[b]OLD SCHOOL TRADERS rules and strategies (PIT also welcome)[/b]

Mr. Mephisto, Jr., I must disagree with your opinion of putting the markets in a box. Darvas did so nicely, if you get the increasingly obscure reference. Mele Kalikimaka.
 
Andrew, that allusion to tacking against the wind was so profound! As soon as I forget that you said it I will take credit for it as my own when working with my trading mentees.
 
Fleming,
Yes, I also noted overnight replacements.
Especially in gold, but due to account size and some other reasons (it's not secret) trading corn.
With regards to gold at my opinion better to trade GC gold, not mini YG which has trouble sometimes with bid/ask spreads, liquidity which affects bars OHLC levels if compare with GC what makes it harder to trade, at least for me.
But again Old School and Pit they trade for sure.
Because of I'm trading corn and now also watching soybeans meal (I like how it moves, if you see that charts) I'm trading only US pit sessions, however being in EU can trade merely overnight other markets than grains.
That example regarding ATR is not about breakouts, I'm of opinion it's ok to trade breakouts when you 100% know what to do with them.
That's about signal levels, almost like pivot points, if you plot that on chart you will see many interesting things about that:)
watch not only price action, but closes above/below that levels as well.
Later one, I'm almost sure strategy could be developed solely on that indicator.
How you measure volatility ? is that necessary ? do you think market strength is better ?
I'm not fun of SR levels because they are often violated, again, based on market strength.
So it goes almost like one family with breakouts if wave of price is strong enough it will go further behind SR level (coast) and if the volume (of water) great enough it will not soon get back to SR (back to sea) and vice verse.
But we a bit away from Old School, I think :):)



Quote from Fleming Snopes:

Andrew, in my observation the only value of the floor pivot, and that is erratic, is to identify the overnight down retrace after an up day, and the overnight up retrace after a down day. As spreads are becoming better in the overnight sessions, it is becoming more feasible to trade them. I say this from the perspective of a trader in the Americas, we may be speaking of the time of your day session. If so, my observation ay have little value to you. With respect to the ATR approach you mentioned, I am not a believer in breakout systems of any kind. Doubly so in this case because I have postulated and tested many measures of volatility and found them all wanting compared to a deep understanding of the inheresnt market mechanics of support and resistance. Joyeux Noel.
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Fleming go ahead :D
that belongs to everyone, that's the law of nature.
Yet there are a lot of examples in yachting which proves it similar to trading, say when bigger yacht than yours sails near to yours, but closer to the wind then you it closes wind for you, does that remind coming of big order flow of somebody serious, what is changing market structure for certain short or long time ?
Pit traders watching order flow, correct ?
and they better then anyone can determine when big orders came and what it will make with market : calm or even reverse and so on.
Based on that and other things they are created their strategies, rules, tips.
But all really simple and workable.
They just know from where wind goes, its strength and whether any big players are coming and market will correct or reverse.
If I would have opportunity to trade in pit for some period or to read normal book about that...
You know phrase all brilliant - are simple ? So, do Old School and Pit Traders they are brilliant :D


Quote from Fleming Snopes:

Andrew, that allusion to tacking against the wind was so profound! As soon as I forget that you said it I will take credit for it as my own when working with my trading mentees.
More...
 
Fleming,
Now, I'm trading from onboard of my problems :)
I'm already mention I trade now corn (ZC) and also eager to look more on soybeans meal.
I'm not consider now wheat or soybeans, wheat is sometime too wild, beans requires more wide stops.

Krgds,
Andrew

Quote from Fleming Snopes:

And what is it that you trade from onboard your yacht?
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Ah, so, the commodities. I have no experience except in the eating of them. And I doubt that what modest experience I have elsewhere is of value to you.
 
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