LFX Trading Proverbs

No problem, I thought I was on some sort of ban list lol.

If you are not posting 100+ pips a day on FF you are nothing. lol.

mmmm... Vague trading strategy, unashamed talk of huge success, suggestive inner group forming but no set date yet?

Phrase "My Team" used.

Sounds like DK is headed for the commercial section.

Carbon copy of Dancing Phil.

As long as there are sheep there will be wolves.

Hello dkrock,

Could you explain in detail as to why we should use the 30 minute time frame to adjust indicators?

The vast majority of traders like to use the 50 and 200 moving averages to determine trend direction.

On a 30M chart, there are 48 candles each day. There are 240 candles each week. So, if you want to trade within the 50 and 200 moving averages, this time frame is nearly the same number of periods. Therefore, you are more likely to be in the market rhythm if you design your strategy in this time frame. You can always move to another time frame afterwards, should you want to try to increase precision, or simply cannot trade the length of trades, or want to position trade, but be aware you might need to tweak settings, or not. It depends on what you are doing and what you use to do it.

Does that help?

So if I were trading the 1M chart, I could use to moving averages of 60 and 240. One is for the past hour and the other is for the past 4 hours?

Also do you think the 5-34 MACD is a good momentum indicator?

Yes it does help. Thank you

Dkrock, your thread is really down-to-earth.

KP

Without knowing much about your technique, using a 60 for one hour is giving you the 1 moving average of the 1Hr chart. The 240 would be the 1 moving average of the 4Hr chart. Is that your intention? To trade the 1 moving average of both time frames on a 1M chart? I mean it doesn't matter to me. I am just trying to help you understand what you are doing.

As for the MACD, I thought it has 3 inputs? You should align it to the moving averages you are trading against. You mention 60 and 240, so why would your MACD be 5 and 34?

Thank you. I try to expand the philosophy of trading to something realistic.

I have a set of slides with captions written on them that play in an mp4 with subliminal music behind them. I play them several times a day as part of my desire to control my own life and outcomes. One of them I use to keep myself honest about losing trades. Today I thought of something a bit different when I was thinking about it.

Some of you know that for a few years I drove semi trucks while I was studying Forex. Imagine you are at a dock having your truck loaded and see a car sitting nearby staring at you. When you leave the dock it follows you all the way to your next destination. Seem suspicious? Creepy?

Now assume you are the driver of the car. What if you were 50 miles away and as I drove by you on the highway, you started following then? When I got to my next destination, you didn't stop, but instead drove past me. Would I be suspicious of you now? Would I have even paid any attention to you?

In the famous attached pic, you see one trading room of one bank. How many of these rooms do you think exist? How many smaller teams of traders exist? How many individual traders exist? Let's suppose you are trying to enter a trade at a top or bottom. You are like the car watching the truck at the dock. Everyone sees you and is suspicious, only in this case, they take it another step and try to catch you. With so many eyes on you and your behavior, what are the odds you won't get caught?

Now imagine the trade is fully underway. It is moving like the vast majority of traders want it to move. You are lost in the traffic and really, now no one is paying any attention to you.

If you trade support/resistance lines, Fibonacci lines, react to the shape of some candle, or any other signal that ANYONE can see, you are the creep in the car about to get taken out. However, if you use momentum, and wait for the price to get on the highway, no one cares.

Something to think about as you design your business. Good Luck

Good point!

If I remember correctly, you use custom momentum indicators?

This past weekend I was curious to see how some FF ideas were coming along, so read some threads and made some comments. Once again though, I found myself in la la land with some FF police, lol. It was a bit different this time. There were three different versions of trolls, so it became a bit entertaining. One was the usual social media whore who likes to make snide comments, pretend he didn't, One-Up you on every post no matter who you are talking to or what the subject is. You know that type. The other was making less obvious snide remarks, but still doing it and was posting pics of another market to impress us. LOL. Can't trade Forex, but knows what works. That is a bit of a twist since a Forex "expert trader" was not talking about Forex, but still - YAWN. Finally, and this guy was the most funny, a price action hero told me that price action is defined as the "action of price". Is that funny or what? I read he has only been trading about 3 months, but wanted me to show him my bank account because he makes real money and I do not. Don't hold your breath that either of us will produce any documents. I play enough poker to know he is full of crap, and I have no interest in sharing my personal, private data with the world. DUH! Can you imagine if people posted bank accounts or trading accounts that had money in them? LOL. What sort of mentality does a person have with such a lack of good common sense? I will tell you > Forex Police, lol. So annoying.

I do not know where all these people come from, or why they are invading us, but such is the life we are dealt. It made me wonder though, why are we so different from them? I mean, remove the obvious differences like education, business experience, math skills, societal manners. Sure, some of it is environmental based, but what is the root "math" reason for why they defend inconsistent trading methods to the death of their accounts?

I think I figured it out. I decided to post it on my thread so that if at any time in the future I start feeling their hot stinky breath on my face, I can come here, read this post, and brush them off like water on a duck. No more joy stealing, lol.

First, I want to say thank you to those who subscribe to my thread, offer genuine feedback, and are trying to understand my logic. I feel comfortable on this thread, like being home. So thank you for not trolling it up during all this time. It is awesome!

I came to the conclusion that the differences between me, us, and the rest of the world's traders is this:
- We have decided the way to make money is to trade when the market is in motion, either up or down.
- They have decided the way to make money is to trade when the market stops, by hitting a previous high or low or some conceived point in-between.

Does that make sense? If you have the same issues with them as I do, maybe this will help you muddle through their ranting. It is how I decided to explain to myself why we have such differing methods. Keep it on the math, not the person. They like to trade on the dead market. We like to trade on the live market. That is why they have to rely on the past, the dead market, and we rely on what is actually happening right now, the live market. Simple. Now, if you accidentally get drawn into a personal attack, there is no such thing as a troll anymore. It's just a person that is still taking the math quiz from yesterday and is all stressed out about it. No big deal.

Hope you are making money and feeling good

Feeling good.

All good here.

I often find myself coming back to your thread to try to wrap my head around your logic. Honestly I am not sure I will ever get it. I like the challenge though. Plus, it beats reading about the latest EA than is proven 100% holy grail with zero risk.

I posted some screenshots for the last week on my Journal.

http://www.forexfactory.com/showthread.php?t=571093

They will appear vague the vast majority of traders, but for readers of my thread, it should give you a good idea how price moves up and down from an equilibrium and all you have to do is track it, and trade it.

Thanks I will check it out.

Thanks for your two philosophical threads, DKRock!
Very useful and insightful reading and lots of matching thoughts: about Love as the origin of every real success, about importance of equilibrium points, etc. Are you planning to continue your trading journal thread? Thanks.

Dkrock, thanks for your trading proverbs, made a tdi ergodic cci, maybe it will be of some use here.