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The Rainbow Room

  • #1
  • First Post: Edited Oct 23, 2007 8:36am Oct 11, 2007 4:17pm | Edited Oct 23, 2007 8:36am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
This room, for the most part, will contain thoughts, musings, examples and general paraphernalia related to the Linuxtroll Simple Scalping method.

Anyone is welcome to post here.

Now let's follow that Rainbow...
  • #2
  • Oct 11, 2007 5:16pm Oct 11, 2007 5:16pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Not absolutely Rainbow specific, but probably more appropriate for this method than most.

 As we all know, hindsight is 20/20, we can easily spot perfect entry and exit points when we look back on a chart, we can see that we would not have entered on a particular day as there was no momentum behind any particular move... yada yada yada...

Now, as LT says, this method requires, no wait, demands screen time. Since a lot of people are only trading this method for an hour or two a day - at specific times, limited by session openings and closings - I feel screen time is a bit hard to come by [at least for those only trading the session opens/closes conservatively].

Combine the [for some] lack of available screen time with your natural (read: not yet eliminated by trading experience) ability to harbour biases and subjective view points in the trading moment and you somewhat stifle your ability to take in all the information that, in this case, the Rainbow, is providing you with. And when you don't take in the information, yep, you guessed it, you don't learn. I know most people, myself included, will be taking screenshots upon entering, managing, and exiting trades. And some time after the trade as well, if you're like me. I find this very effective in trading.

However, for scalping, this does have it's limitations as things generally unfold fairly rapidly - particularly if the trade is a good one :

Taking all of the above into consideration, today I started capturing, *LIVE*, [most of] todays activity - around 10 hours. That is, my current set-up: 5-sec chart, 30-sec chart, bid/ask with all-important spreadmeter, SuperDOM, T&S and Level II have been captured to video as I see them on-screen.

I have watched around half an hour of the "good bits" of the live capture. I stopped as I was so overwhelmed at the benefit of this that I thought I would post up what I had done. Maybe some of you are already doing this - but it's new to me anyway! I've posted a screenshot of what my set-up looks like below. It's reduced in size as I run my monitors at 1600x1200.


Here are some of the benefits I have found already with doing this:

- If you're away from the computer, you can still capture the days' events and run them back afterwards as if trading live

- There is a lot of information to take in and so being able to view the same set-up over and over allows you to take it in piece-wise

- You will have an unbiased view when playing it back as you know that it is un-tradable

- You will re-see exactly what you saw unfold before you took any particular trade

- A textbook trade that you missed, for whatever reason, can be viewed over to see the set-up that occurred prior to its' success.


Phew [wipes 'brow], there's probably more but that's all the ones that are in my mind just now.

Maybe I'm just a total geek with all this but who cares, it works for me...
Attached Image (click to enlarge)
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  • #3
  • Oct 11, 2007 5:58pm Oct 11, 2007 5:58pm
Good job! Much appreciated.

What are you using to capture live video?

About the screen time, until recently, I was trading all day every day trying to gain screen time. It's only been the past two weeks that I have started trading the london session exclusively. I chose this after spending weeks with NY and Tokyo and I just couldn't seem to have consistent results.

I have found that the way london moves "clicks" with me and it's a lot easier to make consistent money.

The biggest benefit, IMHO, of capturing video is to monitor momentum. I have found that, although LT doesn't really mention it, momentum, for me, is the most important factor.

For example, the charts I posted in my thread with losses the other day...they weren't half bad entries(for me) but the momentum wasn't there and you can't really see that in the chart...it comes from watching the ticker on MB.

Anyway, if I can find a video program that runs on a Mac(LOL), I will give this a try.

Thanks for the suggestion,
Nathan
  • #4
  • Oct 11, 2007 6:46pm Oct 11, 2007 6:46pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Hey Nathan,

Thanks for posting in the Rainbow Room.

I am using Camtasia just now - TheOne mentioned he has used the same.

I am not exaggerating how useful and interesting this was today. Like you I am trying to get as much experience as I can - trading all through UK and US sessions. Trying to get a feel for it. I think screen capturing for someone who only traded a 1-2 hour session would be more beneficial than for someone who is watching the screen the whole day.

You mentioned in your Journal the other day about momentum. It was only today when I got Level II etc set-up that I got you. The desktop sort of errupts on a decent move. An A+ setup on the charts but with no blinking/flashing of the Level II is pretty much a no go.

Not having used Level II or such before I was interested in all the talk of negative spread. That spreadmeter is really interesting - red, yellow and green. I was surprised when I saw a spread of -3 flash up at one point - got me thinking as to how they match the orders . Think I will go and investigate this...


Chow,

Magnus
  • #5
  • Oct 12, 2007 3:32am Oct 12, 2007 3:32am
Nice Job!

I was thinking to do the same but when I run Camtasia the pc slow down.

what superdom are you using?







Quoting Yuppie
Hey Nathan,

Thanks for posting in the Rainbow Room.

I am using Camtasia just now - TheOne mentioned he has used the same.

I am not exaggerating how useful and interesting this was today. Like you I am trying to get as much experience as I can - trading all through UK and US sessions. Trying to get a feel for it. I think screen capturing for someone who only traded a 1-2 hour session would be more beneficial than for someone who is watching the screen the whole day.

You mentioned in your Journal the other day about momentum. It was only today when I got Level II etc set-up that I got you. The desktop sort of errupts on a decent move. An A+ setup on the charts but with no blinking/flashing of the Level II is pretty much a no go.

Not having used Level II or such before I was interested in all the talk of negative spread. That spreadmeter is really interesting - red, yellow and green. I was surprised when I saw a spread of -3 flash up at one point - got me thinking as to how they match the orders . Think I will go and investigate this...


Chow,

Magnus
  • #6
  • Oct 12, 2007 4:07am Oct 12, 2007 4:07am
Quoting italianfx
Nice Job!

I was thinking to do the same but when I run Camtasia the pc slow down.

what superdom are you using?
Hey man,

How's your trading coming along? I haven't seen you around for awhile. I always enjoy your charts.

Hope you doing well,
Nathan
  • #7
  • Oct 12, 2007 4:15am Oct 12, 2007 4:15am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting italianfx
Nice Job!

I was thinking to do the same but when I run Camtasia the pc slow down.

what superdom are you using?
Thanks italianfx. Appreciated.

I'm running a 2.8Ghz with 1Gb RAM. It does slow it down a bit. I actually use another PC for internet and everything else while recording. Only really using that PC for recording and placing the trades.

SuperDOM is from NinjaTrader. I am currently using an MB feed with it. Apparently you can't get depth with it on forex - only depth at bid/ask (as you can see in the picture). Would love if someone could point me wrong on this! I'm trying to figure out how they can provide Level II depth but not SuperDOM depth -perhaps I am missing something here though

I am using the SuperDOM to trade on demo. It is really, really good.


Magnus
  • #8
  • Oct 12, 2007 6:36am Oct 12, 2007 6:36am
Hi Nathan.

Now is going better, but I had 2 terrible weeks. My problem is that I think TOO MUCH, I wrote down all my rules and when I follow them and focus on spine direction everything works great but following the up and down of Flame drive me crazy and I'm tempted to trade countertrend getting burned.
I should think less and just jump in when I have a signal without esitation.

I also like your charts, we trade almost in the same way.

Keep up the good job


Alessandro





Quoting nhallmark
Hey man,

How's your trading coming along? I haven't seen you around for awhile. I always enjoy your charts.

Hope you doing well,
Nathan
  • #9
  • Oct 12, 2007 6:47pm Oct 12, 2007 6:47pm
hey guys...maybe you can help me.... I'm looking for a recording software just like a Camtasia but with the adjustable speed play...

Thanks.
  • #10
  • Oct 13, 2007 5:50am Oct 13, 2007 5:50am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting Neznaika
hey guys...maybe you can help me.... I'm looking for a recording software just like a Camtasia but with the adjustable speed play...

Thanks.
Hi Neznaika,

I am assuming you wish to be able to record a session and play it back at a faster (or slower) speed.

I am not sure if you can record/edit the recording so that it plays back at a different speed. There is probably a video editor that can do this [Camtasia can probably do it - not checked it out though].

What I am doing though is just recording in real-time and so the file I have is exactly as it was live. Now, if you use Windows Media Player 10 you can play back any file at -16x, -8x, -6x, ..., 6x, 8x, 16x speed.

Please let me know if this answers your question.


Magnus
  • #11
  • Oct 13, 2007 7:55am Oct 13, 2007 7:55am
Quoting Yuppie
Hi Neznaika,

I am assuming you wish to be able to record a session and play it back at a faster (or slower) speed.

I am not sure if you can record/edit the recording so that it plays back at a different speed. There is probably a video editor that can do this [Camtasia can probably do it - not checked it out though].

What I am doing though is just recording in real-time and so the file I have is exactly as it was live. Now, if you use Windows Media Player 10 you can play back any file at -16x, -8x, -6x, ..., 6x, 8x, 16x speed.

Please let me know if this answers your question.


Magnus
I will try that... Thanks for ur help.
  • #12
  • Oct 15, 2007 2:36am Oct 15, 2007 2:36am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Pivots! Well, my guiding light for the moment anyway...

Below is how I played Monday's London Open/Tokyo Close Session...
Attached Image (click to enlarge)
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  • #13
  • Oct 15, 2007 7:27am Oct 15, 2007 7:27am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
This is the pivot formulae I currently use...

The values for the examples below were H=167.10, L=166.11, and C=166.72...

I found different ways of calculating Pivots on FF and various websites. After testing a number of these variation I have found that the formulae below are sufficient for calculating Pivots for EUR/JPY.

Another variable in the Pivots is the closing time. The most generally accepted times are either 22:00[GMT] or 00:00[GMT]. I have found that there is not a great difference between these times. However, 22:00[GMT], I think, may just have the edge.

This can all change and I could be using different formulae on a different closing time at some point. Hell, I might not even use Pivots at all - you just don't know...

Just now though, I find this set-up pretty damn good :


Magnus
Attached Image
  • #14
  • Oct 16, 2007 2:56am Oct 16, 2007 2:56am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Here is London session opening trade...

Entry not shown as OandA was in a bit of a huff with me...
Attached Image (click to enlarge)
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  • #15
  • Oct 18, 2007 11:47am Oct 18, 2007 11:47am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Here are two of the winning trades of today [I had losers as well...]...

Demonstrates how I managed them...

I am still trying to get a hold of this method with both hands. My thoughts a still a bit mixed over the helpfulness of Pivots and other S/R zones. From what other, more experienced, Rainbow Riders :, have been saying is that all I need is the Rainbow. Will see how my thoughts and experiences with this transpire...

Anyway, here is the chart...
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  • #16
  • Oct 18, 2007 11:53am Oct 18, 2007 11:53am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
After a decent drop today, EUR/JPY chopped around for about 4 hours...

It settled for a short period before climbing, as shown in the picture...

Now, check out where the climb stopped...

It stopped, and reversed, at todays Pivot [by my calculation]...

It actually stopped to the exact pip and reversed 33 pips...

Maybe these Pivots should not be disregarded too hastily :...
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  • #17
  • Oct 18, 2007 11:55am Oct 18, 2007 11:55am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Here are my first two trades from today...

Before London Session opened...

But just couldn't be turned down...
Attached Image (click to enlarge)
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  • #18
  • Oct 18, 2007 3:28pm Oct 18, 2007 3:28pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
This from 22:00 GMT... Also Sydney open...

Calculated Pivots at 22:00 GMT and 15 minutes later a perfect example of their use...

Check out the Round Number bounce as well...
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  • #19
  • Oct 23, 2007 3:46am Oct 23, 2007 3:46am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Ok, first setup... Hindsight... Not at computer...

Second setup... Right after London Open...
Attached Image (click to enlarge)
Click to Enlarge Name: Analysis_Yuppie_Trades_1.gif Size: 64 KB
  • #20
  • Oct 23, 2007 4:09am Oct 23, 2007 4:09am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
This trade was more of a flame-only trade...
Attached Image (click to enlarge)
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