The ideas that I trade by:

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jrtrading
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Re: The ideas that I trade by:

Postby jrtrading » Mon Mar 21, 2016 10:43 pm

aliassmith wrote:Yes and No.... It depends on the year MO posted. :D

You can accumulate with small charts so you can ride
large charts with OPM at good size.

You can accumulate using macro pip on large charts
and not worry about small charts.

MO has presented many ideas that are viable. I have
tested many of them. You will have to find what fits your
needs. I'm still a ZL, held profit fan personally.


Thanks for your reply aliassmith, makes sense.
I am trying to fit the accumulation process to options on stocks,
and keeping up with the latest ideas.
Again, thanks.

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 5:07 am

jrtrading wrote:I thought the first part of accumulation was with small stops on small charts, and then as the multiples became significant we turned to larger charts within the daily range - sorry I must be very slow -
but do I understand it correctly in that macro pips (i.e. larger stops on a larger chart) is the way to go for the whole accumulation process?


You might trade at $8 per ONE (aka "micro pips")
or $8 per TWO
or $8 per FOUR
or $8 per EIGHT
or $8 per SIXTEEN,
but you are never trading for more than $8 per unit of movement.

Larger macros don't have larger stops, every macro in the above example has a -$40 max stop.

If I make 6 macros trading FOURS then I have +6 macros for trading TWOS or ONES or EIGHTS or SIXTEEN.

I would love to make $800 when price moves 100 pips, but I don't want to suddenly lose $400 if price spikes down 50 pips.
Why not add pips using EIGHTS, then add pips using FOURS, then TWOS, and finally ONES? The risk is 8 times smaller &
the reward will be there when I am ready to claim it.

Higher volatility, larger macros.
Lower volatility, smaller macros.
That is all that you really need to know...that and stacking is sexy :D

MICRO_2_MACRO.png
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Last edited by MightyOne on Tue Mar 22, 2016 8:23 am, edited 1 time in total.

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 8:21 am

No, I don't sleep, just in case you are wondering :wink:

XAUUSDecnH1.png
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jrtrading
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Re: The ideas that I trade by:

Postby jrtrading » Tue Mar 22, 2016 11:27 am

MightyOne wrote: You might trade at $8 per ONE (aka "micro pips")
or $8 per TWO
or $8 per FOUR
or $8 per EIGHT
or $8 per SIXTEEN,
but you are never trading for more than $8 per unit of movement.

Larger macros don't have larger stops, every macro in the above example has a -$40 max stop.

If I make 6 macros trading FOURS then I have +6 macros for trading TWOS or ONES or EIGHTS or SIXTEEN.

I would love to make $800 when price moves 100 pips, but I don't want to suddenly lose $400 if price spikes down 50 pips.
Why not add pips using EIGHTS, then add pips using FOURS, then TWOS, and finally ONES? The risk is 8 times smaller &
the reward will be there when I am ready to claim it.

Higher volatility, larger macros.
Lower volatility, smaller macros.
That is all that you really need to know...that and stacking is sexy :D

MICRO_2_MACRO.png


Thanks for your reply, MightyOne, much appreciated.
I don't understand it all so will have to digest what's written -
Thinking in terms of reward-to-risk ratios and scaling stops with volatility makes sense.
Stacking is the same as doubling I think.

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Re: The ideas that I trade by:

Postby jrtrading » Tue Mar 22, 2016 11:42 am

I want to trade the way you trade, but I need it to be simple
so as to see consistency because it is lacking and things are becoming serious.

Find a pointy extreme and wait until price comes back, see it in context
(what price did between previous arrival and now) and let it show weakness -
accumulate pips and try not to lose, similar to the example you posted,
but perhaps on a larger chart, perhaps not. Accuracy pays I think.

I don't see cones but I understand the fifteen degree angled lines.

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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 4:47 pm

jrtrading wrote:I want to trade the way you trade, but I need it to be simple
so as to see consistency because it is lacking and things are becoming serious.

...


Trading is not simply placing an order, trading is everything that you do BEFORE, DURING, & AFTER the order.

It can be simple, but in order for that to happen you must think of everything beforehand.

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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 5:10 pm

jrtrading wrote:...
Stacking is the same as doubling I think.


"Stacking" is the use of OPM to trade at a higher pip value.

I double because it makes my life easier; any size can be doubled and anything doubled can be halved.

You could place a trade for 5 units and add 4 units to reduce your space to 55.5% or
you could place a trade for 6 units and add 3 units to reduce your space to 66.6% or
anything that you want to do really.

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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 6:01 pm

You have just made 5 macros and now you are looking at the macro chart.

You see: five 1" cubes, five 2" cubes, five 4" cubes, five 8" cubes, and five 16" cubes.

Even though the cubes vary in size they each contain the same dollar amount.
The size of the cubes simply determine the speed at which the amount is gained or lost.

Which do you choose & why?

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Re: The ideas that I trade by:

Postby jrtrading » Tue Mar 22, 2016 6:12 pm

MightyOne wrote:You have just made 5 macros and now you are looking at the macro chart.

You see: five 1" cubes, five 2" cubes, five 4" cubes, five 8" cubes, and five 16" cubes.

Even though the cubes vary in size they each contain the same dollar amount.
The size of the cubes simply determine the speed at which the amount is gained or lost.

Which do you choose & why?


You choose a cube wide enough to reach behind an extreme to protect you,
and then small enough to gain the fastest.

Edit: Accuracy pays (?) and there is a higher probability that price will move
50 pips in your direction than 500 pips.

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Re: The ideas that I trade by:

Postby MightyOne » Tue Mar 22, 2016 7:41 pm

jrtrading wrote:
MightyOne wrote:You have just made 5 macros and now you are looking at the macro chart.

You see: five 1" cubes, five 2" cubes, five 4" cubes, five 8" cubes, and five 16" cubes.

Even though the cubes vary in size they each contain the same dollar amount.
The size of the cubes simply determine the speed at which the amount is gained or lost.

Which do you choose & why?


You choose a cube wide enough to reach behind an extreme to protect you,
and then small enough to gain the fastest.

Edit: Accuracy pays (?) and there is a higher probability that price will move
50 pips in your direction than 500 pips.


If you gain 4 EIGHTS then you also have 4 of any other macro (let that sink in!).
If you gain 4 EIGHTS and you double your size then you have 4 FOURS.
If you gain 12 FOURS and you double your size then you have 12 TWOS; re-doubling will give you 12 PIPS (ONES).

I need you to understand the mechanics of macro-pip strategy (aka position sizing) before we can talk about trade strategy.

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