2009.09.10 DRAIN THE BANKS - LIKE A RAT

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TheRumpledOne
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Postby TheRumpledOne » Fri Jan 28, 2011 12:19 pm

Image

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

<-------------------------------------------------------------------->

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

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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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TheRumpledOne
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Postby TheRumpledOne » Fri Jan 28, 2011 1:49 pm

Image

Default Re: NEVER LOSE AGAIN!! - TheRumpledOne


MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

This is how you make 2% per day.
<-------------------------------------------------------------------->

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

Today, I am using the Freebie Signal Alert.mq4 from FF.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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.

Relativity
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Postby Relativity » Fri Jan 28, 2011 3:55 pm

TheRumpledOne wrote:Image

Default Re: NEVER LOSE AGAIN!! - TheRumpledOne


MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

This is how you make 2% per day.
<-------------------------------------------------------------------->

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

Today, I am using the Freebie Signal Alert.mq4 from FF.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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


I caught this as well. Exited at 40 pips thou

pika
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Postby pika » Sat Jan 29, 2011 10:12 am

TheRumpledOne wrote:Image

Default Re: NEVER LOSE AGAIN!! - TheRumpledOne


MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

This is how you make 2% per day.
<-------------------------------------------------------------------->

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

Today, I am using the Freebie Signal Alert.mq4 from FF.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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


Hi TRO,

I am unable to relate this chart with the rat trading rules. Would this be a valid green rat trade? The green bar up was so long that its high actually entered the red rat trade zone. Entering at its high after the greeen candle closed would suffer a loss from the red candles that followed and it would also not be within 20pips of the green rat trade zone. Can you help me understand this better? Thanks.

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TygerKrane
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Postby TygerKrane » Sat Jan 29, 2011 2:27 pm

pika wrote:
TheRumpledOne wrote:Image

Default Re: NEVER LOSE AGAIN!! - TheRumpledOne


MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

This is how you make 2% per day.
<-------------------------------------------------------------------->

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

Today, I am using the Freebie Signal Alert.mq4 from FF.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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


Hi TRO,

I am unable to relate this chart with the rat trading rules. Would this be a valid green rat trade? The green bar up was so long that its high actually entered the red rat trade zone. Entering at its high after the greeen candle closed would suffer a loss from the red candles that followed and it would also not be within 20pips of the green rat trade zone. Can you help me understand this better? Thanks.

Hey pika,
First off, within that post, he stated this:

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

Today, I am using the Freebie Signal Alert.mq4 from FF.[/highlight]

Other than that, here are two more examples similar situations and why:

:idea: TheRumpledOne :idea: wrote:Image

Price was leaving the daily low + 20 area, no need to wait any longer.


:idea: TheRumpledOne :idea: wrote:Image

In this case, the M5 candle was green at low + 20. The GREEN RAT BUS was leaving the station.



{@newark18: I'm also pretty handy with the search function to find such random posts 8) (there's NO WAY I would've had those bookmarked :P ) }

**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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pika
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Postby pika » Sun Jan 30, 2011 4:37 am

TygerKrane wrote:
pika wrote:
TheRumpledOne wrote:Image

Default Re: NEVER LOSE AGAIN!! - TheRumpledOne


MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

This is how you make 2% per day.
<-------------------------------------------------------------------->

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

Today, I am using the Freebie Signal Alert.mq4 from FF.

<-------------------------------------------------------------------->

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!

<-------------------------------------------------------------------->

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


Hi TRO,

I am unable to relate this chart with the rat trading rules. Would this be a valid green rat trade? The green bar up was so long that its high actually entered the red rat trade zone. Entering at its high after the greeen candle closed would suffer a loss from the red candles that followed and it would also not be within 20pips of the green rat trade zone. Can you help me understand this better? Thanks.

Hey pika,
First off, within that post, he stated this:

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

Today, I am using the Freebie Signal Alert.mq4 from FF.[/highlight]

Other than that, here are two more examples similar situations and why:

:idea: TheRumpledOne :idea: wrote:Image

Price was leaving the daily low + 20 area, no need to wait any longer.


:idea: TheRumpledOne :idea: wrote:Image

In this case, the M5 candle was green at low + 20. The GREEN RAT BUS was leaving the station.



{@newark18: I'm also pretty handy with the search function to find such random posts 8) (there's NO WAY I would've had those bookmarked :P ) }


Hi TygerKrane,

Thank you for bringing out two more exceptional examples, however, I am actually more confused now since they were taken from Feb and May which I don't think the Freebie Signal Alert.mq4 from FF were used then. The real question is how do I reconconcile such apparent invalid setups with the rat rules that states that the entry should be at the high/low of the green/red reversal candle? If these are valid setup examples, then that means they are not rat trades, or that the rat rules are not rules anymore. I am not saying the rat reversal method is flawed, I am just wondering if the charts were posted wrongly since the rat rules have always been the focus. Otherwise, there is really nothing very much to shout about regarding the 20pips entry rule since I can easily say the entry must be within 10pips or less of the daily high/low, which will be an even better entry.

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TheRumpledOne
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Postby TheRumpledOne » Sun Jan 30, 2011 4:50 am

pika:

The trades in the charts you are looking at are NOT rat reversal trades.

I am making a point that it does not matter what entry trigger you use SO LONG AS you enter in the RAT ZONE.
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.

pika
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Postby pika » Sun Jan 30, 2011 6:10 am

TheRumpledOne wrote:pika:

The trades in the charts you are looking at are NOT rat reversal trades.

I am making a point that it does not matter what entry trigger you use SO LONG AS you enter in the RAT ZONE.


Thank you, TRO, for clarifying my doubts.

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TheRumpledOne
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Postby TheRumpledOne » Mon Jan 31, 2011 12:17 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 (ClLo < 20): This is OPPORTUNITY

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

WHY ISN'T EVERYBODY DOING IT?

Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, <insert your own adjective>), then why isn't everybody doing it?"

Simple answer is because SOYLENT GREEN is people!

We all know exercise is great, but how many actually exercise?

We all know smoking is bad, but how many do it anyway?

We all know which foods are bad for our health, but how many eat those foods?

We all know that we should save for our future and spend less than we earn but who does that?

The list is almost endless.

As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

Meanwhile, the RATS are still beating the Yale students.

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

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.

digikk
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Postby digikk » Mon Jan 31, 2011 2:41 pm

Hi TRO,

I think you missed this question in the "fixed spread bandit" thread, so I am asking it here again.

What does someone get for using you as a referral at MB Trading?

And do I have to send you an email after opening an account?

Thanks

Dave

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