2009.09.10 DRAIN THE BANKS - LIKE A RAT

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TygerKrane
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Postby TygerKrane » Thu Sep 30, 2010 4:20 pm

trueblueTEX wrote:Avery,

does the "Count" in your screenshot above count the number of times that price made a bottom and them came up by 20 pips? (or down, for red rats?)

What indicator is that you used to show the distribution.


trueblue,
It is the number of days used to gather the statistics.

The last 5 days were used to make those statistics. (5)

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

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trueblueTEX
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Postby trueblueTEX » Thu Sep 30, 2010 4:24 pm

THAT'S were the "5 days" comes in!! Ok, I got it, now.

Thanks to both of you for clearing things up!!

nkhawaja
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Postby nkhawaja » Thu Sep 30, 2010 8:37 pm

TRO, so i tried using M15 and entred in a trade, see the picture attached, but at one point I was down 10 pips, but eventually i ended up in 20pips profit, any advise here. the arrow shows my entry at teh high of the green bar
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tmanbone
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Postby tmanbone » Fri Oct 01, 2010 11:35 am

nkhawaja wrote:TRO, so i tried using M15 and entred in a trade, see the picture attached, but at one point I was down 10 pips, but eventually i ended up in 20pips profit, any advise here. the arrow shows my entry at teh high of the green bar


Enter in the Rat Zone. You were 27 pips above. Why are your zones only 5 pips wide?
"The simplicity of the markets is it's greatest disguise"

T

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TheRumpledOne
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Postby TheRumpledOne » Fri Oct 01, 2010 12:03 pm

Image

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

Current price - current daily low is less than 20.

ClLo <= 20
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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tmanbone
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Postby tmanbone » Fri Oct 01, 2010 1:46 pm

Image

Squeeeeeeek!
"The simplicity of the markets is it's greatest disguise"



T

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TheRumpledOne
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Postby TheRumpledOne » Fri Oct 01, 2010 2:13 pm

Image


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."

=============================================
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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The_Snowman
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Postby The_Snowman » Fri Oct 01, 2010 2:51 pm

Have have quick trigger finger on that one, I doubt anyone can show me a statement of trade profit for that! :shock:
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tmanbone
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Postby tmanbone » Fri Oct 01, 2010 3:10 pm

Quick finger being key.
"The simplicity of the markets is it's greatest disguise"



T

ncase
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Postby ncase » Fri Oct 01, 2010 3:33 pm

TheRumpledOne wrote:Image

There are those who still do not understand and have doubts how this can work.

Look at the chart. It is a DAILY CHART.

See the dots.

The upper dot is 20 pips below the high of the day. If you go short above the dot, how many times can you exit with a profit?

The lower dot is 20 pips above the low of the day. If you go long below the dot, how many times can you exit with a profit?

The frequency distributions on the right hand side tell you how many times the daily wicks fell into the ranges. In this case it is for the last 5 days so you can easily count by hand.

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

"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

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

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 TRO,

This is an excellent detail explanation of the theory and statistics behind the strategy. The problem for me has been when trading in realtime. During the day, one does not know where the daily hi or lo is, since price is still developing. The current hi at 12:00 noon, may be the middle price by the time the daily candle ends. Trading on the noon hi will yield stop outs.

I am incorporating ATR (Average True Range) to help with this. Are there any other suggestions on helping to guage where the HIs and LOs may be when the candle is still forming?

Thanks,

Neville

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