I thought leave you guys today with couple of awsome posts by our master the owner of this great thread.
I hope it helps, it has for me.
I've been playing around with almost every-single "indicator" (which is a truly generic word by the way) available. Even some of my friends have handed me "custom-made" indi's. This is all good, as I like to be open to new stuff.
My problem with indi's (this is very subjective ) is that they will go nuts every time that market change cycles. By the time they re-calculate, new conditions in the market, you're in a hole. Then, you get frustrated and the optimization process begins. Some of my friends says " But you don't trade off the indi, you must "interpret" this indi in order to trade" Well, this is all fine and dandy, but still you must have a condition to get in or out of the market. So Indi's are supposed to tell you "Trend" or "range" "oversold" "overbought" etc. The problem is...for how long?? I am not talking about today's trade ...or maybe tomorrow's...but in the long run....how this indy will perform? will it help me out in my quest for consistency?
About the trend: I really don't care. The trend is deceiving. Does anybody knows the end? Does anybody know how/when/where the trend starts?
So you have a trend in 5 minutes, then you have another one in 30 minutes...but then, daily charts have another one..... to complicate matter most, you use tick charts and 144 has another "trend"....who cares?.
When I trade, I try to be the first in line for the party, and the last one to leave.
Entries are for me, a way to "test" the market to see if that "swing" will develop or not. I have a low hit ratio, due I test the market many times. But sooner or later I'll be the first in line. That's my goal as a trader.
I use trade expectancy for exits. As I mentioned before, that's an art. I have in my mind a pre-conceived way of how the market **should** perform, or I just close the trade and wait for the next one. I give no quarters.
I manage my risk in a way that I am allowed to test the market many times during x period in order to get a runner. Using 2% per trade, as I've seen many people doing, is a recipe for disaster.
If the bolls and the 55 ema will give you this edge you're looking for, trade it to death. Just remember, when you trade, don't live dwelling in the past. Trade on the present looking at what you see, so you can be consistent on the future. Because after all my friend, is all about how many $$$$ you can pull off the market...consistently.
I talk about stuff people don't like to hear. I bet a lot of them disagree with me. That's fine. After all, my ass is on the line everytime I put a trade. That's a fact. My job is simply to preserve my capital. Eventually, I'll be compensated.
__________________
Peace
I hope it helps, it has for me.
I've been playing around with almost every-single "indicator" (which is a truly generic word by the way) available. Even some of my friends have handed me "custom-made" indi's. This is all good, as I like to be open to new stuff.
My problem with indi's (this is very subjective ) is that they will go nuts every time that market change cycles. By the time they re-calculate, new conditions in the market, you're in a hole. Then, you get frustrated and the optimization process begins. Some of my friends says " But you don't trade off the indi, you must "interpret" this indi in order to trade" Well, this is all fine and dandy, but still you must have a condition to get in or out of the market. So Indi's are supposed to tell you "Trend" or "range" "oversold" "overbought" etc. The problem is...for how long?? I am not talking about today's trade ...or maybe tomorrow's...but in the long run....how this indy will perform? will it help me out in my quest for consistency?
About the trend: I really don't care. The trend is deceiving. Does anybody knows the end? Does anybody know how/when/where the trend starts?
So you have a trend in 5 minutes, then you have another one in 30 minutes...but then, daily charts have another one..... to complicate matter most, you use tick charts and 144 has another "trend"....who cares?.
When I trade, I try to be the first in line for the party, and the last one to leave.
Entries are for me, a way to "test" the market to see if that "swing" will develop or not. I have a low hit ratio, due I test the market many times. But sooner or later I'll be the first in line. That's my goal as a trader.
I use trade expectancy for exits. As I mentioned before, that's an art. I have in my mind a pre-conceived way of how the market **should** perform, or I just close the trade and wait for the next one. I give no quarters.
I manage my risk in a way that I am allowed to test the market many times during x period in order to get a runner. Using 2% per trade, as I've seen many people doing, is a recipe for disaster.
If the bolls and the 55 ema will give you this edge you're looking for, trade it to death. Just remember, when you trade, don't live dwelling in the past. Trade on the present looking at what you see, so you can be consistent on the future. Because after all my friend, is all about how many $$$$ you can pull off the market...consistently.
As today, I haven't be able to make any indi work for me.
I talk about stuff people don't like to hear. I bet a lot of them disagree with me. That's fine. After all, my ass is on the line everytime I put a trade. That's a fact. My job is simply to preserve my capital. Eventually, I'll be compensated.
__________________
Peace
