2009.09.10 DRAIN THE BANKS - LIKE A RAT

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TheRumpledOne
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Postby TheRumpledOne » Fri Sep 09, 2011 1:43 pm

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

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

THINK ABOUT IT!!


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MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

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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.

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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 » Fri Sep 09, 2011 5:30 pm

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PATIENCE!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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paupau
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Postby paupau » Mon Sep 12, 2011 11:30 pm

Hi TRO,

Am I looking at your chart correctly?
It's within 20 pips of daily low, but all H1, D1, W1 are showing SHORT.
And you entered around 105.490?

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Postby PipN8EZ » Tue Sep 13, 2011 4:40 pm

THANK YOU Tro, MightyOne, and PebbleTrader for responding to my request for help and suggestions needed.... :shock:

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Postby TheRumpledOne » Tue Sep 13, 2011 10:16 pm

105.49 was the last best entry price.

If you traded from that level, you could have made 10 or more pips 3 times.

I am not sure why you said a stop loss would be triggered?
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Postby paupau » Tue Sep 13, 2011 10:40 pm

TheRumpledOne wrote:105.49 was the last best entry price.

If you traded from that level, you could have made 10 or more pips 3 times.

I am not sure why you said a stop loss would be triggered?


This was based on your Exit Playbook that I saw previously

"
TRO's Exit Playbook

AT +5 pips, I will be ready to bail at +3 if price pulls back. (Incorporating this one rule will turn your trading around.)

At +10 pips, I will enter a trailing stop of 4 or 5 pips.

At +15, I will cancel the trailing stop and enter a hard stop at +10.

Then I will move the hard stop up if price moves up.

At +25, I may move the hard stop up to +25 or to a price ending in 0 or 9.

Sometimes, I may exit 1/2 of my position at +20 to lock in a 1% gain.

"

From the chart, the price went up about 20 pips (not incl. spread) on the second green bar and went back down to the entry price.
So by using your exit playbook, if the price has reach +15 pips but below +20 pips your SL will be at +10, which will be triggered on the first red bar, or even from the second green bar.


How do you made 3 times 10 or more pips from the chart?
Because I only see one entry opportunity, all the others are above the 20 pips daily low.

Thanks Tro.

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TheRumpledOne
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Postby TheRumpledOne » Wed Sep 14, 2011 9:14 pm

If you entered at 105.49, you could have had 3 trades.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby paupau » Thu Sep 15, 2011 5:11 am

TheRumpledOne wrote:If you entered at 105.49, you could have had 3 trades.


Are these the 3 trades?
If yes, the 2nd and 3rd trades are above 20 pips daily low, why would you enter the trade?

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Postby RunnrX » Thu Sep 15, 2011 5:21 am

Hi TRO,

I hope you don't mind my question -- I've got the 2011 Motherlode pack and am loving the indicators in it, but I have one question about your execution and trade management in the rat reversal trades

according to your interview with Tim Bourquin you said you had a plan A and a plan B

Plan A was to use inital stop loss of 10 pips, then if it goes up 5 set stop to +3, then if it goes up 10 stop goes to +5, and up 16 gets the stop to +10. From there I've decided to use a 5 pip trail stop for anything over 20 pips

So that's plan A, but you said plan B was to exit fully at 10 pips without using profit stops --- but under what conditions would you want to use plan B? Is there a PDF out there somewhere that explains this? Or could you please write a line back to tell me about it?

Thanks!

RunnrX

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TheRumpledOne
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Postby TheRumpledOne » Thu Sep 15, 2011 1:48 pm

This is funny, check out what the well respected trader, Sam Seiden, had to say this week:

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

"You see, this is where most people stumble. They don't go down the simple logic path we just went through. Instead, they buy a trading book that teaches them conventional Technical Analysis which is a very flawed school of thought. Or, they dive into the world of conventional Fundamental Analysis which has you buying when the news is good (at a high price) and selling when the news is bad (at a low price) which is a disaster for you, but a gift for those on the other side of your trades and investments."



Where have I heard that before?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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