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Ken's Continuing Successes with EO's system

  • #2,341
  • Nov 2, 2010 9:37am Nov 2, 2010 9:37am
Quoting Trotty
I feel i'm dominating your thread at the moment Ken, please PM me to tell me to ease off it's it's getting on your wick...pun intended!

Sorry if it is but I get bored between trades and at the moment, this is the one place I feel that my thought's or questions actually have any relevance to anyone (nobody is reading the EO hater thread now).

I've noticed that seeing how EO traded/trades, if price was trading under the 10 ema, he (counter trend trading), he would would use the 10 ema as a profit target if he felt it was just a retrace he was...

I think one of the most important aspects opf EO's trading that you won't figure into his trading madness, unless you pay attention real close ,

Is the fact he was trading 6 to 8 lots most of the thread with a equity of around 600k , This can make a lot of difference in how you trade and your R:R,

One reason it seems he was risking a lot , but in reality he was risking very little. Also why he would let them run , That is one of the underlying truths of trading . The less you risk more you will gain , as you won't be trying to grab every litle gain to protrect it.

But even with a small % risk he still made 20% a week on average. Not bad for a part time trader. LOL he was always running his comany while trading ..

Hope everyone got a few pips today .. Made afew myslef nothing stellar. though..

Trade Simple Ken
Good Trading To All ; Ken Lee
  • #2,342
  • Nov 2, 2010 9:47am Nov 2, 2010 9:47am
Quoting dr mongolia
I also forgot to add -- I think his massive...
Without a doubt he's making those big hauls with partial profit bagging. One of the reasons why I prefer talking in equity growth rather than pips. Even then, one man risking 3% will have a much greater return if trading the same way as a man risking .5% so it's all relative I guess.

Quoting Kenneth Lee
I think one of the...
That explains really rather a lot actually....damn the lucky sod and his 600k!

You find yourself assuming that everyone is risking .5-3% on their trades and forget that there are some folk around with massive accounts who just don't need to risk that much any more.

If I was making 20% of 600k a week....I reckon i'd have sold that business!
  • #2,343
  • Nov 2, 2010 9:54am Nov 2, 2010 9:54am
Quoting Trotty
Did I not thank you for it? I didn't, did I? Um.....I meant to, sorry Doc
LOL, no need for that, I am incredibly indebted to this entire thread so a thanks is never necessary for me, just wasn't sure if you saw the post

Quoting Trotty
If you are almost always likely to close out if it goes against you, why not just have your stop at the maximum amount you are willing for the trade to go against you to determine that it’s a dead trade, rather than some arbitrary number?
Yeah that's the way I see it as well -- I would much rather set my stops tighter and reenter if necessary. It also adds a lot of peace of mind.

I've seen other old timer traders set stops like him as well. They often like to watch the PA unfold, see how candles closed, etc before manually exiting early. I think that they've got enough screen time to where they are able to notice a few little things here or there that may tip them off, and they use those to their advantage.

Different strokes for different folks I guess. I think the important thing is that there were several successful traders on that thread who used stop losses differently, and all made serious money, so it appears to be one of those 'find what works for you' things. I've just settled on using about 20 pips on average, but less (10-15) when I don't need that much, and more if the area is larger and I want to be sure (25-30). But when I use more, I'll reduce my unit size accordingly, so it's effectively a less aggressive trade.

Quoting Trotty
In amongst the brilliant information, there's some damn random stuff on that thread There was one trade he took off a line that seemed to connect a few candles at their tops but hack through the middle of a load more, which lay between two trendiness connecting the tops and bottoms of a channel and EO informed us that this was the reason for his long. A withering, squidgy part of my brain waved a flag of surrender at that point…..
Yes, I know what you mean. One thing I've noticed, and I mean no disrespect to EO or his thread, is that EO is not exactly thorough when he's explaining the entries to his trades. He's just not a very wordy guy, and most of the time he's posting these charts and explanations while trading several full sized lots plus running his business. A lot of times he'll either show the area that he was looking at for a signal to enter but not the signal that caused him to enter, OR he'll show the signal that caused him to enter but not the reason that he was looking at that particular area. BUT, I have noticed that the explanations get more and more thorough deeper into the thread. Also a lot of times people ask follow up questions which he answers in detail. Plus there are a lot of posts when he'll talk about what he would want to see to take a short vs a long, those are very insightful.
  • #2,344
  • Nov 2, 2010 10:04am Nov 2, 2010 10:04am
Quoting dr mongolia
Yes, I know what you mean. One thing I've noticed, and I mean no disrespect to EO or his thread, is that EO is not exactly thorough when he's explaining the entries to his trades. He's just not a very wordy guy, and most of the time he's posting these charts and explanations while trading several full sized lots plus running his business. A lot of times he'll either show the area that he was looking at for a signal to enter but not the signal that caused him to enter, OR he'll show the signal that caused him to enter but not the reason that...
Well that's good news, gives me plenty to look forward to as I pan through the rest of it. I'm closing in on 200 pages now so it's surprising how quickly you can wade through it when you invest a bit of time into it.
  • #2,345
  • Nov 2, 2010 10:15am Nov 2, 2010 10:15am
Out of curiosity does anyone know what type of company he had?
And yea 20% weekly with an equity of 600k, id say thats pretty sweet
  • #2,346
  • Nov 2, 2010 10:53am Nov 2, 2010 10:53am
Quoting Storeball
Out of curiosity does anyone know what type of company he had?
And yea 20% weekly with an equity of 600k, id say thats pretty sweet
Completely unrelated to trading with a lot of branches is all I know, he also kept the company because of loyalty to his employees so I would assume he still has it. His average was more like 30% a week, which is not as high as cisco's average which was around 40% and pippinole's.... well I wouldn't even like to guess

Sorry to butt in Ken, haven't posted in a while but eohater is my favourite subject
  • #2,347
  • Nov 2, 2010 11:24am Nov 2, 2010 11:24am
Quoting luckylady
Completely unrelated to trading with a lot of branches is all I know, he also kept the company because of loyalty to his employees so I would assume he still has it. His average was more like 30% a week, which is not as high as cisco's average which was around 40% and pippinole's.... well I wouldn't even like to guess

Sorry to butt in Ken, haven't posted in a while but eohater is my favourite subject
No butting in at all nice to see some are still around,, and nor just cointing coins. Branches hmm. Didn't know that , Knew he was away whle moving his office once. It was a title insurance company. It is in the thread. Yes Pippin was the all time pip gainer.

One reason EO finally broke his lower $ per pip. Was the encouragment and peer pressure maybe of Pippin. I don't know but it is posted on many threads once the equity climbs doesn't mean you will trade big money atuomaiclly. It is posted in the thread the trouble he had breaking certian levels.

Why I think a equity trading plan should be in place all the time with small increments of increase instead of big jumps. Some platforms will even let you set a percentage so each trade will be different weither it you won or lose the last one.

So many people love to get the claculator out and work on the chickens before they even know what a egg looks like,

Anyway only reason I mention any of that was the fact everyone was gwtting caught up in EO's stops , That is one area that is pretty personal to each trader and is part of thier style. The profits of a trade have little to do with how big a stop is set. It is a product of where and when you may have got in. We should all have a decent idea by now of where they go. If not do soem homework look at your favorite entry signals on old charts and find the correct spot.

Nice to see you chime in Luckylady hope your trading is all you want it to be. Ken
Good Trading To All ; Ken Lee
  • #2,348
  • Nov 2, 2010 11:30am Nov 2, 2010 11:30am
Quoting Trotty
Well that's good news, gives me plenty to look forward to as I pan through the rest of it. I'm closing in on 200 pages now so it's surprising how quickly you can wade through it when you invest a bit of time into it.

Make sure yountake notes of anything that catches your eye, Try to arrange it in some fashion you understand and later , write a small list of those details that pretain to how and what your trading . Just reading all this random stuff with no connedction may not help a lot. gets like reading a news paper, Why the interaction when they were live is missed by so many. It is that on time trading with current charts that can make it hard to see sometimes.

So any good points you see . Pause the reader, go to your charts and try and find a current example or two, then maybe take a chart to paint add the information you gleen as informative to the chart and save with your notes.

Just my two pence. Ken
Good Trading To All ; Ken Lee
  • #2,349
  • Nov 2, 2010 12:42pm Nov 2, 2010 12:42pm
Quoting Kenneth Lee
Make sure yountake notes of anything that catches your eye, Try to arrange it in some fashion you understand and later , write a small list of those details that pretain to how and what your trading . Just reading all this random stuff with no connedction may not help a lot. gets like reading a news paper, Why the interaction when they were live is missed by so many. It is that on time trading with current charts that can make it hard to see sometimes.

So any good points you see . Pause the reader, go to your charts and try and find a current...
It's a good two pence Ken and I have an "EO Hater" file created on my desktop for this very thing. Similarly to Dr M, i'm essentially creating my own "EO hater" trading PDF that will make a great deal more sense to me than any other because I can order it in the fashion that my mind works. I guess this is what you did and were doing when you started the thread.

I have to say though, I take enourmous heart in not only seeing my own equity growth and progress in the last couple of months but also reading through your own posts on the thread. It's only 18 months ago that you were struggling to get your own head around the methodology and even though you are self-critical in how far you still have to go, if I can be anywhere close to where you are now with the strat in 18 months from now, i'll be a happy (and steadily growing wealthy!) fella

Cheers for now.

Trotty
  • #2,350
  • Nov 2, 2010 2:47pm Nov 2, 2010 2:47pm
Quoting Trotty
It's only 18 months ago that you were struggling to get your own head around the methodology and even though you are self-critical in how far you still have to go,..
Just a quick comment on this because it reminded me of a good story that I read a while ago in Mark McCormack's first book (McCormack was the guy who basically became the first sports agent and invented the sports management industry):

I remember watching Arnold Palmer and Gary Player in an exhibition match in Japan. On the ninth green Arnold lined up a 10-foot putt for a birdie and sank it. Gary turned to me and said, "He's been doing that all day. I can't buy a putt, and once he gets it on the green it's in the hole." I found this remark a bit curious because, in reality, Arnold's birdie had brought them dead even. As Arnold walked toward me on his way to the 10th tee, I could see that he was upset too. "Well, what do you know," he said. "I finally made a putt." Then, motioning ahead to Gary, he added, "...and that little son-of-a-bitch hasn't missed one yet."

His point was that very successful athletes tend to distort reality in their own heads so that they are always "coming from behind" in order to gain an edge, perform at higher and higher levels, etc. I found it very interesting at the time, and I've noticed that all successful traders seem to do the same thing.
  • #2,351
  • Nov 3, 2010 1:19am Nov 3, 2010 1:19am
Ken,
when your talking about SMA's do you mean simple or smoothed moving averages.
Many thanks.

King Pippin
  • #2,352
  • Nov 3, 2010 2:42am Nov 3, 2010 2:42am
Quoting king pippin
Ken,
when your talking about SMA's do you mean simple or smoothed moving averages.
Many thanks.

King Pippin
Simple.

The two predominantly used moving averages in trading are simple and exponential. The simple average treats each candle/period with the same weighting, and exponential gives more weight to recent candles/periods.
  • #2,353
  • Nov 3, 2010 4:21am Nov 3, 2010 4:21am
Hey Trotty! Catching something worthwhile this morning?

The ib from 50ema on eu was nice, also had a hammer on 1h to go with it

News now so im sidelined.
  • #2,354
  • Nov 3, 2010 4:30am Nov 3, 2010 4:30am
Quoting Storeball
Hey Trotty! Catching something worthwhile this morning?

The ib from 50ema on eu was nice, also had a hammer on 1h to go with it

News now so im sidelined.
Morning mate. Just taken the "1 O'clock" long on EU. Not my usual sort of setup as not so much confluence but i'm off for a night away shortly so wanted to get a trade in before I go and it's a valid EO setup. Let's see how it goes. Not looking for much as strong resistance up there.

I'll be back trading on Friday but NFP day always makes me a bit edgy!
  • #2,355
  • Nov 3, 2010 4:49am Nov 3, 2010 4:49am
Quoting Trotty
Morning mate. Just taken the "1 O'clock" long on EU. Not my usual sort of setup as not so much confluence but i'm off for a night away shortly so wanted to get a trade in before I go and it's a valid EO setup. Let's see how it goes. Not looking for much as strong resistance up there.

I'll be back trading on Friday but NFP day always makes me a bit edgy!
I'v joined you on a long now if your still in engulfing at 38fib.
  • #2,356
  • Nov 3, 2010 4:53am Nov 3, 2010 4:53am
Quoting Storeball
I'v joined you on a long now if your still in engulfing at 38fib.
Yeah, i'm still in

Engulfing was nice extra confirmation for me but just going to be careful to see how it behaves around this resistance.
  • #2,357
  • Nov 3, 2010 5:03am Nov 3, 2010 5:03am
Quoting Storeball
I'v joined you on a long now if your still in engulfing at 38fib.
Just taken profit at 1:1, had a fixed TP on this because of that resistance. Hope it goes to the moon for you mate, might catch you on Friday
  • #2,358
  • Nov 3, 2010 5:09am Nov 3, 2010 5:09am
Quoting Trotty
Just taken profit at 1:1, had a fixed TP on this because of that resistance. Hope it goes to the moon for you mate, might catch you on Friday
Thanks man! Im at be now, but watching it closely.

Have a great trip!
  • #2,359
  • Nov 3, 2010 5:15am Nov 3, 2010 5:15am
Quoting Storeball
Thanks man! Im at be now, but watching it closely.

Have a great trip!
Will do, cheers buddy and happy trading all!
  • #2,360
  • Nov 3, 2010 10:06am Nov 3, 2010 10:06am
I haven't been posting any charts lately and that's a bad habit to get into for me, posting charts makes me think more about my trades

I just took the 50/50 retracement trade on GU; it was retracing pretty hard but it did bounce right off the 50
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