Quote from Grob109:
In my trading I focus on making money.
As an example for leveraged money making in commodities I choose the 5 min chart of ES primarily.
The reasoning sequence I founded my efforts upon is as follows.
1. money is made by price changing in either direction.
2. you have to be in the market to make money.
3. be in the market at all times when signals are given.
4. use a leading indicator of price to guide making money.
5. always be on the right side of the market.
6. extract profits in a timely manner and then immediately begin another segment of profit taking.
7. repeat a routine all the time and have closure at the end of every cycle of the routine.
8. The first part of the routine is to get a data set.
9. The second part of the routine is to analyze the data set with known truths in my set of knowledge.
10 The third step is to pair a known conclusion with the truth from the analysis.
11. The last (fourth) step is to take timely action (most often hold) to bring closure to the routine cycle.
12. repeat 7 through 11 as soon as possible.
13. Recognize that only two operations are required to stay on the right side of the market: hold from the beginning to the end of each price movement and reverse when the movement ends and a new movement begins.
14. Practice market wash orders when there is no price movement since it does not cost anything.
I do not construe NLP as you do. For you and almost all people in this thread it is conceived of as a pep talk artificial confidence building exercise.
for most research and development types of NLP workers, the NLP is studied and advanced as it relates to a person's knowledge, skills and experience (in a market money making context) and more generally with respect to a well balanced life where a person's potential can be realized. So NLP largely focuses on steps 4 through 14 for me.
You may be a trader who focuses on entries and exits. I am not. I focus on "hold" and "reversals".
you may take a 5 min ES chart to see how many trades I do a day. It will include all of your trades and many more.
print a chart. With a rule and ball point, draw lines on the price chart that connect extreme consecutive price value starting with the BO end of bar 4 relative to bar 3. There are 81 bars and you will draw 20 to 40 lines per day on average.
Add the values of the veetical change of all lines you drew. Subtract a tick for each line plus 1. Calculate the net profit for the day.
Consider my skills.
For example, figure that I am only half as good as I could be. Divide the net by 2. If I am worse divide it again by 2. Keep dividing it by 2 until you get to what you make a day.
The difference in our profits per day is how I used NLP to gain knowledge, skills and experience.
NLP allowed me to use my potential to think in "picutres" of what is going on. This is the What, How, When and Why the market works and how it is my job to do what is required to take what is offered out of the markets.
I have never considered edge trading and I track about 80 edges to understand them. I know some edges and I know that they collectively all together cover what i do everyday all the day long. So individually they do not do as well as taking money that is offered out of the market continually.
I have done the thinking to make what I do a mechanical process. In doing this I discovered that the work of Pascal does not apply to the markets. Instead, with six deegrees of freedom as an input and foure degrees of freedom as the trading out put, the automated approach internally goes through five stages to, in a logic construct swell to 70 degrees of freedom where no more than 5 are applicable at any time and where the logic steers and focuses on the pertinent application of logic at all times.
The above is the articulation, mathematically, of the set of truths I have acquired over time for monitoring data sets, analyzing data sets with the possible conclusion set, the pairs of decisions for each conclusion, and the set of timely actions that result from the set of decisions that are possible.
As I looked at the markets, I gained knowledge, skills and experience. In about 25 years I came to the place where I could do the required logic schematics over 15 years ago. In the last fifteen years I have added some efficiency and effectiveness refinements.
This post is not what anyone writes in books or reads when they buy books. Learning is a process that occurs over time.
In position trading stocks where I began, I did not have any period of time where I had not learned enough to make at least 10% on a trade which on average lasted 6 to 8 days. So you see that with very little money i became well off in a short time and have not had formal salaried jobs since the first five years after school.
There is one footnote that is important. I was one of very few people at IBM during the mainframe era that could trobleshoot 700 series mainframes from the console with out reference to the stacks of "D" size logic schematics. This means that FYI, I can readily convert any market activiety to Boolean expressions on the run. To day excel spread sheets can be populated with such stuff.
The other consideration is that backtesting uses the wrong kind of mathematics to deal with making money using the reults of the artificial efforts of backtesting. To make money there is not concept of dealing with the future that is required. This is a very tough nut to swallow by most people. Almost all edge trading work that is done uses the wrong mathematics because there is a mistaken idea that estimates of future activities are a requirement. The work being done this way is mostly related to "convneience" and people applying what they already know to deal with an opportunity that they do not understand.
If you can get off the Tony Robbins stupid orientation for NLP. He is just an inspirational leader for people who need inspiration to do their jobs. Stuff like sales and management, etc.. The markets require knowledge, skills and experience to stay on the right side of the market and not speculation and Pascal.
