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Trading is as simple as ABCD

  • #5,601
  • Edited 9:30am Apr 26, 2015 8:09am | Edited 9:30am
Quoting capstone
I just started reading Trading in the Zone by Mark Douglas. Still in Chapter 1, but this it is good stuff. I swear he reached into the future and saw my brain and wrote about my experiences. I'm sure many of us would say the same thing. When you get a chance, check it out.

I'm more of a visual guy so prefer videos to books so have a look at this Mark Douglas interview, saves a bit of reading time...

Inserted Video



Awesome video with the psychology we need to succeed as a trader, the ability to accept the outcome of each trade for exactly what it is. A totally random outcome from a setup that gives you a trading edge, hopefully 70% chance of success over say a 100 trades....But remember still a totally random outcome..

Brilliant video and what I liked most was how obviously, Mark Douglas still has a passion about trading...
Feel the Fear and do it anyway!!!
  • #5,602
  • Apr 26, 2015 1:13pm Apr 26, 2015 1:13pm
Quoting clivepackham
{quote} Nice charts and agree 100% with you about getting the earlier CCI signals in the move as soon after the slope change as possible.. Our little CCI just keeps giving doesn't it?? And now we can add divergence to the plan... great stuff... Of course divergence is a very powerful use of the CCI in particular it can lead us into our entries as the CCI signals(divergence) before price turns becasuse its a momentum indicator not price indicator. What I mean by that is it measures the rate of change of price not the value of price therefore if price...
can anyone program divergence into the cii indicator?
  • #5,603
  • Apr 26, 2015 2:42pm Apr 26, 2015 2:42pm
When i mentioned Divergence some have misunderstood what i was getting at. Its in the context of this method to help one realize that when they enter normally and see Divergence confirming either to get out or stay in the trade a lot longer than normal.to just trade them alone is a total different method. It always must be used with something else imop
  • #5,604
  • Edited 2:52pm Apr 26, 2015 2:42pm | Edited 2:52pm
Quoting clivepackham
{quote} I'm more of a visual guy so prefer videos to books so have a look at this Mark Douglas interview, saves a bit of reading time... https://www.youtube.com/watch?t=43&v=GhKJ9P3agRc Awesome video with the psychology we need to succeed as a trader, the ability to accept the outcome of each trade for exactly what it is. A totally random outcome from a setup that gives you a trading edge, hopefully 70% chance of success over say a 100 trades....But remember still a totally random outcome.. Brilliant video and what I liked most was how...
great video, thank you for post
nescentia necat
  • #5,605
  • Apr 27, 2015 2:26am Apr 27, 2015 2:26am
Hmmm... very slow market today, silly monday

Could have closed some trades at +10 pips but prefered to let them run, anyway closed them at BE.

From now on, on mondays I will close my trades at +10!
  • #5,606
  • Apr 27, 2015 2:28am Apr 27, 2015 2:28am
Quoting GodFire
Hmmm... very slow market today, silly monday Could have closed some trades at +10 pips but prefered to let them run, anyway closed them at BE. From now on, on mondays I will close my trades at +10!
So far 8 BE
  • #5,607
  • Apr 27, 2015 2:38am Apr 27, 2015 2:38am
Quoting GodFire
{quote} So far 8 BE

Yep thats the same old game I play nearly everyday, I think its the fear of missing out over coming the fear of losing or rather the fear of a BE trade.

How many pips were you up in those 8 trades???

If you had taken just 5 pips per trade then you'd be 40 pips up by now and thinking of calling it a day... Now isn't that what its all about really???

Couple of hours work then go out to play for the day...
Feel the Fear and do it anyway!!!
  • #5,608
  • Apr 27, 2015 2:42am Apr 27, 2015 2:42am
Quoting clivepackham
{quote} Yep thats the same old game I play nearly everyday, I think its the fear of missing out over coming the fear of losing or rather the fear of a BE trade. How many pips were you up in those 8 trades??? If you had taken just 5 pips per trade then you'd be 40 pips up by now and thinking of calling it a day... Now isn't that what its all about really??? Couple of hours work then go out to play for the day...
I put trades to BE at +3pips.

Yes all trades went to 5 pips but some went to 15 - 20 pips. But today was more to test if I could catch those runners. I think I achived that because I got 3-4 trades at +10 pips on a monday.

But I rather have 10 BE than 1 loss and also the R:R wouldn't be good, SL 10 pips TP 5 pips
  • #5,609
  • Apr 27, 2015 3:05am Apr 27, 2015 3:05am
Quoting GodFire
{quote} I put trades to BE at +3pips. Yes all trades went to 5 pips but some went to 15 - 20 pips. But today was more to test if I could catch those runners. I think I achived that because I got 3-4 trades at +10 pips on a monday. But I rather have 10 BE than 1 loss and also the R:R wouldn't be good, SL 10 pips TP 5 pips

OK I hear what you're saying about the positive RR requirements and yes it make sense but I think the problem with myself and you're sounding a bit like the way my thoughts are...

Is that we believe we are going to catch those runners that we look back at every night and think they are easy to catch , but the honest truth is that 10 pips is the high probability trade that you will get 70% of the time, the runners rare exceptions to the rule... The higher probability run is 10 pips ...

Isn't the secret of successful trading to work out the edge and work within the higher probability setups???

Anyway the best way might be to just take whatever the market offers us, in other words soon as it falters get out or at least slide a trailing stop in place to bank 5 pips, if it runs great but if it doesn't, as 70% of the time it won't at least you haven't worked for nowt...

So the question might be to work out an exit method that works this way, to come out with something but also just in case you catch a good one then suck as much as we can out of it... If we study a typical 1 minute run we will see that it tends to only have a 2 candle pullback at best before carrying on in the moves direction. That means to me the best exit would be to trail by candles not by a pip value, say trail by 2 candles then you will get a good run when it occurs say 30 to 40 pips but on most occasions you are almost guaranteeing some sort of profit from your entry...

Thats exactly what my EA does but unfortunately it no longer appears to work since my last MT4 update, but when it was working I use to get some nice little runners this way....

Just my thoughts...
Feel the Fear and do it anyway!!!
  • #5,610
  • Apr 27, 2015 3:21am Apr 27, 2015 3:21am
Finally +15 pips on EURUSD
  • #5,611
  • Apr 27, 2015 4:30am Apr 27, 2015 4:30am
Quoting clivepackham
{quote} OK I hear what you're saying about the positive RR requirements and yes it make sense but I think the problem with myself and you're sounding a bit like the way my thoughts are... Is that we believe we are going to catch those runners that we look back at every night and think they are easy to catch , but the honest truth is that 10 pips is the high probability trade that you will get 70% of the time, the runners rare exceptions to the rule... The higher probability run is 10 pips ... Isn't the secret of successful trading to work out the...

i'd love to try an EA that takes 50 or 60% around 8pips in and trails by 2 candles . . .
  • #5,612
  • Apr 27, 2015 7:16am Apr 27, 2015 7:16am
Quoting Trinquete
After the early Divergence post, I been watching EURUSD today and with Clives rules and Divergence post, just today we can catch 110 pips in EU. Clives said that we just need 3 goods setup per day to make a living. If anyone have something just post it, and we can work on it, here are my pics. After the divergence we should wait for the next CCI pullback and the PA must to be in the direction of the trade (the pullback after the divergence must to be clearly above or below the 120 HMA to take the trade in the BC move.) {image} {image} {image}
This POSt it's a Masterpiece ....!!! Congrats Trinquete...!! Very illustrative...!!!
  • #5,613
  • Apr 27, 2015 7:38am Apr 27, 2015 7:38am
Made some more pips after NYO

20 pips EURCAD, 10 GBPUSD
  • #5,614
  • Apr 27, 2015 7:49am Apr 27, 2015 7:49am
Quoting ozziedave
{quote} Hi Clive I've been trading for some years now so I am using higher leverage and lot sizes making between 5 and 20 pips per trade on average. I believe that if I can master taking 5 -20 pips outta the market with consistency I can use higher lots sizes and make more without having to gain 100 or 200 pips a day. This also limits my exposure to the market. This has worked out very well for me this past week. Now All I have to do is rinse and repeat week after week. That will be the test of this system and the way that I trade it...if I can...
Just what you are saying (writing), it will be the final goal of each one ...!! I'm actually in "polishing" process to join to you ...!!! Brave.
  • #5,615
  • Apr 27, 2015 9:30am Apr 27, 2015 9:30am
Quoting Elpropio
{quote} This POSt it's a Masterpiece ....!!! Congrats Trinquete...!! Very illustrative...!!!

yes. Masterful observation. Trading requires being selective. If we can select these grade A setups and only take those we will be golden. An Ea that spots only these would be super-powerful. AN MP dash with alerts is what is needed. Someone has to be able to code this i believe. The EA could monitor all pairs for this perfect setup and the computer could 1. find divergence. 2. use the zig zag to make sure the divergence is at a top or a bottom 3. then wait for the next signal 4. give an alert.

yup would make all of our life easy to have something that good

PS Thanks for the nice thread
  • #5,616
  • Edited 11:08am Apr 27, 2015 10:09am | Edited 11:08am
First trade of the week. This one got caught in a range for a few candles and then boom..down she went for 13 pips. Got out just at the support level.
Attached Image (click to enlarge)
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  • #5,617
  • Apr 27, 2015 10:43am Apr 27, 2015 10:43am
Nice one!

Quoting ozziedave
First trade of the week. This one got caught in a range for a few candles and then boom..down she went for 13 pips. Got out just at the resistance level. {image}
  • #5,618
  • Apr 27, 2015 11:56am Apr 27, 2015 11:56am
Here is an example of a counter trend divergence trade for 7 pips. Keep in mind these are counter trend so we're not looking for 15 or 20 pips on these trades. If you're starting out stick with the trend trades.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSDM1 28.4.15.png Size: 64 KB
  • #5,619
  • Apr 27, 2015 12:14pm Apr 27, 2015 12:14pm
First step is done, the divergence. Now wait for the CCI pullback. The bad thing is just in the .000 zone.
EDIT: Maybe should wait for the break and retest the .000 zone.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.png Size: 76 KB
  • #5,620
  • Apr 27, 2015 12:28pm Apr 27, 2015 12:28pm
BE

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD1.png Size: 73 KB
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