Building an equity millipede

Obviously the main differences are:

Weekly - few thousand pips for 20-30 candles
5min - 50+ pips for 20-30 candles

There is also the time difference.

x20 5 minute candle can be covered in a day but 20 weekly candle will take 5 months.

Apart from the reward and time inversed difference. Everything remains unchanged.

The market doesnt know you are looking at a 5min chart or a weekly chart.

Entries just from 5min chart, hoping to move SL to BE and then pray for a few years growth is about 90% of the readers here.

It is a correct mentality however when you are dealing with 5min charts, REALISTICALLY you will first experience very small win and with great luck (?) that position may or may not grow the next day or the next week.

You just became an average trader with professional traders mindset.

Continuing on..

But Graeme, you said you take every low risk opportunity markets give either buy/sell and then let it grow indefinitely.

Yes, I do. But also I know just blind luck and skills required to make the above happen with higher probability.

I try to explain something on the left and all the readers shift their views completely to the left. To balance it out, I try to explain something on the right and then all the readers shift views to right.

Let us not forget why I got into explaining, .00 entries and entries on 5min chart. It was from a request.

At the moment, alot of readers are in the top 30% percentile of most retail traders. They have professional traders mindset however they are still blindly trading as much mechanical as possible. Mechanical trading means emotionless trading not what most readers believe.

All traders are still asking for rules and systems to apply. It is the easiest way for a human being to think. Being told what to do.

Flying buddha was suppose to be a hindsight (I think I have used this word at least 100 times in this thread). Hindsight is not a green flag for all to enter. Most traders here are treating flying buddha as a sign and then look for another sign to stack and a different sign to exit. This is all good but please read below:

The more you trade mechanical, expect more defined and forecastable profit.
The more you take calculated risk, expect greater and infinity yield profit.

Now....

Im going to reveal the last key. That will make you into top 10% percentile.

Continuing on..

Scale.

Please dont strain on the 5min entries as it never was the main course. If anyone recollects properly, entries on 5min was on request which I earnestly replied and then it just grew from there. There is nothing wrong to the information I have supplied so far BUT the required focus is not there but elsewhere.

I hope all readers practiced alot alot alot of entries on 5min as that was the main point about looking at a 5min chart. PLENTY OF OPPORTUNITIES HARD AND FAST. And market doesnt know its a 5min chart your practicing on or a weekly chart. Everything works on all timeframe.

You will all agree that some buddhas work terrifically and some not so well.

Yes.

You only need 1 buddha/1 inside bar/1 pin bar/1 engulf.

You need just one calculated guess correct to make thousands and thousands for weeks and months.

Not forgetting what I just said,

http://img826.imageshack.us/img826/1378/aa1z.png

This flying buddha works out to our benefit (im just letting you know upfront)

Again I ask you

What timeframe is this? (please dont answer in the post)

Continuing on..

I will show you what happened after this flying buddha.

http://img826.imageshack.us/img826/5306/aa1d.png

Now again,

What timeframe is this? (please dont answer in post)

Continuing on..

No one can tell what timeframe it is by looking at those 2 charts.

But they can tell it is a nice flying buddha that worked out fantastic afterwards.

"8 candles of up candles. But thats only 20-30 pips.

Im sure I can add a position in the middle somewhere and make it few more."

Is that you above?

That flying buddha is weekly.

http://img801.imageshack.us/img801/5396/aa1v.png

You only need to get just 1 correct hindsight.

But I know what most readers are thinking right now

OK Graeme. We get it. So a flying buddha on a weekly chart will bring in more profit because bigger scale. And im guessing you use the same price interpretation right?

You're still 30% percentile. And you are looking at this weekly chart like this still

http://img827.imageshack.us/img827/5286/aa1o.png

When I say hindsight, it means a forecastable vision of the near short future.

A flying buddha on 5min chart signals a reversal. It happens and continues 8 candles down. Pfft... 80+ pips??

A single flying buddha on a weekly chart that signals a reversal will mean few thousand pips.

Continuing on..

To be the top 10% percentile you need to

take calculated risk and expect greater and infinity yield profit.

http://img844.imageshack.us/img844/4259/aa1g.png

More or less like above. This is possible cause I use inception method to pin-point the area of my entries and then use an extra tight entry.

So I risk 10-15 pips for the potential of 1300 pips everytime.

How is this possible???

Continuing on..

When you use weekly chart. You are slowing the time. Everything is slower and in slow motion.

One 5 minute candle is a flick of a light switch.

BUT

One weekly candle is 5 days of opportunity.

If you see a flying buddha on weekly

http://img835.imageshack.us/img835/5396/aa1v.png

Treat it exactly the same as a 5min flying buddha. You all know what to ANTICIPATE after on a 5min flying buddha DO THE SAME ON WEEKLY.

For the above picture you are looking at UP trend.

Imagine only 2 candles of up after that flying buddha.

The scale is different and that would equate to few hundred pips.

Sooooooo

YOUR HINDSIGHT IS??

Up.

Continuing on..

100 pages of good wisdom!
thanks!
huat ah

Everything remains the same.

Price interpretation is especially the same.

WE NOW HAVE HINDSIGHT THAT IS WORTH AT LEAST FEW HUNDRED PIPS. SO WE HAVE MAXIMIZED OUR 'POTENTIAL PROFIT MAKING GROUND' AND KNOW THE PRICE WILL MOVE AT LEAST FEW HUNDRED PIPS IF IT WORKS OUT.

Thats only half of the equation...

ITS NO USE KNOWING PRICE WILL MOVE FEW HUNDRED PIPS WHEN YOUR TIGHT STOP LOSS ON WEEKLY CHART IS ALMOST A HUNDRED PIPS per open position

You need to do the REVERSE THINKING for your stop loss. YOU WANT POTENTIAL HUNDREDS OF PIPS BUT YOU ONLY WANT TO LOSE ONLY FEW PIPS AT A TIME.

HOW?!?!?

You bring the hindsight of higher time frame into the lower timeframe. You must use inception method and SWING THE FAVOUR TO YOUR SIDE PERMANENTLY.

Im going to prove all this..

Continuing on..

Thanks Graeme for your wisdom.

Level 0. Weekly

http://img826.imageshack.us/img826/5396/aa1v.png

If you only use level 0 (or just 1 timeframe consistently) you are pre-defining your actions. If you enter just from level 0, you will have 3 or 4 entries with stop losses just as big and the only thing that will save you is if the new trend continues longer than just 8 candles.

If you just stay on level 0 or any single timeframe, you may have increased/decreased your scale (profiting ground) but you have also brought the baggage of bigger/smaller stop loss. You need to detach these two completely to be top 10%.

Always always always remember:

The more you trade mechanical, expect more defined and forecastable profit.
The more you take calculated risk, expect greater and infinity yield profit.

Calculated risk???

Same period but level 1. 4hr.

http://img834.imageshack.us/img834/739/aa2b.png

Compare.

Look.

What do you see???

Let me try and summarise it very short and direct

YOU HAVE JUST CREATED MORE ENTRIES WITH SMALLER STOP LOSS/RISK BUT STILL THE SAME POTENTIAL OF 1300+ PIPS.

YOU HAVE JUST CREATED MORE ENTRIES WITH SMALLER STOP LOSS/RISK BUT STILL THE SAME POTENTIAL OF 1300+ PIPS.

YOU HAVE JUST CREATED MORE ENTRIES WITH SMALLER STOP LOSS/RISK BUT STILL THE SAME POTENTIAL OF 1300+ PIPS.

You have completely detached risk reward off its scale. Risk always followed reward and it frustrates alot of traders to notice that more risk means more profit but could mean a bigger loss. They were always related.

Now they are inversely correlated. Same/more profit for smaller/lower risk.

This is you with the current price action interpretation. There is nothing wrong with the interpretation but the parallel-related risk reward.

http://img840.imageshack.us/img840/5739/aa3s.png

This is me IF i just use one level inception

Using the same price interpretation I showed yesterday: wick interpretation, flying buddhas, volatile breakouts, engulf I can roughly see this many entries that would have survived after 8 weeks, more or less.

http://img837.imageshack.us/img837/7575/aa2v.png

ALREADY I HAVE MORE ENTRIES and the beauty is every new position will have much smaller stop loss/risk but the same goal or the potential to profit as the weekly.

This is creating a huge gap in the risk:reward

Im going to warp everything even further.

Lets look at level 1 (4hr) chart again. A closer look into 'week 3'

http://img130.imageshack.us/img130/1846/aa4h.png

Obvious setups that we have done many times before.

Buddha, wick interpretation, volatile breakout. Usual stuff. Or should I say set repetition of generalized cycle??

Only 3 entries?

Im sorry but i can see more...

Where?

Where??

Inside of the inside.

Look how I warp these 'areas' of entry into an absolute money making bloodbath.

http://img839.imageshack.us/img839/8330/aa4.png

Into level 2. 1hr.

http://img830.imageshack.us/img830/5741/aa6y.png

I have dissected the same one opportunity to now 3 opportunities AND cut the stop loss significantly. Potential is 3 times the total profit at end of 8 weeks and risk is not even half of level 1.

Risk:Reward is now so warped. Can you honestly think of 20 pip risk: 1300 profit? 1:650?

Apologies, I keep getting my level numbers confused as Im rushing but im sure all readers know what im talking about with 'levels'

Continuing on..

I will make everyone head go spinning to enter one more level into 5min. I can dissect the 3 opportunities on level 2 into further 6-10 opportunities.

Just by using the same price interpretation we have been practicing.

And all this was from 1 opportunity on level 0 which was 1 flying buddha from weekly chart.

I can literally make all go crazy if I start the hindsight from monthly chart and then filtering into lower timeframes.

Ever thought of 15 pip risk for a 8000+ pips?

Continuing on..

I can spend all night to prove to all that the market we know has a set of generalized action that repeats itself in a cycle. Pros know this well.

Hindsight is the most valuable source of information. As we all know flying buddhas dont work all the time but enough times.

If you think about my posts above you will clearly see how a skilled trader can, not only bend the market sentiments into his own focal interpretation but also bend the will of the market.

Everyone thinks r:r is a static and defined set of numbers that moves parallel to each other. The secret is doing what you can to tear these two numbers apart. Success to DIBS method? In the long tail is what petercrown said. Or is inside bar about stopping the risk at static 1 and letting profit grow?

I can guarantee that any willing readers to invest their own little time and flick through any pair. Choose a hindsight on higher timeframe and filter through few levels deep using same price interpretation you have mastered. You will get similar results in every scenario you test.

You now know the cycle of generalized action.

Sincerely,

Graeme

That is really powerful. Again I'm pretty much speechless (wow !), thank you Graeme for sharing this with us.

Thank you all for participating.

Apologies if my tone of voice was higher than usual but just like a good ending to a movie, tonights topic is one of the last on the list that I was working down. Im glad to see many readers that joined me from start still here. Thank you very much.

I will continue on tomorrow night as I would like to add little more to the thoughts I represented tonight.

Tomorrow I will show all readers how to literally stop the time in the markets.

And then the explanation of the weekend project to all which seals off everything nicely.

Good night all and stay warm

Kindest Regards,

Graeme

Now I understand "The inside of the inside" ! Outstanding educational posts as ever. Thanks Graeme

Bak