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Plutonite's Trading Manual

  • #41
  • Jul 5, 2007 9:05pm Jul 5, 2007 9:05pm
Quoting Pip Meister
I read it three or four times and will continue to read it great jedi master....just kidding....seriously....I will continue to read it over and over so it "sinks in." I also did research on diff sites on BBs and the theory behind it, even printed it out, which I will do with your info as well....but it I must admit....your writing style is a little "parabolic" in nature and I'm a little thick headed (never did well in complicated math in school...at this point you're wondering, "What the heck is this guy doing here?!?!?!) But I'll keep working on it. Lookin' forward to the "pretty lil' charts."

Peace,
Pip Meister
Let me know if there's anything I can make clearer. You non-science types infuriate me to no end, but what can I do, I love FF so much..

Also, nobody has ever made analogies between my writing style and a geometric system before, they usually just say I'm a nice guy or something to that effect -maybe I should read between the lines

Peace, love, and lots of pips
-P
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #42
  • Jul 5, 2007 9:54pm Jul 5, 2007 9:54pm
i see you finally started a thread about your method. congratulations! i'm watching...
Nihil Sine Deo.
  • #43
  • Jul 5, 2007 9:55pm Jul 5, 2007 9:55pm
Quoting Plutonite
Let me know if there's anything I can make clearer. You non-science types infuriate me to no end, but what can I do, I love FF so much..

Also, nobody has ever made analogies between my writing style and a geometric system before, they usually just say I'm a nice guy or something to that effect -maybe I should read between the lines

Peace, love, and lots of pips
-P
Us "non-science" types are a gift to your kind (that would be the "science" types, just so there's no miscommunication here...lol. So embrace that and you'll find yourself ahead in your character development...although you seem to be quite the character already! (These comments are made with all of the good will in the world btw....I hope that you enjoy them as much as I do.)

Also, "parabolic" is two-fold...first of course the allusion to geometry but also to "parables." Check this from Merriam Webster.com


parabolic

One entry found.

parabolic
Main Entryar·a·bol·ic http://mw1.merriam-webster.com/images/audio.gifPronunciation: \ˌpa-rə-ˈbä-lik\ Function:adjective Etymology:in sense 1, from Late Latin parabola parable; in sense 2, from New Latin parabolaDate:1669 1 : expressed by or being a parable : allegorical 2 : of, having the form of, or relating to a parabola<motion in a parabolic curve>
— par·a·bol·i·cal·ly http://mw1.merriam-webster.com/images/audio.gif\-li-k(ə-)lē\adverb"

Anyway, I'm sure that by now I've alerted the attention of the mods for continuing this diatribe, so I'll have a big glass of "shut the heck up" and wait, patiently, mind you, for your response with charts and all of the other fun stuff. I've really enjoyed this playful banter, but, we are here for pips, so.....

Peace,
Pip Meiser
  • #44
  • Jul 5, 2007 10:06pm Jul 5, 2007 10:06pm
Quoting Scrat
i see you finally started a thread about your method. congratulations! i'm watching...
Ah, you're back, how was the project? You didn't miss much I tell you, I got so bored I wrote an effing book as you can see Well, let's see how it goes, eh.
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #45
  • Jul 5, 2007 10:09pm Jul 5, 2007 10:09pm
Quoting Pip Meister
Us "non-science" types are a gift to your kind (that would be the "science" types, just so there's no miscommunication here...lol. So embrace that and you'll find yourself ahead in your character development...although you seem to be quite the character already! (These comments are made with all of the good will in the world btw....I hope that you enjoy them as much as I do.)

Also, "parabolic" is two-fold...first of course the allusion to geometry but also to "parables." Check this from Merriam Webster.com


parabolic

One entry found.

parabolic
Main Entryar·a·bol·ic http://mw1.merriam-webster.com/images/audio.gifPronunciation: \ˌpa-rə-ˈbä-lik\ Function:adjective Etymology:in sense 1, from Late Latin parabola parable; in sense 2, from New Latin parabolaDate:1669 1 : expressed by or being a parable : allegorical 2 : of, having the form of, or relating to a parabola<motion in a parabolic curve>
— par·a·bol·i·cal·ly http://mw1.merriam-webster.com/images/audio.gif\-li-k(ə-)lē\adverb"

Anyway, I'm sure that by now I've alerted the attention of the mods for continuing this diatribe, so I'll have a big glass of "shut the heck up" and wait, patiently, mind you, for your response with charts and all of the other fun stuff. I've really enjoyed this playful banter, but, we are here for pips, so.....

Peace,
Pip Meiser
My mathematician friends will be very amused to know this. Thanks for the info, I promise to be increasingly parabolic in the future.

-P
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #46
  • Jul 5, 2007 11:14pm Jul 5, 2007 11:14pm
Quoting Plutonite
1) Strong unexpected news:

2) Clear support resistance levels (tight ranges..etc).

3) Fibs fibs fibs. Everybody loves the fibs. They are absolutely meaningless,
So far this is wonderfully written. I especially liked your post that dismantles the use of lagging "indicators". I must confess, I am a student of statistics and probability myself - I have taken it upon myself to soak up all of the knowledge about it that I can.

I have a feeling I know where you are going with the three items above, or maybe it is that I know where I have gone with them. The first line, unexpected and strong news, is a "black swan" event. Something that is powerful and unexpected - and that is usually explained away in retrospection but offers no evidence of its impending occurance in prospection. I think this is key for everyone to understand how powerful these types of events are, not just in trading. They occur all around us. The rise of Hitler, 9/11, the mobile phone, Sputnik, the invention of indoor plumbing, etc.

None of these events were planned or foreseen in advance, and when they came they changed the course of history. Interstingly enough, though no one saw them with the evidence available BEFORE the event occurred, it looks obvious to everyone AFTER the event occurs that the event was all too predictable given the evidence at hand! In any case, the nice part about black swans is that they are highly profitable to traders who know how to trade them. Ah, I love uncertainty!

Your last line, about fibs, I am anxiously awaiting your explanation on how to use them. I have my own unique way, it is the cornerstone of my trading. I use them to very accurately predict a trend. As this is your thread, I will not clutter it any more with my dribble. However, it would be such a "black swan" event if it turns out we are using fibs in a similar manner. I would just about jump out of skin. What a thrill - thank you for your posts. Best of luck.

-=DAVE=-
  • #47
  • Jul 6, 2007 3:17am Jul 6, 2007 3:17am
Hi, Plutonite,

Nice review of the market,,,

So do you mean that we have to calculate the average range of the daily range and to trade accordingly?

Will pivot levels calculation be enough to calculate the average range? or do we have to calculate 50 bars mean of H4 timeframe ?

thx
  • #48
  • Jul 6, 2007 5:25am Jul 6, 2007 5:25am
Plutonite,

before starting with charts I could only strongly recommend to provide the crowd (= us) with your setup. Usually the author gets tons of questions on "how do I setup these?", "what are the exact parameters of those?". "What is the red line in your chart?"

Just provide your MT4 template file (include version numbers when they change) and all of us have the same setup with no questions asked (when knowing how to handle a template file ;-).

Looking forward to it and bought some tea for the weekend stories...

Lino
  • #49
  • Jul 6, 2007 6:30am Jul 6, 2007 6:30am
Quoting linobaleo
Plutonite,

before starting with charts I could only strongly recommend to provide the crowd (= us) with your setup. Usually the author gets tons of questions on "how do I setup these?", "what are the exact parameters of those?". "What is the red line in your chart?"

Just provide your MT4 template file (include version numbers when they change) and all of us have the same setup with no questions asked (when knowing how to handle a template file ;-).

Looking forward to it and bought some tea for the weekend stories...

Lino
Thanks lino, I indeed intend to do this and will even host the various files on a different server to have them all together for your convenience. I don't think I've met a nicer guy than myself before, have you?
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #50
  • Jul 6, 2007 7:06am Jul 6, 2007 7:06am
you are not a nice guy, you are even a smart one
  • #51
  • Jul 6, 2007 7:19am Jul 6, 2007 7:19am
Quoting linobaleo
you are not a nice guy, you are even a smart one
Lino, i believe you've missed a small 4 letter word out (only) which has altered the whole context of your message

Keep up the good work Pluto, very interesting stuff

M
  • #52
  • Jul 6, 2007 7:41am Jul 6, 2007 7:41am
Quoting Plutonite
Thanks lino, I indeed intend to do this and will even host the various files on a different server to have them all together for your convenience. I don't think I've met a nicer guy than myself before, have you?
Nor one so humble!

Pip Meister
  • #53
  • Jul 6, 2007 8:51am Jul 6, 2007 8:51am
Quoting linobaleo
you are not a nice guy, you are even a smart one
Thank you sir, your handling of my narcissism is quite flattering.
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #54
  • Jul 6, 2007 1:09pm Jul 6, 2007 1:09pm
actually i'm still in san diego, i got two more weeks to go. so far it's not so great... the project, i mean. but the weather is just unbelievable!!!
i can still watch the market, but the internet connection here is lousy and i hate to trade when this happens. so i just watch the market and i only enter when it's too obvious... i can't wait to go back home.
i read what you posted so far, i got the same idea when i started live but the last 2 months proved me that something is missing here. bollinger has a very short paragraph on the statistical model that can be applied to the price, but if that were true then we'd never see price going outside bollinger bands.
the problem, as you said, is human psychology and big players. technical and fundamental analysis work up to a point; i think a very good indicator of human psychology are fibonacci retracements. but the rest (and it's a BIG rest) is just how the big players are handling it. nothing seems to matter anymore, and these days it's getting more difficult to interpret the price action.
so the new challenge for them is to try and hide the trend. how? by increasing meaningless volatility, of course. and this is also our new challenge: to learn how to get rid of this noise they're pumping in. sometimes it works... sometimes it doesn't.
forex is changing into something new and everything we know might become useless...

Quoting Plutonite
Ah, you're back, how was the project? You didn't miss much I tell you, I got so bored I wrote an effing book as you can see Well, let's see how it goes, eh.
Nihil Sine Deo.
  • #55
  • Jul 6, 2007 2:15pm Jul 6, 2007 2:15pm
Quoting Scrat
forex is changing into something new and everything we know might become useless...
Right on, Scrat.

However, I find that statement even more challenging, because it seems that the more complex markets become, the more simple solutions are needed to handle the data and trade accordingly.

There might be a number of reasons why such kind of things are happening, including, but not limited to new generation of traders, new interpretations of price, fundamental reasons...

It took me some time to realise the markets are just 1 and 0, go-go and no-no, positive or negative. I believe everything that has some complex reasoning behind the scenes (I mean big players) must come down to a simple and clear rules in order to survive in the market. Combining that with a good money management it's EASY to trade if we don't include the magic numbers, such as winning%, R:R ratios, expectancy or kelly values.

The basics are the same. We've got the same OHLC, this is what makes markets relatively simple.

Is someone trying to make it more difficult than it already is? Maybe, but I don't care, cause I don't feel like the basics have changed. And if basics don't change, I'm 100% confident in everything I know so far.

Happy trading everyone! Over and out,

Dexis
  • #56
  • Jul 6, 2007 2:55pm Jul 6, 2007 2:55pm
Quoting Dexis
Right on, Scrat.

However, I find that statement even more challenging, because it seems that the more complex markets become, the more simple solutions are needed to handle the data and trade accordingly.

There might be a number of reasons why such kind of things are happening, including, but not limited to new generation of traders, new interpretations of price, fundamental reasons...

It took me some time to realise the markets are just 1 and 0, go-go and no-no, positive or negative. I believe everything that has some complex reasoning behind the scenes (I mean big players) must come down to a simple and clear rules in order to survive in the market. Combining that with a good money management it's EASY to trade if we don't include the magic numbers, such as winning%, R:R ratios, expectancy or kelly values.

The basics are the same. We've got the same OHLC, this is what makes markets relatively simple.

Is someone trying to make it more difficult than it already is? Maybe, but I don't care, cause I don't feel like the basics have changed. And if basics don't change, I'm 100% confident in everything I know so far.

Happy trading everyone! Over and out,

Dexis
I agree with you Dexis. I've visited this forum for a long time before I decided to become a member and I think I've seen just about everything under the sun trading wise....systems from A-Z and have tried some of them. I agree that I (not saying we) need to get back to basics. The hardest lesson that I'm learning is the patience lesson....learning to wait until I'm in alignment with the market....just like in your signature, rather me trying to "force" the market into my perspective.

Also, money management is the key as well....combined with RRs. "The trend is your friend," while a somewhat hokey statement is absolutely true. I can't remember where I heard this, but I heard that when the Green Bay Packers lost a game under Vince Lombardi's leadership, he would always take them back to the basics....back to the fundamentals of how to tackle, how to block, etc., and I think that is the key for me personally. I like to Keep It Simple Stupid....it paid off for me yesterday. I banked 108 pips in the CAD/JPY with a 50 pip risk.

Pip Meister
  • #57
  • Jul 6, 2007 3:10pm Jul 6, 2007 3:10pm
Quoting Scrat
actually i'm still in san diego, i got two more weeks to go. so far it's not so great... the project, i mean. but the weather is just unbelievable!!!
i can still watch the market, but the internet connection here is lousy and i hate to trade when this happens. so i just watch the market and i only enter when it's too obvious... i can't wait to go back home.
i read what you posted so far, i got the same idea when i started live but the last 2 months proved me that something is missing here. bollinger has a very short paragraph on the statistical model that can be applied to the price, but if that were true then we'd never see price going outside bollinger bands.
the problem, as you said, is human psychology and big players. technical and fundamental analysis work up to a point; i think a very good indicator of human psychology are fibonacci retracements. but the rest (and it's a BIG rest) is just how the big players are handling it. nothing seems to matter anymore, and these days it's getting more difficult to interpret the price action.
so the new challenge for them is to try and hide the trend. how? by increasing meaningless volatility, of course. and this is also our new challenge: to learn how to get rid of this noise they're pumping in. sometimes it works... sometimes it doesn't.
forex is changing into something new and everything we know might become useless...
Ha! So you're sunbathing in Cali while we sweat our way through these 50-pip-range days, eh? Sounds like you're getting the better deal.

About the market, it is not getting crazier, just a little choppier due to low industrial input. I think it's the summer. If you check out the winter periods, they are beautiful, nice solid price action, cool headed bankers. Oh well, what can we do? We're still making more pips in a month than most make in a year so I can't really complain. Let's hope it lasts!
Virtue finds and chooses the mean. Aristotle, Ethica Nichomachea
  • #58
  • Jul 6, 2007 3:54pm Jul 6, 2007 3:54pm
come on Plutonite, stop being so coy and pull thy finger out.

I've got my bollingers and my fibs marked and ready to go and am full of ideas you can disabuse me of.

My current notion is about price action around fibs that lie outside the bollinger band bounds and which correspond to previous areas of resistance.
quote of the day: . It's like deja-vu all over again
  • #59
  • Jul 6, 2007 10:42pm Jul 6, 2007 10:42pm
Man, give the guy a break. I would hate for Plutonite's next post to say,
"figure it out yourselves, you impatient SOBs."
  • #60
  • Jul 6, 2007 11:11pm Jul 6, 2007 11:11pm
i know .
the simpler we keep it, the more profitable it can get. but the market IS changing: i feel it in the water, i feel it in the earth...
i think price action is the best thing we can use to trade, along with moving averages and one indicator that gives us a statistical view. oh... and let's not forget: fibonacci, i have to admit that it's working.


Quoting Plutonite
Ha! So you're sunbathing in Cali while we sweat our way through these 50-pip-range days, eh? Sounds like you're getting the better deal.

About the market, it is not getting crazier, just a little choppier due to low industrial input. I think it's the summer. If you check out the winter periods, they are beautiful, nice solid price action, cool headed bankers. Oh well, what can we do? We're still making more pips in a month than most make in a year so I can't really complain. Let's hope it lasts!
Nihil Sine Deo.
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