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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

  • #21,021
  • Nov 8, 2016 10:44am Nov 8, 2016 10:44am
I would like to discuss a topic that you all feel you struggle with. Tell me what is the most difficult thing you deal with in your trading or approach and we will see how we can address them.
If you fail to plan, you plan to fail.
  • #21,022
  • Nov 8, 2016 10:57am Nov 8, 2016 10:57am
Quoting Mr. Pip
I would like to discuss a topic that you all feel you struggle with. Tell me what is the most difficult thing you deal with in your trading or approach and we will see how we can address them.
I would say the biggest issue is letting profits run and trailing them properly. I started trading again a few weeks ago using your methodology and 5min charts... so far slowly but surely climbing upwards!!

But it would be a lot more if I allowed profits to run. I think I've mastered limiting losses and have really good entries, but it's hard not to ring the register when there are pips on the table.

What do you recommend???

P.S. So far since trading again Up +9.23% this month and have captured 90 pips for the week.
  • #21,023
  • Nov 8, 2016 10:58am Nov 8, 2016 10:58am
Quoting Mr. Pip
I would like to discuss a topic that you all feel you struggle with. Tell me what is the most difficult thing you deal with in your trading or approach and we will see how we can address them.
Identifying early in time reversals, e.g. in the case of the ongoing up move in YM.
  • #21,024
  • Nov 8, 2016 11:06am Nov 8, 2016 11:06am
A little more aggression here as we are approaching some areas of structure to the left but progressing well.
Attached Image (click to enlarge)
Click to Enlarge Name: YM 12-16 (233 Tick) 11_8_2016.jpg Size: 109 KB
If you fail to plan, you plan to fail.
  • #21,025
  • Nov 8, 2016 11:17am Nov 8, 2016 11:17am
Quoting Harmonic1976
{quote} I would say the biggest issue is letting profits run and trailing them properly. I started trading again a few weeks ago using your methodology and 5min charts... so far slowly but surely climbing upwards!! But it would be a lot more if I allowed profits to run. I think I've mastered limiting losses and have really good entries, but it's hard not to ring the register when there are pips on the table. What do you recommend??? P.S. So far since trading again Up +9.23% this month and have captured 90 pips for the week.
+1 on this subject.

Also if you have an expectation and it doesn't play out, how do you go about realigning yourself with the market? Zoom out to a bigger swing and build a new PRZ based on that?

And finally when you enter a trade you also identified where your stop should be in order for your view to be correct. Sometimes you tight up your stoploss or close manually (if I understood some of your posts correctly) based on weakness, I would like to see how you assess PA in regards to when you tighten your stoploss.

Still struggling but im slowly getting there.
Rise and rise again until lambs become lions
  • #21,026
  • Nov 8, 2016 11:17am Nov 8, 2016 11:17am
Quoting Mr. Pip
A little more aggression here as we are approaching some areas of structure to the left but progressing well. {image}
Momentum is decreasing.
  • #21,027
  • Nov 8, 2016 11:20am Nov 8, 2016 11:20am
Quoting Mr. Pip
A little more aggression here as we are approaching some areas of structure to the left but progressing well. {image}
Nice entry and totally legit with this bullish PA. I hope your still in cause man, you'll be taking that move to the bank.

this is what I'm looking at this morning ... I know not much. might just be watching today

Attached Image (click to enlarge)
Click to Enlarge Name: Chart.png Size: 56 KB
  • #21,028
  • Nov 8, 2016 11:22am Nov 8, 2016 11:22am
Quoting Harmonic1976
{quote} I would say the biggest issue is letting profits run and trailing them properly. I started trading again a few weeks ago using your methodology and 5min charts... so far slowly but surely climbing upwards!! But it would be a lot more if I allowed profits to run. I think I've mastered limiting losses and have really good entries, but it's hard not to ring the register when there are pips on the table. What do you recommend??? P.S. So far since trading again Up +9.23% this month and have captured 90 pips for the week.
Very nice! And thank you for the question. Your aim should be to capture at least 70% of the move you are trading. The market does need room but if your target are not clear and then your trade management will suffer. You must trade manage with clear and non subjective rules as well. Use ratios or short term structure to trail into your profit target. Stick to it and get aggressive near your profit target but not until then let the trade run it's course. I got taken out as I typed I got very aggressive as price hit the 127 what was my target and extended in case it ran but I got taken out. It is impossible to take everything but in the long run to will make more money if your targets are clear and if you give the market the room it needs to get there.
Attached Image (click to enlarge)
Click to Enlarge Name: YM 12-16 (233 Tick) 11_8_2016.jpg Size: 108 KB
If you fail to plan, you plan to fail.
  • #21,029
  • Nov 8, 2016 11:26am Nov 8, 2016 11:26am
Quoting Mack2013
{quote} Nice entry and totally legit with this bullish PA. I hope your still in cause man, you'll be taking that move to the bank. this is what I'm looking at this morning ... I know not much. might just be watching today {image}
lol momentum on your chart look different as on my chart (tick chart emulator)
  • #21,030
  • Nov 8, 2016 11:29am Nov 8, 2016 11:29am
Quoting evocpr19
{quote} Identifying early in time reversals, e.g. in the case of the ongoing up move in YM.
I never trade with a reversal in mind this can cloud your judgment and often give you an unrealistic expectation and targets. You must know whether you are trading a correction or a continuation. If your correction starts to gain strength then perhaps it could turn into a reversal.

My point is that if expectations play out over 70% of the time then reversals only occur less then 30% of the time. Trade on the side of the 70%+ no need to look for home runs. Hit a lot of base hits and watch your account consistently grow.
If you fail to plan, you plan to fail.
  • #21,031
  • Nov 8, 2016 11:34am Nov 8, 2016 11:34am
Quoting Mr_Burns
{quote} +1 on this subject. Also if you have an expectation and it doesn't play out, how do you go about realigning yourself with the market? Zoom out to a bigger swing and build a new PRZ based on that? And finally when you enter a trade you also identified where your stop should be in order for your view to be correct. Sometimes you tight up your stoploss or close manually (if I understood some of your posts correctly) based on weakness, I would like to see how you assess PA in regards to when you tighten your stoploss. Still struggling but im...
I believe a video would help address these this issue better. I tell you what write a post with the top 5 trade management and or stop issues and I will make a video in the nest couple of days it will allow others to post thier lists of issues as well.
If you fail to plan, you plan to fail.
  • #21,032
  • Nov 8, 2016 11:43am Nov 8, 2016 11:43am
Let's go Traders, It's time to break through the barriers that seem to be holding you back. Get fired up! Let's take control and ownership of our processes and fix the bugs I am here for you. I will be purchasing a legit camtasia studio license to be able to make videos for you it seems the one that a friend gave me was a pirated one and it crashed and I lost all of my videos, at least they are still on youtube. Anyway I'm inspired to continue on what I stared and I want you to be inspired to learn and overcome those obstacles that hold you back.
If you fail to plan, you plan to fail.
  • #21,033
  • Nov 8, 2016 11:53am Nov 8, 2016 11:53am
Quoting Mr. Pip
{quote} I believe a video would help address these this issue better. I tell you what write a post with the top 5 trade management and or stop issues and I will make a video in the nest couple of days it will allow others to post thier lists of issues as well.
Thank you Mr. Damian, you are truly a great mentor and I will enter the top 10% because of you and your generosity!

Trade Management Issues
1. When do you first move the stop? According to your lessons, you usually move to breakeven +5pips or so at the test of structure.
2. It is a challenge to see price get close to a target, especially with a long wide range bar and then start reversing before it hits the target - at least that is how it appears. Sometimes it does go to target from there, sometimes it doesn't. How do you keep your calm when you're just a 5-10pips away?
3. How aggressive are you if you're trading a pullback/reversal i.e. AB=CD/ABCD pattern or against the main trend?
4. How do you leave room for a trade to continue in the direction it is headed (i.e. more profit once it is headed in the expected direction)?
5. Can you explain this better -"Your aim should be to capture at least 70% of the move you are trading."
  • #21,034
  • Nov 8, 2016 11:54am Nov 8, 2016 11:54am
Quoting Mr. Pip
I would like to discuss a topic that you all feel you struggle with. Tell me what is the most difficult thing you deal with in your trading or approach and we will see how we can address them.
Hi Damian, thanks for your time here.

It would be interesting for me to hear your thoughts on expectation failures in difficult markets. In particular, how do you handle bigger scale vs smaller scale expectations that sometimes are contradicting. Here some examples:

Attached Image (click to enlarge)
Click to Enlarge Name: exp1.png Size: 70 KB


Attached Image (click to enlarge)
Click to Enlarge Name: exp2.png Size: 85 KB


I know about complex corrections. So what is the best approach in these situations?
Better to go with bigger scale moves and threat everything else a complex correction (by missing opportunities on smaller scale) or just keep it simple and go with latest swings regardless of scales?

BTW I'm also interested in anyone's view not just Mr.Pip's, so feel free to comment
Thanks
the 3rd wave is the crowd's wave
  • #21,035
  • Nov 8, 2016 11:58am Nov 8, 2016 11:58am
Quoting x3m-PippiN
{quote} I was thinking of entering short on the first pinbar but decided to wait and see where the next bar would close. After I saw that it wasn't able to close below the pinbar I decided to wait for more confirmation but the only thing I could see was the buying pressure in the wicks. {image}
Thanks for the exercise even though I'm alittle late.

Jmezz and Mr.pip summed this one up nicely. If you didn't take the first rejection the second one was a gift. But like Mr.pip said, context plays an important part. As it looks in your pic, order flow looks bearish. Down swing looks strong. Things to ask your self; Did PA make a NSL? How strong was the NSL? Is it breaking out of your zone? what is your expectation and go with that?
  • #21,036
  • Nov 8, 2016 12:03pm Nov 8, 2016 12:03pm
Quoting juriFX
{quote} Hi Damian, thanks for your time here. It would be interesting for me to hear your thoughts on expectation failures in difficult markets. In particular, how do you handle bigger scale vs smaller scale expectations that sometimes are contradicting. Here some examples: {image} {image} I know about complex corrections. So what is the best approach in these situations? Better to go with bigger scale moves and threat everything else a complex correction (by missing opportunities on smaller scale) or just keep it simple and go with latest swings...
me too
  • #21,037
  • Nov 8, 2016 12:08pm Nov 8, 2016 12:08pm
Quoting Harmonic1976
{quote} Thank you Mr. Damian, you are truly a great mentor and I will enter the top 10% because of you and your generosity! Trade Management Issues 1. When do you first move the stop? According to your lessons, you usually move to breakeven +5pips or so at the test of structure. 2. It is a challenge to see price get close to a target, especially with a long wide range bar and then start reversing before it hits the target - at least that is how it appears. Sometimes it does go to target from there, sometimes it doesn't. How do you keep your calm...
Great questions and I will address them in the video along with others. Thank you.
If you fail to plan, you plan to fail.
  • #21,038
  • Nov 8, 2016 12:21pm Nov 8, 2016 12:21pm
Quoting Mr. Pip
I would like to discuss a topic that you all feel you struggle with. Tell me what is the most difficult thing you deal with in your trading or approach and we will see how we can address them.
Uhmmmmm but there is so many. lol But I'm glad to tell you that there is less then a year ago. Progress is not as fast as I would like but its progress.

But if I had to choose a couple.

 

  1. Exits. When to take targets? When to extend targets? When to exit early and when to stick with stops ? - The answer might be easy and just be consistent but it may not...
  2. Assessing order flow when price goes from NSH (trending) then throws in a fake NSL before continuing. how to sort out the fakes?
  3. Dealing with emotions. I find that some emotions disguise them selves as logical thinking. Example; your in a trade. Your in profit (50 pips). Price is 15 pips away from target but looking strong then Price put in a opposing candle that takes 50% of the previous candle... Price (or fear) tells me not to risk 50 pips for another 15 but my discipline (or is it greed/hope) says stay with the plan. It doesn't matter what price does. If I hit my profit target then its discipline (even though over the long term it was the wrong thing to do because really it was hope and backtesting support this) but if I loss , its greed and I should of been listening to PA. See what I'm saying? I hope its clear. It can also work in draw downs.

uhmmm. that's all I could come up with so far. I got others but not to deal with money management.

thank you

  • #21,039
  • Nov 8, 2016 12:30pm Nov 8, 2016 12:30pm
Quoting evocpr19
{quote} lol momentum on your chart look different as on my chart (tick chart emulator)
does it look stronger or weaker. is the amount of bars different? can you post a chart?
  • #21,040
  • Nov 8, 2016 12:33pm Nov 8, 2016 12:33pm
Quoting Mack2013
{quote} Thanks for the exercise even though I'm alittle late. Jmezz and Mr.pip summed this one up nicely. If you didn't take the first rejection the second one was a gift. But like Mr.pip said, context plays an important part. As it looks in your pic, order flow looks bearish. Down swing looks strong. Things to ask your self; Did PA make a NSL? How strong was the NSL? Is it breaking out of your zone? what is your expectation and go with that?
I get that, but my question was purely from a bar by bar perspective and that's why I cut out a big chunk of the chart.

I'm very obsessed with "perfect" setups and entries (I'm very OCD) which is a mistake. And I'm working on fixing it. I don't feel confident in my analysing skills ... though my setups play out most of the times but I end up skipping them. I always find a stupid excuse like "momentum against me was too strong", "price didn't pullback deep enough in my PRZ" or "didn't get a nice rotation" etc. When I see a "perfect" setup I take it. But that happens like once a week at most. It's a psychological thing and it's been bugging me a lot lately. Oh well... continue working on myself and try to improve what I can.
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