Perrys Trading Platform

February 11th, 2011, 05:53 AM

monpere

I think when you are just learning a new system on sim, especially a system like this, where the entry signals are tedious because you have count price bars, count MA bars, check slope angles, and check thresholds for multiple indicators, etc. all in real time, then it becomes important for you to take as many signals as possible while you are on sim, so that identifying the entries will become 2nd nature to you.

You don't want to be trading live, and realize, Oops I forgot to check this indicator or that threshold, or was the tail of this bar really touching that MA, or was that MA really going down for 2 bars, etc, and only realizing this after you've hit the buy button. This is where taking as many trades as possible in sim, which meet all your criteria, becomes crucial. You want to get to the point where you can look at a chart and recognize your entries in 3 seconds flat, or better yet, to the point where you can see a signal setting up before it actually fires. In my personal trading method, I can see a signal setting up multiple bars before the signal actually fires.

So, although I understand the psychological reasons of quitting while you are ahead, especially for new traders, that should not come into play when you are learning a new system, and proving to yourself in sim that that system works for you. I would advise you to take a couple of hours and check out the entry signals indicator for this method to see if that might help you with all the tedious signal identification tasks, then you can spend more time on analyzing market conditions, and other discretionary data in order to judge which signals to take or not.

The other thing I would caution you on, is to trade the simulator exactly the same way you would trade live in every aspect. Don't sit through more heat on a trade in sim then you would probably sit through if you were trading live. You also said you are trading 11 contracts, I don't know the size of your account, but don't trade more contracts in sim then you could possibly afford to trade live. If you are trading part time, don't trade the sim during times that you would normally not be trading live, etc.

Thanks, monpere, for taking the time to write a great post.

1) I traded on the Sim exactly the way I would trade if I were trading live. I'm unfortunately accustomed to taking a lot of heat in a trade as I freeze up under pressure. You're right, having more Sim time would give me an opportunity to work through that bad habit and give me more experience in general. Regarding contract size, I will be trading live with 11 contracts so that is what I'm practicing with. I didn't pick this number out of the air and did a lot of soul searching first. The prime reason is that I want to take as few trades each day as humanly possible (but still have a goal that turns me on or I will lose interest, not be as focused, make lazy mistakes, and overtrade). Nothing made me happier today than taking only two trades.

2) I now understand how trading real time is a lot different than looking at the chart at the end of the end in hindsight. I do see the setups as they form in advance, but I need more practice front running the last indicator before it fires. I'm worried that if I place a limit order before the last indicator fires and then it doesn't go off, my limit order will get triggered needlessly. But that's wrong thinking. So I should use the Sim, as you suggest, to practice more.

3) I guess I really have to check out that entry-signal indicator you have referred to a couple of times now. Thanks for being persistent. I can probably find it on the other thread and will ask someone there which one it is.

Again, much appreciation.

February 11th, 2011, 10:56 AM

I'm a newbie to Mike's, looking for the FoceIndexV2 file for NT7. Is it no longer available?
If it is not, is an alternate indicator available for Perry's trading method?
Would a version of Elder's FI work?
Thanks,
Mark

February 11th, 2011, 11:40 AM

pmb174

I'm a newbie to Mike's, looking for the FoceIndexV2 file for NT7. Is it no longer available?
If it is not, is an alternate indicator available for Perry's trading method?
Would a version of Elder's FI work?
Thanks,
Mark

There you go.

February 11th, 2011, 11:45 AM

Thank you for the quick response and the file!
Mark

February 11th, 2011, 01:49 PM

pmb174

Thank you for the quick response and the file!
Mark

Click the Thanks button on his post

Mike

February 12th, 2011, 09:01 AM

Hi Perry

I like to ask you about ADX.

I'm trading on 3 time frames. 3min,12min,24min. Larger for direction small to enter.
When ADX on 12 and 24 is down and flat under say 20 can I make a conclusion that we are trading in the range?

Thank you
TickVix/Gregory

February 12th, 2011, 11:21 AM

tickvix

Hi Perry

I like to ask you about ADX.

I'm trading on 3 time frames. 3min,12min,24min. Larger for direction small to enter.
When ADX on 12 and 24 is down and flat under say 20 can I make a conclusion that we are trading in the range?

Thank you
TickVix/Gregory

Your higher time frame is always the leader. So if you consider anything below 20 as "NO TRADE" then do not take entries on lower time frame even if they look good. Generaly they will be short lived.

February 12th, 2011, 03:57 PM

I played around with setup1 this weekend using the 6B 4Range like one of the most recent charts posted. I added the following filters to filter out trades and to try to get better entries: long setup bar has to be green, bar prior to setup bar has to be red (to insure we're pulling back to 5ma), bar prior to setup bar has a low > 5ema (to avoid congested bars), Enter at the close of the setup bar (open of new range bar for best entry price) , fixed 10 tick target, fixed 6 tick stop, Breaken+1 at 6 ticks. Here's what it looks like it would have traded like on Friday. Not bad, especially since reward/risk is almost 2:1 Arrows with circles are losers, arrows with horizontal bars are break even.

By the way, I am a mechanical trader, I use no discretion, I follow the rules of a system rigidly, I take every trade because I rely on the expectancy of the system for profitability, and as a fixed target scalper I want systems that give me between 10 to 20 trades a day.

February 13th, 2011, 06:41 PM

monpere
There appears to be three MA's on your chart.
Would you explain what they are?

February 13th, 2011, 07:12 PM

jmacn

monpere
There appears to be three MA's on your chart.
Would you explain what they are?

5EMA, 20EMA, 50EMA. I use 20EMA/50EMA on every chart to determine trend. The gray and yellow squares on the 50EMA are indicating congested price action. As a scalper, I love chop, but I don't like congestion.

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