Volman meets Burke or My journey with PA

The goal of developing this system on a micro was to eventually export it to a mini.

Mini RTY




Micro M2K

Robin Trower, a very underrated guitarist.

Why so unforgiving, and why so cold
Been a long time crossing Bridge of Sighs

Derivative: "something which is based on another source".

Indicators are essentially derivatives as they are based on price, so they fit the definition. What indicators really are is the output of some math formula or other similar manipulation of price resulting in an output value. This value is what is used to compare price to come to some conclusion. This process would soon become very confusing if using the numerical value. To alleviate this most indicators show their output value in a graphical format. This makes it much easier to analyze the information.



Knowing that the indicators are an output value of a math formula, we can compare the value of price to the output value of that (or any other) indicator. From here we can safely say the same for the different indicators for example two moving averages. Looking at the output values this way you can see the validity of moving average crosses when used in the proper context of system rules. I bring this up dur to the fact that there are instances of a confluence of price and two moving averages resulting in tradable price movement.

Where's Waldo?

This entire game they call trading boils down to that question. My solution, once I found the best bar type, is build a system that answers the question. Using concepts that I accept as truths, some not in alignment with the conventional practices, I have created a manual day trading system that works specifically for my chosen instrument, but can easily be tweaked to fit most any instrument from gold to forex. I think this is an important approach, that of refining a system to the instrument. This reduces many false signals from generic inputs. It also allows to "form fit" your system to the nuances of specific instruments. One big advantage of using range bars and a system tuned to a specific instrument is the ability to catch most of any move.

At its core the system is fairly simple. Price moves in irregular trade cycles within its daily moves. These cycles are price moving into either the buy or sell side of the Red/Gold combination. The preferred sequence is price crosses the Red then the Gold. After the cross of Gold their should be a move in the desired direction with a pullback that is the entry. Sadly price is not that cooperating, but can still be read.

Being a technical day trader, I don't bother with the futile effort of predicting where price may or may not go. I care not if price is up, down, or sideways any given day. I have my personal biases I would prefer to see the market move, but those are outside of trading. I also am not concerned with news or as I call it "data drops". I am very aware of the time these events occur and many I will not be in the market. As far as where the market will go based on those times I will find out when it occurs.

The proper mindset is get in, make a profit, get tf out. When the day is done you need to be flat. No worries. No stress.

Another fallacy many traders accept is it's ok to have 10% to 20+% draw down. What a crock. If your account is 10k a 20% DD means you are willing to throw away 2,000 because the "experts" say its ok. List this under expert = bull shit category.

Think I will discuss this area from yesterday. This is leading into my start time. There were also two trades in the green box. Will come after I get some sleep.

HUGE SMILE

My system before the Trump tweet was giving a sell signal. Y'all keep pretending.

The entire China thing will be good for the US in the end. I think this is the start of untangling ourselves from the China trade tentacles. They snare you with cheap less than quality goods. Cheap is the key.

And most global conglomerates are approving of them as they only care about $$$ or worse the ideology of the board aligns with their form of authoritarianism.

Once-free countries are introducing dystopian measures such as digital IDs (UK), online age checks (Australia), and mass scanning of private messages (EU).
Germany is persecuting anyone who dares to criticize officials on the Internet. The UK is imprisoning thousands for their tweets. France is criminally investigating tech leaders who defend freedom and privacy.

Thursday going into my defined start time there was a two-stage Short move. In between these two was a brief move up. This is a Gold cross, but in this context it is more of a reset or balance type move. The basic entry setup is Red then Gold with price moving through them followed by a pullback after crossing the Gold. This being trading there are numerous looks of this but it all boils down to essentially the same. That covers the base anatomy of an entry, what we need now is the when.

The general answer is a cross of the Gold by price. Like everything there are exceptions and you need context. Context is important as this answers the where's Waldo question within the framework/structure. I look at structure to include the moving averages because it is price action in the form of its value that drives the various formulas that make up all the dynamic and static indicators. I also consider everything as nothing more than a graphical representation of the output values. Just how I view everything. Along with the chart panel indicators, I have some oscillators that come in very handy. Like all else these are output values of a formula. That value depicts some aspect of price behavior (the some is based on what the oscillator is intended to show). The one that has been the most useful is the Double Stochastic. It took a few attempts to get the correct input value. Combine that with the RVI, Relative Velocity Indicator, and some basic rules and you have a good entry trigger.

This pic is the Gold cycle shown by the left arrow in the marked up pic from Volman meets Burke or My journey with PA | Page 205 | Forex Factory.

Just happened no more than 10 minutes ago.

I have been following Stacey Burke for more than 2 years now. The method makes a lot of sense, but I still can't apply it profitably. Your thread has been going since 2022 which is remarkable. Do you explain the indicators you use? To what extent have you incorporated Volman's method? Do you have a number of traders who are successful with your method?

That was my issue with Burke, I could not fully apply it. I am sure that some of his ideas have seeped into what I do now, but it is not consciously. The attempt at the start was to attempt to combine minimal indis like Volman and PA. I could never get it to click. Took a hiatus and came across what I think is real price action and that is range bar charts. Since my trading education was with indicators I have gone back to what I know with my new insights and it has changed everything. My system i have created is based loosely on the Paradox system. I do identify the indicators I use. For this instrument I do not give the inputs. I am working on one for gold. I am thinking of posting those parameters. This can be used on time charts but is not as accurate. That is a result of the limits of time bars. You only have four points of price data in a storage container. Limits the true view of price. To my knowledge I am the only one who uses this method. I think there are some who may be figuring it out. They are those viewers who are not forum members but always pop up when I post. Sorry folks, no calls here.

As I am not the best at instruction it has taken a while to explain the methodology. I am getting there. And it does work.

My main issue with Burke is also the same issue I have with the fluff bros on this site. Lots of vague info but never describe how to really make trades.