Disliked{quote} OMG CookieMonsta, Picture speaks loader than thousand words. I hope this will help lot of noobies visiting here and me too. You are a very selfish and cunning trader. Hats off to you. Your everu entries seems to be at no risk. Yes, there is risk because when 2nd attack is delivered PA may go and hit the SL of the scout. Same is true at every level but since you re-access the SL every time, it's a way to go. There is always a habit in human being where when they see a certain setup they pounce (at every level). Yes, Theoretically I know but...Ignored
Technical Analysis Fallacy
- #53,241
- Edited 12:19pm Nov 21, 2015 11:34am | Edited 12:19pm
- | Joined Mar 2014 | Status: Trader | 1,667 Posts
- #53,242
- Nov 21, 2015 11:55am Nov 21, 2015 11:55am
- Joined Apr 2013 | Status: Now I know you | 5,576 Posts
@cookiemonsta.
don't loss hart, did you notice how many time chief has been under attack.
don't loss hart, did you notice how many time chief has been under attack.
don't predict direction, but dance with flow of water
- #53,243
- Nov 21, 2015 12:20pm Nov 21, 2015 12:20pm
- | Joined Mar 2014 | Status: Trader | 1,667 Posts
@cookiemonsta. don't loss hart, did you notice how many time chief has been under attack.
- #53,245
- Nov 21, 2015 8:30pm Nov 21, 2015 8:30pm
- | Joined Dec 2013 | Status: Trader | 1,062 Posts
this already posted on thread previously. first we need walk in steps, once is mastered, we dance 
The New Footprints
Now imagine you and the Lord Jesus are walking along the beach together.
For much of the way the Lord's footprints go along steadily, consistently, rarely varying in the pace. But your prints are in a disorganized stream of zig zags, starts, stops, turnarounds, circles, departures, and returns. For much of the way it seems to go like this. But gradually, your footprints come in line with the Lord's, soon paralleling His consistently. You and Jesus are walking as true friends.
This seems perfect, but then an interesting thing happens; your footprints that once etched the sand next to the Master's are now walking precisely in His steps. Inside His large footprints is the smaller "sandprint," safely enclosed. You and Jesus are becoming one; this goes on for many miles.
But gradually you notice another change. The footprints inside the larger footprints seem to grow larger. Eventually it disappears altogether. There is only one set of footprints. They have become one; again this goes on for a long time.
But then something awful happens. The second set of footprints is back. This time it seems even worse than before. Zig zags all over the place. Stop...start. Deep gashes in the sand. A veritable mess of prints. You're amazed and shocked. But this is the end of your dream.
Now you speak: "Lord, I understand the first scene with the zig zags, fits, starts, and so on. I was a new Christian, just learning. But You walked on through the storm and helped me learn to walk with You."
"That is correct," replied the Lord.
"Then, when the smaller footprints were inside of Yours, I was actually learning to walk in Your steps. I followed You very closely."
"Very good. You have understood everything so far."
"Then the smaller footprints grew and eventually filled in with Yours. I suppose that I was actually growing so much that I was becoming more like You in every way."
"Precisely."
"But this is my question, Lord. Was there a regression of something? The footprints went back to two, and this time it was worse than the first."
The Lord smiles, then laughs. "You didn't know?" He says, "That was when we danced."
The New Footprints
Now imagine you and the Lord Jesus are walking along the beach together.
For much of the way the Lord's footprints go along steadily, consistently, rarely varying in the pace. But your prints are in a disorganized stream of zig zags, starts, stops, turnarounds, circles, departures, and returns. For much of the way it seems to go like this. But gradually, your footprints come in line with the Lord's, soon paralleling His consistently. You and Jesus are walking as true friends.
This seems perfect, but then an interesting thing happens; your footprints that once etched the sand next to the Master's are now walking precisely in His steps. Inside His large footprints is the smaller "sandprint," safely enclosed. You and Jesus are becoming one; this goes on for many miles.
But gradually you notice another change. The footprints inside the larger footprints seem to grow larger. Eventually it disappears altogether. There is only one set of footprints. They have become one; again this goes on for a long time.
But then something awful happens. The second set of footprints is back. This time it seems even worse than before. Zig zags all over the place. Stop...start. Deep gashes in the sand. A veritable mess of prints. You're amazed and shocked. But this is the end of your dream.
Now you speak: "Lord, I understand the first scene with the zig zags, fits, starts, and so on. I was a new Christian, just learning. But You walked on through the storm and helped me learn to walk with You."
"That is correct," replied the Lord.
"Then, when the smaller footprints were inside of Yours, I was actually learning to walk in Your steps. I followed You very closely."
"Very good. You have understood everything so far."
"Then the smaller footprints grew and eventually filled in with Yours. I suppose that I was actually growing so much that I was becoming more like You in every way."
"Precisely."
"But this is my question, Lord. Was there a regression of something? The footprints went back to two, and this time it was worse than the first."
The Lord smiles, then laughs. "You didn't know?" He says, "That was when we danced."
THE ALL is MIND; The Universe is Mental
- #53,246
- Nov 22, 2015 1:29am Nov 22, 2015 1:29am
- Joined Jul 2011 | Status: an ant working the structure | 3,248 Posts
Hi CookieMonsta
I, as I am sure others do enjoy reading posts about how people trade and what they have got from the thread, we are at the stage/place we (humans) are because we pass on information to each other, without doing this we would not have the current advances in the things we do.
I think you explained yourself and that part of your trading very well and I thank you for giving your time to do so , we are all at different points in our learning curve (as Jacque has pointed out in the post above), some want to borrow others light to do this and some keep their own light burning and trimmed to find their way.
The people that succeed in the things they do just get on with the job and soak up as much as they can along the way, we all have to find our own different personal way to trade that is comfortable to our own beliefs, abilities and circumstances, as traders we need to learn how to use a variety of tools, without the full tool kit you can only ever do part of the job and will struggle to complete the task, re-reading the thread many times is something that will guide you towards finding those tools that are right for you as this has been written by a true professional who wants and asks for no personal gain out what has been so generously given here by him......... thank you fti. 
.
As someone here has recently pointed out while re-reading the thread some of the information/tools we need is right under our nose in plain sight for everyone to see, we find what need when we are ready for it.
Regards
Phil.
I, as I am sure others do enjoy reading posts about how people trade and what they have got from the thread, we are at the stage/place we (humans) are because we pass on information to each other, without doing this we would not have the current advances in the things we do.
I think you explained yourself and that part of your trading very well and I thank you for giving your time to do so
, we are all at different points in our learning curve (as Jacque has pointed out in the post above), some want to borrow others light to do this and some keep their own light burning and trimmed to find their way.The people that succeed in the things they do just get on with the job and soak up as much as they can along the way, we all have to find our own different personal way to trade that is comfortable to our own beliefs, abilities and circumstances, as traders we need to learn how to use a variety of tools, without the full tool kit you can only ever do part of the job and will struggle to complete the task, re-reading the thread many times is something that will guide you towards finding those tools that are right for you as this has been written by a true professional who wants and asks for no personal gain out what has been so generously given here by him......... thank you fti.
.As someone here has recently pointed out while re-reading the thread some of the information/tools we need is right under our nose in plain sight for everyone to see, we find what need when we are ready for it.
Regards
Phil.
-be careful about what you allow to be put in your mind-
- #53,247
- Nov 22, 2015 4:33am Nov 22, 2015 4:33am
- | Joined Mar 2014 | Status: Trader | 1,667 Posts
Hi CookieMonsta
As you pointed out above, i realized is that, everyone will eventually find a style they suits them, and in actual fact, all those opinion of everyone who are read this thread helps to broaden the experience and enhance the trading skills, even if the skills were not used directly, but ultimately, trading is not a rigid task, and each trader has their own personality and risk tolerance level and goals to achieve and therefore their ultimate style is different. But the core understanding of how skewing price works and how price action manifest as the markets continue to unfold always remain the same. The only difference is the MO the trader decides to use, and thats decided by the trader's circumstances of what he can and cannot do and if he has certain constraints he needs to work within.
The MO i used above leans on attacks heavily, because I only have a small sum of money for trading, much smaller than even a month's salary, the rest of my income from work i have to pay the bills and all. This MO allows me to grow a fixed sum of money without addition, purely based on skills and ability to attack strongly into the markets. The log form mm, when applied means that account size is irrelevant and scales well and has the ability to compound, hence the recovery of losses as well as increasing account size due to profits is simply a function of being able to attack well, and not overexposing the account to too much risk, while keeping in mind sometimes if you are forced to take a loss, you have the option to, knowing that thats not the end, and there is still a way to recover the book. So i thought maybe people with this constraint might want a perspective on this.
- #53,248
- Nov 23, 2015 4:03am Nov 23, 2015 4:03am
- Joined Nov 2010 | Status: Just playing follow my leader | 1,545 Posts
{quote} You know what? You are right, I should really stop trying to help anybody anymore, it really doesn't pay to help and to share any knowledge.I always thought giving back to the thread was a good way to contribute, after learning from thread, and you have convinced me things don't work this way. And BTW, please don't say you have understood what I have said, because you have never understood it. You are fucking bullshiting, every entry has extra added risk, each time you add, the p&l swings even more ferociously, and u tell me there is no...
I do not trade exactly like you but our footprints are so similar it seems in some ways and I am very grateful for what you have given me........ bit of confidence re my own style after a gap in hospital and recovery.........as I said I did not need the chart as I get exactly what you say once I think about it a bit to feel it............ I do think each of us has to struggle in our way to get on.........and in any case your chart is not a template as I know there is so much more to your dancing that is inside you......I could write a book on the chart and what was also going on if I wanted and managed it quite differently if I wanted and traded direction differently if I wanted..........
Passing on a little bit of help is more than appreciated but some peeps looking for rigidity will find out the problem with that in the markets.
Thanks so much........time to start getting my army in shipshape.....
Alex
check out the terrain - follow never lead
- #53,250
- Edited 8:49am Nov 23, 2015 8:37am | Edited 8:49am
- | Joined Mar 2014 | Status: Trader | 1,667 Posts
- #53,251
- Nov 23, 2015 9:20am Nov 23, 2015 9:20am
- Joined Nov 2010 | Status: Just playing follow my leader | 1,545 Posts
check out the terrain - follow never lead
- #53,253
- Nov 25, 2015 11:41am Nov 25, 2015 11:41am
- Joined Nov 2010 | Status: Just playing follow my leader | 1,545 Posts
{quote} Hi Alex, there is one more thing though, news can be used to time moves, as catalyst, like rounding bottom and rounding tops happening before red news which are of pretty strong impact, once u can identify areas of possible stop hunts, u can figure trade these high volatile situations, usually for such moves the market makers would get ready the session prior to the news or numbers release, I do employ it sometimes when obvious accumulation or distribution can be seen on the larger timeframe charts, as a catalyst style trade, so far r&r...
agree..... would be 1x scout unless in rescue
check out the terrain - follow never lead
- #53,255
- Edited 11:06pm Nov 28, 2015 8:56pm | Edited 11:06pm
- | Joined Mar 2014 | Status: Trader | 1,667 Posts
{quote} agree..... would be 1x scout unless in rescue
more on the money management which im using, its not something new
here is an excerpt from richard dennis's turtle trading book.
--------------------------------------
Adjusting Trading Size
There will be times when the market does not trend for many months. During these times, it is possible to lose a significant percentage of the equity of the account. After large winning trades close out, one might want to increase the size of the equity used to compute position size.
The Turtles did not trade normal accounts with a running balance based on the initial equity. We were given notional accounts with a starting equity of zero and a specific account size. For example, many Turtles received a notional account size of $1,000,000 when we first started trading in February, 1983. This account size was then adjusted each year at the beginning of the year. It was adjusted up or down depending on the success of the trader as measured subjectively by Rich. The increase/decrease typically represented something close to the addition of the gains or losses that were made in the account during the preceding year.
The Turtles were instructed to decrease the size of the notional account by 20% each time we went down 10% of the original account. So if a Turtle trading a $1,000,000 account was ever was down 10%, or $100,000, we would then begin trading as if we had a $800,000 account until such time as we reached the yearly starting equity. If we lost another 10% (10% of $800,000 or $80,000 for a total loss of $180,000) we were to reduce the account size by another 20% for a notional account size of $640,000. There are other, perhaps better strategies for reducing or increasing equity as the account goes up or down. These are simply the rules that the Turtles used.
------------------------------------
So I decided to test out the money management I have, and I found out that it complies with what Richard Dennis have mentioned and how it handle's a stress test of a run of 80 losses of 1% in a row and how long does it take to recover the account. So my conclusion is that, the growth and decline of an account which follows a logarithmic form or a (1+n)^i form where i stands for independent trades and n stands for the returns of the account, capped at 1% loss at each iteration of that iteration's account size, and strong returns of 5x and more accelerates the accounts recovery as well as enhances the profits. This would also highlight why richard dennis was able to run up his account from a very small one time sum into a very huge account and become a huge trader. It is all in the money management. As for the MO, it can variate and change as the market terrain change, in order to preserve the r&r ratio to maintain the robustness of the money management. So after that, it is all in the ability to dance the markets, and employ different strategies where most suited for the market's terrain. Primarily, by understanding this money management.So all that is left is to continually hone and improve the tactics and strategies to effectively and efficiently management or stay out of the markets totally to preserve capital. So its to learn how to tread water till the markets start to move, and you bring out the big guns.
Although the stress test scenario is abit unrealistic, but hey, if it can withstand that much, its a great money management system right?
However, at the end of the day, the MO still has to be proven in the markets that it is valid.
- #53,257
- Dec 8, 2015 7:29am Dec 8, 2015 7:29am
- Joined Nov 2010 | Status: Just playing follow my leader | 1,545 Posts
{quote} Hi Alex, more on the money management which im using, its not something new
Sorry I seem to have missed this post... sorry....... yes indeed mm is key... it is all part of the keep losses small & winning big... but I never understood what that meant until FTI.
Alex
check out the terrain - follow never lead
- #53,260
- Dec 9, 2015 4:06am Dec 9, 2015 4:06am
- Joined Nov 2010 | Status: Just playing follow my leader | 1,545 Posts
{quote} Hi Alex, no worries, theres 2 money management strategy which i was trying to point out, first one is the mm fti showed, a intra trade mm, but he is a dealer, what he mentioned was that he has a per day loss limit, this means that if some unforeseen mishap occurs, he can have someone refill the money back because the banks provide him with at risk capital to trade with, for retail traders, i doubt thats the case. So in order to emulate such a situation, we need to have a per day loss limit like fti's case as well, so maybe for per day, 1%...
check out the terrain - follow never lead