The ideas that I trade by:

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prochargedmopar
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Re: The ideas that I trade by:

Postby prochargedmopar » Thu Apr 14, 2016 5:35 pm

MightyOne wrote:
It transfers your small chart experience to larger charts.

Compare using an 80 pip stop and targeting 120 to 200 pips to a 5 SIXTEENS stop and targeting 7.5 to 12.5 macros.
With an 80 pip stop my brain looks at the large number and says "ok, I am risking 80 pips" because when it has a lot
of something to work with it goes into "sure, why not" mode.

The first question that I am going to ask when using 5 SIXTEENS is if I really need to risk 5 of something on this trade.
With 5 of something my brain looks at the small number and says "Five! Only five! How about we risk 2 or 3?"

This is the macro level (position size) and pips of risk:
01: 6 to 8
02: 10 to 14
04: 16 to 24
08: 24 to 40
16: 32 to 64
This is the macro level in lines of risk:
01: 6 to 8 ($16/pip, 16 x 8 = $128)
02: 5 to 7 ($8/pip,(8 x 2)7 = $112)
04: 4 to 6 ($4/pip, (4 x 4)6 = $96)
08: 3 to 5 ($2/pip, (2 x 8)5 = $80)
16: 2 to 4 ($1/pip, (1 x 16)4 = $64)
With pips you can't really see that our intent is to use a larger chart to get a better deal, comparatively smaller stops.

In the past I have told people to plan to trade a large chart and then don't; we are not so much interested in trading large
charts as we are reaching a specific goal within a specified amount of time using a certain position size.

Reduce risk, make it unlikely that you will take a big loss.
Price gapping 24 pips is not alerting you that there are fast profits to be made, it is telling you that you are going to get hit for 3 risk-boxes
in one blow and then tossed around for 3 more losses before moving in your direction.

People measure pips like they eye-ball stacks in poker, they see the stack across the table and they wonder why it is so hard to acquire it...
there is a very real and dangerous opponent guarding that stack, that's why :lol:
If you want that stack then you are going to have to take it piece by piece and if you ever take the whole thing it is because both players agreed
to flip a coin.


Not sure why but this post really got me to laughing.
Good Morning it is.
#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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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Fri Apr 15, 2016 1:51 pm

thepark wrote:
thanks MO. the concept makes sense. So the MACROS number 01, 02 to 16 acts as a divisor as you go up in timeframe to give you the experience of a small stop loss and also in the smaller chart where you are using 01 you would trader high dollar per pip.

i think my biggest obstacle is my longer working hours doesnt give me a lot of time to watch the markets so i need to plan everything out and have rules before i trade like what entries to look for, planned stacking scenarios, exit targets and such which hasnt allowed me to develop my flexibility in trading.

sometimes i would target the crash zone and being in decent profit i would hold on in hope to get target 1 even against adverse movement. this is because i need to stick with the system for the big wins that hit the target and beyond to make up for the losses i take. if i take small wins and the same full losses ill never be able to win. can you impart your wisdom on this or what kind of new mindset i should develop? im not good at applying your ideas to a tee quantitatively but i feel like i have enough of the pieces.


I would never go down to ONES, trading TWOS with a risk of 5 to 7 lines is many times better than trading ONES for 6 to 8 lines of risk.

If you want something bad enough then you will find the time, even if it costs you sleep.

There is no game better than Craps to teach you how to be a good trader.
You have players making bets on anything and their short-term success almost encourages you to take long shots.
You have dealers trying to encourage you to bet the 4th roll of the dice (breakouts) and leave your money on the table.
You have ladies with large breasts bringing you drinks to throw you off of your game (no woman, no cry)
The table itself is just a list of options with trading costs associated with it.

Among other things, craps will teach you that there is no one system that will make you money.
You will suddenly understand what TRO means by "[bet] what you see" & "take what you can".
You will understand that the game is about managing risk, manipulating the space of your bets, and positioning
yourself to get lucky.

You don't have an edge when you bet on the tables, you have an edge when you bet on yourself.

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Re: The ideas that I trade by:

Postby MightyOne » Fri Apr 15, 2016 2:04 pm

TRO wrote: "Trade what you SEE"


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Re: The ideas that I trade by:

Postby MightyOne » Fri Apr 15, 2016 4:25 pm

I have been trying to find a simpler way to explain everything for the Ideas 2 thread.

Taking the guesswork out of Space was the first step, using 1-2-3s to explain angles is probably the second.

How do you trade it? With a horizontal line AND a small chart, not a horizontal line ON a small chart; the price is the same, the foundation is different.

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Re: The ideas that I trade by:

Postby MightyOne » Fri Apr 15, 2016 4:39 pm

Here is a chart that TRO posted.

There are "breakouts" and there are "patterns".
Do you get it? Is it what you SEE?

Just_what_you_see.png
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Re: The ideas that I trade by:

Postby prochargedmopar » Sat Apr 16, 2016 2:35 am

MightyOne wrote:Here is a chart that TRO posted.

There are "breakouts" and there are "patterns".
Do you get it? Is it what you SEE?

Just_what_you_see.png


I see the 123's, (hooks)
I see the breakout,
I see them on bigger timeframe charts,
I see horizontal lines to define/limit risk.
So what's next?
#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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Re: The ideas that I trade by:

Postby MightyOne » Sat Apr 16, 2016 3:17 am

prochargedmopar wrote:
MightyOne wrote:Here is a chart that TRO posted.

There are "breakouts" and there are "patterns".
Do you get it? Is it what you SEE?

Just_what_you_see.png


I see the 123's, (hooks)
I see the breakout,
I see them on bigger timeframe charts,
I see horizontal lines to define/limit risk.
So what's next?


A 1-2-3 is not a "hook", hooks come after the 1-2-3 breakout.

There is a difference between seeing and perceiving.

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Re: The ideas that I trade by:

Postby prochargedmopar » Sat Apr 16, 2016 3:20 am

MightyOne wrote:
prochargedmopar wrote:
MightyOne wrote:Here is a chart that TRO posted.

There are "breakouts" and there are "patterns".
Do you get it? Is it what you SEE?

Just_what_you_see.png


I see the 123's, (hooks)
I see the breakout,
I see them on bigger timeframe charts,
I see horizontal lines to define/limit risk.
So what's next?


A 1-2-3 is not a "hook", hooks come after the 1-2-3 breakout.

There is a difference between seeing and perceiving.


Cannot have a 123 until AFTER a breakout.
Before that it is simply a RH or RRH.

So, a 123 IS a hook.

:-)
#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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Re: The ideas that I trade by:

Postby MightyOne » Sat Apr 16, 2016 3:39 am

prochargedmopar wrote:
Cannot have a 123 until AFTER a breakout.
Before that it is simply a RH or RRH.

So, a 123 IS a hook.

:-)


You are confused, please re-read his books :lol:

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Re: The ideas that I trade by:

Postby prochargedmopar » Sat Apr 16, 2016 5:13 am

MightyOne wrote:
prochargedmopar wrote:
Cannot have a 123 until AFTER a breakout.
Before that it is simply a RH or RRH.

So, a 123 IS a hook.

:-)


You are confused, please re-read his books :lol:


Nope,
On vacation.
I read my thread, your thread, and some emails.
Rarely anything else.
Time for some fishing and family fun.
#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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