2009.09.10 DRAIN THE BANKS - LIKE A RAT

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MightyOne
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Postby MightyOne » Sun Nov 14, 2010 11:30 am

genlogins wrote:hey MO, from thos picrues above, what means BO?


BO = Breakout

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skivers
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Postby skivers » Sun Nov 14, 2010 11:50 am

MightyOne wrote:
skivers wrote:
MightyOne wrote:Not exactly in the rule book but here it goes:

http://i52.tinypic.com/308ccic.gif

http://i55.tinypic.com/func08.gif


Interesting- You took two shots after the same higher high with a +3 followed by +17 - that little green price rejection candle gave you the reason to get in again.


I was saying that you either would have made 3 pips or possibly get stopped out or up to 17 pips if you didn't get picked off.

I should point out that I am a Macro Rat...


I would have taken the +3 being a confirmed micro rat :-)

I had not thought in terms of simply a recent HH - I have been looking for 'space' around a pullback if you know what I mean .

Thanks

teamforex.eu
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Postby teamforex.eu » Sun Nov 14, 2010 1:48 pm

ASK FOR TRO:

I ask this confirmation: method RAT, obligates to negotiate, ONLY in the cases of 0-20 pips, within D1 LOW, or, can negotiate also in the cases of, 0-20 within D1 HIGHT? (RAT ZONES) Always respecting the plot rat.

Thanks

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TheRumpledOne
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Postby TheRumpledOne » Sun Nov 14, 2010 3:16 pm

teamforex.eu wrote:ASK FOR TRO:

I ask this confirmation: method RAT, obligates to negotiate, ONLY in the cases of 0-20 pips, within D1 LOW, or, can negotiate also in the cases of, 0-20 within D1 HIGHT? (RAT ZONES) Always respecting the plot rat.

Thanks


GREEN RAT REVERSAL - LONG ENTRY CRITERIA: 1) RED CANDLE CLOSES 2) GREEN CANDLE CLOSES 3) PRICE TOUCHES HIGH OF PREVIOUS GREEN CANDLE - ENTER LONG. STOP LOSS IS ALWAYS 10 PIPS.


RED RAT REVERSAL - SHORT ENTRY CRITERIA: 1) GREEN CANDLE CLOSES 2) RED CANDLE CLOSES 3) PRICE TOUCHES LOW OF PREVIOUS RED CANDLE - ENTER SHORT. STOP LOSS IS ALWAYS 10 PIPS.



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 BUT the RAT REVERSAL entry works ANYWHERE on the chart.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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maddman
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What Pairs?

Postby maddman » Sun Nov 14, 2010 5:54 pm

TRO please list all the pairs you trade during the daily sessions?
TheRumpledOne wrote:
teamforex.eu wrote:ASK FOR TRO:

I ask this confirmation: method RAT, obligates to negotiate, ONLY in the cases of 0-20 pips, within D1 LOW, or, can negotiate also in the cases of, 0-20 within D1 HIGHT? (RAT ZONES) Always respecting the plot rat.

Thanks


GREEN RAT REVERSAL - LONG ENTRY CRITERIA: 1) RED CANDLE CLOSES 2) GREEN CANDLE CLOSES 3) PRICE TOUCHES HIGH OF PREVIOUS GREEN CANDLE - ENTER LONG. STOP LOSS IS ALWAYS 10 PIPS.


RED RAT REVERSAL - SHORT ENTRY CRITERIA: 1) GREEN CANDLE CLOSES 2) RED CANDLE CLOSES 3) PRICE TOUCHES LOW OF PREVIOUS RED CANDLE - ENTER SHORT. STOP LOSS IS ALWAYS 10 PIPS.



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 BUT the RAT REVERSAL entry works ANYWHERE on the chart.

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trueblueTEX
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Postby trueblueTEX » Sun Nov 14, 2010 6:05 pm

eeeewwwww, eeeewwwww, eewwwwww (Horshack voice) I know this one!!

He only trades one per day.

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maddman
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Question on: Trade like a RAT...

Postby maddman » Sun Nov 14, 2010 6:18 pm

Please excuse my lack of understanding but maybe you or someone could give me some clarity? Q. A trade is placed when the candle moves into zone within 20 pips of the high or low. Correct? Also, what I then am expecting is a reversal in that zone to make 5 pips or more before exiting the position with your chosen amount of pip profit? Correct? Lastly is the trade place when? When the candle in the zone closes and still in the zone?
trueblueTEX wrote:eeeewwwww, eeeewwwww, eewwwwww (Horshack voice) I know this one!!

He only trades one per day.

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skivers
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Re: Question on: Trade like a RAT...

Postby skivers » Sun Nov 14, 2010 6:48 pm

maddman wrote:Please excuse my lack of understanding but maybe you or someone could give me some clarity? Q. A trade is placed when the candle moves into zone within 20 pips of the high or low. Correct? Also, what I then am expecting is a reversal in that zone to make 5 pips or more before exiting the position with your chosen amount of pip profit? Correct? Lastly is the trade place when? When the candle in the zone closes and still in the zone?
trueblueTEX wrote:eeeewwwww, eeeewwwww, eewwwwww (Horshack voice) I know this one!!

He only trades one per day.


May I suggest you try reading the first 15 pages of this thread - It is explained in much better detail than I can give in one post.

You will probably learn even more that I did :)

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Postby jaysen » Mon Nov 15, 2010 5:06 am




MightyOne wrote:Not exactly in the rule book but here it goes:

http://i52.tinypic.com/308ccic.gif

http://i55.tinypic.com/func08.gif


Thanks MO! It helped me understand what TRO was quoting:

"Now, 2 patterns of market behaviour 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)"

- H. Rearden

If price is NOT making a new low then it must be reversing from the low.

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TheRumpledOne
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Postby TheRumpledOne » Mon Nov 15, 2010 1:13 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.

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

Image

Above chart shows frequency distribution of daily wick sizes over the last 10 days for USDCAD.


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

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
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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