GridIron

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Robert2617
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Postby Robert2617 » Sat Jun 30, 2007 12:44 am

The Rumpled One is correct. No one knows what the market will do on a day trading basis. The trick is to be correct in your guess, most of the time.

The GridIron is great because it shows you the most likely turning points based on historical data. That gives you a good guide but doesn't give you the answer. There are many other factors that come into play and you have to watch them too.

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Postby cvax » Sat Jun 30, 2007 2:49 am

I realize that nothing is 100% guaranteed, and so I am interested in what other things you guys look at in determining if the TRADE signal is one you should take and enter a position on. The quote you posted says, "You place your trade when the TRADE column says TRADE... DO NOT HESITATE". I just felt that a simple 'if bar color is different from previous' being a no hesitation trade entry to be a bit odd.

I am also interested in if the position of the ball matters in determining if you should take the trade. I know TRO said he generally won't take the trade if the ball is already at the 50yd line because it is already too far down. Would you play if the ball was inbetween the 20-50yd or only when its between the 0-20?

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Postby Robert2617 » Sat Jun 30, 2007 3:13 am

The best thing I can tell you about the radar indicator is to stick it at the top of your screen and put it at the sme interval as the chart and watch it for a while.

If it flips back and forth too much, go to a higher chart interval. Once you find the place where you can trust it, make your money.

On the gridiron lines, I think of them as bounce points. Between the 50's, I'm not sure what the pressure is up or down. Beyond either 20, you know what the pressure is but it's not 100%. I try to go with the flow.

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Postby cvax » Sat Jun 30, 2007 11:36 am

My other question is how do you know when to treat the next set of gridiron lines as the next playing field? Like if you have a strong downward move that goes all the way through a set of gridiron lines and into a new pair is this safe for entering shorts despite the massive move from the previous "game" already?

Basically what I am asking is if the stock is currently in the middle of a game how do you know when that game is over and the next one is about to start?

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Postby rrobin » Sat Jun 30, 2007 12:02 pm

cvax


How to use the SLOTMACHINE GRIDIRON workspace:

1) load in the ticker for the stock you want to trade, in the RadarScreens and the charts.

2) The color of the CURRENT 15 minute candle determines "who has the ball"...

GREEN = buyers have the ball

RED = Sellers have the ball

Remember a football ?quarter? is 15 minutes.

In the upper right, you will see a TRADE column. When it says WAIT, just sit there and wait... trust it. When it says trade, you trade with the team that DID NOT HAVE THE BALL LAST QUARTER.

So if the previous 15 minute candle was RED (sellers), you trade with the buyers (long). You place your trade when the TRADE column says TRADE... DO NOT HESITATE!

Now here comes the hard part... you must really trust the system to reap maximum profit. Place a sell limit order (if long) or a buy to cover limit order (if short) at the next gridiron line. It's that simple. You will be tempted to exit early (voice of experience here) but if you do, you will miss out on gains (happens to me more than not).

Another trading option is to place an order to sell 1/2 your position. That way, if your team keeps marching down the field, you make more money.

If you look closely at the chart, you will see how much I left on the table. Had I only waited for the buyers to get to their 20 yard line.

The reason I have a 5 and 15 minute charts is just to watch the plays. A 1 minute chart causes overreaction on my part. But a 5 minute chart clearly shows if my team is moving the ball or losing ground.

If you think this FOOTBALL stuff is nonsense that's ok. It works for me and that's what's important to my portfolio.

I uploaded all the indicators and workspace for your ease of use.


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

Battle lines are points between support and resistance lines where buyers and sellers put up a ?battle? - they struggle as to which way the price is going to go.


Think of the distance between a support line and a resistance line as a football field. The 50 yard line is midfield. The 20 yard line on either end is the RED ZONE. Defense gets tough in the RED ZONE and it's hard to move the ball (price) over the goal (support/resistance) line.

Buying in the bottom RED ZONE should be a safe entry as your defense will resist the price dropping below the goal (support) line.

Having a STOP LOSS in the upper RED ZONE will allow you to keep most of the profit if your team can't get the ball (price) across the goal (resistance) line.

At the kickoff (the open), you determine who's ball it is by the candle color green/white (buyers have the ball), red/black (sellers have the ball). Use 15 minute candles.


Since one of the questions traders ask is "WHEN DO I SELL?" I now have another answer... when the defense stiffens!

If you bought, and the buyers are driving down the field (price going up), expect the defense to get tough at the 50 yard line, tougher at the 20 yard line and really tough at the goal line( resistance). That's when you can sell.

I have been trading RIMM. Use a 15 minute candle chart (15 minutes in a quarter rights? LOL!) And you will see just how much money you can make scalping between the buyer's goal and their 20, their 20 and midfield, midfield to the seller's 20 and from the seller's 20 to the goal line (resistance). It is amazing (to me) how easy it is to buy at one line, place you sell order at the next line, sit back and watch as the sell order triggers.

Now, if you want, you can switch teams every quarter (that's what I do) and make money as a seller by going short.

This takes all the guess work of out the scalp and I don't really need any indicators to do it... just buying and selling at predetermined lines.

A few people have been inquiring about what I am looking at while trading. Believe it or not the main thing I look at is the BALL ON column of the GRIDIRON TRADE INDICATOR. This tells me how close I am to support/resistance.

When BALL ON is counting down and gets close to 20, I check to see if the buyers or sellers have the ball (Possession column) and then I check the 5 min chart to see who is controlling the line of scrimmage. A quick look at the trend confirms whether or not to take the trade. I also check the Divergence and ROC Divergence to see if a SHORT (ND) is coming up.

If the ball is near the 50 yard line, I usually pass on the trade. Why enter halfway between support/resistance?

The following is posted on my monitor:

WHO HAS THE BALL?

WHO IS CONTROLLING THE LINE OF SCRIMMAGE?

That reminds me not to short if the candles are green and not to go long on a red candle. Really simple and basic stuff here.

I uploaded my workspace and the MOTHERLODE of indicators... all of the SLOT MACHINE indicators that have been written (and a few others).

One thing you have to make sure of is that each indicator in the radar has enough additionals bars of data. It is usually 800 - 1000. Of course, some take less.

MAY ALL YOUR FILLS BE COMPLETE.



MINI GRIDIRON II LESSON




The _SMAA_DYNAMIC_SR, formally PUSH HILO, is effective across all time frames... if anything, the longer the better. I'm just a scalper at heart.

90%? Look at the charts...

First, you must determine the overall trend direction . How? LOL... You can use the TREND and COMPASS indicators on 15/60 minute and daily intervals. Notice on my chart the ema(5) is plotted (dark cyan line). NEVER TRADE AGAINST THE EMA(5) DIRECTION... NEVER!!

Next, you only trade in THAT DIRECTION! GOOG was trending DOWN on Friday. There was money to be made off the long bounces but why take unnecessary risks? Greed? So GOOG was a short when the ema(5) was heading south.

So if you sold at the RED dots and covered at the BLUE, you should not have missed. I was calling the play by play on GOOG in the afternoon and every 10 - 20 minutes there was a short worth at least $2 a share. I just waited for a fib retrace and/or dynamic resistance hit.

If you jumped the gun and shorted BEFORE GOOG retraced up to a pivot, your p/l showed some red (temporarily). If you waited for the RED DOTS to plot horizontally instead of stair stepping, your account would be a lot richer!!

Once again, if you look at your past trades using the Dynamic SHOWMEs and GRIDIRON_II indicator, you will see why you made money and why you lost money on the trades.

Does this make it any clearer?

Do you understand?





I didn't want to overload you all at once so I didn't reveal this combination earlier.

The NORMALIZER_AUTO with iDefault = "MOMO" shows:

GREEN LINE: MOMENTUM

WHITE LINE: EMA(5)

CYAN LINE: RSI(2)

YELLOW LINE: MACD(5,20)

Notice what happens next on the price chart after these lines all bottom or peak.





This is a copy from the old TS Trend Thread.

HTH

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Postby Patch » Sat Jun 30, 2007 3:38 pm

rrobin

Thanks for posting this expanded explaination of the gridiron.

It is an excellent and comprehensive explaination.

Patch
Visiting Myrtle Beach
From VA
ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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Postby TheRumpledOne » Sat Jun 30, 2007 3:40 pm

For the record, the GRIDIRON strategy works but I don't use it anymore. It's "grind it out trading".

I use the BUY ZONE now. I just wait for the price to enter the zone and then enter the trade. Simple and statistically proven.
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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Postby cvax » Sat Jun 30, 2007 6:27 pm

rrobin

Your compilation of the important instructions on how to use gridiron is great. Thank you. Would you mind telling me which page the MINI GRIDIRON II post was made on? And also the NORMALIZER_AUTO one? I want to check out the screenshots that go along with those posts. Thanks.

TRO

Would you consider the BUY ZONE strategy one that generally yields a higher return per trade than the GRIDIRON? I don't have a lot of equity so that is why I was looking at the GRIDIRON because it seemed like I could potentially get a lot more per trade than I could with the BUY ZONE.

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Postby sergiu » Sat Jun 30, 2007 7:06 pm

cvax wrote:rrobin

TRO

Would you consider the BUY ZONE strategy one that generally yields a higher return per trade than the GRIDIRON? I don't have a lot of equity so that is why I was looking at the GRIDIRON because it seemed like I could potentially get a lot more per trade than I could with the BUY ZONE.


It is not about how many pips you make but what your position size is.

Consider the following scenario:
Account1=10000$
Account2=10000$
Risk on both accounts 1%
Strategy1 yields 100 pips and requires 100 pips SL so with 1% risk your position size is 1 mini lot. if your trade is a winner you make 100$.
Strategy2 only yields 10 pips and requires a 10 pip SL so your position size with the same 1% risk is 10 mini lots. If the trade is a winner you make 100$.

As you can see one strategy makes 100 pips and the other only 10 but they both pay 100$. Remember, pips are worthless, you can not pay bills with pips. HTH

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Postby cvax » Sat Jun 30, 2007 7:52 pm

sergiu thank you for the position sizing reminder. I thought position sizing was just used to normalize your losses to a set amount instead of limiting your gains to $100 per trade though. Please correct me if I am wrong.

I was under the impression that both BUY ZONE and GRIDIRON have SL that are 10-20 cents away from an ideal entry, so the position sizing would be the same for both strategies. The difference was that the GRIDIRON exit targets were higher than the BUY ZONE targets. Ideally If the targets are higher the profits are greater per trade too. Since BUY ZONE targets are generally lower (I think) it would mean less $ per trade. In order to get $100 a day I would need to BUY ZONE several times, but I don't have enough buying power to enter and exit multiple times so I was just checking if the GRIDIRON, with its higher targets, is the better option in this case.

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