2009.09.10 DRAIN THE BANKS - LIKE A RAT

[bredin]

bredin why this is different?

that trend indi is set to W1.

G.

[ajaymein]

I saw this rat method when it was first developed, but never followed it. I got bored today and read about 70 pages of the thread.

I drained nearly 80 pips in the last few hours with 13 trades...12 winners and 1 loser!

THANKS TRO!

[lukx]

taking 1 or 2 pips on each trade would give you 22 pips, one looser for 10 pips (default sl for this system) gives you 12 pips in total. How come you got 80 ?!

[ajaymein]

When price starting moving...I let it move! A couple of them I got out with a few pips and one 8 pip loss. But a few of them took off!

[trueblueTEX]

taking 1 or 2 pips on each trade would give you 22 pips, one looser for 10 pips (default sl for this system) gives you 12 pips in total. How come you got 80 ?!

Hey lukx,

here's an example of one "taking off" it hit my TP and I got 9.7 pips on it.

Just happened a little while ago. This is my second trade for today. The first was on the EU and I got 4.6 pips on it. That one took about 40 minutes to develop and I moved my SL up (using blubbb's scripts!!! Thank you, blubbb) until that stopped out at 4.6.

Anyway, I didn't even have time to move to BE on this one before it TPed on me!!

[TheRumpledOne]

"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.

[TheRumpledOne]

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.


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

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

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

"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."

[trapper]

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.


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

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

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

"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."

Hi,

I've downloaded the TRO_RAT_ZONE indicator and try to set it up as red rat (one way rat). I appreciate your help of the following questions:

1. bresetonnewday : no matter I change it on or off, the new trading day from 00:00 GMT always reset the high low so I have to wait for couple hours form the second High within 20 pips of first high in red rat reversal. Can it be no reset such that I can keep chasing the rat from previous 24 hours high continually?
2. There are many settings in TRO_Rat_Zone. What is the exact settings to have the rat trades like the post chart ?

Thanks a lot.

[tfg]

Hi, does anyone one trade RAT during the London morning session?

I 'd love to hear your experience. There are good moves on gbpusd in London morning but it (and most other majors) have not yet made their daily range.

This seems to make trading RAT reversal within the 20 pips of daily high/low diiffcult because daily high low are not yet established.

Appreciate your inputs.

[bredin]

I take rat entries from extremes whenever I see them happen since I do not know if that extreme will be the extreme

G.