2009.09.10 DRAIN THE BANKS - LIKE A RAT

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newscalper
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Postby newscalper » Mon Jun 20, 2011 5:55 pm

TRO. I've been thinking about the rat again today (oh no here comes Yale). PLEASE don't quote the rules. I know them LOL.

I've been thinking about the IDEAL rat entry.

Say I'm a green rat. Within the context of a daily bar the best entry within the rules is within 20 pips of the daily low and price is also above the weekly open.

Now am I right in thinking that it's going to be even more ideal if price has crossed below the daily open, then crossed back above it: price is now above the daily open but still within 20 pips of the low.

:idea: i.e. it's going to be much better to be a green rat if you're entering also on a green daily candle that has a very small wick? :idea:

Cheers

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1992 DREAM TEAM
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Postby 1992 DREAM TEAM » Wed Jun 22, 2011 12:18 am

TRO

You da man. I am trying to follow your rules precisely. I've come across two slightly different versions of your exit playbook. Would you be so kind to review the most current version, or whatever exit method you use now?

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Postby Hawaiifive9 » Wed Jun 22, 2011 7:24 am

TheRumpledOne wrote: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.


After getting many, many (Yale student type) questions, I have added rule #7.


YO- TRO...

Having absolutely no problem with being a 5M greenie, but posts like #7 above cannot help when trying to understand the validity of the 1 hour bias "rule" - or to a lesser extent the above / below weekly open "effect". Not trying to go Yale - just think it's a fair question :roll:

Aloha & Maholler

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TheRumpledOne
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Postby TheRumpledOne » Wed Jun 22, 2011 12:59 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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Postby TheRumpledOne » Wed Jun 22, 2011 3:23 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!



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Postby TheRumpledOne » Thu Jun 23, 2011 3:54 pm

Image

GREEN RATS get ready for some SMART MONEY cheese!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby prochargedmopar » Fri Jun 24, 2011 2:46 am

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.


Question on #1,
So if I trade e/u and u/chf LONG only. Isn't this just like trading either pair long and short?
Or maybe I choose e/u and the $index......

Statement on #2,
After studying Joe Ross's stuff (53 years trading experience) Your Rat entry seems eerily familiar to the "Traders Trick Entry" TTE, in "The Law of charts" booklet. He has an in depth study of the technique in the book "trading by the minute" written in 1990. All good stuff as is your RAT method.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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Postby traderdude » Sun Jun 26, 2011 12:49 pm

Hi TRO..First post.. Just would like to say thanks for emailing your 2011 donational indicators which I received about 3 wk's ago and with your education and great informative input from loads of other Kreslik'ers, I'm finally making a profit...at last lol .... and long may it continue, so thanks Avery and everyone in the RAT community and lets make 2011 a very Very profitable one and keep the great donational's coming Avery...Cheers tdude

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Postby Hawaiifive9 » Mon Jun 27, 2011 6:10 am

Yo - TRO...
Aloha & Maholler plenty for the feed back re: my recent post. Appreciate.

Hele On & positive pips to ya

\:D/

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Tro Rat

Postby aali12 » Mon Jun 27, 2011 3:24 pm

Hello TheRumpledOne 8) ,
I have just downloaded one of your indicator (Tro Rat). I know in the instruction you have given says trade when you see semafor 1,2 or 3.
1. I would like to know is 3 the strongest signal and and 1 the least?
2. The second value on the semafor is this the resistance/support?
3. What is your SL in each trade? and TP?

I have followed your chart without live trade and if I had traded with actual money I would have made +750pips in a week. Many thanks and keepup the good work.

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