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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

  • #50,441
  • Feb 26, 2022 10:47am Feb 26, 2022 10:47am
mind over matter, process over emotion!!!!!!!

that is the formula!!!!!!!!!!!!
If you fail to plan, you plan to fail.
  • #50,442
  • Feb 26, 2022 6:40pm Feb 26, 2022 6:40pm
Quoting Mr. Pip
Hello Traders, Anyone around these parts anymore?
Welcome back Damian. I just wondering will you be hold another live session as you used to in the past?
Thanks
  • #50,443
  • Feb 26, 2022 6:44pm Feb 26, 2022 6:44pm
Quoting cititon
{quote} Welcome back Damian. I just wondering will you be hold another live session as you used to in the past? Thanks
I'm not opposed to it but there does not seem to be any interest.
If you fail to plan, you plan to fail.
  • #50,444
  • Feb 27, 2022 8:56am Feb 27, 2022 8:56am
Quoting Learner2
Hi Damian. I'm new to this thread. Some life events eventually led me to learn about you and I've been learning a lot from you over the last month. I've read many of your posts and watched your videos. I know I'm only one person but I too would be interested in a live session. Also, my biggest obstacle has been my emotions... I especially don't know how to stay patient. I force myself to find some expectation to trade even if the market isn't really lending me real reason for the expectation. I need to learn how to let the market unfold without...
Hello, The emotional component is the dinosaur in room without a doubt. They will never go away but in time it is possible to keep them in line. You have to develop a mechanical process based on an if then syntax. That way you are holding price accountable to either do something or not. It's not open to a feeling or an emotion. That is how your trade plan should be written as there is no emotion in that syntax. It is also critical that whenever you have a want that you exercise the strength or discipline to consult you trade plan as it will give you guidance that is not emotional.

The problem is that most traders do not have a trade plan or their trade plan is filled with emotional rules of the collective scared they have accumulated over time. The best advice I can give you and all that are reading this post is to take the time to write real trade plane. One that is process focused, one that is free from emotionally based decision making. A trade plan like that has the potential to give you Jedi powers. Pardon the expression.

This is an example of how something like that would be written. My trade plan has also been shared here in the thread you can dig and find it in the attachments section.

The qualification on a proper swing must be identified in a mechanical and reproducible way to eliminate subjective processing of the order flow. This is the affirmation that explains why the rule or process is being implemented. This is important because it reminds you in your moment of weakness why this rule is important.

In this case we are doing this to remove subjective structure analysis and not allow the emotions to pick swings that not allow fear in. So, after the affirmation the rule. A swing is identified from a clear low or clear high. If that swing achieves a minimum correction of 38.2% correction then it will be considered a qualified swing and used as my staring point in my analysis.

You see 100% mechanical not open to anything. It either did or did not. That process and rule does not care how you or anything feels.

Hope that helps.
If you fail to plan, you plan to fail.
  • #50,445
  • Feb 27, 2022 9:14am Feb 27, 2022 9:14am
I get many traders ask me what would you do in this situation or how would you handle this that happened to me?
The answer almost always from me is what does your trade plan say to do? And, I hardly ever get a clear answer. If you don't have a trade plan that is written out then you have no trade plan. If you have not trade plan then you have nothing to hold your self or your process accountable to. And you are at the mercy of the emotional demons. I can't imagine that being an enjoyable way to do this or anything else.

Lost, scared and vulnerable is how you face the market if you have no trade plan. Traders, If you fail to plan, you plan to fail!!!!!. Lets change the dynamics and stop repeating the behaviors that keeps us on this senseless cycle of pain and stagnation. If you only knew how important this is? You all spend much more time and energy on pointless other thing that offer nothing towards your development as a trader. Do yourselves the service of creating the habits the will turn the tide!
If you fail to plan, you plan to fail.
  • #50,446
  • Feb 27, 2022 10:58am Feb 27, 2022 10:58am
Quoting Learner2
Have you ever had a moment where you mechanically defined something as "x" (in this case "x" would be a situation where there is nothing to trade) and yet you still couldn't stick to what your mechanics said? It's like when you want to only eat healthy foods and you know there's a food you clearly have defined in your head as "unhealthy" and yet you struggle to hold yourself back from eating it. It's easy to say "don't eat it" or in the trading world "don't trade it if there's nothing to trade." I know there's no room for any of this lack of discipline...
Discipline is something that will never be 100% achievable anyone that says otherwise is not being honest with themselves or others. I face it to. In using your analogy there is nothing wrong with enjoying a pizza every now and then. Mastery is knowing that tendency is there and that it could become a problem if you do not exercise discipline so you don't become an elephant.

I am not successful because I am always disciplined, I am not always disciplined. I am successful because I have a process that is rooted in a trade plan that I can hold my actions accountable to. That in time I gained a level of proficiency that allowed my to see and definitely feel the outcome of not following my tangible trade plan. That both effects were undesirable and negatively affected me and my trading account. That this behavior continued for years until I figured out that I have awareness and no control. That was an awakening for me and the the beginning of mastery. I know have the strength and yes its a power to be able to know that I feel this way but I get to decide how I will allow that to affect my decision making. On occasion I will surrender to the emotion for whatever excuse and or reason. This lack of discipline happens very seldom and that is the point. It can't be the standard operating procedure for you or anyone. How do you start to gain control of this you ask?

Start by having a real trade plan that separated process from emotion. Work hard to build a belief system through testing your trading plan in a neutral free environment (Backtesting). Work on being able to see visualize your trade plan in real time market conditions and understand where your trade plan would have you making a decision prior to price getting there. All these things will keep the emotions under control and give you a better chance to stay disciplined. It all starts with a trade plan. Your trade plan. Even if you are using some one else you must make it your own by rewriting it in your own words within the confines of your own mind and sense of expression. That level of intimacy is critical or discipline you will not find. Trust me!
If you fail to plan, you plan to fail.
  • #50,447
  • Feb 27, 2022 11:44am Feb 27, 2022 11:44am
Quoting Mr. Pip
{quote} Traders, All this talk about not taking trades here or there. If price goes over the river and through the woods and then a back flip is nothing more than a lack of confidence and fear. Your trading state is weak and you must gain mastery. Only taking trades that fit your emotional state and thinking you are trading at 70% expectancy is fantasy land nonsense. Your are definitely improving the risk reward but you are also trading at an immeasurable outcome. Your have now placed yourselves in the fortune telling business vs the forecasting...
Hi Mr. Pip,

I just read through your response to one of the posts and I don't fully understand some of your comments.

Although I watched all your videos and adopted your trading style, when I tested it on a demo account, I was not profitable. There might be many reasons for this. I have learnt a lot from you and thank you for that. I decided to test the 61.8 level exclusively as part of a trade plan and strategy. I don't know what is random about the 61.8 as you mentioned. If the market is harmonically balanced, then there is nothing random about the 61.8%. It is the same as qualifying a proper leg. Why only at 38% and no other ratio? There is nothing random about the tests that I'm doing currently with the 61.8% especially if there is structure to the left. In my opinion, this is how I'm rolling up my sleeves and getting dirty..by testing my system.

I know you are successful and no one can take that away from you, but at some point in your life, you were also testing certain aspects of your trade plan. The 70% expectancy is something that I got from your videos where you mentioned over and over that there is a 70% chance for NSH/NSL occurring consecutively. If this is true then why not just trade every pullback? The tests that I'm currently doing will either confirm or discard this theory. So yes, this should not be an immeasurable outcome if trades are taken at the same level every time, unless you meant something else.

Please don't take all of this the wrong way. I respect you and what you do. You are a great teacher. I just did not agree with your comments.
  • #50,448
  • Feb 27, 2022 12:10pm Feb 27, 2022 12:10pm
Quoting Daubert
{quote} Hi Mr. Pip, I just read through your response to one of the posts and I don't fully understand some of your comments. Although I watched all your videos and adopted your trading style, when I tested it on a demo account, I was not profitable. There might be many reasons for this. I have learnt a lot from you and thank you for that. I decided to test the 61.8 level exclusively as part of a trade plan and strategy. I don't know what is random about the 61.8 as you mentioned. If the market is harmonically balanced, then there is nothing random...
Hello, Maybe you took me slightly out of context or I was not clear in our discussion. What I mean is that If you only take a certain ratio to trade then you or whoever is letting many other swings pass by untraded. Since we do not know with certainty which ones will fail or how main will hit the desired ratio and the out come is not able to be measured without other more extensive statistical considerations or calculations. In short the saving grace is more of the improved RR. I can't speak why you believe it is not profitable nor do we need to get into a discussion about that remember My goal is to teach you how to process or read a price chart with accuracy and that should lead you to better trading decision. I just also happen to show you how I use the skills I teach.
I have also been around this block for a very long time and can also spot some comment or ideas that may not lead to a desired outcome or that highlight other potential issues. Please don't feel insulted or that I was overly critical of your post. I trade every possible swing I can and hardly care about the ratio. These swings will ultimately correct to where the liquidity is whether the ratio is there or not.
If you fail to plan, you plan to fail.
  • #50,449
  • Feb 27, 2022 1:08pm Feb 27, 2022 1:08pm
Quoting Mr. Pip
{quote} Hello, Maybe you took me slightly out of context or I was not clear in our discussion. What I mean is that If you only take a certain ratio to trade then you or whoever is letting many other swings pass by untraded. Since we do not know with certainty which ones will fail or how main will hit the desired ratio and the out come is not able to be measured without other more extensive statistical considerations or calculations. In short the saving grace is more of the improved RR. I can't speak why you believe it is not profitable nor do we...
Hi Mr. Pip,

Thank you for the clarification. Also, thank you for speaking up when you spot something that might steer us away from the path of success.

I also know that you are trying to teach us how to read price with accuracy, but in doing that, you also taught us your strategy and that is what I'm also trying to master. I have based my trade plan on your strategy that I picked up from your videos. The only difference is that I don't trade patterns. Maybe I have not tested it enough and I should give it another go. The problem that I have is that I don't have a large amount to start with since the ZAR vs the dollar is very weak. I have seen your accuracy rate which is between 70 and 80% which is major. Maybe a contributing factor to this is that you are averaging in on the 1597. At this stage I can afford that. Not even close. If I can at least adopt your strategy, that would be a great start.

At some point, I will write a summary of your strategy which I would like you to confirm whether I left something out of if I'm on the right track.

Thank you once again for all your help.
  • #50,450
  • Feb 27, 2022 1:37pm Feb 27, 2022 1:37pm
Quoting Daubert
{quote} Hi Mr. Pip, Thank you for the clarification. Also, thank you for speaking up when you spot something that might steer us away from the path of success. I also know that you are trying to teach us how to read price with accuracy, but in doing that, you also taught us your strategy and that is what I'm also trying to master. I have based my trade plan on your strategy that I picked up from your videos. The only difference is that I don't trade patterns. Maybe I have not tested it enough and I should give it another go. The problem that I have...
No worries, I am not scaling in and mainly only intraday trade on the 610T chart you have seen that in my recent posts.
If you fail to plan, you plan to fail.
  • #50,451
  • Feb 27, 2022 2:52pm Feb 27, 2022 2:52pm
Hi Damian, Glad to see you back.
Always Learning
  • #50,452
  • Feb 27, 2022 8:14pm Feb 27, 2022 8:14pm
Quoting JayTrader
Hi Damian, Glad to see you back.
Hey Bud! Nice to see you!
If you fail to plan, you plan to fail.
  • #50,453
  • Feb 28, 2022 12:48am Feb 28, 2022 12:48am
Hi Damian,

Below is the condensed version of your trading strategy (the way I understand it). Can you please confirm if I got it right? Please correct me where needed so that I can have your strategy 100%.

Thank you

-Identify the main swing. It is only a proper swing if it corrected to the 38.2% fib level.
-What is the expectation? NSH / NSL.
-Look to the left for structure. Buyers for NSH and sellers for NSL and draw your area of interest.
-What correction is expected? Determine this by looking at Projection, Depth and Strength.
-When price enters the area of interest, take the trade on a rotation setup. Look for confluence. Structure and ratio (SOS2), Structure, confluence and ABCD completion (SOS3).
-Stop goes above/below the main swing high/low.
-When price reaches the top/bottom of the structure, move the stop to break-even + 5 points.
-When price reaches either the 1-to-1 or the 127% extension, start trailing until price takes you out.

Repeat the process.
  • #50,454
  • Feb 28, 2022 8:52am Feb 28, 2022 8:52am
Hi guys,

Is this something you would do?

I placed a trade and price went against me to correct almost 100%. I implemented a rescue mission and got taken out at a break-even. I had another rotation and took the trade again. Would you trade again when price corrected so deep?
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  • #50,455
  • Feb 28, 2022 9:52am Feb 28, 2022 9:52am
Ah, you know..I lost another 2 trades after the one above.

Maybe I should do my setup and trade against that. It makes more sense to me to do that than what the market is doing.

I'm just way frustrated at the moment and nothing makes sense anymore.
  • #50,456
  • Feb 28, 2022 11:03am Feb 28, 2022 11:03am
Quoting Daubert
Hi Damian, Below is the condensed version of your trading strategy (the way I understand it). Can you please confirm if I got it right? Please correct me where needed so that I can have your strategy 100%. Thank you -Identify the main swing. It is only a proper swing if it corrected to the 38.2% fib level. -What is the expectation? NSH / NSL. -Look to the left for structure. Buyers for NSH and sellers for NSL and draw your area of interest. -What correction is expected? Determine this by looking at Projection, Depth and Strength. -When price enters...
Yes, you got it correct
If you fail to plan, you plan to fail.
  • #50,457
  • Feb 28, 2022 1:15pm Feb 28, 2022 1:15pm
Quoting Daubert
Hi guys, Is this something you would do? I placed a trade and price went against me to correct almost 100%. I implemented a rescue mission and got taken out at a break-even. I had another rotation and took the trade again. Would you trade again when price corrected so deep? {image}
Hello Daubert,

Your main swing is not 100% correct from your chart.

If you want to trade (for whatever reason) the red swing you should have it in mind.

Do not worry for a few losses, they are part of this bussiness, as Mr.Pip says: NEXT.

Hope it helps.
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  • #50,458
  • Feb 28, 2022 2:23pm Feb 28, 2022 2:23pm
Quoting Mr. Pip
{quote} I'm not opposed to it but there does not seem to be any interest.
I am very interested
  • #50,459
  • Feb 28, 2022 2:25pm Feb 28, 2022 2:25pm
Quoting Mr. Pip
My trades for the day {image}
I'm super glad to see you still trading. Also to find you here in the commercial session from the original thread
  • #50,460
  • Feb 28, 2022 2:28pm Feb 28, 2022 2:28pm
Quoting Mr. Pip
{quote} I know ! You know what is sad though? That the absolute value that exist here has not been exploited and despite the unbelieve contribution of a few have also not been enough to keep this amazing thread alive. It's about dead this is the needle in the haystack and very few see it or contribute by sharing their stories or questions.
The value you gave out for free is astounding especially compared to the fake mentors everywhere online. I found your thread and it set me on the path to sure financial freedom
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