2012 DRAIN THE BANKS LIKE A RAT .... CONTINUED

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jsme
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Postby jsme » Thu Mar 01, 2012 3:09 pm

Nick I see your chart and I have a couple of suggestions.

These are my observations about rat trades.
One take any profits you can before the market stalls out on you. How do you know when the market is stalling out? You do not, honestly. But what you can do is notice when you are a couple of pips ahead and at that time decide as you watch the market...maybe it would be better to lock in profits. I do not recall the trhead but TRO was asked how many times he gets stopped out. His reply was along the lines of mabye twice a week but I take 2 or 3 pips profits.

When I first started trading the rat reversal system many years ago (and got descouraged and left it) I would be looking for 10+ pips each time.
It simply did not work well for me.
Taking multiple small pip gains with the rare large gain is now where I am at.

So looking at your chart and mine that I attempted to duplicate. I see a possiable small profit.

Now assuming that very small profit was not taken. What I have noticed is that. If the market does not move in your favor right away. You are running a higher risk.
I have no problem exiting a trade that appears to me to not be moving in my favor befor the trade hits my SL.

To me the SL is simply a line in the sand where I must exit the trade.

In my chart I am posting. You can see your trade set up.

Now looking at that same trade but this time following that trade a little further down the road.

I see a new low (3) being made. I see a pull back tesing that new low (4) I see a new hour open and that new hour open being broken, barley but it is and it is during a green rat trade.

I than see my entery candle (5) and I see how prices moved against me. I almost pulled the trigger to exit the trade, but as you can see. If the trader waits until the closing (or close to it) of the M5 candle. The candle now appears(ed) to be rallying back in my favor.
The next couple of candles allowed me to exit at a decent profit.

Nick, all I can say is this. The rat reversal trade does work ( I know you have not said it does not) it can be discouraging to figure it out. But once figured out it is rewarding.
My suggestion to you would be. Focus on what you see happening in real time.
Take your trade. Set up your SL. But watch what is happening in real time.
Be prepared to react to a fluid market. In one of TRO's training videos (the one about and exit plan) he explains the concept of having your plan made in advance and follwing that plan. It takes a great deal of emotion out of the trade by having a set up pre determined rules once a trade is entered.

Hope this helps you out Nick

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jsme
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Postby jsme » Thu Mar 01, 2012 3:18 pm

sorry Nick but I can not get that chart I made to upload.

I will try again latter today

nickohorny
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Postby nickohorny » Thu Mar 01, 2012 3:59 pm

Thanks jsme, I see your point. Very helpful..

I think with me I always get the message of risking 10 pips for 3 is doomed for failure long run, everywhere I have read in my newbie studying is never trade without risk/reward of at least 1:1. So I always feel "I can't possibly take just 2/3pips.." Maybe I need to ignore that and take as you say small gains and tally them up.

Be good to see your chart, I look all over chart and can see so many rat reversal entries for at least 2 pips a time.. not even within the rat zone!

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Postby nickohorny » Thu Mar 01, 2012 4:16 pm

Trade 2:
With H1, above HOLO lines.

This time I used a different exit playbook, at +3 my stop would move to +1 to lock in a tiny profit should price turn back, then trail at -2 pips behind price as it moves up towards a 10 pip target. This time Price never looked back and shot up all way to +10 target.
Much better

:) :)

jsme
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Postby jsme » Thu Mar 01, 2012 4:19 pm

GREAT Nick.. also I would suggest going to Youtube.

Do a search for TheRumpledOne. Than sign up for his free stuff.

A picture is worth a thousand words and a video is worth much more.

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jsme
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Postby jsme » Thu Mar 01, 2012 5:08 pm

Image

jsme
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Postby jsme » Thu Mar 01, 2012 5:36 pm

Nick this is my last trade for today. It is not a rat reversal trade, but it I wanted to point out a couple of things.
One I personally only trade a couple of currency pairs.
Two the rat reversal is only one way to trade (just like TRO says)

Have a look at this trade and see if you can figure out how, why I took this type of trade.
:)
I will be back later to explain the how and why, but I find most people do better if they can figure things out on thier own

Image

nickohorny
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Postby nickohorny » Thu Mar 01, 2012 5:47 pm

jsme wrote:Nick this is my last trade for today. It is not a rat reversal trade, but it I wanted to point out a couple of things.
One I personally only trade a couple of currency pairs.
Two the rat reversal is only one way to trade (just like TRO says)

Have a look at this trade and see if you can figure out how, why I took this type of trade.
:)
I will be back later to explain the how and why, but I find most people do better if they can figure things out on thier own

Image


Hmmm slightly confused!
I see you have your Hour open line - the dotted white.
Then a red line for your stop, and what looks like the green for entry? not sure what these 2 lines represent though?
And even more confusing is it looks like you entered short for a small gain but I thought you were a green rat?
confused lol :roll:

jsme
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Postby jsme » Thu Mar 01, 2012 6:19 pm

nickohorny wrote:
jsme wrote:Nick this is my last trade for today. It is not a rat reversal trade, but it I wanted to point out a couple of things.
One I personally only trade a couple of currency pairs.
Two the rat reversal is only one way to trade (just like TRO says)

Have a look at this trade and see if you can figure out how, why I took this type of trade.
:)
I will be back later to explain the how and why, but I find most people do better if they can figure things out on thier own

Image


Hmmm slightly confused!
I see you have your Hour open line - the dotted white.
Then a red line for your stop, and what looks like the green for entry? not sure what these 2 lines represent though?
And even more confusing is it looks like you entered short for a small gain but I thought you were a green rat?
confused lol :roll:


Good to see a thinker.
I am a green rat. I will only take a long trade when prices are in the rat buy zone and a correct set up occurs.

I will not take red rat set up trades.

The two red lines are the rat zone (buy area) for that time frame.
So even though their was a green rat set up. And I was able to take some small gains in that green rat set up.
The next type of set up has nothing to do with a rat trade. It is the set up I also took.
Prices were below the H1
Prices broke the low of the previous candle. So I took a short.
My point being. I take small gains. I risk small amounts (SL was just above the H1)
If I can take those small gains being a green rat. Wonderful
If I can take those small gians noticing a trade going with the H1, Wonderful
If I take a trade and it moves in my direction very fast. GREAT.
My goal for the day is 2% profits. I will take them how ever I can and go about my day.
Waiting for a green rat trade might take some time to allow it to set up correctly.
So I do as TRO says. I trade what I see.
The rat reversal trade is only one type of trade.

What if you were scanning several currecy pairs and none of them have a green rat reversal set up?

I still want my 2% for the day.

As you can note by looking at that screen shot. I only follow a couple of different pairs. No need in my view to watch a dozen different pairs. But this is what works for me. Do what works for yourself.

I suggest learing one way to trade inside and out but not allowing yourself to believe that is the ONLY way to trade. Be open for other trades (once you master one style) so you can hit your goal for the day.

please let me know if any of the above makes sense to you.

One final thought Nick. Ever seen a green rat reversal trade setting up real nice only to watch a new lower low be made.....That new low will be below the H1 open. :smt002

I trade what I see.

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TheRumpledOne
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Postby TheRumpledOne » Thu Mar 01, 2012 7:43 pm

nickohorny wrote:1st trade of day, 2% down :(



Looks like you have an older version of the RAT ZONE indicator. I don't see W1 Bias.

If you have troubles winning, then try M15, M30 or H1... will cut down your possible number of entries.
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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