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Technical Analysis Fallacy

  • #1,461
  • Feb 12, 2008 7:27pm Feb 12, 2008 7:27pm
Quoting auxesis
You can control the lion with whip and chair but take your eyes off him for a second and you’ll be lucky if he doesn’t take a pound of flesh with his claws or worse make you his meal.

Preservation of capital is an absolute must in the markets, unless you can print your own. To be really aggressive you need to be trading with a small percentage of what you’ve got stashed in your boot, so if it gets taken by the dealer you have enough to ante and play the game on the next hand.

You hit the market large and she goes against you, you’d better know how your going to handle it, just how far you can go and the point where you have to cut and run or else you'll have the deer in the headlights look right before you get ran over.

The markets have to move to make money, volatility is something to embrace not avoid, but to survive the long run, the mindset needs to be more of a marathon than a 100 meter sprint.

Fwiw,
A
Why is 10% the maximum risk? Some people talk about 2 %.

Right now, in a demo account, I have not play, my margin are to the limit; a terrible feeling even when this is fake money. I guess I am not ready to risk 10 %. I am trying to determine my pain limit and my reactions when the trend goes against my playh. It is not a pretty sight. I am at the mercy of the market...Oh well...
Empty as water and soft as a facing wind mountain
  • #1,462
  • Feb 12, 2008 8:17pm Feb 12, 2008 8:17pm
Lusan, most rule of thumb principals will say not to put at risk more than 2% of your account on any one trade, and not to have more than 10% total risk (All trades combined) at any one time. The general consensus is to use a fixed % for each trade, as the account grows so does the size, if you are in a drawdown period, then the size goes smaller to protect…. The idea is to always remain in the game. The answer to the question is a personal one, and depends on what the trader is trying to accomplish, a small account using the above % may mean using micro mini lots…. is the small amount of earnings worth the effort? A person might be inclined to increase the numbers to try to grow the account quicker, but that leads to an increased risk and exposure to catastrophic loss for the account. But there should never be a time or trade that is worth the risk of putting a trader into a position of wiping out an account.

Everyone’s risk appetite is different there’s no pat answer, it’s dependent on the trader and his/hers objectives, but it is imperative that each trader answer it truthfully before they trade, imho it needs to be in writing and note there’s a difference between risk management and money management. I personally use a fixed percentage but that does not necessarily mean I will employ that total % on any 1 trade. One of my first mentors was a forcibly retired professional blackjack player, he often talked about odd sized betting, or betting more when things were in your favor. That same attitude can be taken with trading, not every trade is equal and not every trade is worth maximum exposure.

Demo trading is a great way to start, to get the feel of trading but please be aware that it cannot accurately replicate the feel of using or losing your own money. Most traders struggle with emotions, that has been the topic of several discussions on this thread. Just my personal take on things, there are many ways to trade successfully, I know all different types from those who are heavy into Gann theory, A few who trade by the stars, pattern traders, Ellioticians, the list goes on……. Each are making money, but the one thing that unites them all is that they have found their own little nitch that works for them. When I fist started I found a couple of successful traders that were willing to invest a lot of time , much like what FTI and others are trying to do here, I wanted so much to trade like them, after several years and a lot more time I realized that I could never trade just like them, but what I ended up with was similar but tweaked to me. In essence I took their graciously shared knowledge and made it my own, internalized it.

That’s what it takes to make it, finding your own way.

Enough of my soap box, everyone including myself is here to hear FTI.

Good luck,

a
  • #1,463
  • Feb 12, 2008 9:10pm Feb 12, 2008 9:10pm
Quoting fti
so see you in the markets.
Don't be late, and do bring enough money.


scoreboard fti............
trading naked.......
  • #1,464
  • Feb 12, 2008 10:06pm Feb 12, 2008 10:06pm
Hi FTI

I have a question but first I want to thank you for sharing your knowledge, skills, and your time to help traders like me. I truly appreciate your efforts.

My question concerns the hourly benchmark. I searched through all my books and the internet and came up blank. Can you suggest a reference or a source where I can find out more about it? Thanks

P.S. - I think MarketEdge is great and TradersDiscipline is awesome. It's really working for me. Today was my best trading day so far this year.

Thanks again - AWD
  • #1,465
  • Feb 12, 2008 11:20pm Feb 12, 2008 11:20pm
Quoting leighsww
Oh wow, I didn't realize I was still trading really rigid, lol :

Okay, I will practice to be less rigid then . However, can you please post your example sequence again? It was an excellent example and I'm sure many of us would like to study and practice it.

Even when I did the ride alongs with you, I obviously didn't quite get down how your sequence was being conducted, lol, and you were probably showing me a very elementary and conservative one based on my being undercapitalized to be able to trade like you, but the example sequence you posted was really fascinating. It will help us to be better dancers, too.
Hi leighsww,

Sometimes its very difficult for a trader to audit themselves as no one can see themselves from outside the "box". Thats why the banks have layers of people watching each other.

I do understand that you are still using the fractals, so as not to feel too naked. And thats OK, do use it until you can walk with out them. I know of traders who use the Wilder's SAR (stop and reverse) while executing the MM strategies. These are matured traders who are exchange members, so there's no shame in being indicators dependent, only that it will impair your honing of your dance skills.

When you were on the ride alongs. You were learning the basics under fire, so mostly the lead was given.Your training was 3 steps MM. just like for juniors dealers. The purpose was for you to "taste blood" and begin to dance and use good MM. The problem was I didn't know your true risk vectors. As you were trading life, I held to most conservative.

What matter is profits? So long as you are profitable, you're ok.
But all mechanical methodology have weakness so you must know yours.
When you fuse methodology to human intelligence, you are only left with human weakness,ie mindset. And if you can hold to healthy traders mindset, then, you become invincible trader. Failing which, you would need some indicators to direct your trading.

Hope this makes sense.

regards
  • #1,466
  • Feb 12, 2008 11:30pm Feb 12, 2008 11:30pm
Quoting leighsww
Hi Everyone,

Okay, as I've mentioned, I've been experimenting with rescue missions, and here's what I've found using my new strategy ...

1) I can make good pips with rescues
2) I find rescues easier than attacks
3) I like rescues even better than attacks, lol

fti will whip me on the last one, but oh well : (maybe I was meant to be a Medic rather than Commando, haha)

Anyway, here's what my strategy looks like ...

I used the 48sma on the 15m timeframe for this, because it's the only way I know to make it easy to visualize the "tearing" of the PA (this is the only use for it, I do not use it for crossovers or anything else).

Refer to 15m (first chart below) - You can see the PA "tearing" away from the 48sma. I wait until I sense the right time for entry of my rescue troops.

I went against the longer term trend on this one, since I felt a small retracement on the 1hr looked imminent (see 3rd chart), but I would recommend that it's best to keep Scout going the same way as the longer term trend direction, because it's much safer (I am using the 1hr and 4hr for establishing the longer term trend since I'm daylight trading on the 5m and will not be engaged in a rescue mission for more than a few hours, thus logically (for me) those are more relevant than the Daily, in my opinion).

The reason I feel it's safer ...

If you're originally going in the direction of the longer term trend, then even in rescue mode, you can normally sit tight if the PA decides to keep going against you, because it should at some point correct itself to come back to your Basis (and eventually the 48sma).

I always keep my eyes on where that 48sma is in the case of the PA continuing to move in wrong direction after rescue troops were entered, because as the 48sma starts to get closer to my Basis, then I would need to complete the rescue as soon as it hits a little past the B/E point (meaning, I will not need to make a larger profit on that one, as my primary premise first and foremost, is to always save/rescue my troops).

Okay, that being said ...
I use this method only if Scout is the only one in trouble. I also now use a VERY small scout. Scout is only .1 lot (yes, there's a decimal point in front of the number :, lol. Oh, and I am on a mini account, so .1 lot = $1000, I'm using 100:1 leverage. 1 pip = 9 cents).

Here's why Scout is so small ...

1) I am wanting to make my Basis 1 - 2 pips away from B/E.
2) Even if the PA moves 200 pips away from Scout, I'm only down $18.00. If I have to enter a rescue at 200 pips away, I still would only need a 3 pip move to B/E.

Here's the math with being 200 pips away (which is the worst case scenario, because it hardly ever gets that much away in a single bound - even news releases aren't normally that large before a pullback happens):

.1 lot (scout) @ 152.00 + 7 lots (rescue troops) @ 150.00 = 1065.20 / 7.1 = 150.03 (new re-averaged Basis)

The 5m (2nd chart) shows an example of my rescue mission.

What happens if the PA starts to head back in the intended direction with only Scout in?

Well, I go into attack mode, however, I DO NOT attack in the same way that I conduct the rescues. I still use my more conservative troop entries for that, because I cannot conduct rescues with 7 lots/troops in.

However, because Scout is now so very small (.1 lot), I use 2 lots for level 2 attack (I treat attacks as if Scout were my original 1 lot trooper).

One last thing about rescues ...

I would recommend that we not be too greedy, lol, cuz we can find ourselves losing what we've gained if we don't exit rescues when we should. Even if we exit with only 20 pips per troop (20 x 7 = 140 pips total), that's GREAT profit!

Just my opinion, but ...

Best not to "regret or dwell" about leaving pips on the table (refer to "Monk" lesson), otherwise that will lead to "hoping" and not wisely exiting when one should (refer to "Old Man" lesson).

Just like those lessons taught ... "let it go," don't look back and hang on to "what could have" been, always move forward and take the first rescue opportunity that comes along, cuz there will be MANY, MANY missions ahead where you will bank nice profits!
.
Hi Leighsww,

Seems you developed, style in trading around the mean, as I showed you.
Do remember that this is only one arsenal and not a magic bullet.
You may like to develop your trading around this, remember it should be profitable in ranging ranges, when volatility picks up, be careful. Try to stay with the dominant trend, even in ranges.

regards
  • #1,467
  • Feb 13, 2008 12:03am Feb 13, 2008 12:03am
Quoting Zoran
Hi fti

What do you mean by "As above so Below"? You have mentioned it before and I'm not sure I get it.

Also, can you please clarify why you analyse the daily? Does that not introduce rigidity?

Hi zoran,
"As above so Below" basically is a quote which the free masons used.
In reality, it was teaching from Jesus in the bible about the state in heaven and on earth. Read the testaments for details, I think you can find it in the scriptures , where Christ was asked about the kingdom of heaven. Christ was a wise son. If you cannot find it , ask, and I shall help you locate it.( and it shall be opened )
In the trading context, it is simply an expression that what exist in the Long Charts (daily, weekly, monthly) is much replicated in the Short Charts ( 5 min, hourly ).

I though we covered trading MO already.
The daily chart analysis is to set the stage for the strategies to be used , having the daily trend as the backdrop,( safety net , as Northpro put it).
In case, things got very hairy , we would have to depend on, that the "law of motion" doesn't fail us. Of course, if Murphy insist that his Law should prevail, then I guess, we're done, unless, we have enough muscle to overcome murphy by using the might of size.
I cannot see the rigidity in daily analysis. As you may notice by now that the dance is executed on the short charts, so the daily analysis task is done , once it sets up the trade backdrop for the day.

Quoting Zoran
You mentioned the following in this post http://www.forexfactory.com/showthre...en#post1756217

"I don't trade mainly on 5 min, I start there. If reading smooth I stay otherwise I change partners. I analyst daily charts then go in at 5 min and I will dance for as long as she dance well, by the time I dance to daily chart, I leave small boy to dance with her."
Well that post was meant to introduce to you the MO that I use.
I use 5 min charts for the dance, and when the trading goes wrong, I guide the position into hourly time frames to manage , therefore extending the the tenure required to babysit to get the book out of trouble. (BE if you like). This would cue me to prepare for long, long, trade skirmishes.

Whatever the resultant, that I will only leave a position "little boy" thats very small, when not actively managing.

I hope this helps.

regards
  • #1,468
  • Feb 13, 2008 1:00am Feb 13, 2008 1:00am
Quoting awd0722
Hi FTI

I have a question but first I want to thank you for sharing your knowledge, skills, and your time to help traders like me. I truly appreciate your efforts.

My question concerns the hourly benchmark. I searched through all my books and the internet and came up blank. Can you suggest a reference or a source where I can find out more about it? Thanks

P.S. - I think MarketEdge is great and TradersDiscipline is awesome. It's really working for me. Today was my best trading day so far this year.

Thanks again - AWD
Hi awd
thanks for your kind words.
The hourly benchmark can be snap shots of the price at different intervals and averaged to give a guide of the hourly equilibrium.
The best method of getting that read , would be to take all time and sales and average it against itself on the hour concerned. But this would be too tedious, and as the benchmark is non critical analysis thereby non fulfilling.
Alternatively , you can use the 12 sma on the 5 min charts as guide. But be mindful that you do not use it as a trigger for trades.

The distance between the benchmak and the current price , give you clues of the rate of the growth (sigma)of volatility. This helps you "feel" if you have actually missed the boat on a run. It also give you a possible alternative for possible market rest points in the run.When markets come to rest at the hourly benchmraks , normally ait stalls for a while, before the trend continues. If the market stalls too long at these benchmark zones then basically , it has lost its steam.
MM strategies can be engineered to capitalise on this, but only as a complimentary to the dance at hand.
If you analyse , Leighsww's posting on her attack strategy using the 48 sma , you would see how she had taken advantsge of this possibilities. Only that if it became a rigid methodology then it sinks back with all other indicators methodology.

regards
  • #1,469
  • Edited 1:43am Feb 13, 2008 1:03am | Edited 1:43am
Fti,

Thanks for posting your attack sequence as it could look.

I wanted to know if you ever consider holding off all trades during the the triple rollover period on wednesday NA time, due to the short period of high volatility during those rollover times on high yield pairs. Curious, thanks.

NP
  • #1,470
  • Edited 2:34am Feb 13, 2008 2:12am | Edited 2:34am
Quoting Northpro
Fti,

Thanks for posting your attack sequence as it could look.

I wanted to know if you ever consider holding off all trades during the the triple rollover period on wednesday NA time, due to the short period of high volatility during those rollover times on high yield pairs. Curious, thanks.

NP
Hi Northpro,
If not mistaken, I think you are talking about the triple witching day.
Well thats a Money market issue, more than a forex issue.
Awareness that the influence of that activity in the background stands well for you as a trader, to be well informed. In all it depends on what your neutral cost of funds base is.
All sorts of minority thingys are happening daily in markets, and unless you are pin on the reuter or the AP feeds,you probably won't be too aware, and these have little significants to your trading. The focus should be on the charts and major fundamental movers for forex traders.

Normally, before these events, what happen is that there is a lull of activities. And if you were dancing the market, you would notice that the markets tappers off, when your positions begins to build without much P&L influence.
Such , must highlight to the trader to square off and be aside watching for possible opportunities. The prudence being, not to try to squeeze blood from stone, in such instances , the blood you see will probably be your own.

For me I used to run the treasury, so I do have money boys, trying to scavenge some basis from these activities and the SATU boys on the options basis pips , but really it has minimal impact on the forex dance.

regards

PS: for example , whats happening now, Fundamentally , the feds have fail , if the equity markets is benchmarked. Nevertheless the dollar is insistant to strength. It can become very confusing if you were to hold rigidly to any. All you can do as trader is to stay with the flow, but to be vigilant to possible fast changes in volatility and directional bias.
If you do a quick analitics on the daily charts, it seem in limbo in noman's land. Therefore aside or small exposures is masterful prudence. patience being your master. however, Have an eagle's eye for possible quick change in tempo.
  • #1,471
  • Feb 13, 2008 2:20am Feb 13, 2008 2:20am
Quoting fti
Hi Northpro,
If not mistaken, I think you are talking about the triple witching day.
Well thats a Money market issue, more than a forex issue.
Awareness that the influence of that activity in the background stands well for you as a trader, to be well informed. In all it depends on what your neutral cost of funds base is.
All sorts of minority thingys are happening daily in markets, and unless you are pin on the reuter or the AP feeds,you probably won't be too aware, and these have little significants to your trading. The focus should be on the charts and major fundamental movers for forex traders.

Normally, before these events, what happen is that there is a lull of activities. And if you were dancing the market, you would notice that the markets tappers off, when your positions begins to build without much P&L influence.
Such , must highlight to the trader to square off and be aside watching for possible opportunities. The prudence being, not to try to squeeze blood from stone, in such instances , the blood you see will probably be your own.

For me I used to run the treasury, so I do have money boys, trying to scavenge some basis from these activities and the SATU boys on the options basis pips , but really it has minimal impact on the forex dance.

regards
Yes that is exactly what I was referring, and that is also the answer I was looking for..excellent, Thanks.
NP
  • #1,472
  • Feb 13, 2008 3:22am Feb 13, 2008 3:22am
Quoting auxesis
You can control the lion with whip and chair but take your eyes off him for a second and you’ll be lucky if he doesn’t take a pound of flesh with his claws or worse make you his meal.

Preservation of capital is an absolute must in the markets, unless you can print your own. To be really aggressive you need to be trading with a small percentage of what you’ve got stashed in your boot, so if it gets taken by the dealer you have enough to ante and play the game on the next hand.

You hit the market large and she goes against you, you’d better know how your going to handle it, just how far you can go and the point where you have to cut and run or else you'll have the deer in the headlights look right before you get ran over.

The markets have to move to make money, volatility is something to embrace not avoid, but to survive the long run, the mindset needs to be more of a marathon than a 100 meter sprint.

Fwiw,
A
Hi auxesis,

Wow,I agree and your experience and wisdom is showing.

Good hunting.
regards
  • #1,473
  • Edited 4:10am Feb 13, 2008 3:56am | Edited 4:10am
Quoting mijamoto
http://equivalentsrdc.cme.com:443/index.html

Here are live quotes of futures on globex. FTI do they play any role for you. I find them interesting to know when is higher bid or ask :S
Otherwise impresive attack (just i must make it in real and i will abandon school ) cheers
Hi mijamoto,

Sorry that this question slipped my attention.

I am sorry that globex has never been my fancy. The reason being that it is a proprietary attempt by reuters to compete in the market place for business, that was started in the 80's . It didn't take off then due to their primary focus to milk brokerage and I don't think that this animal has changed its spots. If anything , its probably run up a huge bill, and will be trying to recope it once they can manage a foothold. It is disgraceful for such a pioneer to have lived so long and not making any significant impact in the industry, when their competition telerate and the knightridder have long closed shop. For me this white elephant, is not market friendly and probably have survived for so long because of the wasted resources of it parent

Sorry but in my mind , unless this global animal can prove its innovations, I have no lost love for it. Like in most things in life, once the first impressions are bad, its hard to change the perceptions.

regards
  • #1,474
  • Feb 13, 2008 10:42am Feb 13, 2008 10:42am
Hi all,
Still trying to learn the dance but I do have a big problem with the scout rescue scenario.
Wouldn't it be much better the sacrifice the scout, take the hit and re-enter on the next signal??. Sometimes we have to admit we got it wrong.




Quoting MickD
I pretty much had the rescue thing down before but as Fti had observed, my skew was a little soft so my rescues were taking far too long.
Now I have been using a more aggressive skew I'm tending to mount the rescue as soon as price stops (too early) only to find it take off again against me leading me to the 2nd rescue (lucky my scout is small!).
Usually I wait patiently for the second move against me to finish before I send in the troops and so far I've made it out each time - more dancing practice needed I guess

The moral that I hope will help others following along is not to be 'too' fast in mounting a rescue (or attack I'd guess) until PA is telling you it's ok, this lets the rescue size stay quite small and not snowball to quickly against you (particularly if you discover you're going the wrong way!). Small 'scouts' for beginners!
  • #1,475
  • Feb 13, 2008 11:29am Feb 13, 2008 11:29am
@stewrigh
Usually we try to rescue scout, but in some cases it might worth to sacrifice him, but I guess it depends on situation on battlefield, it's interesting what fti thinks about it. I would try to rescue anyway.
Alex
  • #1,476
  • Feb 13, 2008 12:15pm Feb 13, 2008 12:15pm
Quoting stewrigh
Hi all,
Still trying to learn the dance but I do have a big problem with the scout rescue scenario.
Wouldn't it be much better the sacrifice the scout, take the hit and re-enter on the next signal??. Sometimes we have to admit we got it wrong.
I have the same question. I found that if the trend goes against me because I misjudge the PA, then I have to decide to kill it or play the counter trends which it very painfull. fti, your advise would be appreciated.
Empty as water and soft as a facing wind mountain
  • #1,477
  • Feb 13, 2008 12:40pm Feb 13, 2008 12:40pm
Quoting stewrigh
Hi all,
Still trying to learn the dance but I do have a big problem with the scout rescue scenario.
Wouldn't it be much better the sacrifice the scout, take the hit and re-enter on the next signal??. Sometimes we have to admit we got it wrong.
Hi all,

The purpose of looking at the larger TF's such as the daily, 4hr etc. is to get a picture of the overall trend, the macro. As we set our PA patterns up on the hourly and eventually the 5min, as long as we do not get sucked into taking positions against the overall long term trend, we can have confidence that eventually the trend will continue in our direction (ie. Leighs 48sma). We know that on a micro level there are corrections to any direction, long or short, timing the exhaustion of those corrections are the key and because these correction are counter trend long term, we should have the wind at our backs when executing a rescue. Now this is not to say that these micro corrections can be large, or so large that the overall long term trend is changing, because it could and as we all know, nothing lasts forever, especially a directional trend, but we know we will have opportunities to save a scout if we are aggressive enough and quick enough to to take advantage of the pullbacks when PA gives us that opportunity. As we get better at dancing, we will see those opportunities as they appear as well as we see them in hindsight. Leighs has even come up with an the idea that rescues can be as profitable as attacks if planned accordingly. Remember, we are dollar cost averaging our entries.

NP
  • #1,478
  • Feb 13, 2008 5:20pm Feb 13, 2008 5:20pm
Hi,

If - after the market has made a move against me - I conclude that I have made a mistake (sent the scout in the wrong direction and the market will probably not get back to my entry level before a loooong walk) I decidedly kill the scout and begin it all in the opposite direction. Do I deserve a whipping? I think not! May take it though ... .

Good trading to all.
  • #1,479
  • Feb 13, 2008 5:42pm Feb 13, 2008 5:42pm
Quoting Jairo
Hi,

If - after the market has made a move against me - I conclude that I have made a mistake (sent the scout in the wrong direction and the market will probably not get back to my entry level before a loooong walk) I decidedly kill the scout and begin it all in the opposite direction. Do I deserve a whipping? I think not! May take it though ... .

Good trading to all.
That's a tough one.
What I would be looking at (as Northpro pointed out) is the larger TF's to see whether I was indeed in the wrong direction and not just wrong timing!

If it was wrong direction you may still have a chance at rescue depending on how many troops you have in battle. It might be worth sitting tight until PA has a breather and looks like it's retracing a little then calculate (re-average your price closer to the current price as close as you can without over exposure) the amount of pips and troops to get you to BE and get out in a hurry. If it's definitely wrong direction then you can change buses.

If it's just wrong timing you can sometimes turn the rescue into attack but don't be greedy, it depends on the PA and where you are on the re-tracement leg, you don't won't to add troops to early - just sit tight. The first MO is to get to BE, then re-asses and re-enter when PA is looking better.

Sometimes you have to wait before entering a scout even though the PA in the smaller TF is strong against the major trend.
An example - yesterday I was trying to teach my partner these trading strategies as she is keen to trade as well, anyway it was with the E/J yesterday when the price was retracing against the major trend which was long.
I went in short just to show a basic rescue or while the PA was heading my way - an attack. I was able to attack for a bit but I also had to perform a couple of rescues that didn't turn out to bad with small profits (probably because of the major trend though ). It was a long winded and hard battle!
I then noticed this down leg was exhausted (and was about the same length and strength of the previous down leg) so we waited for PA to tell us it was ok to go long. I ripped out a few hundred pips in about 1 hour! What a difference, I didn't even wait for this leg to finish as I had had enough from the down leg, it would have been worth the wait instead of trying to battle against the trend even though the short term PA was looking in my favour.

hope that helps,
Mick.
  • #1,480
  • Feb 13, 2008 11:45pm Feb 13, 2008 11:45pm
Quoting MickD
That's a tough one.
What I would be looking at (as Northpro pointed out) is the larger TF's to see whether I was indeed in the wrong direction and not just wrong timing!

If it was wrong direction you may still have a chance at rescue depending on how many troops you have in battle. It might be worth sitting tight until PA has a breather and looks like it's retracing a little then calculate (re-average your price closer to the current price as close as you can without over exposure) the amount of pips and troops to get you to BE and get out in a hurry. If it's definitely wrong direction then you can change buses.

If it's just wrong timing you can sometimes turn the rescue into attack but don't be greedy, it depends on the PA and where you are on the re-tracement leg, you don't won't to add troops to early - just sit tight. The first MO is to get to BE, then re-asses and re-enter when PA is looking better.

Sometimes you have to wait before entering a scout even though the PA in the smaller TF is strong against the major trend.
An example - yesterday I was trying to teach my partner these trading strategies as she is keen to trade as well, anyway it was with the E/J yesterday when the price was retracing against the major trend which was long.
I went in short just to show a basic rescue or while the PA was heading my way - an attack. I was able to attack for a bit but I also had to perform a couple of rescues that didn't turn out to bad with small profits (probably because of the major trend though ). It was a long winded and hard battle!
I then noticed this down leg was exhausted (and was about the same length and strength of the previous down leg) so we waited for PA to tell us it was ok to go long. I ripped out a few hundred pips in about 1 hour! What a difference, I didn't even wait for this leg to finish as I had had enough from the down leg, it would have been worth the wait instead of trying to battle against the trend even though the short term PA was looking in my favour.

hope that helps,
Mick.
Regarding this point....if i m not mistaken FTI mentioned somewhere that just dance in one direction.....correct me if i m wrong...

i found that whenever we are dancing the wrong direction....which is agaisnt the trend.....i changed the rescue team into attack team.....until further retarcement only i change back into rescue team.....will this be better?....coz i can make more pips in this way....it is like dancing in 2 different directions....but...the feeling is not bad...

FTI is there any reason why just dance one direction?....
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