Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
- #11,062
- Mar 9, 2019 2:22pm Mar 9, 2019 2:22pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
- #11,063
- Mar 9, 2019 2:56pm Mar 9, 2019 2:56pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
I do not mean to imply that I always take either a full loss or a full profit target.
Here is an example of what for me is more or less a scratch trade. The market rallied and began to try to change direction. All attempts to change direction are in fact reversal attempts. 80% of reversal attempts fail. Since 80% of reversal attempts fail, what should I do 100% of the time? Expect the reversal attempt to fail and the trend to resume. Therefore, I'm going to trail a buy stop above the market and wait for the trend to reassert itself and sweep me into the market.
In this case, pictured below, I trailed a stop above the high of each bar. I was first filled at 6998. However, the pullback continued, which happens frequently, as pullbacks typically come in 1 or 2 legs, and sometimes 3 or 4. I trailed a buy stop again so I would enter a double position. That order was filled at 96.75.
Price then looked to be resuming the uptrend with a strong bull candle followed by what looked like a bull breakout bar. However, that bar closed near it's low in what is commonly referred to as a doji, or trading range cabndle. In fact, the market did enter a mini trading range for several bars. On the 7th candle of the range, price had a "false breakout" above the high of the up trend resumption attempt and reversed. That, readers of this thread should know, is a standard Trader Vic 2B stop probe reversal set up. I placed a stop and was taken out at +3 ticks on the first long entry and +8 ticks on the second long entry. On the third candle of the range, price actually retraced all the way down to 93.75, which put me down -17 ticks from the first entry and -12 ticks on the second. At that point, I had no information indicating that the trend would not resume, and my stop was 91.25 on the whole position.
Here is an example of what for me is more or less a scratch trade. The market rallied and began to try to change direction. All attempts to change direction are in fact reversal attempts. 80% of reversal attempts fail. Since 80% of reversal attempts fail, what should I do 100% of the time? Expect the reversal attempt to fail and the trend to resume. Therefore, I'm going to trail a buy stop above the market and wait for the trend to reassert itself and sweep me into the market.
In this case, pictured below, I trailed a stop above the high of each bar. I was first filled at 6998. However, the pullback continued, which happens frequently, as pullbacks typically come in 1 or 2 legs, and sometimes 3 or 4. I trailed a buy stop again so I would enter a double position. That order was filled at 96.75.
Price then looked to be resuming the uptrend with a strong bull candle followed by what looked like a bull breakout bar. However, that bar closed near it's low in what is commonly referred to as a doji, or trading range cabndle. In fact, the market did enter a mini trading range for several bars. On the 7th candle of the range, price had a "false breakout" above the high of the up trend resumption attempt and reversed. That, readers of this thread should know, is a standard Trader Vic 2B stop probe reversal set up. I placed a stop and was taken out at +3 ticks on the first long entry and +8 ticks on the second long entry. On the third candle of the range, price actually retraced all the way down to 93.75, which put me down -17 ticks from the first entry and -12 ticks on the second. At that point, I had no information indicating that the trend would not resume, and my stop was 91.25 on the whole position.
- #11,065
- Mar 9, 2019 3:36pm Mar 9, 2019 3:36pm
- | Joined Jul 2010 | Status: Trader | 1,319 Posts
Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
- #11,066
- Mar 9, 2019 6:49pm Mar 9, 2019 6:49pm
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
If you are good at something, never do it for free--Joker
- #11,068
- Mar 9, 2019 7:11pm Mar 9, 2019 7:11pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
- #11,070
- Mar 9, 2019 9:22pm Mar 9, 2019 9:22pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
- #11,071
- Edited 11:42pm Mar 9, 2019 11:24pm | Edited 11:42pm
- Joined Jun 2006 | Status: Trader | 5,709 Posts
- #11,074
- Mar 11, 2019 7:47am Mar 11, 2019 7:47am
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
It's Monday ... whether you are sim or live, it is a great day to start tracking your trades in order to identify and then close the profit gap!
- #11,077
- Mar 11, 2019 9:04am Mar 11, 2019 9:04am
- Joined Jun 2006 | Status: Adios! | 3,377 Posts
Staying in my lane...
- #11,078
- Edited 9:31am Mar 11, 2019 9:07am | Edited 9:31am
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
{quote} I like Al Brooks ... Does what he talks about work?
When I was posting with Divergence a few years ago in another thread I took it upon myself to try t trade the ES in a small account to see what would happen. Soon thereafter I stopped trading completely in order to get out from my home office and back into the world. I kept my trading accounts open, including that little one. So I decided this morning I'd trade that account as well as my trading account.
The goal is to trade that little account each day and to stop when I have accumulated $250 gross profits/contract or 12:00 noon EDT, which ever comes first. I am going to use the simple pullback scalping method I posted about last week. I will keep my 123's and 2B's and other set ups for my bring home the bacon account.
I am going to track my trades using the profit gap work sheet to identify any disciplinary break downs I might suffer as a result of making this project public (I have seen this happen time and again to those who try these things on forums).
With no objections, I will post my results here daily.
For today, I was fortunate enough to have a 2/2 start, so I am finished trading that account for the day. The goal is to trade one week at one contract/trade. Size will increase going forward according to the following margin forumula: Trade size = 1 contract/$1500 equity. The account had $3015 as of this morning. Though it has sufficient equity to trade 2 contracts, for this week I will just trade one.
Here is the chart. There were several set ups that were not traded as it is difficult for me to get trades entered into two accounts at once, especially during the fast conditions during the opening 15 minutes or so. I never show the size on the chart, but these two trades were just single lots.
EDIT: I forgot to mention - I put two EMA's on the chart to show how for those wondering whether to be looking for buys or sells needs to trade this method with the trend. The ema's themselves are meaningless - trades will occur above the ema's, below,, the ema's and in between the ema's ... but if you have a difficult time distinguishing up trends from down trends from trading ranges, the ema's can be a big help. But if you use them, use them as trend watching training wheels, and do not create trading rules that incorporate the ema's. Otherwise you will miss a lot of trades by using the ema's as an excuse, e.g. "price was too far above the ema's" or "I didn't take the long because price had dropped below the ema" ... No, no, no ... this is a PA method just like the 123 and the 2B.
- #11,079
- Mar 11, 2019 9:18am Mar 11, 2019 9:18am
- | Joined Nov 2012 | Status: Trader | 3,121 Posts
Become the casino
- #11,080
- Mar 11, 2019 9:20am Mar 11, 2019 9:20am
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts