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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #17,201
  • Feb 24, 2016 11:02am Feb 24, 2016 11:02am
I hope you all enjoyed my trading session for the day. I have to step out and take care of some thing. I will catch up later. I hope you guys are having the time of your lives.
If you fail to plan, you plan to fail.
  • #17,202
  • Feb 24, 2016 11:29am Feb 24, 2016 11:29am
Quoting ujku80
i'm waiting for a PB to jump along and join you in this ride.
Coming down...
  • #17,203
  • Feb 24, 2016 12:14pm Feb 24, 2016 12:14pm
Incredible trading from you guys today! I love reading through these even though I can't keep up with you all and those time frames for now because my other work. Maybe someday.

This is the provisional trading plan and rules I sketched out for myself this morning. I think it will prove helpful to me to have it written even though most of it's in my head already. I hope it's okay to post here at this time. Most of what it is in there is simply my condensation and application of what we've been learning here so far.

I tried to post it as an attachment from google drive but I kept getting an error message so I'm just copying it here. Friendly critiques welcome.

-----------------------------

Timeframes traded and times to trade:

I am going to trade four hour charts. Analyses and trading decisions are to be made at candle closes 8:00 am, 12:00 pm, 4:00 pm, and 8:00 pm. Currently I am trading the following pairs: USD/JPY, AUD/USD, USD/CAD, and EUR/JPY, but as I become more proficient at this I will add more pairs to my watch list.

Bread and Butter Trades:

After an impulse move making a NSH or NSL I will wait for a .382 to .786 retracement of the move and then enter after a confirmation bar in the direction of the impulse leg. The confirmation bar may be looked for on the one hour chart, but only during my specified trading times (this is to keep me from entering wildly and at random). The depth of the retracement I look for will be based on the momentum of the impulsive leg, combined with any structure nearby providing likely support or resistance, and taking the depth of previous retracement swings in recent price history into consideration.

Retracements slightly greater than .786 may be taken if price is signaling a clear intent to turn and especially if there is supporting structure.

-------------

Counter trend trades (or trades against orderflow) may be taken in areas of strong support or resistance if price is moving into them on weakness and/or if there is a confluence of structure with key fibonacci ratios or one or more harmonic pattern completions. In these situations, definitely look for a confirmation bar, and manage tightly.

R/R

Trades with an R/R ratio of 1:1 may be taken if they are in line with expectations and orderflow and in areas of confluence. This would be a high probability set up. In set ups that are less clear, with potentially lower probability, look for an R/R of 1:1.5-2 and up.

At this point, stop placement and profit targets are largely discretionary and dependent on the individual chart, but in general assessment of strength and weakness, key levels, and harmonic expectations will work together to inform my expectations for targets. Stops will be placed beyond nearby structure, or just beyond significant rejection wicks, or beyond a previous HL or LH depending on what the particular chart is offering as most obvious and how much I am willing to risk on the particular trade idea. (Note: this area could probably use refining and is liable to future revision.)

Trade Management:

This is also largely discretionary at this point, but in general if price has achieved about a third of the expected move I will move stops to break even and trail at tests of structure.

Money Management:

To be determined. For now I will trade the minimum position size (~.10 a pip) and if/when I achieve profitability for three consecutive months I will consider depositing more money in the account and increasing my position sizes accordingly.
  • #17,204
  • Feb 24, 2016 1:57pm Feb 24, 2016 1:57pm
WOW WOW wow wow wow!!! Great job!

Quoting Mr. Pip
Got taken out 3 trades 2 wins 1 loss for +103 points @ 12 contracts ($6175) {image}
Markets can remain irrational longer than you can remain solvent - JMK
  • #17,205
  • Feb 24, 2016 3:16pm Feb 24, 2016 3:16pm
Quoting Mr. Pip
I hope you all enjoyed my trading session for the day. I have to step out and take care of some thing. I will catch up later. I hope you guys are having the time of your lives.
I have enjoyed your trading session alot

I wanted to go long on Dow yesterday, but because of your and ujku80 help, I said to myself : "don't enter a long trade until 5 or 15 min expectation is a NSH".
I did it (it was very difficult.. jeje) and It was a green pips day.
(I think I should have put short trades before I go long, but I couldn't. I should to improve it)

Trade seems very easy with your charts and comments.
  • #17,206
  • Edited 6:08pm Feb 24, 2016 3:18pm | Edited 6:08pm
Quoting Mr. Pip
I've said this before people when they get into this business go on an endless search for the Holy Grail. And many never stop searching for this mystic, elusive thing. Many say it doesn't exist. My strategy certainly is not the Holy Grail of trading but I did find my Holy Grail. I will share it with you, I have done it in the past but it's barried deep in the hundreds of pages. So here is my Holy Grail it's a statement that I try to live by and my mission statement on my trade plan. Here it is: The Holy Grail Gaining mastery over my destructive...
Check you out with your profound words Damian!!! Love it!!

Quoting Mr. Pip
Got taken out 3 trades 2 wins 1 loss for +103 points @ 12 contracts ($6175) {image}
Awesome results there!! I had a feeling you would have a good day, I was seeing lots of really good opportunities for entries. My trades for the day could have gone a lot better if I had time to manage and trail my stops/tp. That said 4 trades 1 at BE and 3 winners for a total of about 40 pips, so overall very happy too.
  • #17,207
  • Edited 6:43pm Feb 24, 2016 5:34pm | Edited 6:43pm
My trade today was on GJ 5min TF

After the NSL failure and due to price went up the box & retracement in between 38.2 to 50, I decided to buy for a 1:1 move.
Unfortunately, the move was not meeting my taste, so I moved SL quickly and was taken out (+4pips) in the area of the big white counter candle.
Maybe I was too optimistic with the expectation of the price move speed.
At least no loss and TP would have been hit.

I have a question, what is "YM"? (Mr. Pip: is there any reasons why you apparently mostly trade dow, YM,.. and not e/U, g/j,....)

Can anybody tell me how to draw arrows with mt4?
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  • #17,208
  • Feb 24, 2016 5:55pm Feb 24, 2016 5:55pm
Quoting Mr. Pip
I hope you all enjoyed my trading session for the day. I have to step out and take care of some thing. I will catch up later. I hope you guys are having the time of your lives.
Love these live trades, too bad it has passed my bedtime. Hope you can find time mark our live trades homework and give comments as well. Only if you have time, not a must.
  • #17,209
  • Feb 24, 2016 6:21pm Feb 24, 2016 6:21pm
just finished another trade on GJ. This time, all went as expected
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  • #17,210
  • Feb 24, 2016 6:35pm Feb 24, 2016 6:35pm
Quoting ujku80
{quote} ok, I think Damian has a plan to talk about trade management this weekend I think. if i'm not wrong. so, let's leave it for now. Important lesson for today is structure and S&D zones. Let's focus on those. ok?
Not quite yet we have to talk about Bar by Bar Analysis first.
If you fail to plan, you plan to fail.
  • #17,211
  • Feb 24, 2016 6:40pm Feb 24, 2016 6:40pm
Quoting ujku80
{quote} and here comes Master! what do you think on the trades I've taken Damian? Am i teaching guys right or am i wrong?
I don't see a problem with your comments. Thanks for the help.
If you fail to plan, you plan to fail.
  • #17,212
  • Feb 24, 2016 6:49pm Feb 24, 2016 6:49pm
Quoting beepbop2015
Incredible trading from you guys today! I love reading through these even though I can't keep up with you all and those time frames for now because my other work. Maybe someday. This is the provisional trading plan and rules I sketched out for myself this morning. I think it will prove helpful to me to have it written even though most of it's in my head already. I hope it's okay to post here at this time. Most of what it is in there is simply my condensation and application of what we've been learning here so far. I tried to post it as an attachment...
Great start, now you have a guide and see which rules are profitable and which ones don't help you. Trade plans are a working progress until it helps you achieve consistent profits.
If you fail to plan, you plan to fail.
  • #17,213
  • Feb 24, 2016 6:54pm Feb 24, 2016 6:54pm
Quoting evocpr19
My trade today was on GJ 5min TF After the NSL failure and due to price went up the box & retracement in between 38.2 to 50, I decided to buy for a 1:1 move. Unfortunately, the move was not meeting my taste, so I moved SL quickly and was taken out (+4pips) in the area of the big white counter candle. Maybe I was too optimistic with the expectation of the price move speed. At least no loss and TP would have been hit. I have a question, what is "YM"? (Mr. Pip: is there any reasons why you apparently mostly trade dow, YM,.. and not e/U, g/j,....) Can...
The YM is the DOW Futures contract. I don't trade anything else because there is no need to. As an intraday trader efficiency is key. Find one pair that has the range you need and make it your bitch. Pardon the expression but its far easier to trade one pair and be in sync with one chart vs bouncing around. One pair should give you plenty of opportunities. Keep it simple and the market will reward you.
If you fail to plan, you plan to fail.
  • #17,214
  • Feb 24, 2016 7:02pm Feb 24, 2016 7:02pm
Hello Traders,

Sorry I did not have time to post much today and the market moved really fast today and I had things to take care of. Tomorrow is another busy day and may only get a chance to trade in the afternoon we will see. I will answer questions and critique some of your trades. I have not done this because I have not talk to you all about trade entries and trade management yet.

I can see how my feedback can help you though so I will. Keep posting and I will post my trades live when I'm able to. I will also figure out how to stream live via YouTube so that after I show you entry and trade management We can run through some live trading sessions. I think that would be fun.

I hope all non believers and doubters are now clear about the thread and about me. I talk the talk and walk the walk. Live calls on all my trades. No Bull****!
If you fail to plan, you plan to fail.
  • #17,215
  • Feb 24, 2016 7:42pm Feb 24, 2016 7:42pm
Quoting Mr. Pip
Hello Traders, Sorry I did not have time to post much today and the market moved really fast today and I had things to take care of. Tomorrow is another busy day and may only get a chance to trade in the afternoon we will see. I will answer questions and critique some of your trades. I have not done this because I have not talk to you all about trade entries and trade management yet. I can see how my feedback can help you though so I will. Keep posting and I will post my trades live when I'm able to. I will also figure out how to stream live via...
I can't wait for the live stream!

I'm not quite sure how anyone could doubt you at this point. The stuff you're sharing is truly life changing in my opinion. Keep up the great work Damian!
  • #17,216
  • Feb 24, 2016 7:58pm Feb 24, 2016 7:58pm
Quoting lKeithStone
{quote} I can't wait for the live stream! I'm not quite sure how anyone could doubt you at this point. The stuff you're sharing is truly life changing in my opinion. Keep up the great work Damian!
If you fail to plan, you plan to fail.
  • #17,217
  • Feb 24, 2016 8:24pm Feb 24, 2016 8:24pm
Quoting Mr. Pip
Got taken out 3 trades 2 wins 1 loss for +103 points @ 12 contracts ($6175) {image}
Outlined in advance well before the fact and great trade management throughout the whole process from start to finish including the locking in of 20 points to erase the 1st losing trade!

Brilliant my friend!

Masterrmind...........
Master your Mind then Master your Trades
  • #17,218
  • Feb 24, 2016 8:37pm Feb 24, 2016 8:37pm
Quoting Mr. Pip
Hello Traders, Sorry I did not have time to post much today and the market moved really fast today and I had things to take care of. Tomorrow is another busy day and may only get a chance to trade in the afternoon we will see. I will answer questions and critique some of your trades. I have not done this because I have not talk to you all about trade entries and trade management yet. I can see how my feedback can help you though so I will. Keep posting and I will post my trades live when I'm able to. I will also figure out how to stream live via...
  • #17,219
  • Feb 24, 2016 8:45pm Feb 24, 2016 8:45pm
Quoting Masterrmind
{quote} Outlined in advance well before the fact and great trade management throughout the whole process from start to finish including the locking in of 20 points to erase the 1st losing trade! Brilliant my friend! Masterrmind...........
Thanks
If you fail to plan, you plan to fail.
  • #17,220
  • Feb 24, 2016 10:21pm Feb 24, 2016 10:21pm
Quoting Mr. Pip
Got taken out 3 trades 2 wins 1 loss for +103 points @ 12 contracts ($6175) {image}
Awesome job Mr.Pip. Outstanding.

I've seen a lot of nice trading today from you guys. I've been keeping up with the thread at work. I know I haven't posted much lately, my slave life has crushed my trading time but I am following religiously and practicing lots. Just want to let you know, Mr.Pip, that I'm still soaking in the information and I'm very appreciative.

I'm hoping to put up some live trades in the next couple of weeks

Anyway

EURUSD - 15M

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