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2011.01.04 THE RAT ADAPTS

Posted: Tue Jan 04, 2011 3:19 pm
by TheRumpledOne
2011.01.04 THE RAT ADAPTS

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Q) What happens when you combine the DAILY BUY ZONE with the RAT REVERSAL on a daily chart?

A) More cheese!!

Posted: Tue Jan 04, 2011 3:24 pm
by TheRumpledOne
On a Daily (D1) chart.

1) Red candle closes

2) Green candle closes

3) Go long at the Daily BuyZone trigger

4) STOP LOSS is 10 pips

5) Take whatever profit you can

6) If the rules do not mention it, then it is of no concern.

Remember, the RAT only turned left because the RAT "adapted" to it's environment. That is what is happening here - ADAPTATION.

Posted: Tue Jan 04, 2011 3:24 pm
by trueblueTEX
Hey TRO,

Is there actually an "Image" in your post? All I see is the word "Image" and mousing over it is just like mousing over text.

Posted: Tue Jan 04, 2011 3:26 pm
by TheRumpledOne
Yes, there is an image.

Posted: Tue Jan 04, 2011 3:45 pm
by TheRumpledOne
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The RAT REVERSAL on the daily chart is a "filter" for picking which pair(s) to trade.

Posted: Tue Jan 04, 2011 4:05 pm
by TheRumpledOne
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Works for RED rats, too.

On a Daily (D1) chart.

1) Green candle closes

2) Red candle closes

3) Go short at the Daily BuyZone trigger

4) STOP LOSS is 10 pips

5) Take whatever profit you can

6) If the rules do not mention it, then it is of no concern.

Posted: Tue Jan 04, 2011 4:15 pm
by GeorgeCh
Stupid question - what is the Daily BuyZone trigger and how is it calculated?

Posted: Tue Jan 04, 2011 8:30 pm
by TheRumpledOne

Posted: Tue Jan 04, 2011 8:56 pm
by TheRumpledOne
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Long trigger is open + 4.

You can see from the frequency distribution that over the last 100 days, this would be profitable more times than not.

Using what was learned from the BUY ZONE and the RAT should prove to be very profitable .

ADAPT OR PERISH!

Posted: Wed Jan 05, 2011 1:38 pm
by TheRumpledOne
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The RAT only goes LONG when price is ABOVE the weekly open and only goes SHORT when price is BELOW the weekly open.