NEVER LOSE AGAIN!! - TheRumpledOne

September 14th, 2009, 04:11 PM

TheRumpledOne

There are TWO different "RAT" trades:

1) Reversing off DAILY high/low

2) Breaking out of previous green high or previous red low.

TRO can you use 5 min bars for a #2 type trade, or is it really best to use 60 min only for that type of trade?

thanks,

Jeff

September 14th, 2009, 04:25 PM

jdella

TRO can you use 5 min bars for a #2 type trade, or is it really best to use 60 min only for that type of trade?

thanks,

Jeff

Hi Jeff,

Look at post # 23. And don't be fooled and let go.

September 14th, 2009, 04:39 PM

Silvester17

Hi Jeff,

Look at post # 23. And don't be fooled and let go.

Silvester are you using this method on smaller time frame charts?

Jeff

September 14th, 2009, 04:41 PM

HJay

Yes, so this was #1) "Reversing of of Daily High".. granted it was not a huge move, but then again who knew..

BTW another just triggered and was much more successful here at the close..

Hjay what is the time frame on your charts min bars, range bars, etc? And are you just doing the # 1 trade or are you also doing the #2 trade as well.

Thanks,

Jeff

September 14th, 2009, 04:48 PM

jdella

TRO can you use 5 min bars for a #2 type trade, or is it really best to use 60 min only for that type of trade?

thanks,

Jeff

DO NOT BE FOOLED

PRICE IS THE SAME ON ALL CHART PERIODS.

The reason you enter a trade has no bearing on the outcome. You need to INTERNALIZE this.

Using these "rat" entries will NOT make your trade a winner. That's up to the market.

The "rat" entries have a STATISTICAL EDGE that can be exploited for profit.

During a 60 minute period, how many 5 minutes candles are there? 12. Do you think your chances of winning are better with up to 12 entries or 1?

Now, there are 24 hour bars in a day but only 1 previous daILy high/low. Do you think your chances of winning are better with up to 24 entries or 1?

DO NOT OVER TRADE.

September 14th, 2009, 04:54 PM

Which frequency distribution looks better to trade 5 minute or 60 minute?

September 14th, 2009, 04:57 PM

With proper position sizing, one or 2 winning trades nets you 2% or better.

September 14th, 2009, 04:59 PM

jdella

Hjay what is the time frame on your charts min bars, range bars, etc? And are you just doing the # 1 trade or are you also doing the #2 trade as well.

Thanks,

Jeff

These images are from 3 minute charts and I was just focusing on strategy #1 today..

September 14th, 2009, 05:01 PM

Rather than thinking in terms of chart periods, think instead of where price is RELATIVE to another price like the daily/weekly high/low.

September 14th, 2009, 05:02 PM

Hi TRO

you mentioned in the "all you need" thread that trend is just an illusion. This is certainly an opinion that goes against conventional "wisdom" and I would be interested to learn more on your views of this topic.

There are many, many trend following strategies out there and I'm sure some of them are quite successful. I, like many traders I guess, have been taught to "trade with the trend". When a dominant uptrend (downtrend) is evident, the path of least resistance is up (down), so following the trend should provide you with an edge. Many traders use a higher timeframe to make the dominant trend easier to see.

I would be very interested to hear more of your thoughts regarding trends/trend trading and whether trends have any merit for a rat trader.

Cheers
Simon

NEVER LOSE AGAIN!! - TheRumpledOne

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NEVER LOSE AGAIN!! - TheRumpledOne