2009.09.10 DRAIN THE BANKS - LIKE A RAT

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11418
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Feb 09, 2010 3:31 pm

gangsta1 wrote:Stopped out fair few times before catching a runner.



You are over trading.

And it looks like you are letting small winners turn into losers.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11418
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Feb 09, 2010 3:32 pm

Image

And again...
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

gangsta1
rank: 50+ posts
rank: 50+ posts
Posts: 85
Joined: Wed Apr 01, 2009 12:18 pm
Reputation: 0
Gender: None specified

Postby gangsta1 » Tue Feb 09, 2010 3:56 pm

TheRumpledOne wrote:
gangsta1 wrote:Stopped out fair few times before catching a runner.



You are over trading.

And it looks like you are letting small winners turn into losers.


If you would have waited for the trade to go +5 and then exited on +3 if price pulled back you would have had WLLLW. A total of -24 pips.

You said that 5 trades is all it takes to get 10 pips. In this particular case that would be very unlikely.

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11418
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Feb 09, 2010 4:08 pm

I said that usually you can hit your daily goal of 2% in 5 trades or less. And if you look at the chart you can see that.

The proof is in the chart.

Image

How many of those green arrow triggers are losers?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

gangsta1
rank: 50+ posts
rank: 50+ posts
Posts: 85
Joined: Wed Apr 01, 2009 12:18 pm
Reputation: 0
Gender: None specified

Postby gangsta1 » Tue Feb 09, 2010 4:24 pm

Yes but thats the UCAD. I posted a GU chart which would have been VERY tricky to make 10 pips in 5 trades.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
bredin
rank: 1000+ posts
rank: 1000+ posts
Posts: 1032
Joined: Mon Feb 16, 2009 10:41 pm
Reputation: 0
Gender: None specified
Contact:

Postby bredin » Tue Feb 09, 2010 8:29 pm

gangsta,

I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.

Cheers
G
Welcome to the era of "Guns and Maskies" Trading!
The previous message contains discretion. Viewer nudity is advised.
Insanity Industries Indicators Here
Insanity Industries on YouTube!

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11418
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Feb 09, 2010 9:16 pm

Image

Please show me the reason it would be very tricky to make 10 pips in 5 trades of less.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

gangsta1
rank: 50+ posts
rank: 50+ posts
Posts: 85
Joined: Wed Apr 01, 2009 12:18 pm
Reputation: 0
Gender: None specified

Postby gangsta1 » Tue Feb 09, 2010 9:43 pm

bredin wrote:gangsta,

I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.

Cheers
G


Thank you for the clear explanation bredin, much appreciated.

TRO I posted a chart that showed losses and your chart does to, that is normal. I am not saying 10 pips cannot be made but I will say that the losses @10pips are large enough to make it an uphill battle when taking what you can.

Of course it is easy to say you will exit at 1 pip or 2 pips before any possible loss but the problem I have with this is you WILL get losers and it may take more than 5 trades to recover them if taking 1-2 or more on each trade. For example, if we say we exit every loser at b/e or 1-2 pips before it went and hit the stop loss, whats to say that we did not exit those runners in the same fashion. BUT I have taken into account what everyone has said about price action and I guess thats what I need to practice as the method is so simple and undoubtedly profitable.

I guess it is the risk:reward ratio I have an issue with but that is due to my modest account and I am in no place to be critical of the great work that you do.



Happy draining.
Last edited by gangsta1 on Tue Feb 09, 2010 9:58 pm, edited 2 times in total.

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 11418
Joined: Sun May 14, 2006 9:31 pm
Reputation: 45
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

Postby TheRumpledOne » Tue Feb 09, 2010 9:55 pm

bredin wrote:gangsta,

I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.

Cheers
G


The point is NO ONE KNOWS WHAT WILL HAPPEN NEXT - YOU HAVE TO TRADE IN THE MOMENT.

If price is at the LOW OF THE DAY AT THE TIME, one of 2 things will happen:

1) It keeps going down making new lows

2) It reverses.

Those are the ONLY TWO OPTIONS. Price is NOT going to just sit there.

I know from running a frequency distribution that 66% of the time, price reverses more than 20 pips off the low of the day. During the day, I don't know if the current low of the day will be THE low of the day. It may or may not be. I'll take my chances because when it happens, it should be a lot of cheese for this green rat. In the meantime, I'll take the nibbles that I can.

I enter the trade and price only goes up a few pips and stalls, I'll take 2 or more. Sooner or later, I'll get a 10 or more pip run and I am done trading for the day.

The people that have the most problems with this are YALE STUDENTS. There is nothing more to figure out. That doesn't mean you can forget about common sense. Price is either going to bounce hard and fast, or it is going to linger at the bottom. Usually, there is an "equal and opposite reaction". If price drops fast, it usually bounces back fast. If it slowly drops, it will rebound slowly.

Don't be in such a hurry. Let price move away from the daily open. If W1, H4 and H1 are red. Let the red rats get some cheese. Let the red H1 close. Then see what the next H1 candle is doing. Is it going up or down?

Price is like a rubberband ... it stretches and snaps back or it breaks.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

gangsta1
rank: 50+ posts
rank: 50+ posts
Posts: 85
Joined: Wed Apr 01, 2009 12:18 pm
Reputation: 0
Gender: None specified

Postby gangsta1 » Tue Feb 09, 2010 10:09 pm

TheRumpledOne wrote:
bredin wrote:gangsta,

I think TROs point is that you can grab a couple of pips on almost every trade. Your chart shows that too, the thing that I had to learn about reading PA is that I needed to "think opposite" to what was natural- the tendency is to get in a trade and wait for the market to prove the trade wrong (hit SL) when the thing to do is get into a trade and "not wait" for the market to prove my trade right. By which I mean price has to cross the spread ALMOST IMMEDIATELY and be in profit very quickly if it doesnt do this then I am only looking to take a couple of pips or even get out at b/e.

Cheers
G


The point is NO ONE KNOWS WHAT WILL HAPPEN NEXT - YOU HAVE TO TRADE IN THE MOMENT.

If price is at the LOW OF THE DAY AT THE TIME, one of 2 things will happen:

1) It keeps going down making new lows

2) It reverses.

Those are the ONLY TWO OPTIONS. Price is NOT going to just sit there.

I know from running a frequency distribution that 66% of the time, price reverses more than 20 pips off the low of the day. During the day, I don't know if the current low of the day will be THE low of the day. It may or may not be. I'll take my chances because when it happens, it should be a lot of cheese for this green rat. In the meantime, I'll take the nibbles that I can.

I enter the trade and price only goes up a few pips and stalls, I'll take 2 or more. Sooner or later, I'll get a 10 or more pip run and I am done trading for the day.

The people that have the most problems with this are YALE STUDENTS. There is nothing more to figure out. That doesn't mean you can forget about common sense. Price is either going to bounce hard and fast, or it is going to linger at the bottom. Usually, there is an "equal and opposite reaction". If price drops fast, it usually bounces back fast. If it slowly drops, it will rebound slowly.

Don't be in such a hurry. Let price move away from the daily open. If W1, H4 and H1 are red. Let the red rats get some cheese. Let the red H1 close. Then see what the next H1 candle is doing. Is it going up or down?

Price is like a rubberband ... it stretches and snaps back or it breaks.


Nice post TRO. Clear & Concise.

What I find interesting is the idea that when the runner is coming price will move quickly. I have had a problem with staying in a trade too long when price is stalling and I should have grabbed a few pips or b/e but allowed it to turn around. Then to boot, I have exitied the trades that "bounced up fast" too quickly. I am in the process of feeling what price is going to do around the daily low at that point and from your advice and others it seems like the price action should make it obvious. The faster , the better.

I believe YALE should refer to not understanding the concept of the RAT but I think it would be unfair to criticise one for learning to be familiar with price action as this is more of a skill imo.

TRO you said that if you get a 10 pip or more "rat run" you are done for the day. Are you trading rev9 solely or do you still mix it up with rev8? I find rev8 following the h1 bias & 10pip trigger fantastic. Thanks for that excellent work.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “TheRumpledOne”