51am
Quoting S41nt
So I have a question on the attached chart, Mr. Pip. At the beginning, price breaks structure and then starts moving bullish. Would you follow the order flow like the yellow lines seeing how once price broke above the 2nd high it started moving in smaller swings? Any and all comments are welcome. The red just shows that the smaller swing could be considered part of the larger swing. {image}
The yellow swings make up the order flow.
If you fail to plan, you plan to fail.
  • #41,809
  • Jul 13, 2018 12:37pm Jul 13, 2018 12:37pm
Hello guys,

Just for fun, I found a new pattern today on the YM. I call it the Elephant
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  • #41,810
  • Jul 13, 2018 12:42pm Jul 13, 2018 12:42pm
Quoting Nikster
Hello guys, Just for fun, I found a new pattern today on the YM. I call it the Elephant {image}
Whats the R:R on this thing, might need to backtest it.. Seems legit!
"Luck is when opportunity meets preparation"
  • #41,811
  • Jul 13, 2018 12:50pm Jul 13, 2018 12:50pm
Short the long term
Long the short term

6E/EU

Finally have a winning day lols , but I dint follow trade plan though I learned a lot .
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  • #41,812
  • Jul 13, 2018 1:06pm Jul 13, 2018 1:06pm
Quoting vladutz112
i think some of us will have a better winrate if you would teach us how to combine different orderflows....we could avoid some losses just with this process
You can refer to Mr.Pip channel

https://www.youtube.com/channel/UCw8CjBPrQlRH7jbiRbQcc1w
https://www.youtube.com/channel/UCy5Zq25cFK3FZeF26wn4m0w

you need to combine
- structure ( supply demand area , main swing to trade )
- order flow ( projection , momentum , depth , to determine health of swing )
- bar by bar ( candle expectation also to determine health in more detail. )

there were others thing to be consider but above should be the base to trade.
  • #41,813
  • Jul 13, 2018 1:14pm Jul 13, 2018 1:14pm
Yeah , finally a winning day

these trade were not perfect , some against expectation to trade exhaustion point
this was a demo account , the commission for each trade was 0.7pips , thus all results need add a cost of 7usd.

after mistake and spread cost , it was still a win , amazing!

as you can see , there were 5loses , 3 of them was against expectation and emotional trade , and the last one were BE ( right after the continuos loss )

Out of 14 trade I only lose 2 ( ignore the 4 mistake trade)
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  • #41,814
  • Jul 14, 2018 7:40am Jul 14, 2018 7:40am
Hello fellow traders, I'm trying to figure something out that I don't get. Maybe someone can help me out here.

We all learn to risk a certain amount of money per trade. Let's say 3% on a $5000 account which is $150. Depending on the size of the stop loss we determine the lot size we trade with. So far so good.

However, when using the Fixed/Smooth Ratio Money Management method we increase our unit size along the way depending on the size of the delta. Let me explain with an example where my struggle is.

Suppose we trade the EUR/USD and we have a SL of 50 pips. The lot size will then be 3 mini lots (0.3 lots) which is one unit is with either method. Now let's assume we use the FRMM method and our delta is $500. We are profitable and achieve an account size of $5500 or more after several trades, which means we should double our unit size to 2.

The same risk of 3% now accounts for $165, but since we double the unit size this becomes $330 doubling our risk to 6%.

Is it that my thinking is flawed and I should let go the percentage of risk per trade when using FRMM/SRMM? Or am I missing something?

Thanks in advance.
  • #41,815
  • Jul 14, 2018 9:36am Jul 14, 2018 9:36am
Quoting bmdenton23
{quote} I'm in that one too Bruin813
Hello BM, good to hear. Now I'm able to ask you some questions about it.

I am still in this trade. How about you? Do you hold your open trades over the weekend? Also interested in how you managed the trade.

Thanks in advance.
  • #41,816
  • Jul 14, 2018 3:58pm Jul 14, 2018 3:58pm
Quoting Bruin813
{quote} Hello BM, good to hear. Now I'm able to ask you some questions about it. I am still in this trade. How about you? Do you hold your open trades over the weekend? Also interested in how you managed the trade. Thanks in advance.
I'm in with a 1/2 position for a longer swing with a target of .7530.
I'm at Break Even. I'll trail structure until price reaches target at which time I'll trail decision candles.
If stopped out am willing to reload the 1/2 position at .7360 and add around .7335.

I make decisions about holding FX over the weekend on a case by case basis.
If I'm only in a partial position, I'm more likely to hold.
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  • #41,817
  • Jul 15, 2018 1:19am Jul 15, 2018 1:19am
Quoting bmdenton23
{quote} I'm in with a 1/2 position for a longer swing with a target of .7530. I'm at Break Even. I'll trail structure until price reaches target at which time I'll trail decision candles. If stopped out am willing to reload the 1/2 position at .7360 and add around .7335. I make decisions about holding FX over the weekend on a case by case basis. If I'm only in a partial position, I'm more likely to hold. {image}
Hi bmdenton23

i would look the order flow differently

from the chart , the lowest point to highest point was 2 swing imo
second swing has great projection, thus not expecting a 100% correction
the correction has great momentum even at the second time down , still buyer able to correct back up
expectation was NSH and current price was at resistance which previous correction down failed to push up
let see which side win, now buyer success push up with better strength than previous.
  • #41,818
  • Jul 15, 2018 3:32am Jul 15, 2018 3:32am
Quoting Bruin813
Hello fellow traders, I'm trying to figure something out that I don't get. Maybe someone can help me out here. We all learn to risk a certain amount of money per trade. Let's say 3% on a $5000 account which is $150. Depending on the size of the stop loss we determine the lot size we trade with. So far so good. However, when using the Fixed/Smooth Ratio Money Management method we increase our unit size along the way depending on the size of the delta. Let me explain with an example where my struggle is. Suppose we trade the EUR/USD and we have a...
Yes, your thinking is flawed. Let me try to explain this shortly as i am just reading about the Fixed Ratio in the book "The Trading Game" from Ryan Jones, the guy who created the Fixed/Smooth Ratio money management.

The whole reason to use fixed/smooth ratio is to get rid of the flaws of fixed fractional method ( which is the one you try to use %3 of the account.) In this method it takes way too long to increase your position size but as you build up your account it starts to increase your lot size too fast. (try it out with the number in excel and you'll see, for example it jumps from 1.4 lot to 1.7 lot with a single trade later on.) So it starts growing too slow and after a certain point it goes out of control.

Whole point of the Fixed/Smooth ratio is to speed up the earlier growth with the use of delta and slow down the later part to reduce risk and protect profits. You can't use these methods together, you're supposed to use one of them. Which i recommend not to bother with %3 and stick to fixed/smooth ratio.

If you like to learn more about this i highly recommend you to read the book. In fact, digital copy is only $6 on amazon, well worth the price.
https://www.amazon.com/Trading-Game-Playing-Numbers-Millions-ebook/dp/B000WCVVYU
  • #41,819
  • Jul 15, 2018 1:29pm Jul 15, 2018 1:29pm
Currently short.
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"Luck is when opportunity meets preparation"
  • #41,820
  • Jul 15, 2018 1:31pm Jul 15, 2018 1:31pm
Looking to short at the yellow area.
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"Luck is when opportunity meets preparation"
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