2009.09.10 DRAIN THE BANKS - LIKE A RAT

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

wkestler
rank: <50 posts
rank: <50 posts
Posts: 30
Joined: Wed Mar 10, 2010 5:39 pm
Reputation: 0
Location: Guatemala
Real name: Walter Kestler
Gender: None specified
Contact:

Postby wkestler » Thu Aug 19, 2010 5:13 pm

Lukx, please tell us which is your main idea? Show that the method doesn´t work or show that the method doesn´t fit your needs?

I haven´t read in this thread that this is a get rich quick method so what´s your point?

TRO please make rule number 8. If your comment doesn´t add value to the method then it is of no concern.

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

nkhawaja
rank: <50 posts
rank: <50 posts
Posts: 49
Joined: Wed Aug 26, 2009 5:44 pm
Reputation: 0
Gender: None specified

Postby nkhawaja » Thu Aug 19, 2010 5:14 pm

besides overtrading there are other things to consider. the thing is there is something missing here that is causing SL to be hit. I am also having the same issue. The number of winnings trades are more then losing trades but risk to reward is high since we are risking 10 pips to atleast gain 2 pips. the other thing is momentum bar and taking position against momentum bar. this is what i am missing too... i am negative overall just like Lukx

jsme
rank: 50+ posts
rank: 50+ posts
Posts: 56
Joined: Wed Jul 08, 2009 3:53 pm
Reputation: 0
Gender: None specified

Postby jsme » Thu Aug 19, 2010 5:41 pm

Hi Lunix, I am doing very well trading just the GBPUSD as a green rat.
I would like to try to assist you in becoming successful using this trading idea, but for me to assist you it would be easier if you could show me a screen shot of the "bad" trades.

I have read your trade statement and the one GBPUSD trade "I think is the looser" is the below screen shot[/I]

If this is one of the trades that was entered resulting in a lose, I can tell you why it did so.

I may be way off base, hence the reason if you were able to show my what you see I might be able to assist.

For me this style of trading is working very well.
Attachments
tro.png
tro.png (36.27 KiB) Viewed 1264 times

flex
rank: 50+ posts
rank: 50+ posts
Posts: 64
Joined: Sun Jan 03, 2010 12:57 am
Reputation: 0
Gender: Male

Postby flex » Thu Aug 19, 2010 5:43 pm

had the same issues with this method (you can still see my results some pages back, i think). after many weeks demoing it i just figured that it does not work for me! i had no problems taking small profits. my problem was that i often had trades that didn't even overcome the spread and ended up in loss without any chance of taking any profit. those killed me every week.
it is my understanding now that i cannot just take a rat trade only because it fits the rules. the overall price action is important, at least for me! tro calls this yale student thinking but that's ok for me. i'm posting my results in another thread at the moment. i mark big candles on h4 and d1 and watch price near open, 50% and close. i watch where candles close and where the wicks went before that on h1 and h4. even if that means not taking a trade for a whole day! when i do, i still use rat entries on m15 most of the time.
by the way: with this method i use a sl of 20 pips and half the position size.
but i'm still practicing. :) today was really rough.

User avatar
lukx
rank: 500+ posts
rank: 500+ posts
Posts: 789
Joined: Wed Feb 04, 2009 5:10 pm
Reputation: 0
Gender: Male
Contact:

Postby lukx » Thu Aug 19, 2010 6:15 pm

jsme wrote:Hi Lunix, I am doing very well trading just the GBPUSD as a green rat.
I would like to try to assist you in becoming successful using this trading idea, but for me to assist you it would be easier if you could show me a screen shot of the "bad" trades.

I have read your trade statement and the one GBPUSD trade "I think is the looser" is the below screen shot[/I]

If this is one of the trades that was entered resulting in a lose, I can tell you why it did so.

I may be way off base, hence the reason if you were able to show my what you see I might be able to assist.

For me this style of trading is working very well.


Thanks jsme :)
So are you also grabbing tiny pips or you aim for something more?

Here is example of my GU lost trade :
Image

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

jsme
rank: 50+ posts
rank: 50+ posts
Posts: 56
Joined: Wed Jul 08, 2009 3:53 pm
Reputation: 0
Gender: None specified

Postby jsme » Thu Aug 19, 2010 6:45 pm

lukx wrote:
jsme wrote:Hi Lunix, I am doing very well trading just the GBPUSD as a green rat.
I would like to try to assist you in becoming successful using this trading idea, but for me to assist you it would be easier if you could show me a screen shot of the "bad" trades.

I have read your trade statement and the one GBPUSD trade "I think is the looser" is the below screen shot[/I]

If this is one of the trades that was entered resulting in a lose, I can tell you why it did so.

I may be way off base, hence the reason if you were able to show my what you see I might be able to assist.

For me this style of trading is working very well.


Thanks jsme :)
So are you also grabbing tiny pips or you aim for something more?

Here is example of my GU lost trade :
Image


Lukx thank you for sending that screen shot.
I see why I would not have taken that particular trade at that time, and I think I found that trade set up on my screen as well. Mine has a slightly different look to it, no doubt because we are using different brokers.

Now here is what I see looking at your entry.

I circled the "trigger" candle I believe you used for your long entry.
Yes price was with in 20 pips of the low
The issue I see is that the green candle, I think that was used for the entry, is also a low candle.
Not by much, but it is lower then the previous red candle.

What I find that works for me is this.

Wait for a low candle.
Wait for a green candle following that low candle.
Enter at the high of the green candle following that low candle.
Now if, as in this case, the "low" candle is a green candle. I will await for a green candle AFTER that low green candle.
I do not go long from a green low candle high. It has not worked out well for me.

Also I circled what I feel would have been a profitable trade shortly after that trade.

To answer your question. What I will normally do is try to get 5 pips.
If I am entered into a trade, then I see prices are just not moving in my favor quickly. I will be ready to exit at a moment notice. Even if that means one pip profit.

If I enter a trade and I see prices move in my favor quickly. I will wait the trade out.
I will include a second screen shot that shows what I am referring to in that case.

Also if you or anyone has any other bad trades and wish to share the screen shots. I would be willing to try to assist.
Attachments
forum one.png
forum one.png (39.51 KiB) Viewed 1222 times
forum two.png
forum two.png (38.39 KiB) Viewed 1228 times

User avatar
lukx
rank: 500+ posts
rank: 500+ posts
Posts: 789
Joined: Wed Feb 04, 2009 5:10 pm
Reputation: 0
Gender: Male
Contact:

Postby lukx » Thu Aug 19, 2010 6:57 pm

Thank you very much Jsme :)
This is very good tip about watching the green candle to open above red low.
Here's another trade on NZDUSD:

Image

GJ entry a bit away from rat because of spread
Image

AUDUSD
Image

poltergeist
rank: <50 posts
rank: <50 posts
Posts: 39
Joined: Fri Jan 08, 2010 9:02 am
Reputation: 0
Gender: None specified

Postby poltergeist » Thu Aug 19, 2010 7:41 pm

Have the same problem... 6 months... :/
possible success trades were missed due to limit orders... price didn't reverse, just was running up...
But I think rat trade is good when always taking for example 1-2 pips.
2 pips and close. and so on... waiting for more is rather too risky.
That's what I found.

jsme
rank: 50+ posts
rank: 50+ posts
Posts: 56
Joined: Wed Jul 08, 2009 3:53 pm
Reputation: 0
Gender: None specified

Postby jsme » Thu Aug 19, 2010 7:59 pm

Lukz, looking at those last three screen shots. Here is my take on them

The NZD/USD. The trade went against you. It was a good set up I think but it failed.
I do not trade the NZD/USD so I can not comment on the statistical times this type of trade set up (green rat) will work or not work.
I will leave that to TRO or anyone who has analyzed the NZD/USD. My point being. If I recall correctly. The rat trade statistics work differently on different pairs. I feel it would be wise to demo the rat trade on various pairs before using live money on them
I do know it works well on the
GBP/USD and EUR/JPY from personal experiences.
Normally I can get my daily target by trading the GBP/USD from 5 AM EST till 9 AM EST.
But I also am willing to use other trade set ups that are not rat trades. Still I find the movement of the GBP/USD markets in that time frame to be a good fit for myself.
Ok back to the charts.

The GBP/JPY (again not one I often trade) This screen shot shows me the same type of set up as my original post to you.
In my view. The candle used for the entry was following a low green candle.
Please note, seven candles before the one you marked as the entry. That is a perfect Green Rat set up.
The one I see marked, I would not have taken.
Also I believe in that same time frame but a few candles latter then the one where the trade was entered on. I think you will find an additional perfect green rat set up.
For me this brings up a point of. If the set up is not perfect, I do not take it.
Seven candles before was a perfect set up. Please note the red candle. Followed by a green. Followed by a green breaking the previous green high.

AUS/USD nice set up but it did not work out. A trade just after your stop out would have resulted in a few pip gain, if the trader was on the ball.
But this trade also brings a question to me, similar to the NZD/USD trade.

Were those markets very active at that time of day? Are they statically valid trades? I know it is not one of the written rules. But I believe TRO has mentioned to trade during the active times.

My best advice to anyone attempting to master this style of trade would be this.

1. Use a demo account until mastered.

2. Trade during active times for the pair traded.

3. Use a ECN brokerage.

4. Start with just one pair. This is a simple in concept not so simple to employ trading idea that TRO has provided. By limiting oneself to one currency pair and only trading looking to long or short only. I feel the trader will train their brain to see what it needs to see in order to take the successful trade.

You are learning a new way to trade, allow your brain to learn at a slow pace until it absorbs all the information. That is my suggestion.

nkhawaja
rank: <50 posts
rank: <50 posts
Posts: 49
Joined: Wed Aug 26, 2009 5:44 pm
Reputation: 0
Gender: None specified

Postby nkhawaja » Thu Aug 19, 2010 9:26 pm

Hey JSME, i think you are building it very well on top of TRO's rules. thanks...

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


Return to “TheRumpledOne”