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B.S. Trading with Kenneth Lee

  • #5,841
  • Jul 7, 2013 3:22am Jul 7, 2013 3:22am
Quoting Kanzler
Ken, With your account size, have you started running into liquidity issues and if so how are you handling your trades? Are you keeping the lot size to something the time of day can handle, are you averaging in or perhaps diversifying the instruments you trade? Thanks, Kanzler

Oh' If that were only a issue I had ....... Not yet ... anyway...
Good Trading To All ; Ken Lee
  • #5,842
  • Jul 7, 2013 2:11pm Jul 7, 2013 2:11pm
I was hoping to post some charts. I have read most of the thread and it does show some LTF charts. I am a short term trader as of right now because I do not have the capital to hold for days nor do I want to at this juncture.

I trade mainly what ever the opportunity to make money is. Instrument doesn't matter to me. I go where the opportunity is. I mainly trade CL NG and GC between 730am and 1030am eastern time and am done with my business sometimes before the market opens. I also trade Forex however only the futures and only short term.

I look for the curve on the 10 minute chart and trade the 1 minute on CL and GC. On the NG I trade the 10 minute and manage on the one minute. On Forex futures the chart depends on the instrument of choice.

I hope it's cool with you guys if I post some of my charts. Good and Bad. Lemme know. I won't post anything until I know it is cool.

Detroit Money
Trade smart. OR JUST DON'T TRADE!!!
  • #5,843
  • Jul 7, 2013 5:13pm Jul 7, 2013 5:13pm
Quoting detroitmoney
I was hoping to post some charts. I have read most of the thread and it does show some LTF charts. I am a short term trader as of right now because I do not have the capital to hold for days nor do I want to at this juncture. I trade mainly what ever the opportunity to make money is. Instrument doesn't matter to me. I go where the opportunity is. I mainly trade CL NG and GC between 730am and 1030am eastern time and am done with my business sometimes before the market opens. I also trade Forex however only the futures and only short term. I look...
Detroitmoney. I would love to see your charts as I trade CL from time to time. This is Ken's thread, but I think Ken has proven over time in all his posts that he is most generous and kind, and he is genuine in trying to enlighten other traders I guess there won't be opposition to good charts from anyone who wants to trade better?
  • #5,844
  • Jul 7, 2013 6:11pm Jul 7, 2013 6:11pm
Quoting Kenneth Lee
{quote} Oh' If that were only a issue I had ....... Not yet ... anyway...
If you don't mind my asking, have your returns been fairly consistent or do they vary quite a bit from month to month? Last month I pulled 10% net and the months before something like 3 and 6, it just seems that with those kinds of values you'd start being limited by other factors outside of the strategy itself.
  • #5,845
  • Jul 7, 2013 6:29pm Jul 7, 2013 6:29pm
Quoting Kanzler
{quote} If you don't mind my asking, have your returns been fairly consistent or do they vary quite a bit from month to month? Last month I pulled 10% net and the months before something like 3 and 6, it just seems that with those kinds of values you'd start being limited by other factors outside of the strategy itself.
Liquidity would not be too much an issue for orders below 200-250 standard lots (£10 per pip) on good brokers. Most retail traders don't trade that size. I vaguely remember Ken seemed to have said that he used Oanda. If that's right, Oanda is not one of the recommended platforms for big size. But again, once it gets up to that size, the bigger problem to most traders is probably more on psychology (seeing all those zeros on the floating P/L) than anything else. I admire Ken's seeming serenity and calm in his charts and trade management and wish him all the best
  • #5,846
  • Jul 8, 2013 5:55am Jul 8, 2013 5:55am
Quoting Rufus
Here is an old zone trade that worked well for me. 120 pips If I seem to be rambling...sorry. Got up way to freaking early to get people to the airport and some yahoo's were shooting off very large fireworks last night till 11:30 {image}
Thanks for your message.
Interesting... I also used the S zone but I used it then market came to it the first time on 28.06. I got just around 20 pips.
Could you inform reasons why you took the trade on 02.07 only but not erlier?
  • #5,847
  • Jul 8, 2013 6:15am Jul 8, 2013 6:15am
Quoting Kenneth Lee
Very simple really. In all of Sam's videos . He talks of picking levels off longer time frame charts then looking for entries of a faster chart. what he is looking for on the faster chart is the first change in swing direction. Say price is going down , we have a demand level spotted on the 4 hr chart. So we watch a 30 min chart for the first higher low for a entry and this higher low should be at a new demand level. Not meaning fresh , but newly formed. I really hate posting fast charts as it isn't the way I trade. But again we Know the level on...
Hi Kenneth, thanks a lot for your detailed explanation.
But unfortunatelly all are still not clear as mud!

As for additional confirmations, about which you posted in the above post.

Could you help to understand it more clearly...

If I apply this rule to below situation - we had a supply zone market by rectangle. Later market tested it and formed a high. We did not enter it as waited for the second high which should be lower..

So, my questions is, we should enter at lower high which was a test of supply zone formed by the first high (the first test of the original supply zone).

Is it correct or we should apply other rules for entry at the lower high?


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  • #5,848
  • Jul 8, 2013 8:20am Jul 8, 2013 8:20am
Quoting bisecom
{quote} Thanks for your message. Interesting... I also used the S zone but I used it then market came to it the first time on 28.06. I got just around 20 pips. Could you inform reasons why you took the trade on 02.07 only but not erlier?

I don't remember to many details now. Just wanted it at the top of the supply zone so risk was small. My entry was ten pips from the top and risk was about 20. At times I will set pending orders for something like this even though I am watching the charts. Helps for getting a nice entry sometimes.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #5,849
  • Jul 8, 2013 11:31am Jul 8, 2013 11:31am
After going down 500 twice. I came back on this oil trade and ended the morning with 1257.50.. I'll take it!!
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Trade smart. OR JUST DON'T TRADE!!!
  • #5,850
  • Jul 8, 2013 1:33pm Jul 8, 2013 1:33pm
chart
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Good Trading To All ; Ken Lee
  • #5,851
  • Jul 8, 2013 4:35pm Jul 8, 2013 4:35pm
Hi Ken, monthly demand area with 4hr and 1hr demand zone created on the 3rd, double bottom, good R:R
  • #5,852
  • Jul 8, 2013 4:53pm Jul 8, 2013 4:53pm
Quoting wbh
Hi Ken, monthly demand area with 4hr and 1hr demand zone created on the 3rd, double bottom, good R:R

close enough ....
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Good Trading To All ; Ken Lee
  • #5,853
  • Jul 8, 2013 7:31pm Jul 8, 2013 7:31pm
just got some 6A
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Trade smart. OR JUST DON'T TRADE!!!
  • #5,854
  • Jul 9, 2013 1:40am Jul 9, 2013 1:40am
Hi Ken! Thank you for taking the time to teach us this method. I am new to this thread and I am still confused on some of this stuff. For the chart below, I don't know which supply would be the right one.

Here is what my analysis is:
Supply 3: Good drop, but its part of supply 2. Would this be fresh?
Supply 2: Price did not leave in a strong manner, but level on top of level, and not fresh.
Supply 1: Fresh Level, has a level below (supply 2).

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  • #5,855
  • Edited Jul 10, 2013 12:15am Jul 9, 2013 8:48am | Edited Jul 10, 2013 12:15am
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For all those just moving into S/D trading. The above chart, posted previously #5847, is about as classic as it gets.

1) We have a well defined Supply level. See how price left the Supply level. Very aggressive, very obvious, strong drop.
2) Price stayed away for a good amount time. The Base.. Well defined.. Lets look at the base for a moment. See how significant the first move was from Supply. We also have a smaller Supply on the 19th and again on the 23'd. And yes, you could trade these but really, they are part of the Base in the Drop-Base-Rise pattern. Not something I would recommend if you are new to S/D. Also, just look at the difference.. Really obvious !! The higher probability trade is the Supply chosen.
3) The move back into the Supply level. Extremely strong starting on the 25th and going straight up into Supply. This is what we look for when price returns.

This would be a high probability short due to the way price left the Supply level.. A good solid Base was formed and price returned the our chosen level very aggressively.

Really there is nothing else to worry about other than " is the risk appropriate for your equity "? This move also gave us plenty in the way of R/R.

Yes, price did some bouncing around and did not fall off aggressively like we would like ( maybe we are asking for too much perfection , ya think ). Having patience, letting the trade play out.. Not getting spooked out of the trade.

You have set your risk.. now manage you trade.

TSD
  • #5,856
  • Jul 9, 2013 4:01pm Jul 9, 2013 4:01pm
For those of you who trade the shorter time frames can some one answer this question. I have heard SS say in his vids that for shorter term traders they should take the curve of the daily and look at the 10 for zones and then enter off the 2-5. I have also heard him say take the zones off the 30 and trade off the 5. Just would like to know if there are any shorter term traders trading S&D and what they use for the zones. TIA

No chart today

Detroit Money
Trade smart. OR JUST DON'T TRADE!!!
  • #5,857
  • Jul 9, 2013 4:24pm Jul 9, 2013 4:24pm
Hi
Thanks for the wonderful forum.I have been studying supply & demand for a couple of months and i feel comfortable with the concept. I am looking at a 4h USDCHF and have marked out major SD zone with also many in between .The uptrend pushes through various supply zones as seen.My question is:
1. Would one take a short @ 0.97706 against the trend
2.The supply zones are never revisited to take a trade so how do you trade this

Perhaps i have the zoning wrong anyway please comment good or bad
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  • #5,858
  • Jul 10, 2013 12:11am Jul 10, 2013 12:11am


Here is an article I found that may help those having difficulty defining what levels are and are not.


Searching for the Right Levels


Brandon Wendellfile:///C:UsersOwnerAppDataLocalTempmsohtmlclip11clip_image002.jpg
Instructor, CMT

When we teach our courses at Online Trading Academy, we teach our students where the proper areas to buy and sell lie on the charts. Those areas as you may know are supply and demand levels. However, there seems to be some confusion among traders as to how to identify the best levels for entering or exiting trades.

Remember, we want to buy at strong demand levels where the supply is very thin and prices are likely to rise. We want to sell at supply levels where the supply of stock overwhelms the feeble demand that may be there. Prices will halt and reverse when the current trend no longer has the pressure to sustain itself and the opposite pressure exerts itself.


We must focus on how strong the opposing pressure is at those levels. For example, we buy at demand levels because they were turning points in the past. They are levels where prices could not continue to drop and started to rise. This occurs as the supply is becoming exhausted as sellers dump shares onto the market. Eventually prices become so cheap that willing buyers jump in and support the price. When the demand from these buyers exceeds the existing supply from sellers, prices will rise. We focus on that area as an area of demand where we will buy again in the future.

***Note:: My additional comment: Along with the above explanation this is also a good example of the difference between Support/ Resistance and Supply / Demand. You will find many who will say: " it is the same thing ". Yes, they can be the same at times but S/R levels will often NOT display that same price action when leaving a level that a S/D level will. This leaving of the level is what defines the difference the vast majority of the time.
TSD

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When we enter into a long trade, we want to buy at the strongest level of demand in order to have a high probability for success. Most traders think incorrectly that all turning points where prices rose will act as demand. We need to be selective in our trading. We want to find the strongest levels of demand for the best trading opportunities. Those strong levels identify themselves in the way that price leaves the level.
Think of a glass filled with water. If you grab hold of the glass and it is filled with lukewarm water, you will be able to hold the glass for as long as you’d like. However, if you grab a glass filled with scalding hot water, you are likely to let go of it very quickly. Demand levels work the same way. If prices enter that area and then move sideways or slowly leave the area, there is not strong buying pressure there and it is a weaker demand level. However, if prices barely enter demand and move quickly away, there is strong buying pressure there and you want to use those areas as buying points in the future

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Supply levels work the same way with selling pressure dominating buyers. If you want more information on how to identify and trade these levels, visit your local Online Trading Academy Center and enroll in one of the professional trading classes today. Until next time, trade safe and trade well.
  • #5,859
  • Jul 10, 2013 3:38am Jul 10, 2013 3:38am
CHART
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Good Trading To All ; Ken Lee
  • #5,860
  • Jul 10, 2013 4:15am Jul 10, 2013 4:15am
Hi Kenneth,
Thanks for the chart ,just wondering why the prominant supply level as i have indicated on the chart was not considered? as we can see it was later breached when the price revisited, is there anyway we could have figured that out?
Thanks
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