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razorboy
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Re: Dynamic Trend Bias aka Almost Ran out of String.........

Postby razorboy » Thu Apr 23, 2009 3:44 pm

sorry,

Just so we have our vocabulary straight - by trigger, are you talking an entry point off of S/R or a take profit - I suspect take profit, but i could be misunderstanding

MightyOne wrote:Razorboy asks:

"MO, since I was playing this off of a daily chart, would you recommend using a sl equal to 2.5 times the daily range (like you were suggesting for scalping) or am i just asking for trouble. in the long run. or is this exactly what you mean about only needing to be right 10% of the time if you aim to capture this sort of move on a regular basis - (in other words - let it run longer and don't bail)"

If you only intend to scalp small gains, relative to the size of your SL, then it is to your benefit to use a larger SL.

If you intend on trading for larger moves and are not scalping then you are greatly benefited by smaller stops that give you greater multiples of risk
in profit.

I'll use Dynamic Fibs S&R as an example:

If I were targeting the larger move then I might use the 10 pip trigger with a 15 pip SL where 10p = 1% (the extra 5p to make sure
that the SL is at or beyond the extreme).

If I were scalping then I might use a 20 pip trigger with a 25 pip stop loss where 20p = 1%

Going even further up the time frames to scalping a daily/weekly chart I might use a 40 pip trigger with a 45 pip SL where 40p = 1%

:evil: "THAT'S NOT SCALPING!":

Like every thing else I say it doesn't make a lick of sense until you sleep on it.

If you use 10p as 1% then you should consider a 20 pip gain as a 20 pip gain.
If you use 20p as 1% then you should consider a 20 pip gain as a 10 pip gain.
If you use 40p as 1% then you should consider a 20 pip gain as a 5 pip gain.

I hope this answers your question Razorboy.

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Re: Dynamic Trend Bias aka Almost Ran out of String.........

Postby MightyOne » Thu Apr 23, 2009 4:00 pm

I was talking about DFSR so "trigger" means your entry X pips off the highest/lowest.

razorboy wrote:sorry,

Just so we have our vocabulary straight - by trigger, are you talking an entry point off of S/R or a take profit - I suspect take profit, but i could be misunderstanding

MightyOne wrote:Razorboy asks:

"MO, since I was playing this off of a daily chart, would you recommend using a sl equal to 2.5 times the daily range (like you were suggesting for scalping) or am i just asking for trouble. in the long run. or is this exactly what you mean about only needing to be right 10% of the time if you aim to capture this sort of move on a regular basis - (in other words - let it run longer and don't bail)"

If you only intend to scalp small gains, relative to the size of your SL, then it is to your benefit to use a larger SL.

If you intend on trading for larger moves and are not scalping then you are greatly benefited by smaller stops that give you greater multiples of risk
in profit.

I'll use Dynamic Fibs S&R as an example:

If I were targeting the larger move then I might use the 10 pip trigger with a 15 pip SL where 10p = 1% (the extra 5p to make sure
that the SL is at or beyond the extreme).

If I were scalping then I might use a 20 pip trigger with a 25 pip stop loss where 20p = 1%

Going even further up the time frames to scalping a daily/weekly chart I might use a 40 pip trigger with a 45 pip SL where 40p = 1%

:evil: "THAT'S NOT SCALPING!":

Like every thing else I say it doesn't make a lick of sense until you sleep on it.

If you use 10p as 1% then you should consider a 20 pip gain as a 20 pip gain.
If you use 20p as 1% then you should consider a 20 pip gain as a 10 pip gain.
If you use 40p as 1% then you should consider a 20 pip gain as a 5 pip gain.

I hope this answers your question Razorboy.

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Re: Dynamic Trend Bias aka Almost Ran out of String.........

Postby razorboy » Thu Apr 23, 2009 4:11 pm

ok making more sense now....so your just extending your SL for a bit of wiggle room

MightyOne wrote:I was talking about DFSR so "trigger" means your entry X pips off the highest/lowest.

razorboy wrote:sorry,

Just so we have our vocabulary straight - by trigger, are you talking an entry point off of S/R or a take profit - I suspect take profit, but i could be misunderstanding

MightyOne wrote:Razorboy asks:

"MO, since I was playing this off of a daily chart, would you recommend using a sl equal to 2.5 times the daily range (like you were suggesting for scalping) or am i just asking for trouble. in the long run. or is this exactly what you mean about only needing to be right 10% of the time if you aim to capture this sort of move on a regular basis - (in other words - let it run longer and don't bail)"

If you only intend to scalp small gains, relative to the size of your SL, then it is to your benefit to use a larger SL.

If you intend on trading for larger moves and are not scalping then you are greatly benefited by smaller stops that give you greater multiples of risk
in profit.

I'll use Dynamic Fibs S&R as an example:

If I were targeting the larger move then I might use the 10 pip trigger with a 15 pip SL where 10p = 1% (the extra 5p to make sure
that the SL is at or beyond the extreme).

If I were scalping then I might use a 20 pip trigger with a 25 pip stop loss where 20p = 1%

Going even further up the time frames to scalping a daily/weekly chart I might use a 40 pip trigger with a 45 pip SL where 40p = 1%

:evil: "THAT'S NOT SCALPING!":

Like every thing else I say it doesn't make a lick of sense until you sleep on it.

If you use 10p as 1% then you should consider a 20 pip gain as a 20 pip gain.
If you use 20p as 1% then you should consider a 20 pip gain as a 10 pip gain.
If you use 40p as 1% then you should consider a 20 pip gain as a 5 pip gain.

I hope this answers your question Razorboy.

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Re: Dynamic Trend Bias aka Almost Ran out of String.........

Postby MightyOne » Thu Apr 23, 2009 4:28 pm

Razorboy asks:

"Using the idea of smaller stops, to capture the ATR - or a good chunk of it, I assume you are looking to get in at a price failure zone? I like the idea of picking up a 100 pip move off of a 10 or 15 sl, but isnt this like trying to pick tops and bottoms. - i do see the math behind it though."

Image

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Postby MightyOne » Thu Apr 23, 2009 4:40 pm

TheRumpledOne wrote:Found this here:

http://traderplanet.com/forums/chatter/ ... ml#post287


04-15-2009, 06:06 PM


Uturn

1. The big money is never made buying or selling, but in the waiting.
2. Patience will achieve more than force.
3. Find setups and entries which minimise exposure.
The profits come on their own terms.
4. Lose your opinion not your money.
5. Listen to the market.
6. Concentrate on the right hand side of the chart.
7. All you need is one pattern to make a living.

Motivational:
~ I am a successful trader
~ Each day's performance is fresh
~ I identify and execute successful trades
~ I trade effortlessly and automatically
~ I Trade with confidence
~ I achieve excellent trading results
~ I am successful without being perfect
~ I am personally responsible for my trading
~ One bad trade is just that
~ My performance as a trader does not reflect my self worth
~ Trading is an ever evolving skill
~ Believing in myself and proven methodologies,
I approach each day fresh and alert to the opportunities presented.


Cheers, Uturn


It seems that every one grows old and wise over time:

The big money is never made buying or selling, but in the waiting; patience will achieve more than force. -Uturn

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TheRumpledOne
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Postby TheRumpledOne » Thu Apr 23, 2009 4:59 pm

Image
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 MightyOne » Thu Apr 23, 2009 5:44 pm

With Foreign Exchange growing as it is the Futures market needs to alter their contract sizes to attract more volume.

Can you imagine what would happen if the contracts were as small as 1oz of gold, 1LB of coffee, or 1 BBL (unit of capacity) of crude oil?

Throw in automatic liquidation at margin call, an injection of leverage to level the playing field, and a 24 hour market and you have your self a fierce competitor for transaction volume.

One day...
maybe one day :roll:

The only way that Stocks will ever be able to compete is through offering micro shares in a company, where a micro share might be
1/10 of a share.

Even if leverage remained at 1.5 to 1 the ability to eek out a few extra tenths of a percent per X would be very attractive.

If the share is $6 then a $0.06 move would be a 1% gain.
If price moved to $8 a share you would make a 33.333%.
If you could buy 11 micro shares instead of 1 share then the
same move would be a return of 36.666% which is a very large
boost to your bottom line.

The common theme is that a strong competitive market is comprised of a modest amount of leverage and the ability of
a trader to manage ones money to the smallest degree.

It is no wonder why Forex is growing at such a fast and fierce pace.

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Postby MightyOne » Thu Apr 23, 2009 5:53 pm

TheRumpledOne wrote:Image


The herd mentality indicator is a great idea and I am sure that we can find the time to drain their banks as well :wink:

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Postby TheRumpledOne » Thu Apr 23, 2009 8:00 pm

Image

Looks like an Xmas tree!!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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TheRumpledOne
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Postby TheRumpledOne » Thu Apr 23, 2009 9:30 pm

Image
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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