Chronicles of an Idiot

Quote from VisionTrader:



This is a fair question. It is difficult to put it in writing. If we were all watching a chart and I could describe what I do it would possibly make sense. I think Net Meeting and an Conference Call Bridge would do the trick. Is there any feature on ET that would help me explain?

You would have to have everythings set up exactly as I have it and be watching it the same way. I will work on getting this into words. I have been calling this my filter and that's exactly what it is.


Also, let's remember this whole method is only been tested a few days. Just because I am having a little success does not mean much at this time. There were losing days in my backtesting and I am expecting them to show up anytime.


Over time the results I get into the journal will help us decide if it has any merit.
More...


Gotta Trade and others,

The jounal is getting a few pages in it now and no doubt it is not easy to read all the pages. I do think it is a good idea to start from the beginning and review the key posts when you have time.

Here is the exact method for entry on a long position which results from a double bottom in price. As I stated in the beginning, this is the basis of the system and the setup that should be mastered on the 1M chart. I have backtested this with no filter and have gotten favorable results. Since my risk/reward ratio is critical, I am using my filter to try to acheive above average results on this system. I plan to share this over time when it is tested. I do not consider it tested after the few trades I have been using it on.

This is documented in the journal. You can use this and apply only one simple rule which will help you. "ONLY AN IDIOT TAKES THE FIRST SIGNAL AGAINST THE TREND". The opposite set up applies for a double top.

You will see me proceed my entries by VTDT or VTDB when I can.
Just wanted to post this in case it got lost in the depths of the Chronicles.

This should help you understand exactly my trigger for entry.

One hint I would give is that it is okay to be patient after you see this entry candle. You can often get in a trade at a slightly better price by waiting. Risk is that every once in a while price will move rapidly and you do not get in at all. Then just wait for the next set up.

It is my idiotic opinion that the 1M chart represents the most accurate representation of price movement on the ESM. You will have an above average chance to pluck out 2 points, and if you learn to read the indicators, you can visualize the bigger moves that may come and be in a trade at the beginning. There are many arguments for this, but for the VisionTrade system, it works well for me.

Hope this helps a little.
 

Attachments

Following the 1M chart...

A nice sell signal was developing, however, when price broke thru 985 @ 10:30 it push the stochastic above. No go.

This first call will likely be difficult. Look for another double top quickly.

NOTE: THIS WOULD BE THE FIRST SIGNAL AGAINST THE TREND.
 
Quote from VisionTrader:

If you are following the 1M chart....

All conditions were met for a long trade at 10:02 except

Price did not make a double bottom. No go.
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Would it be possible to see a double bottom on other time frame? 5 min perhaps ?
Walter
 
Stop 986.75

Looking for 2 points on the pullback.
Second consecutive signal against the trend. Confirmed by my filter.

My timing was poor on this trade. I entered on a doji instead of a red candle. The long candle down was not the correct entry. Let's see
 
Quote from VisionTrader:

Stop 986.75

Looking for 2 points on the pullback.
Second consecutive signal against the trend. Confirmed by my filter.

My timing was poor on this trade. I entered on a doji instead of a red candle. The long candle down was not the correct entry. Let's see
More...

No good. -1.75:mad:
 
Today is a good reason why this system may not be suitable for many. On strongly trending days, you will not get many signals to go with the trend until price corrects or moves sideways.

I will many times try a HOTT trade on the first pullback. This is not a divergence signal. It does have success in catching a move. Did not do it today obviously.

I am sure many of you are enjoying profits now, while this system is waiting for a signal. Good news is on days like the last couple, it works fairly well.
 
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