Day Trading - page 5
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et_phonehome_2,
Thanks.
frantacech & skypilotfx,
Thank you for the additional comments. I believe that these types of discussion brings one closer to achieving success, as opposed to hundreds of chart attachments depicting profitable strategies.
daet,
You've brought up some valid points that I feel need to be addressed. I'll put together some personal thoughts in the next post.
I believe the system you're working with is the familier 1,2,3 pivot breakout
Correct. However, sometimes (especially on the 1 min) you will not see those "text book" 1-2-3 patterns. The key is price. Think about the floor traders, and tick readers. These guys are not visually drawing W's or M's in their heads... they're simply keeping a loose tally of the money flow and profit taking momentum. When the price breaks their last "mentally noted" value... they're in. Try this once with only the ticker window open... it's pretty interesting.
The problem for me is identifying a valid pivot as there are allot of false pivots.
Whatever pivot you deem to be valid - IS VALID. Be clear minded when you look at the 15 min for your set up. "What is my feeling about the general direction of the money flow?". "Does the movement have enough momentum for for me to grab 10 pips out of this deal?"
If I had to guess, Daet, I would say you are making a lot of trades in a single session? The reason I say this is because, I too, suffered from a similar ailment. In the beginning of the session I'd bang out 3 to 5 trades and be very impressed with myself. However, and you know how this story ends, by the end of a long night - 7 to 10 trades later... the chart stops communicating with you. And then, things turn really ugly.
You would then stay long for the duration of the move up as long as the pivots formed on the way up are not violated.
No. You would not stay long... you would call it a night, remember. This is why I precisely stated no more than 2 trades... preferably one. Forget that other jazz about letting your trade run, watching the trend line breaks. These concepts do work, but not in our context. This is day trading... we're trying to make money from the noise that's hidden in those daily bars.
Can we play a little game next week:
Let's pretend that I'm your boss. The first 3 posts of this thread was a briefing that you received from me upon your hiring. Every single night when you come in to work, I expect you to do the job I hired you for. I'm not paying you to be slick, I don't care about your previous techniques, and I definitely don't want you trading like a cowboy for my firm. You were hired to specifically follow the protocol of this firm. If you do a good job, you will be rewarded with a "cap-less" salary that will inflate beyond your wildest imagination. If you don't follow protocol... you will be fired. Here's the deal, I don't care if you're profitable or not... the only thing I care about is that you follow company guidelines.
What do you say? Do you want try to give this experiment a shot come Monday? If you say yes, I'll expect to see your trading log for next weeks session (an audit, of sorts).
Let me know either way.
MM
don Miguel and don Jose Luis Ruiz
http://www.selfhelpnetwork.wichita.edu/images/pdf/Module1--TheFourAgreements.pdf
The Four Agreements
Toltec Wisdom by Don Miguel Ruiz M.D.
Agreement One:
Be impeccable with your word
Speak with integrity. Say only what you mean. Avoid using the word to speak against yourself or to gossip about others. Use the power of your word in the direction of truth and love.
Agreement Two:
Don’t take anything personally
Nothing others do is because of you. What others say and do is a projection of their own reality, their own dream. When you are immune to the opinions and actions of others, you won't be the victim of needless suffering.
Agreement Three:
Don’t make assumptions
Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness and drama. With just this one agreement, you can completely transform your life.
Agreement Four:
Always do your best
Your best is going to change from moment to moment; it will be different when you are healthy as opposed to sick. Under any circumstance, simply do your best, and you will avoid self-judgment, self-abuse and regret.
Hi Mr. Marketz,
Thank you for sharing this, it is very much appraciated.
I have a question or two though.
When you trade retracements and pivor breaks, this usually happens with higher volumes and a lot of volatility. Usually a resistance or support is not broken on lower volumes. So, that means you need a fast responding server to make your trades. Which broker do you recommend for this?
I have a rule that says that I don't want to go short unless the 14rsi (my market pressure gauge) is below 50 and don't go long unless the 14rsi is above 50. Would you say that with this method that is usually the case?
When precicely do you go in? A pivot is not broken on 1 or 2 pips, even 10 pips sometimes is not enough. Also, why wait until it is broken, why not trade the bounce of the pivot? If you look at the chart you see 3 or 4 bounces vs. one break. That means at least 3 more trading opportunities. Also, and here is a good tip: If you are in the range between a support and resistance, the chances are bigger that the price you entered on will occur again and thus any mistake you made can be undone or your losses can be reduced. When breaking a pivot and you are on the wrong side of the trade, your price might not come back at you for a long time, you would have to close at maybe a high loss. Am I correct?
Thanks,
Ilovepippin.
BTW. this is not to criticize , I am trying to understand and learn as much as I can. Usually that works best by asking questions. I think you are completely right on your trading philosophy.
For instance, I traded on a demo, 50k into 1M within 3 weeks. Cowboy trading with drawdown of 90%. But when given rules, like max drawdown and max trades, I could not make a substancial profit. I am really benifitting from posts like yours.Thx.
When you trade retracements and pivor breaks, this usually happens with higher volumes and a lot of volatility. Usually a resistance or support is not broken on lower volumes. So, that means you need a fast responding server to make your trades. Which broker do you recommend for this?
I don't think we're talking about the same thing here. When I reference pivots... I'm literally referring to the previous turning point in the chart. Not some barrier that the market price has been testing for the last few hours, days, or weeks. The only thing that is relevant with this technique is the PA... at that precise moment. I don't care where the market opened that session, yesterday's high/low, fib levels, psychological numbers, etc. The only thing that matters is the recent price push (15Min), and its current phase in the cycle (1 Min). You seem like you're somewhat of an intilect...think physics. A ball never comes to a dead stop after an initial bounce... (unless it's a canonball
... I think I may have traded a few cannonballs before.
I have a rule that says that I don't want to go short unless the 14rsi (my market pressure gauge) is below 50 and don't go long unless the 14rsi is above 50. Would you say that with this method that is usually the case?
Never checked it against the RSI. If you prefer to take trades only with RSI direction... be my guest. Just make sure everything else mentioned is still valid (1&15).
When precicely do you go in? A pivot is not broken on 1 or 2 pips, even 10 pips sometimes is not enough. Also, why wait until it is broken, why not trade the bounce of the pivot? If you look at the chart you see 3 or 4 bounces vs. one break. That means at least 3 more trading opportunities. Also, and here is a good tip: If you are in the range between a support and resistance, the chances are bigger that the price you entered on will occur again and thus any mistake you made can be undone or your losses can be reduced. When breaking a pivot and you are on the wrong side of the trade, your price might not come back at you for a long time, you would have to close at maybe a high loss. Am I correct?
I think I touched on this up top. We're not discussing the same pivots.
Let me know if I'm misunderstanding something,
MM
Okay, I see. I was thinking trendlines as opposed to pivots. From the charts you provided it looked like you meant trendlines as opposed to pivots. My mistake.
Still, when do you consider a pivot breached?
And what broker do you recommend for a fast response time? Scalping off 1 and 15 minute charts with high volatility is a fast reaction game.
Thx
I have question about your MM.
Script use fixed risk 10proc. Hmm
I am thinking about it fixed ratio ... with delta or Lead risk - it is combination.
Money Management
Compare MM
http://www.ron-sk.com/MM/Lead_Risk/Porovnanie.htm
Okay, I see. I was thinking trendlines as opposed to pivots. From the charts you provided it looked like you meant trendlines as opposed to pivots. My mistake.
Still, when do you consider a pivot breached?
And what broker do you recommend for a fast response time? Scalping off 1 and 15 minute charts with high volatility is a fast reaction game.
ThxWhen a previously identified pivot (high or low) is surpassed by current price.
Unfortunately, I cannot make any broker recommendations (I'd like to keep this neutral). Things to look for when shopping around are
1.Time minimum per order.
2. Scalping restrictions -any broker with scalping restrictions is a NO-NO. (Yes, even for long term traders) It reeks of "funny business".
What ever works you, Fran.
Can we play a little game next week:
Let's pretend that I'm your boss. What do you say? Do you want try to give this experiment a shot come Monday? If you say yes, I'll expect to see your trading log for next weeks session (an audit, of sorts).
Let me know either way.
MMThis reminds me of The Turtles Experiment mixed with a dash of turning Eliza Doolittle into a lady. LOL.
fxnorth