2009.09.10 DRAIN THE BANKS - LIKE A RAT

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TheRumpledOne
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Postby TheRumpledOne » Mon Feb 28, 2011 3:51 am

"why cannot wait for green candle to close and enter at the 3rd candle at the green candle high ?"

You can do WHATEVER you want to do...

It is YOUR ACCOUNT.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby TheRumpledOne » Mon Feb 28, 2011 2:15 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, ), 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.

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TheRumpledOne
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Postby TheRumpledOne » Mon Feb 28, 2011 3:47 pm

Image

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

DRAIN THE BANKS - LIKE A RAT

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.

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

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.

wkestler
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Postby wkestler » Wed Mar 02, 2011 8:51 pm

is there any reason why nobody is posting on this thread?

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TheRumpledOne
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Postby TheRumpledOne » Thu Mar 03, 2011 1:19 am

wkestler wrote:is there any reason why nobody is posting on this thread?


There are over 300 pages in this thread. That's hardly nobody posting.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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rat
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extra rules

Postby rat » Thu Mar 03, 2011 3:41 am

TRO

Did you use extra rules in your live trading ?

Because those 2 rules : red candle closes and green candle closes
in the lower rat zone box for 1 hour chart is not enough

can you tell us what rules you use in actual trading ?

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Postby TokyoDrifter » Thu Mar 03, 2011 5:27 am

Personally I don't think too much about it. Just look to the 4hr for direction, wait for the pull back and get in a semaphor on the 15m, try get my SL behind it and take what the Market coughs up. :)
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Postby kompakt_74 » Thu Mar 03, 2011 7:38 am

"Take whatever profit you can. "

What does it mean?
At what time do you think you have "drain the bank" enough?

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Postby 2 xrismak » Thu Mar 03, 2011 11:55 am

Tro,
How do I get the latest do national Indicators, A's I have made my Donation too.

2Xrismak

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Question on green/red rat

Postby ewcraigs » Thu Mar 03, 2011 3:29 pm

Hi TRO,

I have read some of the posts here and listened to your interview. You mentioned that you are a green rat. Do you never trade as a red rat? Do you ever say to yourself, "Hey, this market isn't going up. I recognize that and I will trade as a red rat."?

I understand that you do not trade based on support resistance, trend, etc. So what if a stock or currency pair is making lots of red candles (downtrend :P Will you try to trade long even though the trade is likely to be shorter lived than one placed as a red rat?)

Thanks

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