The ideas that I trade by:

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Captain Pugwash
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Postby Captain Pugwash » Thu Oct 30, 2014 8:06 pm

MightyOne wrote:You need two sides as a trader:

One side absorbs the abstract and inwardly understands it as "something" not dissimilar to a mist; a formless idea, something that can be understood with the heart but which falls apart when the mind tries to solidify it.

-Many people have this "knowing" but try to build rules around it, like a cage, to trap it, only to have it completely escape from both their mind and heart.
-this often leads to temporary disorientation and a feeling of not knowing what you are doing.
-you can call this the "spiritual" side of trading.

The other side is the logical side which makes solid plans in the midst of the formless that the guiding light will see him to success.

I say this because many people suppress their light and wonder why they are blown about by the wind of a chaotic mind.




How do you know this stuff??? (don't answer) :)

I had written a long reply - but its enough to say you hit the nail on the head with your first point.

you must recognize an overly technically minded trader who wont let go enough to feel the force :D

Thanks for your postings even when its quiet - and thanks for the reply
"MOJO 1)Self-confidence, Self-assuredness. As in basis for belief in ones self in a situation. Esp/In context of contest or display of skill such as going into battle. 2)Ability to bounce back from a debilitating trauma and negative attitude YEH BABY

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Postby TheRumpledOne » Thu Oct 30, 2014 10:12 pm

"so just put the line on the chart! it means nothing really, it is just part of your own personal IF/THEN that your brain needs to cope with the mystical unseen forces that are moving price"

MUF - Mystical Unseen Forces!!

HAVE TO LOVE HORIZONTAL LINES!!
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 » Fri Oct 31, 2014 2:14 am

TheRumpledOne wrote:"so just put the line on the chart! it means nothing really, it is just part of your own personal IF/THEN that your brain needs to cope with the mystical unseen forces that are moving price"

MUF - Mystical Unseen Forces!!

HAVE TO LOVE HORIZONTAL LINES!!


Horizontal lines are life changing :shock: :D

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Postby prochargedmopar » Fri Oct 31, 2014 9:20 am

MightyOne wrote:You need two sides as a trader:

One side absorbs the abstract and inwardly understands it as "something" not dissimilar to a mist; a formless idea, something that can be understood with the heart but which falls apart when the mind tries to solidify it.

-Many people have this "knowing" but try to build rules around it, like a cage, to trap it, only to have it completely escape from both their mind and heart.
-this often leads to temporary disorientation and a feeling of not knowing what you are doing.
-you can call this the "spiritual" side of trading.

The other side is the logical side which makes solid plans in the midst of the formless that the guiding light will see him to success.

I say this because many people suppress their light and wonder why they are blown about by the wind of a chaotic mind.


HOW DO I CHOOSE MY BOX SIZE?

what is appropriate? would you use a 90 pip stop on a 1 minute chart?
you would use a stop that is appropriate for the short term and intermediate volatility (15 min chart?).

my smallest space is 15 because if I add 50%, so long the box is 15 or larger, I have at least a 10 pip stop (2/3 * 15 = 10).

DO I NEED HIGH TF PRICE ACTION TO TRADE AN EXTREME?

no, you can start by day trading from a long term extreme and click up the charts; just be aware IF THERE IS significant high tf price action that you should consider.

WHERE DO YOU DRAW YOUR RED LINE?

"something" is anything, i usually draw it ~through the middle of a candle that closed higher/lower.

a lot of the S/R you see on a chart is complete coincidence; if you place 7 random lines on a chart and scroll backwards you will think that you predicted past price action!

so just put the line on the chart! it means nothing really, it is just part of your own personal IF/THEN that your brain needs to cope with the mystical unseen forces that are moving price :lol:


Classic M.O.
I like these types of posts more than anything technical Ive ever read/studied.
#truth
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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Postby Braathen » Fri Oct 31, 2014 10:04 am

prochargedmopar wrote:
MightyOne wrote:You need two sides as a trader:

One side absorbs the abstract and inwardly understands it as "something" not dissimilar to a mist; a formless idea, something that can be understood with the heart but which falls apart when the mind tries to solidify it.

-Many people have this "knowing" but try to build rules around it, like a cage, to trap it, only to have it completely escape from both their mind and heart.
-this often leads to temporary disorientation and a feeling of not knowing what you are doing.
-you can call this the "spiritual" side of trading.

The other side is the logical side which makes solid plans in the midst of the formless that the guiding light will see him to success.

I say this because many people suppress their light and wonder why they are blown about by the wind of a chaotic mind.


HOW DO I CHOOSE MY BOX SIZE?

what is appropriate? would you use a 90 pip stop on a 1 minute chart?
you would use a stop that is appropriate for the short term and intermediate volatility (15 min chart?).

my smallest space is 15 because if I add 50%, so long the box is 15 or larger, I have at least a 10 pip stop (2/3 * 15 = 10).

DO I NEED HIGH TF PRICE ACTION TO TRADE AN EXTREME?

no, you can start by day trading from a long term extreme and click up the charts; just be aware IF THERE IS significant high tf price action that you should consider.

WHERE DO YOU DRAW YOUR RED LINE?

"something" is anything, i usually draw it ~through the middle of a candle that closed higher/lower.

a lot of the S/R you see on a chart is complete coincidence; if you place 7 random lines on a chart and scroll backwards you will think that you predicted past price action!

so just put the line on the chart! it means nothing really, it is just part of your own personal IF/THEN that your brain needs to cope with the mystical unseen forces that are moving price :lol:


Classic M.O.
I like these types of posts more than anything technical Ive ever read/studied.
#truth


+1 :D

Love it !
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
MO-

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Box adding

Postby kate682 » Sun Nov 02, 2014 11:05 am

Thank you, MightyOne, have now read the entire thread. Has opened my eyes to trading off extremes. Thank you.

I'm struggling with understanding adding to a position; halving of risk when you add a 2nd position, and would really appreciate anyone checking if my understanding is right. Xx

My understanding is:: I have 1 lot with a 25pip box, ie that's the stop; 25 pips. Once (if) position does not get taken out, I add a 2nd position @ +25, moving the stop of the first position and 2nd position to 1st entry position? At this point I would have worse case of price retracing, taking me out at break even on the first position and-25 on the 2nd position? Ie the same original risk.

Then I do it again? So at +50 from original entry I add a 3rd lot on a stop of -25, and also move 1st lot to +25, 2nd lot to break even, ie all the same stop figure - position 2 entry. So worse case is now a break even trade if price retreats to my 2nd entry position and this is on 3lots always keeping to your original entry ? risk!

Any help, comments much appreciated
Kate
Xx

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MightyOne
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Re: Box adding

Postby MightyOne » Sun Nov 02, 2014 11:29 pm

kate682 wrote:Thank you, MightyOne, have now read the entire thread. Has opened my eyes to trading off extremes. Thank you.

I'm struggling with understanding adding to a position; halving of risk when you add a 2nd position, and would really appreciate anyone checking if my understanding is right. Xx

My understanding is:: I have 1 lot with a 25pip box, ie that's the stop; 25 pips. Once (if) position does not get taken out, I add a 2nd position @ +25, moving the stop of the first position and 2nd position to 1st entry position? At this point I would have worse case of price retracing, taking me out at break even on the first position and-25 on the 2nd position? Ie the same original risk.

Then I do it again? So at +50 from original entry I add a 3rd lot on a stop of -25, and also move 1st lot to +25, 2nd lot to break even, ie all the same stop figure - position 2 entry. So worse case is now a break even trade if price retreats to my 2nd entry position and this is on 3lots always keeping to your original entry ? risk!

Any help, comments much appreciated
Kate
Xx


Let us say that you go short 1 lot starting with a 20 pip stop.
Price does not move but you double to 2 lots and reduce your stop to 10 pips.
Price again does not move but you double to 4 lots and reduce your stop to 5 pips.
What is happening? Your stop is moving from the extreme and trailing closer to the current price.
And that is what we are doing, trailing stops to normalize risk (in this case at the orig. risk of $20).

If you follow the mini pillar pattern then you went from 1 lot to 2 and then to 3 for a risk of $3 over 5 pips or $15.
Your next step is to take the money, set your stop back at a nice strong extreme, and re-enter for 3 lots for a max risk of $15 + any money gained.

Going back to your initial entry for a second, if your max risk is $20 over 20 pips then you can enter at any price within the box, not just at your maximum.

We trade from long term extremes because we are eventually trailing our stops behind large chart extremes during long term trends.

We don't need price to move to increase our size, we just need the confidence that we can get away with moving our stop closer.

Our goal is to reach max or near max lot size BEFORE a long term chart trends.
Imagine you have $1000 and you reach a lot size of $5/pip and ride a run for 200 pips to double your account, 2% risk for 100% reward.


But don't be fooled into thinking that you need to size your lots like a day trader.
A risk of 0.15% over 15 pips can reach a 100% gain just as easily as a risk of 2% if the trade is measured in weeks.

If 13 losses = 2% then you won't hesitate to double and redouble.
If risk is normalized then you are risking 0.15%, or less, no matter high high the lots go.

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Postby MightyOne » Mon Nov 03, 2014 8:59 am

I have been working on building a template for remembering cards and numbers ( https://www.youtube.com/watch?v=tGWjB_vOHI0 )

Attached is what I have so far...
now I need to think of 52 people & 48 "friends" of those people as well as their actions and prop :lol:
Attachments
memoryTemplate_02.txt
Template for remembering rank, suit, and number.
(980 Bytes) Downloaded 48 times

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Postby kate682 » Mon Nov 03, 2014 9:22 am

Thanks MightyOne for explaining, I must be pretty stupid because I am even more confused now. From your explanation, I understand it as I could actually be in at 4 lots at the same price but the stop would be factored in closer. I trade the dow. Is this a two stage process, first to generate money to add to the stop, 2nd is the trade set up?
Apologies
kate
Empirical Trader
Current trade music :- https://www.youtube.com/watch?v=sYQwiNH20mU

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Postby Captain Pugwash » Mon Nov 03, 2014 1:23 pm

Don't worry Kate

Even if the explanation does not suit your brain wiring - its bound to help someone else.

And for the same reasons keep asking questions - the answers help many silent forum menbers
"MOJO 1)Self-confidence, Self-assuredness. As in basis for belief in ones self in a situation. Esp/In context of contest or display of skill such as going into battle. 2)Ability to bounce back from a debilitating trauma and negative attitude YEH BABY

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