TRO BUY ZONE - PROGRAM FIX

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TheRumpledOne
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Postby TheRumpledOne » Sat Jun 07, 2008 4:26 pm

winny:

If you THINK ABOUT IT, where to put the stop loss comes natural..... when the price moves out of the opposite zone!!

Take profit when you can... you can always let some ride.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby winny » Thu Jun 12, 2008 10:47 am

TRO, I used the Buyzone 4 times, and I had 4 winners.
Do you use 9:00 AM GMT for the open of the London market ?
I used 8:30 AM GMT, but noticed that it can be tricky.
At 8:30 AM you may get a signal (signal short), while the open at 9:00 AM
can be completely different (and signals a long).
What would be best in your opinion ?

I pull the trigger when I get that buy signal (between the blue) and let it ride for a moment. Then take profit. But I wonder if you do take second (or perhaps third) trades after you made that first trade at the open.
The London session is from 9:00 AM GMT - 6:00 PM GMT.
And if you do, what do you look for ?
Do you only look at the 60 min candle after the open, or also at lower time frames ?
Several signals can show up in that session from 9:00 pm - 6:00 pm,
in which al candles show green colours above the blue lines.
But not every trade is profitable, and one can loose all winnings that were made at the open. What is your opinion/advise ?

Thank you.

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Postby winny » Thu Jun 12, 2008 12:39 pm

TRO, noticed in todays US session (start 1:00 PM GMT) on EUR-USD
that on all time frames the price moved into the sell zone.
It stayed there for about 25 minutes, then price moved back up to
the open. Price made one fast move into the Blue Buy zone on all time frames after 30 minutes, and suddenly dropped 40 pips in a very fast move. So your setup was right, but one can get stopped out either by market makers or professional players when using these tight ranges.
How do you handle and trade in this situation ?

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Postby TheRumpledOne » Fri Jun 13, 2008 2:09 am

Losses are part of the trading game. Focus on the wins.

I only use 2 buy zones for reference, the NY open and the NY close. That's what works for me.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby winny » Tue Jun 17, 2008 4:44 pm

TRO, what is the average amount of pips/profit that you are satisfied with on a daily basis using the Buy Zone (EUR-USD) ?

I agree that this works, but only when one is satisfied with a few pips each day. Its very difficult to stay profitable using the 5 minute chart.
Professional players do stop you out often.

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Postby TheRumpledOne » Tue Jun 17, 2008 5:00 pm

If you net 3 or 4 pips, ROA (return on assets), you are on your way to being rich.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby jay3409591 » Sun Jul 20, 2008 7:17 pm

After reviewing the buy zone strategy on several of the cows provided by TRO, I have a few comments and questions.

First, it seems that orders would have to be generated on an intrabar basis and this results in a fair amount of stoplosses where the stop is set at the open. I understand that a prereq for entry is that the 60-min candle is green, BUT I don't see how this adds any new information beyond the buyzone, since the current 60-min candle will by definition be green if price crosses into the zone from below and vice versa. TRO, can you clarify what the purpose of the 60-min candle's direction is?

Second, given the large amount of 'wiggle' at some point during the day where the price doesn't make it to the top of the buyzone, there needs to be rules for exit that take advantage of profits available when price extends beyond the buyzone in the trade's direction. I know that TRO has said to exit when price stops moving but wondered if you could expand on this? There seems to be two conflicting approaches here: 1) the goal is to capture a dime's profit in a reliable manner, and 2) the goal to let profits run beyond the buy zone. One thought I had was to sell 1/2 of the position when a dime profit is available and let the rest run with a stop moved up from the open to the bottom of the buyzone. TRO in your experience, can you tell me what is a reasonable expectation for profits after price has exceeded the buy zone? Seems to me that with a scalping mindset that it's better to view increases beyond the buy zone as icing on the cake rather than the main goal of the trade, but then it would also be important to take profits as quickly as possible.

Another question is whether the best way to capture the dime profit is to buy at the bottom of the buyzone and sell/cover at the top, or to buy anywhere in the buyzone and just wait for the dime profit to become available?

Finally, when using the buy zone indicator in radar screen, do you set it at 1 or 5-min intervals? And, if the price does enter the buy zone will the RS alert on an intrabar basis, or will it have to be referencing the bar which has just closed?

Thanks.

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Postby TheRumpledOne » Sun Jul 20, 2008 8:36 pm

Jay:

The Buy Zone is too simple for most to understand.

All the traders afraid of "whipsaw" just sit on the sidelines and miss out.

So long as you trade from the TOP 20 COW LIST that I post, you should make plenty of money. The only stocks I trade with this method are AAPL and RIMM. Just look at their statistics and/or a 1 minute chart and you'll understand.
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Postby jay3409591 » Sun Jul 20, 2008 10:17 pm

Thanks for your response, TRO. I think your method doesn't make whipsaws too much of a problem, though they are to be expected occasionally. I still would like to know, however, how you manage trades that exceed the buy zone in either direction - as these seem to be important profit opportunities but some guidance as to when to exit would be appreciated. If you can't provide this, an example of when you exited aapl or rimm after the price had exceeded the BZ would be fine.
thanks.

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Postby jay3409591 » Sun Jul 20, 2008 10:23 pm

And to followup on the buy zone tradestation radar screen questions, can someone explain what the following values in the Buy Zone mean:

"X Open 0.1300"
"ABOVE 0.5300"
"Wait -0.0100"
"SHORT 0.0800"
"BUY 0.0400"

Also, the dailyopen column corresponds to the day's open, correct? (There's discrepancies for me in this column and the equity's price at open)

Finally, can someone clarify what the columns "Candle" and "Dly Candle" mean exactly?
thanks.

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