paupau wrote:jsme wrote:paupau wrote:Based on your picture the daily low and daily high has not properly split yet.
I thought I read somewhere that we have to wait until they don't overlap each other?
paupau, that very well may be true that the daily low and daily high are not allowed to overlap.
I am afraid I have not read that particular post. If that is an accurate statement, than I would agree that finding a trade on a market day open would be much more difficult to find.
For myself, I have found that this trading does work. If I am missing some of TRO rules, I am sorry to mislead anyone.
When I take a green rat trade (since I am a green rat) I use the rules that TRO repeats over and over.
In addition to those rules I use the filter of trading with the weekly and the hourly prices. But those are my views and should not be taken as TRO rules.
I have no statical analysis to back my additional filters up with, I only have personal observations.
Again it is not my intent to muddy the waters, I only wanted to point out that the trading style that TRO talks so much about. Has/does work very well for myself.
Hi jsme, I can't remember where I read about the daily high/low not to overlap. but I did remember and using it to filter my trades, which is why I have trouble finding the opportunities on mondays.
But if it has been working out well for you without checking it, then I think that's the most important thing. As long as you are making pips.
It leads me to another question, if this has been working well for you, does that mean that you only need to look at opening of the day as it'll always be below 20 pips of daily low? (Still based on W1 & H1 in green of course).
I have the difficulties of getting into trade because I don't have the time to look at the chart for hours and when I do have the time, none inside the daily low. so I can only found a few opportunities to trade every week.
I might check this out and see how it goes.
paupau, I will try to clear this up but if I am not clear. Please ask again.
Yes this type of trading is working well for me, and I had a similar problem as you described. At first I really did not have the time to watch charts for hours to wait for the correct set up. I was able to develop a method, more about that in a moment.
For starters, I look at the previous 24 hour periods, I do not go off the calendar daily low.
Hopefully I do not draw the wrath from anyone for saying that...
At the beginning of the trading week, I will still go back 24 hour periods and draw the low horizontal line.
As each passes the line might be re drawn.
Now because I move the low line along as each hour passes. I find that I can usually "spot" a possible trade set up coming or due to the normal daily trading range. I can see when I have a good chance of waiting a few hours before I might need to re check that chart.
Another thing that I have noticed, but is not a hard and fast rule.
Prices seem to swing between the London times and the New York times. What I mean is that if a 24 hour high is made during the London trading session. I will have a good chance of seeing a 24 hour low during the New York session. Or the reverse is also true.
If I note a 24 hour low during the London session, I will know that I will likely not see a new 24 hour LOW during the New York session.
This is not a 100% rule. It is just something I have noticed. But this is were the normal daily trading range comes in.
I find that by using these things. I can get an idea of when I will need to focus on looking for a new daily low. I do not need to stay focused on the computer all day long. The market moves in cycles and does not normally move all 24 hours in one direction.
But yes. I do have access to the computer all day and I will scan the charts as I want.
If I had a normal job, I would find this type of trading difficult to do. The lack of monitoring the charts would make this type of trading difficult to master. In my view.
So with that being said. Please indulge me as I explain what does work for me.
I target 2% a day for profit. 2% of my trading account balance.
Once reached I stop trading. I have found that staring at a computer all day is boring and my efficiency goes down.
So while I agree that the rat trade does work, I also look for other types of trading that works for myself. For me that also means I scalp based off of trading with the Hourly direction and the Weekly direction. (in addition to some other ideas I use) But it does not need to be off the 24 hour high or low. Also I will trade both long and short, but ONLY if a green rat trade is not setting up.
I use a strict SL of 10 pips. I only risk 2% of my trading account on any one trade. So I know that if 10 pips = 2%. I will also know that 5 pips = 1% or 2.5pips = 1/2% ect ect.
By knowing my exact amount risked, I find myself taking trades and exiting when I feel the prices have stalled. Even if that means I only make 1/2% off the trade.
By using multiple ways to trade, but knowing I have a hard and fast stop. I have found I can take small gains, which most trades I enter go into. Exit the trade, and await another trade set up. I do not make 2% off of each trade. I will stack small profits to get to my 2% goal.
I do not need to hit the big trade each time. On occasion I will take a trade and it will take off like a rocket. Those trades make me more than 2%.
If I try to make each trade pay me 2%....I will lose money overall. This is something I have noticed.