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  • #841
  • Edited 10:04am Feb 20, 2013 9:46am | Edited 10:04am
Quoting tubguy
thanks. I'm off broker hunting today. Good luck to all.
Hey tubguy,

if your are looking for a fast, reliable broker with low spreads, I can recommend 0anda or Pepper$tone.
Spreads at Pepper$tone are slightly better than 0anda's but they charge commission.

Cheers,
Olarion
  • #842
  • Feb 20, 2013 10:20am Feb 20, 2013 10:20am
Dear Seneca,

First of all thank you for your time and effort invested in this great thread. I've always admired BRV but this one might be EVEN BETTER.

Anyway, the line says "give a man a fish and ..." we all know the rest.
So , could you teach us how to REALLY fish? Meaning ... Can you teach us how to check a new idea? What is the best (or at least a good way) to do a research? I don't mind working manually (without computer programs) i'm not afraid of hard work , but I don't now where to start...
Let's say , my new idea is to sell at 8am GMT the GU every day, and buy it back at 10am - just for the sake of example. How do i check expectancy with different kinds of Money Management? How do i check different stop losses? How on earth you do these things to get some usable information? When can I "declare" that my results are somewhat reliable...

I also have to say that I greatly appreciate the method you've taught us here (and also the 1H breakout method - with the candle closing out of the range - that is two methods already) i might as well just grow old with only these two... But if you could give us the ability to add our own ideas, that would be really really GREAT.
So thanks again!
Rdsl

ps : I've read Van Tharp's "Trade your way to financial freedom" and it is good, but my blunt mind really needs something more condensed , more straight forward, more simple... (just like in trading).
"Always be yourself " Batman
  • #843
  • Feb 20, 2013 10:32am Feb 20, 2013 10:32am
Another very profitable day trading the levels... +3.1R gain / 3.1% account increase.
My trade of the day: EU, entry at previous London Close, breakthrough of the weekly close, exit at the 50 level.

I watched price action like a hawk at the weekly close on M5, after the slightest stall I had closed the trade there.

I think I will begin to risk 1.5% - 2.0% per trade next week.
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  • #844
  • Feb 20, 2013 10:39am Feb 20, 2013 10:39am
Quoting Olarion1975
Hey tubguy,

if your are looking for a fast, reliable broker with low spreads, I can recommend 0anda or Pepper$tone.
Spreads at Pepper$tone are slightly better than 0anda's but they charge commission.

Cheers,
Olarion
Thanks, Olarion

Your the second person too recommend them. I will definitely check em out.
  • #845
  • Feb 20, 2013 11:22am Feb 20, 2013 11:22am
Quoting Seneca pilot
Nice time zone you live in. I could start trading my times at 1PM your time. A chance to sleep in would be nice.
GMT here Seneca, you're welcome to crash on my couch any time.
  • #846
  • Feb 20, 2013 11:38am Feb 20, 2013 11:38am
Quoting Olarion1975
Another very profitable day trading the levels... +3.1R gain / 3.1% account increase.
My trade of the day: EU, entry at previous London Close, breakthrough of the weekly close, exit at the 50 level.

I watched price action like a hawk at the weekly close on M5, after the slightest stall I had closed the trade there.

I think I will begin to risk 1.5% - 2.0% per trade next week.
I like this. When you say 50 level is that a fib or u mean 3350?
  • #847
  • Feb 20, 2013 11:41am Feb 20, 2013 11:41am
Quoting stevexyg
I like this. When you say 50 level is that a fib or u mean 3350?
I do not use fibs, I meant 3350.
  • #848
  • Feb 20, 2013 11:47am Feb 20, 2013 11:47am
nicey.
  • #849
  • Feb 20, 2013 11:56am Feb 20, 2013 11:56am
Quoting rdsl
Dear Seneca,

First of all thank you for your time and effort invested in this great thread. I've always admired BRV but this one might be EVEN BETTER.

Anyway, the line says "give a man a fish and ..." we all know the rest.
So , could you teach us how to REALLY fish? Meaning ... Can you teach us how to check a new idea? What is the best (or at least a good way) to do a research? I don't mind working manually (without computer programs) i'm not afraid of hard work , but I don't now where to start...
Let's say , my new idea is to sell...
I am not at the computer now. I want to give a full answer to you so when I get home this evening I will take a little time to answer. The phone sux to type on the forum.
  • #850
  • Feb 20, 2013 11:58am Feb 20, 2013 11:58am
Quoting Olarion1975
Another very profitable day trading the levels... +3.1R gain / 3.1% account increase.
My trade of the day: EU, entry at previous London Close, breakthrough of the weekly close, exit at the 50 level.

I watched price action like a hawk at the weekly close on M5, after the slightest stall I had closed the trade there.

I think I will begin to risk 1.5% - 2.0% per trade next week.
Nice trade, I had a pending order at yesterday's high. Just missed it. :-(
  • #851
  • Feb 20, 2013 12:00pm Feb 20, 2013 12:00pm
Quoting stevexyg
GMT here Seneca, you're welcome to crash on my couch any time.
I'd still have to get up at five AM, don't forget I'm too lazy for that. :-)
  • #852
  • Feb 20, 2013 1:11pm Feb 20, 2013 1:11pm
Quoting Seneca pilot
I'd still have to get up at five AM, don't forget I'm too lazy for that. :-)
yep I'm a man after your own heart which is why I haven't yet tried the 5am open trading but most likely will thanks to you. Thanks a lot dude.
  • #853
  • Feb 20, 2013 1:16pm Feb 20, 2013 1:16pm
Quoting stevexyg
yep I'm a man after your own heart which is why I haven't yet tried the 5am open trading but most likely will thanks to you. Thanks a lot dude.
In Germany, I am quite happy with the NY opening time. 6:00 AM for me, but I begin trading around 6:30 before I drive to work at 7:30.
Then trading sporadic until London Close at 18:00.
  • #854
  • Feb 20, 2013 2:26pm Feb 20, 2013 2:26pm
A while back, my firm suggested I get a mentor, whatever the expense. I couldn't find one, so got to thinking, what would a trader/mentor conversation look like anyway and surely I can do that myself....
This is what I came up with. I find it extremely useful to answer every end of day. There are probably more question one could add. I know it looks a little basic but it makes me answerable (to a piece of paper!).

Which markets did you watch?
Which ones displayed trade set ups you look for? (you have to have a method obviously)
What timeframe where they?
Did you get the trigger you look for?
Did you act?
Yes? No? (why not)
Did you execute flawlessly?
Where you focusing on the result or the action?
Did you make any mistakes on entry or exit?
Was your position size correct?
Is there anything you would do differently?
(notice no focus on the P/L, it's all about execution...)

  • #855
  • Edited 3:46pm Feb 20, 2013 3:35pm | Edited 3:46pm
Quoting Seneca pilot
Trade of the week?

Time will tell.
Awesome man. I had the same entry. Took half off, gonna let the rest run.
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What is any ocean but a multitude of drops?
  • #856
  • Feb 20, 2013 6:13pm Feb 20, 2013 6:13pm
Quoting rdsl
Dear Seneca,

First of all thank you for your time and effort invested in this great thread. I've always admired BRV but this one might be EVEN BETTER.

Anyway, the line says "give a man a fish and ..." we all know the rest.
So , could you teach us how to REALLY fish? Meaning ... Can you teach us how to check a new idea? What is the best (or at least a good way) to do a research? I don't mind working manually (without computer programs) i'm not afraid of hard work , but I don't now where to start...
Let's say , my new idea is to sell at 8am...
Detailed question,

I like to test manually. When I get an idea I will generally barracade myself in the office on the weekend and go back through years of charts to investigate it. Once I have satisfied myself that the idea is valid I then take it to the test account for a few weeks. If that works out I then will try it with a portion of my normal trade size until I am comfortable. Most of the time the methods I use simply have too much discretion to test using an EA.

To get an idea of the expectancy you need to chart the results of your testing either on paper or using excel. You go back and make notes on each entry. How far did each one draw down? How far did each one go at maximum profit (within your normal holding timeframe)? Once you have the drawdown and profit distances charted for at least a few hundred trades (the more the better) you can crunch the numbers and do some averaging. If for example you know from your testing that sixty percent of the trades tested went sixty pips into profit before drawing down thirty pips you have something worth doing a foreward test. Once you do the foreward testing you will be able to establish expectancy. You don't need those exact numbers but in my opinion you should be looking for at least 1.5/1 RR.

To determine your preferred money management for the method you will need to go back and dig through your testing again. If you can manually test the method on eight or ten years of data (it takes a while) you can have a really good idea of how many losers you can expect in a row. Now you simply take the amount of maximum drawdown acceptable to you divide by maximum number of losers to be expected, add a little cushion and you have your risk per trade. Example ten losers in a row, twenty percent maximum drawdown, max risk two percent per trade (I'd probably go with 1.5% with those numbers). If you can stomach forty percent drawdown then max risk four percent per trade. Of course that is for fixed fractional trading. If you want to use a consistent position size or some other method of position sizing then you would want to evaluate each method separately.

So how do I get ideas in the first place? Charts again. I spend hours each week looking at significant turning points throughout the day. I will take a high that was a turning point for the day, bracket the top or bottom edge and maybe fifteen or twenty pips. I then scroll back and look for recurring levels. An example might be I find consistently a high or low turning point for many days between 5AM and 9AM GMT. I will bracket those turning points and scroll back to the previous day. Did the price turn at the previous London close, open, NY close, Open, Asian high, low, etc. The possibilities are endless and there are many times during the day that will be respected to some degree. The goal is of course to find the ones that are statistically significant and offer a risk reward that works.

There is only one way to test the reliability and robustness of a method. You have to foreward test on a live cash account. Demo trading is not representative of the real world. You will never get slipped on a demo trade. You will always have enough liquidity to exit a bad position on demo. You will nover know if you can personally trade a method, you can handle the draw downs until you have your cash on the line. It doesn't have to be a big account but it needs to be real.

Hope it helps.
  • #857
  • Feb 20, 2013 6:17pm Feb 20, 2013 6:17pm
I took the EJ trade off here. Not sure I'll ever hold a trade overnight for income. Still working on it.
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  • #858
  • Feb 20, 2013 6:25pm Feb 20, 2013 6:25pm
Five to one plus day on GU. Textbook daily open entry.
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  • #859
  • Feb 20, 2013 6:44pm Feb 20, 2013 6:44pm
Quoting Seneca pilot
I took the EJ trade off here. Not sure I'll ever hold a trade overnight for income. Still working on it.
Hey Senecca,
Any reason you didn't get into this trade on the first/second or third retest of the level or was it just a case of you not being there at the time? I got in on the first retest of the level but ended up moving stop to break even after price bounced around alot, eventually taking me out for a be trade..obviously if i held it would have been very successful... Was just curious if you had a reason for entering so late.
Cheers
Josh
nollej is power..
  • #860
  • Feb 20, 2013 7:04pm Feb 20, 2013 7:04pm
Quoting nollej
Hey Senecca,
Any reason you didn't get into this trade on the first/second or third retest of the level or was it just a case of you not being there at the time? I got in on the first retest of the level but ended up moving stop to break even after price bounced around alot, eventually taking me out for a be trade..obviously if i held it would have been very successful... Was just curious if you had a reason for entering so late.
Cheers
Josh
It just happened that I had gotten out of bed and was looking at the computer then. The 8:30 US news had happened and the price very obviously stalled at the level. As it had been hit so much already today I let it close back below the level and entered on that retest that made the first pin bar. I would have had the same result had I entered on the daily open trade.

Not for nothing but you will kill your profitability if you continue to move stops to BE. Either take profit at the next level, hold for a bigger gain, or get stopped out but don't kill your trades by moving to BE. Only when a level is broken should you protect any profit. Trades test the entry level more than once very often. Trust yourself and your method.
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