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  • #9,581
  • Jan 16, 2016 9:36am Jan 16, 2016 9:36am
Quoting The Cableguy
Couldn't help but agree wholeheartedly with this. It is one thing to battle your own pride and learn to accept losses as part and parcel of the game we are in, but to know that many people are following your live calls, even willing for it to be wrong so they can mock you etc (that's 90%+ of the posters on ADVFN!)... nah, not for me either! I had my own blog, mostly somewhere to be a diary, but realised it was even happening to me there too. A bad trade hit me harder than it should have been because of my pride... The old adage; 'those who can,...
I'm with you. As I said in an earlier post, my trading is an open book to anyone who wants to ask questions, but I am not here to teach. I am always willing to share what I do, but I'm not going to wrack my brain nor my nerves to teach someone how to do it for himself, let alone risk my ability to stay in the zone by trying to demonstrate it real time on the internet. There are two other trading forums of which I am aware, and on very rare occasion do I lurk around at those sites. Whenever I do, I find an unhealthy preoccupation with goading people into making real time trade calls. The only people who can possibly think that doing so is a good idea are people who have no clue how to trade, are consistently unprofitable, or otherwise have not yet learned what consistent and flawless execution of a trading plan demands on one's self determination and self-discipline.

My opinion is this: I am going to trade my account according to my plan and whatever the results, I am the only one who knows for sure. If any anonymous citizen of the world wide web wishes to doubt me, that is within his or her right to do so. I'll neither take the bait, nor offer a defense of myself. Someone can read my posts and determine for himself whether I am merely talking the talk, or whether I might actually know enough to imply that I am indeed walking the walk. If I say something that someone finds useful or helpful, that is great. I really hope that I never say anything that causes someone harm.

I thought of doing a blog as a sort of public diary of this little project, and then thought the better of it. I'd rather stay "hidden" here in Divergence's thread. Someday, maybe my second time around, I'll do a separate journal here at FF or a blog, but for now, this project is for my own benefit. I journal it here as a way of contributing to the group here who have inspired me to step out of my comfort zone and to grow as a trader. The next time around, maybe I'll do it to inspire others. But right now I am focusing on the first planned compounding campaign. I do not want to distract my focus by trying to be a blogger as well. And I will never be a teacher. You couldn't pay me enough to take on that responsibility to someone else.
  • #9,582
  • Jan 16, 2016 9:46am Jan 16, 2016 9:46am
Quoting ddaytrader
{quote} I'm with you. As I said in an earlier post, my trading is an open book to anyone who wants to ask questions, but I am not here to teach. I am always willing to share what I do, but I'm not going to wrack my brain nor my nerves to teach someone how to do it for himself, let alone risk my ability to stay in the zone by trying to demonstrate it real time on the internet. There are two other trading forums of which I am aware, and on very rare occasion do I lurk around at those sites. Whenever I do, I find an unhealthy preoccupation with goading...
the only one you have to prove anything is to you and your account.This is a business burger King makes hamburgers different from Macdonald s both arrive at same goal profit. Master 1 setup and make lots of money don't and you wont
  • #9,583
  • Jan 16, 2016 9:52am Jan 16, 2016 9:52am
Indeed... Divergence just happens to be one who is capable of both ('teaching' and 'doing' simultaneously, thank god!).

I am always reminded of how selfless it was to start this thread... to share such knowledge and endless hours of backtesting with the general population. Harold, i owe a lot to you and you don't even realise it!

DD, i took your advice and am now starting to read 'Trading in the zone'. I'm guessing i can sum the book up already in a much shorter paragraph, to the tune of; 'be a machine, not a man'... but that might highlight my own short comings a bit too easily!



*Edit - I was a bit slow in writing the above, H, you squeezed that post in before me!*
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  • #9,584
  • Jan 16, 2016 10:04am Jan 16, 2016 10:04am
Good to see you again CG it's been awhile. The way I see it what ever I learned was available to the public and my little tweaks to what I learned was always based on the only thing we know 100% of the time before we enter a trade and that is how much am I willing to risk if I wrong
  • #9,585
  • Jan 16, 2016 10:07am Jan 16, 2016 10:07am
You know something DD our posting is really blogging anyway. It is a way to remind ourselves what we are doing and why we are doing it just out loud
  • #9,586
  • Jan 18, 2016 3:27am Jan 18, 2016 3:27am
Quoting jtrade
Something similar must be possible with the Bund, so perhaps I will start a "10 ticks a day Bund project" soon.
Well I've been thinking (uh-oh)... and it goes like this : where do I want to get with my trading in the next couple of years (regardless of whether or not I actually get there) ?

I already trade a relatively short period off the London Open - yep, that fits.... but what I'd like is to do this with size : a 10 lot would be enough, 20 would be even better. Putting aside the EuroStoxx, as it is usually very slow and small range (huge vol though), the Bund is indeed the obvious choice. It seems you could trade a 100 lot no problem at all. The DAX, in all its various permutations, is just too illiquid, despite its marvellous range.

But then I put up the ES this morning... although thinner than the Bund during the European morning, it's still liquid enough (actually during the first hour off the LO, it trades about the same # of contracts as the Bund, but typically in smaller trade size - just many more trades), & in the current volatile period, it has far wider swing range : first hour this morning it was FGBL 32t vs. ES 72t.

So starting tomorrow - and in SIM until I have a profitable week - I will trade ES for the first 60 - 90 minutes off the LO. I will give myself a leg up by starting with 2 contracts, to allow a "defensive scale out" (btw, plenty of bang for the buck @ only $500 intraday margin / contract). Will work on my starting trade parameters today.
  • #9,587
  • Jan 18, 2016 5:17am Jan 18, 2016 5:17am
Hi All!

Have been reading the thread on January after the Christmas break and hooray, how great posts. Big thumbs up D, DD, jtrade (Zappa is always good and all others. So inspiring posts about the essential elements of trading: focus, defined edge (through own research/modification), trade the plan, psychological aspects, long term perspective and position sizing and risk management.

Starting my own trading also again this week for year 2016
  • #9,588
  • Jan 18, 2016 5:50am Jan 18, 2016 5:50am
Quoting tdforex
Hi All! Have been reading the thread on January after the Christmas break and hooray, how great posts. Big thumbs up D, DD, jtrade (Zappa is always good and all others. So inspiring posts about the essential elements of trading: focus, defined edge (through own research/modification), trade the plan, psychological aspects, long term perspective and position sizing and risk management. Starting my own trading also again this week for year 2016
Hey, td.... good to see you around
  • #9,589
  • Edited 7:47am Jan 18, 2016 7:16am | Edited 7:47am
Hey jt whats is wrong with the YM she moves like a Dancing with the star pro
  • #9,590
  • Jan 18, 2016 7:38am Jan 18, 2016 7:38am
Quoting Divergence
Hey jt was is wrong with the YM she moves like a Dancing with the star pro
It's that special effect you have on the Ladies, H
  • #9,591
  • Jan 18, 2016 7:48am Jan 18, 2016 7:48am
Quoting jtrade
{quote} It's that special effect you have on the Ladies, H
heres the next metaphor she is like a 65 mustang what else can get you from 0 to 60 (ticks) that fast
  • #9,592
  • Jan 18, 2016 10:18am Jan 18, 2016 10:18am
I did not realise you guys were trading on MLK holiday. I missed a trade .

Just for future notes - what days do we not trade? Just Xmas and New years season?
  • #9,593
  • Jan 18, 2016 11:06am Jan 18, 2016 11:06am
Personally, i differ from the others ref time constraints and will take a set-up whenever i see one. Today has lacked much trending unless you look at smaller timescales.

I am still working on scenarios to expand my entry criteria. I am simply not in the zone to the extent of say D and DD (and the others who are making this work without fuss!), but i'm confident that i am homing in on it.

The question of which 123's to take to get back into trend is always key. A 'B' wave within a corrective move will be a small abc, with the 'c' wave triggering you into a 123, only to see it turn quickly and stop you out.


I posted a chart at the weekend, pointing out that, for me, a 123, ideally would break a flagline, possibly with point 2 retesting that line, before triggering the new high above/below point 1, for entry. That still does give a gaurantee and i took a loser straight off the bat, this morning. In hindsight, i looked back at it and thought to myself that it simply didn't look right in the first place and told myself off for a lack of discipline. Hey ho... just one of the problems to overcome, the desire to trade leading to ill discipline.

Anyway, whilst studying, i noticed on one of my charts a sharp pullback, which came within a whisker of it's prospective last LH, but turned a few pips before and created a 123 before triggering and going back to trend for a winner.

Attached Image (click to enlarge)
Click to Enlarge Name: eurgbp123a.png Size: 143 KB


I recently played around with taking positions when they do this, freestyle without the 123... basically using HH/HL combo's and vica versa, taking trades with trend and placing stops above/below the last significant point. I had mixed results, because by the time you recognise a trend, it is usually after it's 3rd peak/trough and is due a larger pullback, but adding the 123 into the mix would certainly increase the chance of success.

Did any of that make sense?! I hope you follow me!

Anyway, crazy as though this might seem, i started following the 10second DAX chart because it looked to be trending nicely. I was right!
Lo and behold, we get an Ending Diagonal, which commonly gives these nice large swings, taking it to within stroking distance of it's trend points and very kindly giving a 123 each time back into trend, just the same as the above chart!

Attached Image (click to enlarge)
Click to Enlarge Name: dax10shh's.png Size: 159 KB


Ok, so you have to think quickly because it is like being on speed, but risk is merely 4/6pips inc spread, i got +1 from the first (I moved my stop up too quickly and that nasty spike down didn't give me a chance!) and a nice 12 pip winner on the second...
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  • #9,594
  • Jan 18, 2016 11:47am Jan 18, 2016 11:47am
I don't trade USA holidays that banks are closed and all Wednesdays. Cable guy what market are those charts.i see a lot of 123s there and with a macd to confirm trades would help. So if 123 is formed and no confirmation I would wait till it takes out pt 2 get 2 closes below it and trade pb to it my version of the Ross hook
  • #9,595
  • Jan 18, 2016 11:57am Jan 18, 2016 11:57am
CG also I have also studied elliot waves and I came to same conclusion everything is to complex. I would stick to the price action that's in front of you. We are day traders and even though it does same thing in smaller TF as longer ones it's just waves inside of waves. I personally like like charts it shows the patterns I look for so much clearer. Master 1 setup and you will become the master danielson.
  • #9,596
  • Jan 18, 2016 12:00pm Jan 18, 2016 12:00pm
Hi Harold, I watch 8 pairs/markets between 2 screens, so i can merely glance to see a likely set-up forming, only then do i concentrate on that market. I watch the DAX, DOW, EurGbp, EurUsd, EurJpy, GbpUsd, UsdJpy and AudUsd. The Dax and Dow are animals and easy to make enough pips despite spread (1pip) very quickly. I seem to have gotten into a zone where i don't like to hold for long, thus it suits me. Maybe it is a nasty habit that i will need to break, but again, if it aint broke in the first place etc...

That is indeed a MACD on my charts (below). I particularly look for Hidden Divergence to form to coincide with a set-up where possible, for trend continuance. It always overrides either Positive or Negative div. Also, crossovers above 0 for longs and below 0 for shorts are something to watch for.

I'm working on your retest of point 2. More often than not, it seems a stop run is encountered, as i had twice today, so entering as such makes sense.
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  • #9,597
  • Jan 18, 2016 12:08pm Jan 18, 2016 12:08pm
Quoting Divergence
CG also I have also studied elliot waves and I came to same conclusion everything is to complex. I would stick to the price action that's in front of you. We are day traders and even though it does same thing in smaller TF as longer ones it's just waves inside of waves. I personally like like charts it shows the patterns I look for so much clearer. Master 1 setup and you will become the master danielson.

Totally agree on that. I only switched back to your system recently, but instantly became calmer. I was getting really quite proficient at labelling EW with the aid of Fibs and could call longer term trends with a good degree of success, the problem there is, i simply can not hold positions for longer term moves. I hate to see profit disappear in a corrective wave!

But in all honesty, there is seldom the lack of an opposite count and as such, you go around and around in circles. My patience would never hold and i would undo some great work quickly with an impatient moment.

It still interferes with my thinking sometimes and yet, like today, i found following the Dax with a little EW influence helped me to trade it effectively.

In any case, i far prefer having the mechanical entry point of a 123. If it coincides with MACD Divergence, a flag break, or when very near to last significant turning point as in above charts etc
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  • #9,598
  • Jan 18, 2016 12:41pm Jan 18, 2016 12:41pm
In my opinion CG the key to day trading is to have a trade plan. Firstly how much to I want to make for me 500 dollars a day is the plumb line. Next what's my risk that I want to take to achieve this. Next the trade setup or setups are they consistent and can I execute them. Then the market does it have liquidity and good days range. Remember we are day traders in and out in minutes not hrs or days. That's the plan the trade all that's left is trade the plan
  • #9,599
  • Jan 18, 2016 1:13pm Jan 18, 2016 1:13pm
Quoting Divergence
In my opinion CG the key to day trading is to have a trade plan. Firstly how much to I want to make for me 500 dollars a day is the plumb line. Next what's my risk that I want to take to achieve this. Next the trade setup or setups are they consistent and can I execute them. Then the market does it have liquidity and good days range. Remember we are day traders in and out in minutes not hrs or days. That's the plan the trade all that's left is trade the plan
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^What he said^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The only thing I would add/change is this: Sometimes, if you enter at a support or resistance level near the open, it may be better to hold for hours if the market is going your way, because you may have nailed a trend day high or low. My plan for the ES is that if I think I may have entered at or near the High or Low for the day, I'll put my stop at +4 points and let the market take me out or else stay in until near the close if it doesn't hit my stop.
  • #9,600
  • Jan 18, 2016 1:14pm Jan 18, 2016 1:14pm
Quoting Divergence
I don't trade USA holidays that banks are closed and all Wednesdays.
I trade Monday through Friday, I like to be done by noon unless I am losing or the market is trending or swinging nicely.

Like Divergence, if the USA banks are closed, so am I. No trading for me today.
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