2009.09.10 DRAIN THE BANKS - LIKE A RAT

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bredin
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Postby bredin » Thu Aug 19, 2010 10:08 pm

MightyOne wrote:
tfg wrote:MO, trading gbpusd on H1 and H4, what would be your SL levels?

Reading from what you said, 30 pips and 50 pips respectively sound reasonable?

...given TRO trades 5m with a 10 pips SL (already included spreads)

MightyOne wrote:
nkhawaja wrote:I am on M1 or M5, mostly M5 and trying to be within 20pips. I see the difference between your method and TRO is the stop loss.

so the screen shot is of H4 time zone, is it mostly what you trade on. +5/7 pips on H4 isnt it very low?


When trading the Rat on a large TF I use 1/10 leverage.

5 pips = 50 pips.

You get the same result with less risk but you have to wait out a larger move.

I call it long term scalping :lol:


You can easily make money using what TRO showed you as well.

Just please look at the surrounding PA.

If price is skyrocketing upwards on a >60* angle then you are a dumb ass if you take a short trade.

Try and mix it with logic...

If you are trading the short term charts then pick one direction.

If you are frequently getting stopped out then that should encourage you to use limit orders.



If you are trading the Macro Rat then your SL is the midpoint between the highest high and entry point.

Your leverage is reduced to 1/10 to "scalp" the long term charts.

A 34 pip SL then becomes the equivalent of a 3.4 pip SL


At last! a way to trade EURNZD

Image

Extremes the trades are taken from are are weekly.

1 'bad' entry out of three and a way to take advantage of ENs massive daily move without worrying about that bid spread cos its reduced to ~1pip....

G.
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jsme
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Postby jsme » Fri Aug 20, 2010 2:08 am

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


You are most welcomed.
I have read most of what TRO has written in this forum...that being said with the fear of being banned.

What frustrates me is. This style of trading does work, but for some it does not "click"

That does not mean that for those whom is does not click they are less of a trader. It means that the information is not being processed correctly.

Whether by the one explaining it or the one receiving it....something is not jelling

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rob_deniro
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Postby rob_deniro » Fri Aug 20, 2010 8:05 am

Waited for the big move down - daily low, big rats up...

There were a couple of small nearly 10 pip rats on the way down trading against the H1 candle colour

My 2 cents worth :)
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frang0nve
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Postby frang0nve » Fri Aug 20, 2010 8:08 am

Hi Lukx, after checking the trades you posted:
I can see that GBPUSD, GBPJPY and AUDUSD trades were against the H1 candle.

Cheers

Francisco

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Postby poltergeist » Fri Aug 20, 2010 8:36 am

frang0nve wrote:I can see that GBPUSD, GBPJPY and AUDUSD trades were against the H1 candle.


I thought that within daily low 20 pips, this rule is breakable.

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jsme
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Postby jsme » Fri Aug 20, 2010 6:47 pm

When I trade within 20 pips of the daily low, I do not use the H1 candle rule.

Today I was kinda busy with stuff, but I did manage to snag these two trades. Keeping my daily target price intact.

Trade one and three worked out perfect.
Trade set up two, did not fill. No trade was made.
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oashken1
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Postby oashken1 » Sun Aug 22, 2010 9:27 am

jsme wrote:When I trade within 20 pips of the daily low, I do not use the H1 candle rule.

Today I was kinda busy with stuff, but I did manage to snag these two trades. Keeping my daily target price intact.

Trade one and three worked out perfect.
Trade set up two, did not fill. No trade was made.


Hi jsme,
How do you consider the "low of the day? According to my chart the low of that day was 1.5460 at 13:25 M5 candle therefore, all trades you took were not in the rat zone.

jsme
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Postby jsme » Sun Aug 22, 2010 4:04 pm

oashken1 wrote:
jsme wrote:When I trade within 20 pips of the daily low, I do not use the H1 candle rule.

Today I was kinda busy with stuff, but I did manage to snag these two trades. Keeping my daily target price intact.

Trade one and three worked out perfect.
Trade set up two, did not fill. No trade was made.


Hi jsme,
How do you consider the "low of the day? According to my chart the low of that day was 1.5460 at 13:25 M5 candle therefore, all trades you took were not in the rat zone.



You are correct. My mistake. Friday was a hectic day here and I did not identify the correct low of the day.
Still I was able to make two percent for the day, it was not following the 20 pips from the low.
I apologize for misleading anyone, it was not intentional.

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TheRumpledOne
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Postby TheRumpledOne » Mon Aug 23, 2010 1:34 pm

Image

"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat."

P64 HOW WE DECIDE (italics added)

=============================================

"Now, 2 patterns of market behavior happen on a regular basis:

1) the price breaks to new high's (or low's)

2) the price reverses from new high's (or low's)

They happen regardless of time frame (with the obvious limitations explained above)

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

=============================================

1) Price within 20 pips of the daily low - that is OPPORTUNITY

2) Red candle closes

3) Green candle closes - note the high price of the green candle.

4) Enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.
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.

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TheRumpledOne
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Postby TheRumpledOne » Mon Aug 23, 2010 1:41 pm

Image

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.


"The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books."
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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