Mira wrote:
Yep, this post tells more than 100 trading books.
[edit]
Ok the link is not working good
BTW.. page 139. I’m writing it for the people who will come.
I don't need or use diamonds or fractals on a regular basis; they are simply curiousities.
Libby wrote:... You keep saying our aim should be to consistently apply our principals. What are our principals? Can you review...
1. Risk-boxes:
Your most powerful weapon is the ability to manipulate your position size.
The simplest risk box is 8 lines and it is 8 because +1 line, 9/8, increases size by 12.5%
If you risk 2 lines per trade then you have 4 trades: 8-6, 6-4, 4-2, 2-0.
If you restore 1 line then you have 7 trades: 8-6, 7-5, 6-4, 5-3, 4-2, 3-1, 2-0 or you can prolong it: 4-2, 4-2, 4-2, 3-1, 2-0 ... instead of S(2/3) it is size(2/4).
If after a trade your lines total 12 then you can split your risk-box instead of increasing size:
BOX1: 8 lines of $50, +2.5 lines is 50(10.5/8) or 8.076 lines of $65
BOX2: 4 lines of $50, +2.5 lines is 50(6.5/4) or 4.062 lines of $80
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Recombine the boxes when you are done: 65((4.062(80/65) ) + 8.076 ) = $849.90
50(12 + 5) = $850
The better your line management and stacking the better your results.
2. Range:
This helps you use the right position sizing as well as judge how far price will expand in a particular direction.
Small position size small targets, large size large targets; that is all that you really need to know.
3. Line Widths:
This is all that we mean when we talk about 'trading' a chart: 'move up the charts' = 'use wider lines'.
4. Large Chart Price Levels:
A pattern is one side of a line & the breakout is the other: I think that everyone can tell the difference between a boulder and an obelisk
You didn't see it coming because you were not looking or it left you behind because you didn't have the endurance to see it through.
- EURUSDDaily.png (15.51 KiB) Viewed 2818 times
I can't even count how many times I have said "if only I had been watching the [large chart]"
Sometimes you get so caught up trading small charts that you forget where you're at & where you are going
(large charts have to move sometime).
- EURUSDWeekly.png (20.16 KiB) Viewed 2818 times
5. Stacking:
Needs no introduction.
It is the difference between winning and losing.
6. Common Triggers:
1. Price closes in an area of interest
2. Price exits the area of interest
- c_triggers.png (8.85 KiB) Viewed 2818 times
Everything else isn't really that important to me
IS A LIE__________
.gif "Laugh")
