dungle's trading framework

how about if we forget the high % and assume a 2% risk as i said this will not change the trading structure. if you check the group 2 candle setup one is forming on the 60 min gbp/usd.

Okay then, why not define trade size based on a % of possible risk? I have seen these % of account sized trade systems quite often but never understood why you would use that kind of position sizing.

Just a small explanation on why I'm not fond of this type of position sizing: If we assume initial sl is based on some form of volatility as it usually is (including higher high/low), using percentage of your account instead of fixed risk based on your initial sl makes your risk per trade correlated negatively to the past volatility of the market (as this is what your stop is based on), ie. smaller the volatility, smaller the risk and vice versa. If this is what a trader wants to do then by all means do it but it's quite important to understand that you are basing your risk per trade to past volatility.

edit: Hmm I see you addressed this in the previous post and changed your position sizing.. Good call and yes it will change your results probably for better.

I'm very interested in this question too.

Please just take a look at the pairs that have move significantly at the MO and you will see it crossing a consolidation or a hammer appears before it at the top or bottom of a move. statistics can be used to get what ever results. the evidence is there in the charts. do you want me to say look at this pair in this time frame and you will see this frying pan setup or with this pair there was a hammer before the mo or the mo was a hammer hence a reversal. look at the candle setups and you will see them in the charts

Anyone have the holy grail Cliff Notes?

Are they about lemmings?

Yes. Here is an example trading chart.

So that's where the secret entry point is.

Dreamer. Using that means for those ends draws an inordinate number of trolls. Will you be posting App 6?

I've been a forex trader for 2 years now and have been a member of this forum for a bit less than that. During this time I've seen many many fly-by-night-by-the-seat-of-their-pants systems and have tried them all. I was not profitable up until a few months ago. What changed? Simply, I began to "SEE" the market and all that happened when I finally said "to hell with you" to 5 minute charts and indicators.

60M timeframes are the bread and butter of institutional traders, professionals whose job it is to play this market.

I employ a similar strategy as to what dungle has just described, the only difference being that I refer to his PP's as simple S/R, and I play the MO's although I stay away from FA's.

For the past year, I've been trying to quantify chart patterns in their respective groups similar to what dungle has done. However I had been unsuccessful, I knew that if there was a way to quantify chart patterns, my win/loss percentage would increase dramatically.

So I thank dungle from the bottom of my heart, this is what had been missing from my trading all along and I will "piggy-back" on his generosity and continue to trade the way I do. It's nice to know that I'm not insane and candle-patterns and market-open-momentum trading actually works.

So 2 thumbs up to you dungle, and 2 slaps to those who haven't read the material and jump at every chance to criticize others. Stay away from the cancer that is the 5 minute chart, it'll destroy you, both emotionally and bank-balance-illy.

Good trading to those who are willing to keep an open mind.

As a P.S. I'd like to add that you could have done a better job with the title of this forum dungle, I almost didn't click on it due to being completely aghast at the mere sight of the word "holy grail" it makes me puke.

If you could, please change the title, as I don't want others who would be open to this great information to be otherwise turned off simply by looking at the title. As the saying goes, "Don't judge a book by its cover."

This is not a holy grail, the holy grail is your God-given mind, so use it damnit!


It would be awesome if you could post some live charts so we can all get on the same page.

Keep it up!

Childish? Maybe? But very pragmatic with a sense of humour to go with it.

So Pipologist99 I agree with you, a lot of stuff does 'work' but like you said it yourself you have to SEE it, proving the point that it is no holy grail, just another set of tools that you need to work hard with and understand and put them to good use, good stuff no argument there, Holy Grail - NO.

Seems we agree more than I thought, you must have pressed submit on your last post a second before me.

I think you nailed the point home though, if you start a thread with holy grail - it just becomes irresistible.

If you hate forums, why you are still here? It tels me something!!!! why don't you get loss?

dungle,
You have obviously put a lot of time and effort into putting together this material and posting it on the forum. While I may not agree with everything, it is very well done and should be appreciated by anyone who is serious about trading.
Apparently, there are those who think trading is like playing a child's video game. Perhaps they should read the material you have provided and stop "playing with there joy-stick".

Regards

pipologist..... nice post. Thank you.

Dungle - I see you've taken the advice and changed the name of the thread, but it has been so abused, you would be better off and it would be more helpful for everyone if you started a nice new clean one, you can probably guarantee that you will get a good and useful thread if you started a new one.

It really is good stuff fair do's and the title gives a serious impression, the stuff is not that new, but what is really good is this is the first time I've seen all of it put together so constructively.

Anything but the Grail........................... - O look there it goes now, and another and another, how many are there?

It'll be easier for dungle to restart, and there is actually some funny stuff.

I've only had the chance to give this a quick look through, but regardless of it's profitability, it looks like a lot of work has gone in to this.

I'll pop back in once I've had a proper read through.

Regards,
Leon

2 great big thumbs up dungle!!


If you'd like my 2 cents worth, I'd suggest starting a new thread and posting THE RULES in your first post. Any childish comments would be handled with an iron fist. But seriously make a zero tolerance policy and kick out the trolls, however welcome constructive criticism from the adults with open arms and let us all grow together.

"Let knowledge grow from more to more, and so be human life enriched" University of Chicago motto.