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Any followers of Ray Freeman / Samurai Trader out there?

  #8 (permalink)

Lake Michigan (Summer), N. Miami Beach (Winter)
Trading Experience: Advanced
Platform: TOS, Ninjatrader
Broker/Data: Tradeovate, TOS, Dorman
Favorite Futures: indices/currencies/interest rates/energies/metals/grains
Posts: 422 since Oct 2009
Thanks: 230 given, 728 received

I last looked at his method in the summer of '16 - if you are interested in a particular setup of his (34b) - again, I suggest you watch it real time on a longer timeframe and use perhaps a higher timeframe as a filter (trend continuation if I recall).

Perhaps as I wrote watch two markets at once and don't overtrade and try to trade those markets w/n the 1st two hours of each session when they have the most volume.

My own trading methods that I trade intraday full time are as I stated (trend breakout pullbacks and pullbacks to trend) and I use two timeframes.

The 'methods' I use are irrelevant, though I use 3 slightly different approaches but they are all very similar in that they trade trend breakouts on pullbacks and pullbacks to existing trends.

The methods are irrelevant because although I have support and resistance on two time frames that are marked on my chart automatically (if applicable) for all the methods I use - I have so many rule-based checklist 'go or no go' parameters for each one and my own unique trade management & profit target and trail profit iterations (100% logical and again, rule based) that what I do and another trader do in the exact same session would not be the same. Even with the same software.

I would not use any software or indicators if I could visualize them on different timeframes with just my macro vision - but I can't - so I use different colors for lines, arrows and different entry types so when I am doing my chart work I associate things w/colors and patterns for repetition.

My suggestion for any trader is what I wrote in an earlier post a few months ago (for testing a method they want to make their own) that I will repeat it here:


With any nearly 100% rule-based methodology if you are primarily a non-discretionary intraday trader you are best to look at data sets that include

a) volatile, non-volatile, uptrending/downtrending markets
b) at least 500+ trades
c) 6+ months of valid testing w/daily & weekly results that include total trades (non b.e. trades) that give you total trades/win %/profit factor/reward to risk factor and total $$'s profit per trade

One must also decide trading hours, conservative margin per contract, if you will use a stop win/stop loss goal for day and/or week and many other factors.

99% of traders won't do this. They won't know there own interpretation of trade management so well it becomes robotic.

I've traded intraday since the late 80's and I still do all of the above w/the many intraday methods I have created for myself.

I never use live funds unless I have at least 6 months of data intraday under a variety of trading conditions. If trading conditions remain constant for many months of testing I then go out of sample and use my existing rules to see if the method is robust enough to put real money on the line.

Now, currently I am using abletrend because I am a w/trend breakout and w/trend pullback trader (my preference). However - w/any method no one uses it the same. I use it because it objectively shows me the short and long-term trend 100% visually and objectively without any input or work on my part so I can then concentrate what I am best on (creating trade management & entry techniques).

I used to do everything on my own but I just hit 50+ years old and that's too many steps involved for me now.

You must study it intraday for consistent themes that represent trading opportunities and you also must trade intraday markets at the correct times (high volume times) and trade markets that move alot of ticks (for w/trend breakout and trend pb methods).

There are no shortcuts - it's not a part-time hobby either or casual avocation. You want to risk and to make the real money - you work it like any other professional would.

I imagine myself as an engineer building a solid foundation from the ground up (whatever method I am testing/tweaking/creating) and then I 'stress' test it like a statistician going forward.

Most trader's simply don't have enough time in the market under a variety of trading conditions for their ideas to hold water consistently over time.

It is okay to make slight changes to something that is successful over time but it must be logical and something that through careful observation has a clear and logical edge and fits in with your existing setups.

Finally, you have to enjoy being uncomfortable w/risk & uncertainty. You must also be able to tolerate being wrong at least 35 to 50% if you are a non scalper. Day in, day out. Week in, week out.

Frankly, I really don't believe in being a 5 days a week intraday trader 48+ weeks per year. I'm good for about 25 weeks per year up to 35 weeks per year. I also use a stop-win goal for the week that is typically 2.75X's my modest weekly goal, so I have alot of weeks where after sometimes 2 - but more often 3 or 4 days each week I am done for the week and can turn off the charts.

I don't recommend smart guys to investigate intraday futures trading unless they are willing to risk at least 20K like it doesn't mean anything to them, and that is AFTER they have spent at least 2-3 years testing in sim with the guidelines I wrote about at the top of this post.

It's that difficult. However, if you find real edges over time - they stay that way forever in the right intraday markets.

I also do the same type of reasoning for trading daily diversified portfolios - you then really need to look at random 6 month periods of time that go back at least 10 years under a variety of conditions. It is grueling long-term work and takes much work to find the good consistent edges that stand the test of time as well.

For me, the only enjoyable aspect of trading is the unlimited profit potential without having to work with anyone else - a truly independent career."


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