Baruch's Forex System Journal
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Where can u get info about key option levels?
The add-to-winners versus add-to-losers (and scale out) strategies discussion is very interesting.
Phantom of the pits said the second one was applicable to scalpers/daytraders.
But if you take another look at it, -sec-, it actually comes down to the same in random markets. You sacrifice hitratio in an add-to-winners strategy, compared to add-to-losers you sacrifice RR.
If you trade two markets in the same timeframe, one trending and the other choppy, add-to-winners would work better in trending markets. and the latter in chop. but it all depends on timeframe you look at.
Myself, I show terrible results adding to winners, because i have difficulty now, calling a minor retracement from a reversal.
Well, scientist pointed out already he uses both
Phantom of the pits said the second one was applicable to scalpers/daytraders.
But if you take another look at it, -sec-, it actually comes down to the same in random markets. You sacrifice hitratio in an add-to-winners strategy, compared to add-to-losers you sacrifice RR.
If you trade two markets in the same timeframe, one trending and the other choppy, add-to-winners would work better in trending markets. and the latter in chop. but it all depends on timeframe you look at.
Myself, I show terrible results adding to winners, because i have difficulty now, calling a minor retracement from a reversal.
Well, scientist pointed out already he uses both
I exited rest here at 108, +50Quote from Scientist:
New Long EUR @058. Reason: Self-explanatory...
I've had enough for today folks. I'm up over +250 per contract (you can count), and it's starting to bore me, no real trend or anything today. I would have loved to have been riding a 300+ trend on top of this, but here we go. It's one of those choppy no-direction days. I did countless trades on other things, too, such as ER2, ES, and another currency, but I decided to keep it to EUR, to keep it short & simple.
Now, I wanted to post a string of my trades for just one day (rather than just sporadically, like before), so you and everybody else get an idea what I do, and that it works, and how to do it.
Another reason of course was a little voice in my ear to give Trend Fader a good one on his eye! So, you should all be grateful towards brother Trend Fader, because without his comments, perhaps I would have never bothered! Long live Trend Fader!
Seriously though. I hope you had fun and picked up something. It's really rather simple stuff. Most entries were fine-tuned with tape-reading, but this can be done via experience only. Keep watching tapes, and you'll get there. Apart from that, just channels and fibs, the simplest things work best, because they work out of self-fulfilling prophecy.
I will try to answer any questions that arose as to my methods / trades, as soon and as best as I can. I have nothing to hide.
A great thanks also to the host, Baruch, for having me here. Baruch own3z!
Best Regards,
Scientist
Hey Genosse, why am I grössenwahnsinnig?
Ed Seykota did 250,000% in 16 years, and that was non-cumulative, deductive, and after all account withdrawals, on several client accounts!
His real cumulative returns were actually several million %.
If anyone is grössenwahnsinnig, then it's Ed!
I am just a small piker...
Most of the time its just Gossip in the market or traders just talking around diff levels of things they have to go or orders that have 2 b done.......seriously.......Or the best info is when an option trader is getting prices on Vol levels from other traders to get out of a position ..... diffence btwn the volatility level they got in and they are getting out and the amount they are doing will give u an idea of how much they have to cover or get out of .....
Hey Trend Fader!
1) If you incorporate stop gunning, make sure you can really "smell" the stops above / below and have the market linger there. If the air is really "hot" and looks like they'll break it (main reference is tape action), wait for the first guy to throw a grenade, then jump in and hit the bid/offer! You're right on "key supports" - Just don't forget that those "key supports" are often key stop gunning levels...
2) Regarding fibs - The answer is actually simple: NEVER trade a fib just for the fib level's sake!!! How the hell will you know if it will be a 40%, 50%, 60%, 79% retrace? You don't! The answer is, wait for another confirmation - such as tape action, support/resistance, reversal/rejection bars etc. Does price seem to "reject" a certain fib level? Then you know price has found a valid fib level, and you can consider acting on it!
3) This is easy now: Don't try to guess which fib level price will react to. Just trade the level it DOES react to!
Hope that helps. Btw I have hardly used fibs today...
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