2009.09.10 DRAIN THE BANKS - LIKE A RAT

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skivers
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Postby skivers » Fri Nov 12, 2010 2:21 pm

TheRumpledOne wrote:Image

The first 2 green rat reversals were losing entries.

Do you see a reason not to enter those trades?

Hints: There are at least 2 reasons. Use your eyes to see - do not think about it.



Well, in spite of TRO saying "if the rules do not mention it , it is of no concern".

He also posted this :)

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Postby ajaymein » Fri Nov 12, 2010 2:25 pm

Maybe a rule #8 that says DO NOT THINK, USE YOUR EYES would help

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TheRumpledOne
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Postby TheRumpledOne » Fri Nov 12, 2010 6:34 pm

A sixth sense do NOT necessarily make you a YALE Student.

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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TheRumpledOne
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Postby TheRumpledOne » Fri Nov 12, 2010 6:35 pm

ajaymein wrote:Maybe a rule #8 that says DO NOT THINK, USE YOUR EYES would help


Haven't I said that enough already? LOL!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby eudamonia » Fri Nov 12, 2010 6:49 pm

Even if you don't have a 6th sense you can always fall back on simple observation:

Trade 1: I'm surprised this was even a valid trade. Momentum went immediately against you. Even if you didn't have a spidy sense you could have exited after a couple of minutes when price never went 1 pip in your favor. Loss = bid/ask spread (maybe 3 pips with slippage)

Trade 2: After a large green candle the trade entry candle barely closes above its open. Can we say lack of momentum? Exit at scratch


Trade 3: Honestly this trade was barely better than the first two. Once we start losing momentum I would be out by the middle of that 2nd red candle for probably -4. I would then have re-entered as bears fail to push us to new lows (if they can't go one way they have to go the other). Probably re-enter at the same price in the 1st third of that large green candle. Take my 10-15 pips and get out of dodge.

My largest loser is no more than 5 pips and I made 3-6 pips. Not bad considering there were a lot of fakeouts going on in that move.

Obviously not "pure" rat trading - but that's just how I would have taken the trades (and did take very similar trades on the Eur/Usd)
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Postby pika » Fri Nov 12, 2010 7:16 pm

TheRumpledOne wrote:A sixth sense do NOT necessarily make you a YALE Student.

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run.


Hi TRO,
On point (1), do you mean always trade in one direction for ALL pairs? Can I choose to be always green for some pairs and always red for others, and I won't switch the colour of each pair after I have decided on their colours? You will probably quote the experiment where the rat beat Yale students by committng to one direction, but I still cannot fully understand this.

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Postby skivers » Fri Nov 12, 2010 7:29 pm

pika wrote:
TheRumpledOne wrote:A sixth sense do NOT necessarily make you a YALE Student.

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run.


Hi TRO,
On point (1), do you mean always trade in one direction for ALL pairs? Can I choose to be always green for some pairs and always red for others, and I won't switch the colour of each pair after I have decided on their colours? You will probably quote the experiment where the rat beat Yale students by committng to one direction, but I still cannot fully understand this.


Here's my take on it.

The market is random - It can go up - It can go down.

If you choose to go long AND short - YOU are being random.

Or you can choose to be consistent and trade ONE DIRECTION.

Now you have a true 50/50 chance of being right - All you need now is a little edge to tip that balance.

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Postby ajaymein » Fri Nov 12, 2010 8:30 pm

TheRumpledOne wrote:
ajaymein wrote:Maybe a rule #8 that says DO NOT THINK, USE YOUR EYES would help


Haven't I said that enough already? LOL!!


Lol its been engrained in my head!!! It goes in most newbies ears and out the other cause a lot of them don't TRULY know what it means to SEE/OBSERVE vs. THINK/INTERPRET. :lol:

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Postby pika » Sat Nov 13, 2010 1:23 am

skivers wrote:
pika wrote:
TheRumpledOne wrote:A sixth sense do NOT necessarily make you a YALE Student.

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run.


Hi TRO,
On point (1), do you mean always trade in one direction for ALL pairs? Can I choose to be always green for some pairs and always red for others, and I won't switch the colour of each pair after I have decided on their colours? You will probably quote the experiment where the rat beat Yale students by committng to one direction, but I still cannot fully understand this.


Here's my take on it.

The market is random - It can go up - It can go down.

If you choose to go long AND short - YOU are being random.

Or you can choose to be consistent and trade ONE DIRECTION.

Now you have a true 50/50 chance of being right - All you need now is a little edge to tip that balance.


Hi skivers,
Thank you for your response. I can fully understand the point you are making. This is where I do not differ from the point that once a colour has been selected, I do not switch it. The question I am asking is whether I can choose different colours for different pairs and stick to them. The rules do not mention this, so does it mean this approach is of no concern and I can do it without compromising the edge?

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Postby ajaymein » Sat Nov 13, 2010 3:40 am

Hey pika...why don't you try multiple colors for different pairs for a week and see how you do. That will give you a true answer that you will actually experience.
pika wrote:
skivers wrote:
pika wrote:
TheRumpledOne wrote:A sixth sense do NOT necessarily make you a YALE Student.

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run.


Hi TRO,
On point (1), do you mean always trade in one direction for ALL pairs? Can I choose to be always green for some pairs and always red for others, and I won't switch the colour of each pair after I have decided on their colours? You will probably quote the experiment where the rat beat Yale students by committng to one direction, but I still cannot fully understand this.


Here's my take on it.

The market is random - It can go up - It can go down.

If you choose to go long AND short - YOU are being random.

Or you can choose to be consistent and trade ONE DIRECTION.

Now you have a true 50/50 chance of being right - All you need now is a little edge to tip that balance.


Hi skivers,
Thank you for your response. I can fully understand the point you are making. This is where I do not differ from the point that once a colour has been selected, I do not switch it. The question I am asking is whether I can choose different colours for different pairs and stick to them. The rules do not mention this, so does it mean this approach is of no concern and I can do it without compromising the edge?

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