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Strat's PASR Long Term, Stress Free Trading 18,592 replies

M5 PASR Trend Trading Strat 95 replies

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Strat's Long Term Stress Free Trading

  • #13,081
  • Jul 20, 2010 4:14am Jul 20, 2010 4:14am
Quoting strat
Whatever you do, don't miss the GBPCAD Big Boss hanging man.
Where is the hanging man? Even if I add Sunday Monday bars it doesn't make hanging man on my charts. Even if it does then we still need another confirmation candle. You must be testing us or Bones.
  • #13,082
  • Jul 20, 2010 4:15am Jul 20, 2010 4:15am
Quoting stewrigh
Don't see a hanging man on my chart and anyway I thought you debunked hanging men a long time ago.

However, what is much more worth watching is the expected BOC rate hike later today.
But I didn't say trade the damned thing!
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,083
  • Jul 20, 2010 4:17am Jul 20, 2010 4:17am
Quoting simpleman
Where is the hanging man? Even if I add Sunday Monday bars it doesn't make hanging man on my charts. Even if it does then we still need another confirmation candle. You must be testing us or Bones.
Well at least someone is paying attention!
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,084
  • Jul 20, 2010 4:34am Jul 20, 2010 4:34am
Quoting strat
First MASTER basic PASR before attempting trend trading. If you can’t produce consistent profits from basic PASR over 12 months, you will never be successful at trend trading. It is a skill set that you can only acquire from experience of basic PASR trading (unless you have the DISCIPLINE to follow a mechanised system). Your Little People have not yet been educated in taking profits and sitting through trend draw downs.
Hello Strat,

Why do you think that trend trading is so much harder than SR to SR trading?

What I found out is that trade management is so much more difficult, am trying to catch trends with PASR - swings of trends more exactly - and the difficult thing (for me) is to find a balance between exiting to early and leaving more room for the trade to run.

What I tried over the course of the last 3-4 months is to use a completely mechanical trade management, a technical trailing stop, but looking back at my trade records I see that most of the trades retraced back near the entry point, or comnpletely changing directions, hitting my trailing stop at a small loss or BE after I was in profit ~1R. Too many pips left on the table.

The conclusion till now is that strong trends are pretty rare and price usually trends in a "chaotic" way, deep retracement, spikes, that take out (tight) trailing stops. Now I am evaluating to close 1/2 of the position at the nearest SR and the remaining half trailed as usual. Or tighten the trailing stop even more. Too many options.
What is your opinion on mechanical trade management?

Do you always TP your positions? Or also use a trailing stop?

Thank you,
-soso
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #13,085
  • Jul 20, 2010 4:35am Jul 20, 2010 4:35am
Quoting strat
Well at least someone is paying attention!
I thought you meant the July candle on the Big Boss? Simpleman seems to be referring to the Worker...(adding Sunday and Monday bars?)
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  • #13,086
  • Jul 20, 2010 4:45am Jul 20, 2010 4:45am
Quoting strat
But I didn't say trade the damned thing!
So why mention it - You just testing to see if we're awake?
  • #13,087
  • Jul 20, 2010 5:12am Jul 20, 2010 5:12am
Hi Strat,
I have always thought there should be EA to lock gains and not to execute trades.
If trade goes into say 150 pips gain then half of it should be locked and if it is 300 pips gains 150 locked. And in this way we can avoid losing hard earned pips.
I think this what Soso is refering to, what do you think?
  • #13,088
  • Jul 20, 2010 5:20am Jul 20, 2010 5:20am
Quoting strat
But I didn't say trade the damned thing!
No you didn't but it looks like a good proposition anyway.

The reason I like the GBPCAD is I just can't bring myself to buy the dollar or pound. So I look for other crosses that are correlated.

GBPCAD fits the bill nicely - I can short the pound without buying the dollar. I'm not short yet but I am short USDCHF.

Posted this chart a couple of days ago on another thread and with the rate decision at 2.00 pm I think this has great potential.

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  • #13,089
  • Jul 20, 2010 7:53am Jul 20, 2010 7:53am
On the 2nd of June before Strat went away he posted this:
http://www.forexfactory.com/showpost...ostcount=12525

so when I saw the BEEB on the 4th, I second guess myself and I left the trade alone.
Regardless to say that had I taken the trade the little men may have been screaming and Jumping for a few days.
Anyway a Lesson to myself hopefully to others too.

Frank
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  • #13,090
  • Jul 20, 2010 8:54am Jul 20, 2010 8:54am
Quoting soso
Hello Strat,

Why do you think that trend trading is so much harder than SR to SR trading?

What I found out is that trade management is so much more difficult, am trying to catch trends with PASR - swings of trends more exactly - and the difficult thing (for me) is to find a balance between exiting to early and leaving more room for the trade to run.

What I tried over the course of the last 3-4 months is to use a completely mechanical trade management, a technical trailing stop, but looking back at my trade records I see that most of the trades...
Why do you think that trend trading is so much harder than SR to SR
trading?

Because a trend has different strengths, momentums and cycles and trying to get established in the first third of the trend where you need to build your trend foundation for future profits is as difficult as trying to get your hands on Angelina Jolie’s boobs!

What I found out is that trade management is so much more difficult, am trying to catch trends with PASR - swings of trends more exactly - and the difficult thing (for me) is to find a balance between exiting to early and leaving more room for the trade to run.

Following a trend is VERY DIFFICULT in real time but looks oh so simple in history BUT there are ways to do it which is way beyond the scope of this thread.

What I tried over the course of the last 3-4 months is to use a completely mechanical trade management, a technical trailing stop, but looking back at my trade records I see that most of the trades retraced back near the entry point, or comnpletely changing directions, hitting my trailing stop at a small loss or BE after I was in profit ~1R. Too many pips left on the table.

Trend trading is NOT an exact science – if you remember, I got caught out leaving multiple hundreds of pips on the EURAUD table – but no big deal, there are plenty more to catch.

The conclusion till now is that strong trends are pretty rare and price usually trends in a "chaotic" way, deep retracement, spikes, that take out (tight) trailing stops. Now I am evaluating to close 1/2 of the position at the nearest SR and the remaining half trailed as usual. Or tighten the trailing stop even more. Too many options.

I do not see them as rare at all. Try three positions.


What is your opinion on mechanical trade management?
I do both manual trading and system trading – mechanical trading is more efficient than my systems trading BUT both are very profitable – depends how lazy you are!


Do you always TP your positions? Or also use a trailing stop?

I do not like to TP. However, in working with a senior member on my flagship system, I have come to realise that no matter what, a TP on the 1st position at ADR, works wonders in keeping the Little People happy so that is what I am doing from now on.
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,091
  • Jul 20, 2010 9:05am Jul 20, 2010 9:05am
Quoting simpleman
Hi Strat,
I have always thought there should be EA to lock gains and not to execute trades.
If trade goes into say 150 pips gain then half of it should be locked and if it is 300 pips gains 150 locked. And in this way we can avoid losing hard earned pips.
I think this what Soso is refering to, what do you think?
If you think you should lock in 150 pips then move your SL to protect your 150 pips.

If you need software or, heaven forbid, a robot to do this for you, then you are NOT, and never will be, a trader.

A trader is in CONTROL of HIS trades and trading - software and robots are at the mercy of everybody and his dog.

This thread is to teach people how to trade for a living using PASR as seen and traded by us, real human beings, NOT some superficial software crap that cannot distinguish between a buyer and a seller!

If your interest is in EAs and robots, please leave the thread and NEVER return.
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,092
  • Jul 20, 2010 9:09am Jul 20, 2010 9:09am
Quoting strat
I have been reading the answers you gave No1Optimist a few days ago dealing with how to determine the trend. I also looked at that document he posted that helps to explain the dominant, intermediate, short term, and immediate trend.

This is something I have had a lot of trouble understanding too. That idea you suggested about marking off the swings on the boss chart then looking at the worker to see how to get in with the immediate trend is very helpful....
Hi Strat!

Your explanation of trends over the last few days,have been a real eye opener for me. I now understand the meaning of trends within trends.
Every week that goes by, things are getting clearer and clearer.

What I have learned over the course of this thread, was to trade what is happening "NOW".
I check the Big Boss and Boss for direction, and time my entry on the Worker using PASR, if they are all in agreement.
This was the case for the GBPUSD trade I took last week. It was very clear to me.

Many times it is not that clear, and I miss opportunities because of my lack of experience and understanding, but I do know that only practice and practice and more practice will help me with this.

In the meantime, when things are not clear I remember this:

- IF IN DOUBT-- STAY OUT
- MISSED OPPORTUNITY COST NOTHING
- BAD TRADE- VERY COSTLY

Thanks

Tom
  • #13,093
  • Jul 20, 2010 9:13am Jul 20, 2010 9:13am
Quoting Money Magnet
On the 2nd of June before Strat went away he posted this:
http://www.forexfactory.com/showpost...ostcount=12525

so when I saw the BEEB on the 4th, I second guess myself and I left the trade alone.
Regardless to say that had I taken the trade the little men may have been screaming and Jumping for a few days.
Anyway a Lesson to myself hopefully to others too.

Frank
Forecasts, mine or others, are only valid at the time they were issued. They are out of date and history as soon as the next bar (new information) is printed.

Your charts ALWAYS provide you with the current and LATEST information.

Trade what YOU see on YOUR charts NOT what you read in a forecast or what others THINK it may do.

I repeat again for those who are pinball wizards:

YOU and YOU ALONE are responsible for the outcome of your financial future.
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,094
  • Jul 20, 2010 9:16am Jul 20, 2010 9:16am
Quoting stewrigh
So why mention it - You just testing to see if we're awake?
Have you heard the saying:

Putting the cat among the pigeons?

This is what I do best.
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,095
  • Edited 9:32am Jul 20, 2010 9:26am | Edited 9:32am
Quoting GibsonL6
Hi Strat!

Your explanation of trends over the last few days,have been a real eye opener for me. I now understand the meaning of trends within trends.
Every week that goes by, things are getting clearer and clearer.

What I have learned over the course of this thread, was to trade what is happening "NOW".
I check the Big Boss and Boss for direction, and time my entry on the Worker using PASR, if they are all in agreement.
This was the case for the GBPUSD trade I took last week. It was very clear to me.

Many times it is not that clear, and...
Many times it is not that clear, and I miss opportunities because of my lack of experience and understanding, but I do know that only practice and practice and more practice will help me with this.

Many times, more than you would think, it is not clear to me either. When that happens I just move on to the next pair.

You Better Move On - Rolling Stones 1964.

I am not desperate to trade, I only want to make money with the lowest stress and risk.

I trade to live NOT live to trade.

Was the L6 ever a serious competitor to the Strat?
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,096
  • Jul 20, 2010 9:29am Jul 20, 2010 9:29am
Quoting strat
If your interest is in EAs and robots, please leave the thread and NEVER return.
And I have returned but a question is what is mechanical/system trading you are refering to in the above post to soso.
  • #13,097
  • Edited 8:51pm Jul 20, 2010 9:44am | Edited 8:51pm
Quoting simpleman
And I have returned but a question is what is mechanical/system trading you are refering to in the above post to soso.
My mechanical system just identifies to the trader when the conditions are met to initiate a trade. It is up to the trader to verify (or not) the conditions and enter the trade and then exit (or not) when the conditions for exit are met.

The trader still has 100% control of HIS trading which cannot be said for these EAs and junk robots.

If EAs and robots were all that their SCAM salesmen make them out to be, don't you think the whole world would be $gazillionaires?

Have you ever asked why the big boys don't use EAs or robots?
15 YEARS OF PASR ON FOREX FACTORY!
  • #13,098
  • Jul 20, 2010 9:53am Jul 20, 2010 9:53am
Quoting strat
Many times it is not that clear, and I miss opportunities because of my lack of experience and understanding, but I do know that only practice and practice and more practice will help me with this.

Many times, more than you would think, it is not clear to me either. When that happens I just move on to the next pair.

You Better Move On - Rolling Stones 1964.

I am not desperate to trade, I only want to make money with the lowest stress and risk.

I trade to live NOT live to trade....
I doubt the L6 was ever a serious competitor to the Strat.
I've played a few Strats ( never owned one) and they are a beautiful well rounded instrument. You just dont want to put these down after strapping them on.
The L6 was more of a specific purpose instrument, power chords and lead,
but wasn't very versatile. I've owned it since 79 and it became part of me. Still love to play it on Friday night jams.
  • #13,099
  • Jul 20, 2010 9:55am Jul 20, 2010 9:55am
Quoting strat
The trader still has 100% control of HIS trading which cannot be said for these EAs and junk robots.

Have you ever asked why the big boys don't use EAs or robots?
Thanks strat for the explanation I had always thought when you talk about mechanical system it about software that manages trades. Now it is clear that it is not the case.

Big boys must be using the similar mechanical system you use and no EA's.
  • #13,100
  • Edited 10:08am Jul 20, 2010 10:06am | Edited 10:08am
Have you ever asked why the big boys don't use EAs or robots?[/quote]

Strat

After spending the past 5 years jumping from EA to EA seeing them work for only 2 or 3 months I tend to agree with you, But (Always a but) I have a friend who trades manually and uses a Trade management EA which she got for free only to manage the trade for her, all entires are based on her input.

This is what I think Soso is thinking about.
I think these have merit with some pairs which big volatility, whilst trading PSAR I have been up more than 120 pips on the odd occasion and then had the position move against me a few hours later.
The question is is do they work and fit the trading style.

But you are right, if one is lucky enough to be trading full time then you should not need one.
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