Favorite Futures: Index,Currency and Energy futures
Posts: 1,701 since Jan 2010
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The FI is EMA(13) and NOT HMA(13). The drawdown of 3x the gain, is not there to be taken, I explained in a previous reply that the Stop Loss of 12 is a CATASTROPHIC stop loss and not one that you wait to be played out. IF you see you on in the wrong direction GET OUT LONG before the the SL. Regarding your other comment please give an example chart.
This is the piece of the puzzle I curiously missed.
For long trades, the +DI must be pointing up and above the ADXAbove (blue above green).
It was a little fuzzy in my mind when I was reading about through the thread. Perhaps because it wasn't specified as a "rule", I think I glossed over it but this is crucial to the methodology.
Thank you for bringing this to my attention, monpere.
Now, everything has come together. The light is finally shining brightly.
I go back days and days and I see the setup clearly. When to trade and when to stay out.
Plus, the 6B is calling my name loud and clear. Maybe because the dollar value is half other instruments the big boys stay away, but the candles are almost wick-free and full bodied and smaller, so there are more candles and more movement and better trending than the 6E. The way I see it, for long trades (opposite for shorts), if I genuinely wait until the EMA(5) move up above the EMA(50), then it automatically is above the EMA(20) too, I could realistically have a 10 tick target and 10 point stop. Of course, everything else has to be lined up, too. In any event, I'm going to try it out on the Sim. I feel confident for the very first time. I can even visualize the setup in my mind now without looking at the chart.
Last edited by plethora; January 22nd, 2011 at 08:17 PM.
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I went through the whole thread again this weekend trying to identify all the 'discretionary' items
that have been mentioned in considering trade selection and/or management. I am the mechanical type, so unfortunately, I don't seem to have one discretionary gene in my body, so I am attempting to get a sense of the discretion generally applied to this method. Let me know if anyone has additional inputs or corrections.
* CHOP: When the ADX is BELOW BOTH the +DI AND the -DI (Post #20, #430)
* Do not trade when ADX is below 25 (Post #264, #349)
* IF ADX is yellow (CHOP) but hooked up, and all other rules are met, trade can be taken (Post #168, #327, #391, #578, #826)
* No trade when target will have to challenge most recent pivot high/low (Post# #57, #97, #155, #423, #697)
- No trade when target will have to challenge a Murray line (Post #166, #423, #697)
- Exit trade or take partial profit if trade is approaching a Murray math line, you should not have been in that trade anyway righ? (Post #175, #210, #234)
- If trade breaks the previous bar low, get out of a long trade (vice/versa for shorts), hence stop 2 ticks below that bar (#293)
- END OF TREND: When the ADX is ABOVE BOTH +DI and -DI, once the ADX turns DOWN, this is usually the Top or Bottom (Post #20, Post #78, #430)
- If trade is not going in intended direction after a few bars, exit the trade (Post #505, #790)
- Do not trade 5min before and 5 min after ForexFactory 'High Impact' News events (Post# 387)
- Traded instruments 6A, 6B, 6E, 6S, 6C, 6J, TF, EMD, NQ, YM all on 4 Range bars. (Post #532)
- Best instrument to trade to start out is 6E (Post #801)
- Most seem to prefer trading 6E 4 Range (Various)
- Best trading times during the day (Post #521)
o Stops are 2 or 3 ticks behind bar previous to entry bar (#281, #412)
o On a 4 Range chart, Stop Loss at 6-7 ticks, Target 1 at 4 ticks, Break Even at 5 ticks, additional contracts as runners (Post #281, #412. #426)
- Catastrophic stop loss at -12 ticks (Post #786)
Alternate Trade Selection
- Watch for setup on 8 Range chart, and Enter Trade once trade also sets up on 4 Range chart, while 8 Range chart setup is still valid (Post #465)
- SMA(50) can be used for overall market direction. Some may prefer to only trade with the direction of the SMA(50). (Post #760)
- Indicator that identifies Perry's trading platform entries (Post #821)
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Great conclusion, it's important for me that 4 and 8 range are set correct on TRADE! I would also add that you set your charts to DELAY DATA to the minimum that is 100ms. (right click on every chart/properties/display update interval)On NT6.5 users can set it to 0. On NT7 it's default half a second but minimum 100ms. So anybody with 6.5 is at least 100ms faster than you.
So... how's the trading with it ??!!!!
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