2009.09.10 DRAIN THE BANKS - LIKE A RAT

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tradervic1963
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How do you know when the daily high or low has been reached?

Postby tradervic1963 » Fri Feb 11, 2011 12:05 am

TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!

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TokyoDrifter
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Re: How do you know when the daily high or low has been reac

Postby TokyoDrifter » Fri Feb 11, 2011 3:48 am

tradervic1963 wrote:TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!


Hello Tradervic1963,

I am new to this too and hopefully TRO can correct me if I am wrong, but I believe you basically look at the leading indicator "1-2-3 Semafor" on the 1hr. Level 3 tells you what the Daily high is ( at the moment ). Then you go to a lower time frame for confirmation of the reversal ( 15m is where I look). The best entry opportunity is when the price is less than 20pips from the High/Low ( Green Rat/Red Rat ) of price.


TokyoDrifter
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Re: How do you know when the daily high or low has been reac

Postby TokyoDrifter » Fri Feb 11, 2011 5:30 am

tradervic1963 wrote:TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!


Here you go....

http://www.elitetrader.com/vb/showthrea ... genumber=2

TokyoDrifter
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Postby TokyoDrifter » Fri Feb 11, 2011 5:38 am

Btw, I traded 3 semafors on the GU yesterday all with a 10pip SL and 20pip target. Won 2, lost 1. 30pips profit! Goodbye squigglies!!! :D

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TheRumpledOne
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Re: How do you know when the daily high or low has been reac

Postby TheRumpledOne » Fri Feb 11, 2011 7:07 am

tradervic1963 wrote:TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!


You do NOT know until after the day is over what the high and low price are for the day. But you do know that sooner or later as price makes a new high or new low that the high will be the high of the day and the low will be the low of the day.

Nothing can tell you what the high and low is until the day is over.

But the RAT doesn't have to know. The RAT accepts the "not knowing" and acts accordingly. And that is why the RAT beats the Yale students.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: How do you know when the daily high or low has been reac

Postby tfg » Fri Feb 11, 2011 8:24 am

duplicate deleted
Last edited by tfg on Fri Feb 11, 2011 8:30 am, edited 1 time in total.

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Re: How do you know when the daily high or low has been reac

Postby tfg » Fri Feb 11, 2011 8:27 am

Avery, all your RAT statistical analysis, however, are calculated based on daily high/low. Therefore, the RAT edge i.e. "two out of three RAT reversal trades likely be a winner" theoretically speaking could only be achieved if the trades are taken within 20pips of daily high/low.

If after taking the trades within the current high/low, the price then makes a new high/low. This immediately put your trades out of the RAT edges identified by the stats and the trade will statistically likely (not always if you are lucky) become a loser.

Although you can't (and don't know) if the current high/low is the ultimate daily high/low, RATs are willing to take the risk to find out?

Am I making sense? Please enlighten...

TheRumpledOne wrote:
tradervic1963 wrote:TRO, How exactly do you know when the daily high or low has been reached? Isn't only until the day is over and price action is complete for that 24 hour period that you can determine exactly what the high or low was for that day? Price could open, make a high, drop and then near the end of the day retrace to higher than it was right before the day opened. Do the donational indicators clarify that the high or low has been made for the day? I want to believe but my brain is so addled from technical trading that I don't get it!


You do NOT know until after the day is over what the high and low price are for the day. But you do know that sooner or later as price makes a new high or new low that the high will be the high of the day and the low will be the low of the day.

Nothing can tell you what the high and low is until the day is over.

But the RAT doesn't have to know. The RAT accepts the "not knowing" and acts accordingly. And that is why the RAT beats the Yale students.

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Postby TheRumpledOne » Fri Feb 11, 2011 12:58 pm

Image

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

1) Price within 20 pips of the daily low (ClLo < 20) - 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!!


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

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

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

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.

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

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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Re: How do you know when the daily high or low has been reac

Postby TheRumpledOne » Fri Feb 11, 2011 1:07 pm

tfg wrote:....

If after taking the trades within the current high/low, the price then makes a new high/low. This immediately put your trades out of the RAT edges identified by the stats and the trade will statistically likely (not always if you are lucky) become a loser.


What makes you think this puts the trade out of the RAT edges?

The trade does not have to become a loser.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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TheRumpledOne
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Postby TheRumpledOne » Fri Feb 11, 2011 2:18 pm

Image

Someone asked about trading time frames other than M5.

PRICE IS THE SAME ON ALL CHARTS. You are NOT trading charts, you are trading price.


<-------------------------------------------------------------------->
DRAIN THE BANKS - LIKE A RAT

for H1 (60 MINUTE) CHARTS.

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

2) Red H1 candle closes within 20 pips of the current daily low

3) Go long when current H1 candles is green

4) STOP LOSS IS 10 PIPS

5) Take whatever profit you can.

6) If the rules do not mention it, then it is of no concern.


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

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 MO REVERSALS indicator that I coded.

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

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.

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


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