AHG - Profitable Strategy for Struggling Traders

[fishoilfan]

Quote from c.profitt:

Hey Fish, How are you determining when to take your profits? Do you have a set point or are you using break of previous bars highs and lows? Piscuy I'm curious how you decide when you take your profits too. Any advice from either of you?

CP, I think the answer to that question is the real key to the whole strategy. Almost every trade I've taken using this method(except a very small percentage) is profitable for at least 1 tick or two, many much more.

Thursday, I even had one trade plus 3 pts that I, mid-trade, changed to a swing...and ended up getting SO minus 1 point-Very disappointed in that one.

Lately I have been using ME lines and Days S/R, to determine when to exit, but I'm not sure that is proper scalp methodology.

Also, I think it depends on the day, whether it is sideways or trending. On the sideways days, be very quick to take profits...on trending days, let 'em run a little.

I have been scanning the threads throughout ET today to find more understanding of that same question.

I look forward to hearing responses from seasoned veterans on their techniques and ideas in relation to your question.

I see Anek does some scalping too...when the market dictates.

 

[edpolton]

I was wondering if Anek, et al, could address the issue of trendlines with volume charts. I apologise is this has already been discussed.

Whereas S&R is basically the same wether you use time or volume/tick charts, trendlines can change dramatically.

Since the main reason S&R and Trendlines work is because many other traders are also reacting to them, and since far fewer traders are trading on volume charts, has anyone given consideration to monitoring time based trendlines while trading volume charts?

Thanks in advance.

 

[cirekindob]

Quote from edpolton:

I was wondering if Anek, et al, could address the issue of trendlines with volume charts. I apologise is this has already been discussed.

Whereas S&R is basically the same wether you use time or volume/tick charts, trendlines can change dramatically.

Since the main reason S&R and Trendlines work is because many other traders are also reacting to them, and since far fewer traders are trading on volume charts, has anyone given consideration to monitoring time based trendlines while trading volume charts?

Thanks in advance.

edpolton,

I think this is a very good question that I have wondered myself. I just recently put up a time based chart with the volume chart. I draw trend lines on both. I haven't studied it closely yet, but my thinking is a lot of people look at time based charts only and some people volume charts only. Therefore, trendlines that match up closely on both charts may have more chance of being respected. Sometimes they don't match up at all, this is usually during really fast or really slow markets. I will study this a bit. I don't know if this is making things too complicated, but it is worth studying IMO. My original hypothesis is that if you find a trend line that is being respected on a volume based chart, that trend line will match up closely with the time based one. Has anyone studied this before?

Thanks,

cire

 

[kidPWRtrader]

Quote from Anekdoten:

What leads price to congestion ?

I could tell you my experience but don't think it would do much good. This is something that you need to see for yourself.

As an exercise to improve your trading take a few hours to study the past few weeks in your instrument of choice and try to notice any peculiarities that prevented price from forming a trend.

Make sure the backtracking is done with an anchor chart.

I assure you, the effort will not go to waste as this is an area you do not want to trade. This patience, this discipline is imperative for your trading.

If you really want to take it to the next level, say by increasing car size, then you must improve your accuracy and this is how you do it, by becoming an expert at spotting the chop and even a greater expert by doing what needs to be done around that time. Which is sitting on your hands, stretching your legs anything but trading when there is a lack of a trend.

Polishing your skills in congestion/consolidation detection can make the difference between good and greatness. Better yet, try to anticipate it. Anticipation will give you an edge.

Please post your conclusions in the journal so everyone can benefit from everyone.

Anek

Going back over the last few weeks i've missed with finals and other things in my life... I thought I would make an addition to this thread.

From going over Toni Hansen's material, my eyes were opened to a very interesting concept she calls as "pace" that I had been watching before but never quantified.

Because I don't want to get in trouble with copyrights, I'm posting a chart showing an example of "pace* and how it can help you spot trend reversal and which direction price will break out of consolidation.

Once you guys start seeing this in real time you will realize how powerful this is.

A very small contribution to a great thread... but as always its in the spirit of sharing and other discoveries.

Thanks for everything guys. Great posts lately by all.

EDIT: I am not sure if the zig zag is a regression line, but in order to see the angles accurately, either try to eyeball it and draw through the middle of the price action (dont worry about connecting highs and lows for this purpose) or use a linear regression line if your charting software has it.

 

[hwkaiser]

Quote from BoyBrutus:
Some frequent questions on 123
Here is where stealth trader talks about hes method on 10k ES Vol bars.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1557661&highlight=#post1557661

Thanks for the post and reminder.. I had put stealth on the back burner after the dissertation with Anek and have focused my attention on Suri and Piscuys contributions...
To supplement your post, attached are my preliminary notes for those interested. I hope to have updated notes including the above soon.

 

[kidPWRtrader]

Also... been working on my psychology a lot over the past few weeks though I haven't traded much and am setting up a little bit of a challenge for myself.

I will be doing the following:

Starting with a theoretical account equity of 5000, I will attempt to double my account. I will be taking a daily draw down of no more than 250 dollars and will not be putting a profit cap.

If at any time I am down 1500, it means I have failed.

I essentially have 3 setups that I want to use day in and day out. I will use only those setups for my trading although I will continue to watch for new ideas and other things.

I will be keeping track of this here to provide some accountability in this whole thing. If I deviate from my plan, I'm fully liable and look like a douche .

The goal is to take 5000---> 10,000 without a big draw down and if I can manage that I will go live with the same parameters.

So, time to get disciplined.

 

[hwkaiser]

Quote from kidPWRtrader:
been working on my psychology a lot over the past few weeks though I haven't traded much and am setting up a little bit of a challenge for myself.
So, time to get disciplined.

Kid, why don't you start a journal with your target. Post your goals, define all of your trading rules and set-ups. Not only will you be able to track your progress, but also track your discipline. With your system clearly defined it will be much easier to determine when you broke your rules or took a marginal trade and the consequences. Wish you luck on your project...

 

[vertigo3]

kidPWRtrader,
Thanks for the info from Hansen.

One pattern of congestions (and potential breakout) I would like to bring to you attention. (at least I've noticed it)

in a sideways congestion when price is just bouncing from one set of highs to a set of lows, watch for the retracement that does not make it all the way to the other extreme. (actually I guess this would be some corralary to the first higher low or the first lower high), and it also could tie in with some of the box comments.

/
___________ /
\ /\ /\ /
\ / \ / \ /
\ / \ / \/
\ / \ /
\/ \/
------------------

what you're suggesting is that the retracement angle (more sideways in your example) can be a tell. seems worth watching.

edit: the dashed lines didn't really come out the way they looked when I was writing the post, but I hope everyone understance, a series of highs a series of lows, then a retraement that does NOT make it all the way can signal the beginning of a leg.

 

[karabugla]

Quote from hwkaiser:

Thanks for the post and reminder.. I had put stealth on the back burner after the dissertation with Anek and have focused my attention on Suri and Piscuys contributions...
To supplement your post, attached are my preliminary notes for those interested. I hope to have updated notes including the above soon.

Thanks !

 

[fishoilfan]

Quote from hwkaiser:

Thanks for the post and reminder.. I had put stealth on the back burner after the dissertation with Anek and have focused my attention on Suri and Piscuys contributions...
To supplement your post, attached are my preliminary notes for those interested. I hope to have updated notes including the above soon.

Thanks HW! I was doing a StealthTrader Search just yesterday trying to find all his posts...AHG and elsewhere

Sprikled between some bickering and spackling, I found some great experienced info. With your notes, I can skip the drama and get to the good stuff...although some of the drama was pretty funny!

Thanks again...