ProchargedMopar's Trading Trilogy

[MightyOne]

"If your only problem is how much profit to take then what a wonderful problem you have" -Ken Roberts

[prochargedmopar]

By sticking to a goal knowing that PRICE DOES MOVE HUNDREDS OF PIPS EVERY DAY (just about) then you will reach the goals you set out to attain and your losses
will cause you great laughter. M.O.

[prochargedmopar]

M.O. taught me how to trade in May/2009. I was NOT listening:

Ask you self what the largest advance was (that is relevant to you) that returned to the lows. If price advances larger than the largest advance that returned to the low then chances are price will not return to the low.

After making a larger correction price likes to test an area that falls around 50% of the correction distance above the prev. high.

When price connects to form a larger correction then price should hold above the prev. high and then hold at the first test area above the prev. high.

AND:.................

Losing money does not mean anything until you are forced to size down.

Breaking even is not a goal!

What you have in your account, after being crippled, is 100% of what you have in your account.

If you have $300 in your account it does not matter that you lost $900 because you have $300 in your account and that is what you need to focus on (and turn into a million ).

The only way up is up M.O.

[dojirock]

Pro,

Please if your able, post what you mean, im still confused about the statements made by Mo and yourself about the above, largest advances and the 50 percent. Are you able to show on a chart?

thanks,

lost
dojirock

[aVi]

Pro,

Please if your able, post what you mean, im still confused about the statements made by Mo and yourself about the above, largest advances and the 50 percent. Are you able to show on a chart?

thanks,

lost
dojirock

I'm not half the trader MO is, so I could be completely wrong.

Maybe y'all can correct me if so... but, this is how I viewed that:

[prochargedmopar]

Look at this:
http://screencast.com/t/MqLxvplQ3

The same thing that happened in the above pic also happened in this section of 5 candles:
http://screencast.com/t/c1nVoahibbvD

KNOWING where/when to enter is NOT how you make $$!!

THIS is how you make $$
M.O. Wrote below:

I've always just used the rectangle tool.

How close to the current price would I set my position?

Draw a box from my Position to the current price and then
look at the "how close?" line.
If I have 5 lots and am willing to move 30% closer to the current price then I add 2 lots (current PA be damned).

I don't use an X-Acto knife to size the boxes, I tear it with my hands



Here: http://kreslik.com/forums/viewtopic.php ... c&start=60

[prochargedmopar]

Pro,

Please if your able, post what you mean, im still confused about the statements made by Mo and yourself about the above, largest advances and the 50 percent. Are you able to show on a chart?

thanks,

lost
dojirock

Doji,
Read this again and again.
THIS is what the brokers and banks do NOT want you to know!!!
I will expound on it in next day or two.
Hint: Would you rather trade 1:1, 1:5, or 1:20?
Do you think that if you have a 20 pip stop that you would need to make 100 pips to gain 1:5 on your money???? If so, YOUR *censored - swear word*.
Think about it?

[quote="MightyOne"]Prices rise and fall by HUNDREDS of pips every day and some how most
every one cannot figure out how to make even 1% per day.

I just dont get it, I really don't

So I am going to lay out the frame work for profiting in a such a way
that can be accomplished by anyone:

1. Which way is price likely to move in the long term (more on this later).

2. How small can I make my stops (you would be surprised)

3. Risking 1% per trade/chart enter with the momentum of the small time frame.

4. Exit all when you feel that price is likely to reverse and add that profit to your SL amount less commission.

EXAMPLE: 10 pips = 1%: You make 15 pips on a short and exit as the market starts to reverse. The next trade you risk your initial 10 + the 15 gained from shorting less 1 pip for commission to re enter.

5. Price starts heading in the long term direction and again you get an entry to short on your small TF. You short with your 25 pip stop and the market starts stalling at +7 so you exit (you are at +32).

Price retraces 45 pips and you believe price is again heading south so you short again on you small TF with a 31 pip stop.

7. YOU CAN ONLY EXIT WHILE IN PROFIT OR GET STOPPED OUT!

Price retraces 27 pips and then turns around and plummets 74 pips.

What time frame are your trading? What does that chart look like?
How many bars has it been since you first started shorting?

Trade NO MORE THAN 2 bars of any time frame!

8. You either reach your goal and make 7, 15, 26, 52, or 80%+ on your account or you lose 1%.

By reinvesting profit, having an unwillingness to let price trade to your stop while you are were profit at some point, and by sticking to a goal knowing that PRICE DOES MOVE HUNDREDS OF PIPS EVERY DAY (just about) then you will reach the goals you set out to attain and your losses
will cause you great laughter!!
Think and grow rich PRO

[newscalper]

PC - just checking if we're on the same hymn sheet - I'm waiting for a potential cable long at approx 1.56010...

[newscalper]

Pro,

Please if your able, post what you mean, im still confused about the statements made by Mo and yourself about the above, largest advances and the 50 percent. Are you able to show on a chart?

thanks,

lost
dojirock

Doji,
Read this again and again.
THIS is what the brokers and banks do NOT want you to know!!!
I will expound on it in next day or two.
Hint: Would you rather trade 1:1, 1:5, or 1:20?
Do you think that if you have a 20 pip stop that you would need to make 100 pips to gain 1:5 on your money???? If so, YOUR *censored - swear word*.
Think about it?

Prices rise and fall by HUNDREDS of pips every day and some how most
every one cannot figure out how to make even 1% per day.

I just dont get it, I really don't

So I am going to lay out the frame work for profiting in a such a way
that can be accomplished by anyone:

1. Which way is price likely to move in the long term (more on this later).

2. How small can I make my stops (you would be surprised)

3. Risking 1% per trade/chart enter with the momentum of the small time frame.

4. Exit all when you feel that price is likely to reverse and add that profit to your SL amount less commission.

EXAMPLE: 10 pips = 1%: You make 15 pips on a short and exit as the market starts to reverse. The next trade you risk your initial 10 + the 15 gained from shorting less 1 pip for commission to re enter.

5. Price starts heading in the long term direction and again you get an entry to short on your small TF. You short with your 25 pip stop and the market starts stalling at +7 so you exit (you are at +32).

Price retraces 45 pips and you believe price is again heading south so you short again on you small TF with a 31 pip stop.

7. YOU CAN ONLY EXIT WHILE IN PROFIT OR GET STOPPED OUT!

Price retraces 27 pips and then turns around and plummets 74 pips.

What time frame are your trading? What does that chart look like?
How many bars has it been since you first started shorting?

Trade NO MORE THAN 2 bars of any time frame!

8. You either reach your goal and make 7, 15, 26, 52, or 80%+ on your account or you lose 1%.

By reinvesting profit, having an unwillingness to let price trade to your stop while you are were profit at some point, and by sticking to a goal knowing that PRICE DOES MOVE HUNDREDS OF PIPS EVERY DAY (just about) then you will reach the goals you set out to attain and your losses
will cause you great laughter!!
Think and grow rich PRO

That's how I always understood the space concept - much easier for me to understand it like that because I'm in the UK and use a spread bet 'broker' - we do not use lots with these brokers just a ?/pip amount.

In essense it means it doesn't matter if you are making an inverse r:r on a particular trade, as long as you don't get wiped out by price hitting your stop, it's about the trade sequence. You can enter on the 5 minute with, say a 20 pip stop, make 5 pips 3 times in a row (each time making your stop 5 pips wider), once you have enough pips in the bank to make your stop big enough for some ATR of the 15 minute you move to the 15 minute timeframe and so on.

[dojirock]

Pro

Here are a couple charts, after the bad loss I had last week, Im struggling to see entries and am still trying to get that back. Is what your showing me the space concept? I have to take a step back to take 2 forward. Im trying to get what you posted. The GU chart I closed at breakeven and then went long, based on it not making a previous lowest low? Then it failed to return to the low and made a new high?

If what you were showing me is the space concept, then on my usd/jpy chart please explain. You can see my entry... or does this only work on a higher time frame? I have always been a scalper, so im having trouble grasping hanging on to a trade for hours or days? Because I scalp, I dont know how to tell the longer trade, it has never mattered to me?

dojrock