ATP (Advanced Trading Philosophy) - Positioning For Success

Quoting jericho

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thank you damonl...i'm ready to have fun with you...lt's rock!!

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Quoting TimeFreedom

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I closed out all open trades right before news release and my balance is up +19%. I kept all the pending orders and will start placing new orders at the beginning of the new day.

TimeFreedom

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Quoting damonl

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EUR/GBP
.25

Add: 6
Observations
1. DT continues – EES1 triggered
2. Should have placed TAMB short trades along with the EES1, so will do that today.
3. AO turning red = TRT (EES2) This could also be a AODT. When you see this set up you should use this trade instead just so I know that you understand it. Technically however you are right

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Quoting damonl

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This is fantastic..... I missed it earlier, I was up almost 9% when I went to work (not the 10% I was looking for) and then when I got home I saw that I lost most of that again.

This is really starting to frustrate me as this is the 4th time this has happened in the past 20 days.

Just that one time I close out a 9% and it would have went on a long run that would have given me 50% or something like that.

Good joba again, and keep us informed. I was close too, but did not close things out. I never expected a rebound like that today. In fact I thought it would go lower based on my pivots on the charts.

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Quoting tman378

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Damon,

Thank you for correcting my homework. Please see illustration below for the AODT. In a case like this, where it qualifies as both AODT and a TRT, would you place both trades simultaneously? I know that if the TRT (EES2) was the first trade to start a trend reversal, we would not place any other trades on top of it until it triggers. But in this case, the previously placed EES1 had already triggered on the first day after the reversal, and we got both TRT and AODT signals on the second day. Should we place both trades, or just one or the other?

Thank you!

Tony

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Quoting tman378

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Seeing as this is becoming an apparent possible downside of this otherwise perfect system, I was wondering how it would be if we can come up with a trade management EA that's able to track the progress of overall gain in equity and close out all open trades if the gain retracts a certain percentage. Very similar to a trailing stop, but rather than applying it to a single trade, we apply it to the collective equity gain based on all open positions. We could set the function to trigger at somewhere near 10% gain (maybe 8 or 9%). Once equity gain gets up to that level, the EA will start trailing a "stop". The size of percentage to trail will need to be determined, but the idea is if equity gain retraces by that predefined amount, the EA will close out all open positions to lock in the profit. This way we can minimize loss in profit while allowing a "big run" to ..well...run. (to 20%, 30%, or even 50% like you said ) The same "best practice" that is so commonly recommended by trading experts. I feel that it should also be applied on an account level, the same as we do for a single trade, especially with a trading method such as the ATP, where there's really no easy or efficient way to determine optimal exits for the numerous open trades we have at any given time.

I would be interested to hear everybody's thoughts about this, because I feel that this could very well be a make-or-break aspect of this wonderful trading philosophy, which if done properly can really make its performance explode exponentially.

Tony

PS. A while ago I was already using an EA that will close out all trades based on equity balance. All we would need to do is add a trailing stop feature to something like that and test it out. But the EA I have unfortunately is an exe. file and the code cannot be extracted or modified. If anyone else knows of anything similar out there or can program something from scratch, I think it would be an interesting and worth while project we can all collaborate on.

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Quoting TimeFreedom

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TM,

Looks like your placement of the NLPT long for GBPUSD is incorrect based on my understanding. You should place the NLPT in the opposite direction of the NL, which would be short?

Edit: You placed a long NLPT.

TimeFreedom

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Quoting tman378

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Thank you for the correction, TF. Good eye Please don't hesitate to let me know if there are other mistakes in the future.

Cheers,

Tony

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Quoting tman378

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Hi Damon and friends,

Thank you once again for looking at my analysis. My suggestion to those who are trying to understand all the rules is to look at the charts while you go through my daily analysis. Follow along as if you're doing the analysis yourself. Count the bars and see the signals I see and why I place things where I do. After a while you'll start to see it all clearly, and after that if you have more specific questions about something, it will be easier to answer them at that time.

Luigi, sorry I cannot do skype chats these days, my friend. Internet connection is not very good where I am at the moment. We'll have to communicate via this thread for a while.

AUD/USD
.35

Add: 8
Observations

1. NL turning yellow and up + agrees with most recent ST dot (green) = valid NLCT

Actions
1. Cancel all pending short orders. (including TAMB shorts? Or should we cancel TAMB trades only when we get an NLRT signal?) Leave shorts until you get a new set of short signals.
2. Move SL for all open short orders to high of 4/03 bar.
3. Place NLCT long trade
4. Place NLPT short trade

These would all be wrong as NL did not close in yellow, therefore a new DPTT and adjusting your 1DCT would be the correct moves.


EUR/AUD
.35

Add:11

Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high 4/02 bar
2. Place DPTT short trade

EUR/CAD
.35

Add: 11
Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/02 bar
2. Place DPTT short trade.

EUR/CHF
.35

Add: 7
Observations

1. UT continues
2. Inside bar

Actions

1. Move SL for all open long trades, if any, to the low of 4/02 bar
2. Place IB long trade I have decided to cancel this entry position. Irarely used it if ever and I find I don't look for it either. Also I am not doing any thing with the bullis or bearish Divergent trades. Also, most times it happens after the NL goes to yellow and is not able to be placed anyway. Please feel free to keep using it as you see fit
3. Place DPTT long trade Yes

EUR/GBP
.25

Add: 6
Observations
1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/02 bar
2. Place DPTT short trade

EUR/JPY
.25

Add: 7
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/02 bar
2. Place DPTT long trade

EUR/USD
.35

Add: 5
Observations

1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/02 bar
2. Place DPTT short trade

GBP/CHF
.15

Add: 12
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/02 bar
2. Place DPTT long trade

GBP/JPY
.15

Add: 12
Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/02 bar
2. Place DPTT long trade

GBP/USD
.35

Add: 7
Observations

1. NL turning yellow and up + agrees with most recent ST dot (green) = valid NLCT

Actions

1. Cancel all pending short trades
2. Move SL for all open short trades to the high of 4/03 bar
3. Place NLCT long trade
4. Place NLPT long trade This would be a short trade...nice catch TF

NZD/USD
.35

Add: 8
Observations

1. DT continues
2. 1DCT trade not triggered

Actions

1. Move SL for all open short trades to the high of 4/02 bar
2. Cancel 1DCT trade that was not triggered This trade does not get cancelled. Only moved up or down one if the next day the DPTT also does not trigger
3. Place DPTT short trade

USD/CAD
.35

8
Observations

1. DT continues

Actions

1. Move SL for all open short trades to the high of 4/02 bar.
2. Place DPTT short trade

USD/CHF
.35

7
Observations

1. UT continues and since previously placed NLPT trade was triggered, we’re ok to continue placing long trades

Actions

1. Move SL for any open long positions to the low of 4/02 bar
2. Place DPTT long trade

USD/JPY
.35

Observations

1. UT continues

Actions

1. Move SL for all open long trades to the low of 4/02 bar
2. Place DPTT long trade

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Quoting damonl

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This is a good thought and my be an option. I came up with 2 scenarios while in the shower.

1. I should increase my lot sizes from current levels and add .1 to each one. So if I would normally trade with .27 I would make that .37. This will help me reach 10% as I get so close so many times.

2. I would take the current lot sizes I am placing and multiply that number by it by 1000 and then multply it again by say 2.5 (just throwing a number out there. So, let's say that today I am placing lot sizes at .27 * 1000 = 270 * 2.5 = $675. This means that I would close out when I am up $675. I think that this target is achieveable a few times per month (as I think all you would need are 2-3 good trading days in your direction to reach these results) or more if you use your next open trade a base regardless of what trade it is.

At the moment I am not fond of either of these options, but I want to do something even if it is wrong as that will help me improve on the things in the future. At the moment I think I will implement #2. However, all of them will allow me to build my account balance quickly over time.

I like your thinking about letting the profits run. If this could be programmed into an EA that would be great. However, the more I learn to trade on my own the more I want nothing to do with EA's. They have cost me a lot of money in the past and finally I am successful.

If anyone out there is a programmer and this is possible, I think that it could be a valuable tool. The problem with it is that let's say you set your T/S of 6%. The more open trades you have which would be the case in a trend, the faster you would reach a 6% drawdown.

It seems that no option is particularly please, but I still prefer to close out my trades rather than waiting for a T/S to hit.

Any other thoughts?

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Quoting tman378

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Hi Damon,

Thank you for your insight. I like your idea #1. Increasing the lot size by a small fraction could very well accellerate us towards 10% a bit faster. And considering the drawdown for this method is never more than a few hundred $, even with this increase in lot sizes the drawdown would probably be less than $500, which is only 3% of a $15,000 account. In fact I think it would be nearly impossible for a trading method like the ATP to ever run a DD that large. I mean even in this tough market, I still have yet to see DD larger than $20

Regarding the EA idea, I also thought about the possibility of the sheer number of trades producing large fluctuation in the equity balance, and thus hitting a T/S easily. However, I think that if we apply such an EA on each currency pair SEPERATELY, it should take away a lot of the fluctuation in equity balance that we're seeing when we have 14 pairs hedging against each other like we have now. If we applied a trailing stop EA to each pair individually it should allow the trending pairs to run and stop out any ranging pairs befor we lose all the profit accumulated. This way the EA is relying on the trend momentum of each pair to close trades, rather than having all the trades close for all pairs when only a couple of them happen to turn around or hit a temporary pull-back.

This is just a raw idea. I'd be interested in exploring this further. So if anyone knows anybody who can program something like this, please do tell

Tony

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Quoting tman378

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GBP/USD

Move SL for all open short trades to the high of 4/03 bar

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Quoting tman378

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USD/CHF
UT continues and since previously placed NLPT trade was triggered, we’re ok to continue placing long trades

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Quoting tman378

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Damon,

Thank you for the reiteration of the NLCT rules. Just for confirmation, would you please look at the chart below verify my understanding of the signals on the three bars marked by vertical lines:

1. Red vertical line marks where we got the first NLRT long signal -- green ST dot 4 bars back + yellow NL

2. Yellow vertical line marks where we got an NLCT short signal? I'm not sure if this is correct any more, since there was that green ST dot (mentioned in #1) that came before it. My best guess right now is this would not signify an NLCT short for this very reason. So the only trade we could place with this yellow NL signal is a NLPT long. After that we just wait for the NLPT short that we placed on the signal bar from #1 to trigger before placing any more short trades. In this case, as you can see on the chart, this did not trigger until 4 bars later (3/31 bar)

3. Purple vertical line was the bar that marks the valid NLCT long signal. No red dot between this bar and the most recent green ST dot. So we would cancel all pending short trades here except for the TAMB shorts (which would only be adjusted when we get the next short signal, right?) We would then proceed to place an NLCT long trade, which must be triggered before any other long trades can be placed.

This is my best understanding of the NLCT rules at the moment. Please tell me where I might be wrong. I have a feeling I'm not 100% correct yet.

Thank you.

Tony

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Quoting malarraz

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Should´nt be to the high of 4/02?



Was it NLPT or NLRT?

Thanks
Miguel

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