2009.09.10 DRAIN THE BANKS - LIKE A RAT

[PuRv]

EURUSD lower price is 32 pips above the daily low.

What does this mean?

Hello TRO Sir,

It seems if i entered long within 20 pips from daily low thn my profit > 12pips now.

[TheRumpledOne]

The refreshner Rat zip I dowloaded was showing only 2 dots. i've attached the chart and the template setting cor your consideration on what went wrong.

TRO_RAT_DOTS PLOTS THE GRAY DOTS

TRO_MID_DOTS PLOTS THE AQUA/PINK DOTS.

Are both compiled and loaded?

1)I would also like to know more about HERD MENTALITY, which I read in 1 of your threads.

That is a DONATIONAL indicator that analyzes the indicators the way most traders (the HERD) are taught to analyze. Rather than look at a bunch of squiggly lines on a chart, the HERD MENTALITY indicators tells you what those indicators would be showing.

1) I have being demo-trading you using RAT edge with improving success. but how can deal/react to the H1/D1 candle colour(s)
turning from green to red withing an hour trade and back to green before the hour ran out with exitng, or better put How do I maintain my position on H1 tf trade when H1 n (or) W1 CAN switched color.

THIS IS TRADING. TRADING IS GUESSING. ANYTHING CAN HAPPEN. THAT IS WHY YOU PLACE A STOP LOSS.

3)lastly do you support trading the ZL,MOMO it it coincide with H1/W1 buy trade.

TRADE ONE METHOD. DO NOT COMBINE.

I belife I and may newbee really appreciate the great work and effort of you and loads of other teaching ppl to be successful, cheers!

YOU'RE WELCOME.

[TheRumpledOne]

Check this out.

http://www.tradingacademy.com/lessons/2 ... rticle.htm

Why not just trade the RAT ZONES?

[TheRumpledOne]

EURUSD lower price is 32 pips above the daily low.

What does this mean?

Hello TRO Sir,

It seems if i entered long within 20 pips from daily low thn my profit > 12pips now.

That is accurate.

[YES-IT'S]

Grreat!thank you TRO. its pefect now.

[Hawaiifive9]

YO - TRO

The PDFs' that accompanied the 2011 donationals are a perfect compliment to the indicators. Which other donationals / freebies also have that enhancement? I find that the ability to read the "instructions" can streamline ones progress, while providing a little confidence that the information is being properly utilized. EXCELLENT indys without the YALE after-taste. Anyway - free or otherwise - I'm all in Aloha...

[TheRumpledOne]

I started doing the PDFs for the donationals in 2010.


The Buy Zone PDFs are FREE:

http://www.kreslik.com/forums/viewtopic.php?t=1050

http://www.kreslik.com/forums/viewtopic.php?p=10112

http://kreslik.com/forums/viewtopic.php?p=10476

[TheRumpledOne]

"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

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1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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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.

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

[TheRumpledOne]

You can clearly see that price is above the daily low by 20 or more pips.

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

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"The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books."

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

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

[kent1986]

Hey Tro, first let me thank you for all the great work you've done, to help others learn to be profitable. Heres my question, since you've put out your exit playbook its helped immensely, but heres one scenario I dont seem I can find the answer to. Lets say you enter a trade the rat reversal, and price goes 1 to 3 pips in your favor but then reveres and becomes negative do I wait for it to hit my stop at 10 pips, or stop out before that. Also what If I enter and it immediately goes against do I wait for my stop to be hit at -10 or should I close out before that. The exit playbook says to wait till 5 pips profit before locking in 3, I just need help with that scenario I should be fine. Thanks alot.