DAILY WICK ZONE TRADING

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Fri Dec 16, 2016 5:35 pm

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Fri Dec 16, 2016 5:38 pm

MightyOne wrote:
waynehenderson36 wrote:Thanks Tro, but I meant when do you move your stop loss? And how do you manage the trade when it's in play?


It is more accurate to call it a "less profit" than a "stop loss" as nothing short of taking profit is going to "stop loss". :lol:

If you did not take money off of the table then you should not even think about moving your stop.

How exactly is a trade (all trades?) managed? That depends on YOUR exit playbook; the one that TRO is going to tell you to write:



MO, you said something like, "if you are not willing to add to the trade, then exit the trade." I have been pondering that for a while...

How often do you ask/answer that question?
Once per bar?
Once per tick?

Add or exit? Very simple!
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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Fri Dec 16, 2016 7:33 pm

TheRumpledOne wrote:
How often do you ask/answer that question?
Once per bar?
Once per tick?

Add or exit? Very simple!


Price moves, it sparks a question, & an action is taken based on a conclusion.

The first three entries add up to one unit and each additional entry is considered an addition; you don't need to
worry about moving your stop until trade 4, at which point you start moving your stop 25% closer to the current price
after each new entry.

Trade 1-3:
1) because I can, BUY!
2) because price is higher than something, BUY!
3) because I am not getting out of this trade, BUY!

Trade 4+ you are simply thinking about your new stop location.
a) the new stop is acceptable, add.
b) the new stop is not acceptable, I cannot add, so I must exit.

You cannot take too many actions, it is self limiting.

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Re: DAILY WICK ZONE TRADING

Postby waynehenderson36 » Fri Dec 16, 2016 7:35 pm

I understand MO, thank you. But wondered how Tro manages this strategy to give me an idea how to start looking at various options....

Tro when do you move your stop loss with this strategy as I saw on the rat posts you move the stop loss when trade is +5

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sun Dec 18, 2016 1:36 am

MightyOne wrote:
TheRumpledOne wrote:
How often do you ask/answer that question?
Once per bar?
Once per tick?

Add or exit? Very simple!


Price moves, it sparks a question, & an action is taken based on a conclusion.

The first three entries add up to one unit and each additional entry is considered an addition; you don't need to
worry about moving your stop until trade 4, at which point you start moving your stop 25% closer to the current price
after each new entry.

Trade 1-3:
1) because I can, BUY!
2) because price is higher than something, BUY!
3) because I am not getting out of this trade, BUY!

Trade 4+ you are simply thinking about your new stop location.
a) the new stop is acceptable, add.
b) the new stop is not acceptable, I cannot add, so I must exit.

You cannot take too many actions, it is self limiting.


Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Sun Dec 18, 2016 7:30 am

TheRumpledOne wrote:
Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?


Moving a stop to "protect profit" is not the same as moving a stop to normalize risk (creating a new position).

More size means less space.

You know that if you double your position size that your space is halved; it is not that you are moving your stop but that you are keeping everything the same.

Assuming price does not move:

20 pip stop: 1 + 1 + 1
+1 = (3/4)20 = 15 <--Stop is moving closer, risk is the same: $3 * 20 = $4 * 15
+1 = (4/5)15 = 12 <--Stop is moving closer, risk is the same.
+1 = (5/6)12 = 10 <--etc
+2 = (6/8)10 = 7.5 <-- yes 6/8, not a word out of you! lol.
+2 = (8/10)7.5 = 6 <---profit is now 1% per line.

To keep it simple, we just move the stop 25% closer:
20, 15, 11.2, 8.4, 6.3, 4.7, ... you just halve your space twice (just eyeball it, you are going to close it out if it is not working anyways).
The 1.3 pip difference means that you will get stopped out for +13 pips ---> (10/1)1.3
for a total loss of 7 pips at .1%

All that you have to remember is:
1) your stop doesn't move until your 4th entry
2) you can get out whenever you want
3) risk is normalized by reducing your total space, at the time of entry, by 25%.

Starting at +.1% per line, this is what my progression looks like:
1 + 1 + 1 + 1 + 1 + 1 + 2 + 2 + 3 + 4 + 5

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sun Dec 18, 2016 7:39 pm

MightyOne wrote:
TheRumpledOne wrote:
Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?


Moving a stop to "protect profit" is not the same as moving a stop to normalize risk (creating a new position).

More size means less space.

You know that if you double your position size that your space is halved; it is not that you are moving your stop but that you are keeping everything the same.

Assuming price does not move:

20 pip stop: 1 + 1 + 1
+1 = (3/4)20 = 15 <--Stop is moving closer, risk is the same: $3 * 20 = $4 * 15
+1 = (4/5)15 = 12 <--Stop is moving closer, risk is the same.
+1 = (5/6)12 = 10 <--etc
+2 = (6/8)10 = 7.5 <-- yes 6/8, not a word out of you! lol.
+2 = (8/10)7.5 = 6 <---profit is now 1% per line.

To keep it simple, we just move the stop 25% closer:
20, 15, 11.2, 8.4, 6.3, 4.7, ... you just halve your space twice (just eyeball it, you are going to close it out if it is not working anyways).
The 1.3 pip difference means that you will get stopped out for +13 pips ---> (10/1)1.3
for a total loss of 7 pips at .1%

All that you have to remember is:
1) your stop doesn't move until your 4th entry
2) you can get out whenever you want
3) risk is normalized by reducing your total space, at the time of entry, by 25%.

Starting at +.1% per line, this is what my progression looks like:
1 + 1 + 1 + 1 + 1 + 1 + 2 + 2 + 3 + 4 + 5


I will have to let all of that soak in.
Thanks, MO.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Tue Dec 27, 2016 8:18 pm

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IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Thu Dec 29, 2016 5:16 pm

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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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Re: DAILY WICK ZONE TRADING

Postby courier12 » Sat Dec 31, 2016 6:25 pm

Hi TRO,

Wish you Happy New Year!

Quick question: When looking at the daily wick zone, do you look only at yesterday's wick zone or also a wick zone from say 2-3 days or even 2-3 weeks / months back?

I understand you look at the weekly and H4 wick zones as well, but just refering to the daily wick zones, does it make sense to look at the wick zones on daily from the earlier days instead of only yesterday?

Hope this makes sense. Thank you

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