Aliassmith Psychology 101 and other stuff

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aliassmith
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Postby aliassmith » Sat Nov 06, 2010 2:57 pm

I heard someone say that they use H1 charts to make their trading decisions
because it is the highest time frame that is the same for everyone around the
world. That made sense to me so I use them a lot.

I like to mess around putting custom candles on the H1 for my higher time
frame guidance. It is pretty effective for my goal which is average 8+ pips
a day. :)
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trueblueTEX
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Postby trueblueTEX » Sat Nov 06, 2010 3:57 pm

Hey Alias,

I'm trying to figure out why you draw your blue lines like you do.
You draw them based on the H1 candle and they are drawn from two consecutive candles, one green, one red (black and white in your case) where the close of one is the same as the open of the adjacent candle.

Am I correct?

Then you enter on an H1 candle when it crosses the blue line (probably after a retrace)?

Am I correct?

aliassmith
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Postby aliassmith » Sat Nov 06, 2010 4:34 pm

trueblueTEX wrote:Hey Alias,

I'm trying to figure out why you draw your blue lines like you do.
You draw them based on the H1 candle and they are drawn from two consecutive candles, one green, one red (black and white in your case) where the close of one is the same as the open of the adjacent candle.

Am I correct?

Then you enter on an H1 candle when it crosses the blue line (probably after a retrace)?

Am I correct?


I think about it as zlines and candle closes against me or it doesn't
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Postby jarnapal » Sat Nov 06, 2010 5:26 pm

I would have chickened out already on these wicks ! And that's how I lose my pips :D

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Postby cwn6161 » Sun Nov 07, 2010 2:06 am

jarnapal wrote:I would have chickened out already on these wicks ! And that's how I lose my pips :D


If wicks are where you lose, why not wait for wicks to form and trade them into the direction of the trend?

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Postby jarnapal » Sun Nov 07, 2010 9:08 am

cwn6161 wrote:
jarnapal wrote:I would have chickened out already on these wicks ! And that's how I lose my pips :D


If wicks are where you lose, why not wait for wicks to form and trade them into the direction of the trend?


I'm kinda doing this. Sometimes I DO enter when candle still hasn't closed but the problem is the wicks that come later. They go against me and on lower timeframes it feels like it better to be in on the other side.. :)

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Postby aliassmith » Sun Nov 07, 2010 2:36 pm

jarnapal wrote:
cwn6161 wrote:
jarnapal wrote:I would have chickened out already on these wicks ! And that's how I lose my pips :D


If wicks are where you lose, why not wait for wicks to form and trade them into the direction of the trend?


I'm kinda doing this. Sometimes I DO enter when candle still hasn't closed but the problem is the wicks that come later. They go against me and on lower timeframes it feels like it better to be in on the other side.. :)


Maybe your stops are too tight if you have fears of the wicks? I was thinking
awhile back that when I do analysis the candles on the chart are closed. So
bailing on the wicks doesn't give me a chance to see if the candle closed
against my S/R area.
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Postby aliassmith » Tue Nov 23, 2010 1:30 pm

Self Control

Strange how the human mind works. It is the biggest obstacle in your
path to be a successful trader. The negative aspect have all been
heard time and time again. Fear and greed and many variations of them.
I have an example of lack of self control from a guy I am teaching to trade.

He proceeds to tell me he got in long and expected price to move 10 to 15
pips in the Asian market he was trading. The price moved to 15 pips and he
was still holding the position. He then let the position go to negative 10 and
closed it.

How the heck do you believe it is going to 10 to 15 pips and not take profit
when it hits your max expectation? Greed or Fear of missing out I suppose.

Self control is the last frontier. It factors into every aspect of your trading
and separates the successful from the not.
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Postby TygerKrane » Sun Nov 28, 2010 1:42 am

aliassmith,
In regards to your 4-Phase Aggressive Pushing System, thank you very much for the generous sharing of your idea. I know it took tons of brain energy, countless hours of running thoughts through your head & sleeping on the ideas many nights as well.

[highlight=black]~Krane[/highlight]

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Making 4-Phase Aggressive Pushing System scalable

Postby TygerKrane » Sun Nov 28, 2010 3:49 am

:idea: aliassmith :idea: wrote:... Phase 1 I buy into a game with $400 (4%). I get into a small stakes game
using 4:1 to 6.25:1 leverage and grind it out until I make $400 in profit.
What did I just do there? I took their money. So now I use their money
to take even more of their money.

Phase 2 I buy into a game with their $400 and get into a little higher stakes
game. My leverage will be 8:1 to 12.5:1 and I'll grind it out until I make $800 more.

Phase 3 I buy into a game with their $1200 for an even higher stakes
game. The leverage will be 16:1 to 25:1 and I grind it out until I make
$1600 more.

Phase 4 I buy into a game for their $2800 for an even higher stakes
game. The leverage will be 32:1 to 50:1 and I grind it out until I make
$3200 more.

The Poker Tournament is finished!

If you add it up I'll have took $6000 of their money and made it mine.
That is 60% return on my capital for a 4% risk. :)

Something to be clear about is you must start back at phase 1 when your
profit cushion is gone, you complete all the phases, or you are having a
hard time at the current phase and don't feel comfortable.

I above is an example and should be "tweaked" to fit individual styles of
trading.

If you are unclear about the More risk is More risk comment think about
this. I risk 4% of my capital which is about 80 to 100 pips to make 80 to
100 pips in phase 1. From phase 2 on I risk 0% of my capital to make the
additional 56%. :idea:

I swore I was done for the day, but what the heck, let's make it an even 10 posts for today :D

Based on your original post, perhaps a way to make your system scalable, or easier to calculate: (please pardon my restatement of your plan.) I'm thinking my restatement makes it easier for one to know where they are within your 4-Phase Aggressive Pushing System, irregard of whether they feel the need to change up their leverage dramatically, or if they rely on scaling into and out of positions as a part of their trading.

This is what it looks like to me; {percentage calculations based off of how much loot I'm[highlight=pink] putting up for risk at the beginning of each phase [/highlight]>this will be 'x'<} {At the beginning of Phase 1, 'x' equals 4% of your entire account balance.}

Phase 1: Starting with $400 of my own money (putting it up for risk), the Phase isn't over until I make $400. End of Phase 1 = x times 100% [when I earn x times 1]

Phase 2: My original $400 is in my pocket, out of reach. Now I use their $400 (Phase 1 profit, putting that up for risk.) Phase 2 isn't over until I make $800. End of Phase 2 = x times 200% [when I earn x times 2]

Phase 3: Up for risk is now $1200 (Phase 1 profit + Phase 2 profit.) Phase 3 isn't over until I make $1600. End of Phase 3 = x times 133% [when I earn x times 1.33]

Phase 4: Up for risk now is $2800 (Phase 1 profit + Phase 2 profit + Phase 3 profit.) Phase 4 isn't over until I make $3200. End of Phase 4 = x times @114.29% [when I earn x times 1.1429]

[highlight=tan]_____________________________________________________________________[/highlight]
[font=Comic Sans MS]So! an Example:[/font] $500 account balance at start of Phase 1, therefore, 4% = $20

Phase 1: Risk no more than $20 in losses (i.e. account drained down to $480.) End of Phase 1 = when I've earned $20 times 1 = $20

Phase 2: Up for risk is $20 (Phase 1 profit $20.) End of Phase 2 = when I've earned $20 times 2 = $40

Phase 3: Up for risk is $60 {Phase 1 $20 + Phase 2 $40.} End of Phase 3 = when I've earned $60 times 1.33 = $79.80

Phase 4: Up for risk is $139.80 {Phase 1 $20 + Phase 2 $40 + Phase 3 $79.80.} End of Phase 4 = when I've earned $139.80 times 1.1429 = $159.78

Total earnings from all 4 Phases = $299.58
($299.58/$500)*100 =@59.92% 8)
[highlight=tan]_____________________________________________________________________[/highlight]

[highlight=darkorange]To Recap==>[/highlight]
[highlight=lightblue]Start Phase 1 with 4% of entire account balance.
Phase 1 ends when = earning x times 1[/highlight]

[highlight=white]Start Phase 2 with (Phase 1 profit)
Phase 2 ends when = earning x times 2[/highlight]

[highlight=lightgray]Start Phase 3 with (Phase 1 profit + Phase 2 profit)
Phase 3 ends when = earning x times 1.33[/highlight]

[highlight=lightgreen]Start Phase 4 with (Phase 1 profit + Phase 2 profit + Phase 3 profit)
Phase 4 ends when = earning x times 1.1429[/highlight]


[font=Lucida Console]60% return on capital for 4% risk[/font]

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