AHG - Profitable Strategy for Struggling Traders

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Anek,

Wondered if you might make a few notes on my attached chart. Last two days I have gotten run over picking up nickels infront of an Exxon tanker truck.

Shorted one rally too many, last hour especially turned a profitable day into a loss.

Shorted rallies..even though it seemed like a congestion pattern.

Thanks mate!
 

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Quote from anvil993:

Anek,

Wondered if you might make a few notes on my attached chart. Last two days I have gotten run over picking up nickels infront of an Exxon tanker truck.

Shorted one rally too many, last hour especially turned a profitable day into a loss.

Shorted rallies..even though it seemed like a congestion pattern.

Thanks mate!
More...

Here is what I see.....

Hope it helps.

Anek
 

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Quote from Anekdoten:

Anek's Big Rule of 3

1) Spot the Trend, it is your ONLY friend.

Up, Down, Sideways, All over the place ? Only up or down interests us. Odds in our favor.

2) Spot the Entry

Do we have one ? Should we have one ? Use your tools for confirmation, not the other way around.
Your eyes go 90% of the time on price. Specifically on those highs and lows.

3) Spot the Chop

This kills us and reverses us. No one is forcing you to trade as the market is always there.

Anek
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I came across this thread last night and have been scanning through the posts. What you are doing is remarkably similar to my method. So much so, if I didn't know better, I'd say someone has been looking over my shoulder!

Main differences are I don't use any indicators, although I did spend years trying prove their worth. I simply found I could trade better without them. In addition, I use regular OHLC bars set to constant volume data and monitor market internals for strength of trend. To me, HA distorts the price action, especially on reversal pattern bars, which is my mainstay for entries and stop placement.

All in all though, your method and mine are built on the same principle of HH/HL/LH/LL's. As such, I thought I would drop by and applaud you for sharing a very simple, yet quite lucrative style of extracting money out of the markets each day. I'm always amazed as to how few traders grasp the concept of price action being the closest thing to the holy grail they will ever encounter. People like you are far and few between, and those following your thread will be well served if they decide to follow the generous sharing of your wisdom. Well done, sir!

Regards,

st
 
Quote from Stealth Trader:

I came across this thread last night and have been scanning through the posts. What you are doing is remarkably similar to my method. So much so, if I didn't know better, I'd say someone has been looking over my shoulder!

Main differences are I don't use any indicators, although I did spend years trying prove their worth. I simply found I could trade better without them. In addition, I use regular OHLC bars set to constant volume data and monitor market internals for strength of trend. To me, HA distorts the price action, especially on reversal pattern bars, which is my mainstay for entries and stop placement.

All in all though, your method and mine are built on the same principle of HH/HL/LH/LL's. As such, I thought I would drop by and applaud you for sharing a very simple, yet quite lucrative style of extracting money out of the markets each day. I'm always amazed as to how few traders grasp the concept of price action being the closest thing to the holy grail they will ever encounter. People like you are far and few between, and those following your thread will be well served if they decide to follow the generous sharing of your wisdom. Well done, sir!

Regards,

st
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ST,

Thank you for the kind words, I will study your suggestions in detail considering you trade using a similar approach.

Appreciate the input.

Anek
 
Quote from Anekdoten:

ST,

Thank you for the kind words, I will study your suggestions in detail considering you trade using a similar approach.

Appreciate the input.

Anek
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No suggestions intended, just comparing the slight differences. :D

Keep doing what works for you.

st
 
Quote from Stealth Trader:

No suggestions intended, just comparing the slight differences. :D

Keep doing what works for you.

st
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I'm really happy you posted, gives extra encouragement to those following me that this approach is a good starting point for winning on a consistently basis.

As far as the HA bars I use them for the runners not for the entries. In that respect I find them valuable but I do see what you meant, for entries they are most definitely counter productive. They go red when you should be looking to go long hehe

Anek
 
Whew! Ended up a few points, but only from luck. Quite disapointed with my stop setting today, and not taking profits at resistance/support levels on such a range day. Kept holding them waiting for that rocket blast. Good to hear Anec's comments, makes me feel a little better.
 
Quote from bmwhendrix:

Whew! Ended up a few points, but only from luck. Quite disapointed with my stop setting today, and not taking profits at resistance/support levels on such a range day. Kept holding them waiting for that rocket blast. Good to hear Anec's comments, makes me feel a little better.
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For now you should try fill your cup with drops.

There are many areas that need to be polished, therefore, I don't feel you should concentrate on all of them at the same time. Could be a bit confusing and frustrating at first.

Perhaps this PRIORITY list can help.

(In order of importance)

1) Discipline (above everything else)

It makes no sense to develop a set of rules if you are not going to follow them. Nothing tops this.

2) Trend/Reversal/Chop Recognition

The real substance of my system. Must excel at trend/chop/reversal recognition. Once experienced enough, sometimes even (dare I say it) prediction. If you want to succeed with AHG learn to avoid calling absolute tops and bottoms.

3) Prudent and intelligent stops.

Risk management, hello ? :) You don't know for sure if the trade is going to work, with absolute certainty never, you are only taking a trade that LOOKs like its going to work. ....but what if you are wrong ? I'm wrong on trades every single day, for that alone your stop should be prudent.

4) Entry refinement

Strategic entries, very important. This allows your stops to be smaller AND your targets wider. Unfortunately, be prepared MENTALLY to miss extremely good trades that refuse to give you a good fill because well, they had no plans on stopping for you!

5) Exit refinement

The fine line between a good trader and a great trader, sometimes even a master trader.

They are all extremely important and #5 makes the difference between profitability and abundance but it's last for a reason. Once the basics are out of the way all your energy should prob go on #4 and #5. I feel I have mastered 1-4, #5 is a tough one.

Hope it helps.

Anek
 
Quote from Anekdoten:

I'm really happy you posted, gives extra encouragement to those following me that this approach is a good starting point for winning on a consistently basis.

As far as the HA bars I use them for the runners not for the entries. In that respect I find them valuable but I do see what you meant, for entries they are most definitely counter productive. They go red when you should be looking to go long hehe

Anek
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The swing high/low method works, and it works in all markets, as price is always oscillating, and therefore, is always trending. Of course, the earth-is-flat crowd will try and convince everyone that trend doesn't exist, so I'll thank them now for taking the other side of our trades and leave it at that. :D
 
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