2009.09.10 DRAIN THE BANKS - LIKE A RAT

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kent-12345
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Postby kent-12345 » Sun Oct 23, 2011 5:26 pm

Things I've learned about trading that may help

1. Trading is about making money It's not about being right, most people will never get this they'll look for the holy grail all there lives.

2. All ways make sure your winners out weigh your losers, now Tro always says take what you can. He syas this because you gotta find your own way to take profits no one can do that for you. Some times you take five, other times you'll take forty or fifty take what the market gives you. You can't always risk ten pips and try to make five you'll get killed in the long run. Take proffessional traders some of them only win thirty percent of there trades and still make millions a year, why because they flow with the market. They don't force the market to do anything they just follow what It is saying.

3. No matter what entry technique your using, your still guessing the market. The edge you have in any market is just a calculated guess, It just means there is a higher probability of one thing happening over another.


4. Traders lose because they don't follow there own rules. The rules were made for a reason, follow them. If your rules say that you have a 10 pip stop, don't move your stop to 20 hoping the market will come back your way take the loss and look for the next oppurtunity. No one startegy can predict the market remember that, your always guessing. Why do you use a stop then If you know where the market is about to go you wouldn't need one.

Tro and senior members please give me some feed back and let meknow If I'm on the right track.

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TheRumpledOne
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Postby TheRumpledOne » Mon Oct 24, 2011 4:16 am

Sounds good to me, Kent.

Your P/L will indicate if you are on the right track.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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TheRumpledOne
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Postby TheRumpledOne » Mon Oct 24, 2011 12:49 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!



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TheRumpledOne
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Postby TheRumpledOne » Mon Oct 24, 2011 7:50 pm

Image


=============================================
GREEN RAT REVERSAL TRADE

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



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Postby TheRumpledOne » Tue Oct 25, 2011 1:34 pm

Image

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

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

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

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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TheRumpledOne
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Postby TheRumpledOne » Tue Oct 25, 2011 2:10 pm

Image


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

"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

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


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.

nickohorny
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Postby nickohorny » Wed Oct 26, 2011 1:22 pm

Hi TRO, can I check if I have correct money MGMT in place and am doing the maths correctly please for my next trade:

I have a $3,000 demo account balance. I worked out my position size to be 6 mini-lots.. based on the formula RISK/STOP-LOSS (60/10 = 6)

Would this be correct to take a trade with now?
Thanks

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Postby TheRumpledOne » Wed Oct 26, 2011 1:35 pm

Image

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

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

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


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 » Wed Oct 26, 2011 1:42 pm

nickohorny wrote:Hi TRO, can I check if I have correct money MGMT in place and am doing the maths correctly please for my next trade:

I have a $3,000 demo account balance. I worked out my position size to be 6 mini-lots.. based on the formula RISK/STOP-LOSS (60/10 = 6)

Would this be correct to take a trade with now?
Thanks


$60 = 5% * $3,000

Do you want to risk 5% each time you trade?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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nickohorny
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Postby nickohorny » Wed Oct 26, 2011 1:52 pm

erm no.. 2%

Hang on how have I calculated that wrong,

2% of 3000 = 60, so $60 risk per trade right?
60/10 =6

what hope do I have I can't even work out the simple maths involved!!!! :shock:

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