2009.09.10 DRAIN THE BANKS - LIKE A RAT

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

Postby ajaymein » Fri Nov 12, 2010 2:10 pm

skivers wrote:
ajaymein wrote:
skivers wrote:
jlpk007 wrote:Got caught out twice.
:cry:

Waited for price to be within 20pip of low, bought on high of previous green candle..both trades are loser..What did i not see here..
I want to be green rat

ps:Pardon my poor english :oops:


Nice screenshot to discuss - Thanks

The first two greens you took were asking for trouble as the price was not seen to be reversing.

I would have taken the trade at about 1.3668 after the confirming higher highs - that's the fourth candle from the right where it broke the original green high. ( the candles are also not wanting to retest the 10 pip sweet spot line - the are opening and closing above it)

Remember. TRO said to wait until two candles close before jumping in - that means a 10 minute wait after each low (unless price is leaving the Rat Zone).

Wait to see price is reversing.

Now I will wait to find out how wrong I am
:wink:


I don't trade this method, but according to the rules, his 2 entries were perfect, and there is nothing wrong with them. He could have gotten out with a couple pips on the first one, but the 2nd was a dead loser. I'm sure on the 3rd entry, he would have gained back all of his losses, plus some.

Now if I were to trade this method, I would have taken the 3rd setup after a confirmation of higher lows and a momo green bar...but of course that would be thinking like a YALE student.


Rules are a guide - something to start with - To be successful you have to add your feel for the market.- a sixth sense that takes you beyond rigid rule observance.

As you have said the third set-up was tradable for the reason you stated. But I would still have waited :)


I completely agree with you, but with the RAT METHOD, a sixth sense makes you a YALE student. I think rule #7 says if it isn't in the rules, it is of no concern.

Of course, every post of TRO says the rat reversal is only ONE entry method, so making it your own could lead to a lot more green pips then a regular rat. :wink:

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

User avatar
skivers
rank: <50 posts
rank: <50 posts
Posts: 33
Joined: Tue Sep 28, 2010 5:18 pm
Reputation: 0
Location: UK
Gender: None specified

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 :)

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

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

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

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 12719
Joined: Sun May 14, 2006 9:31 pm
Reputation: 1015
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

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!

Please do NOT PM me with trading or coding questions, post them in a thread.

User avatar
TheRumpledOne
rank: 10000+ posts
rank: 10000+ posts
Posts: 12719
Joined: Sun May 14, 2006 9:31 pm
Reputation: 1015
Location: Oregon
Real name: Avery T. Horton, Jr.
Gender: None specified
Contact:

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!



Please do NOT PM me with trading or coding questions, post them in a thread.

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

User avatar
eudamonia
rank: 500+ posts
rank: 500+ posts
Posts: 536
Joined: Thu Jun 15, 2006 9:50 pm
Reputation: 0
Location: Rocklin, CA
Real name: Edward Heming
Gender: Male
Contact:

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)
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

pika
rank: 50+ posts
rank: 50+ posts
Posts: 74
Joined: Tue Sep 21, 2010 5:00 pm
Reputation: 0
Gender: None specified

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.

User avatar
skivers
rank: <50 posts
rank: <50 posts
Posts: 33
Joined: Tue Sep 28, 2010 5:18 pm
Reputation: 0
Location: UK
Gender: None specified

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.

User avatar
ajaymein
rank: 500+ posts
rank: 500+ posts
Posts: 885
Joined: Sun Nov 09, 2008 6:34 am
Reputation: 0
Gender: None specified

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:

pika
rank: 50+ posts
rank: 50+ posts
Posts: 74
Joined: Tue Sep 21, 2010 5:00 pm
Reputation: 0
Gender: None specified

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?

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


Return to “TheRumpledOne”