Day-Trading 2.0 for small traders
- Thread starter jjrvat
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There is no conflict.
I can either take a fast 5 pips or I can wait until the bar changes color.
No pumping from me at all.
I never mentioned how to obtain my indicators but you just did.
I am NOT creating anything. I have no control over how others choose to react or respond. I am NOT responsible for the actions of others.
My posts were merely to show another way of looking at jjrvat's method by using the MACD. I have not suggested altering his method at all. The color bars just show you when the trend switches which is no different than using the MA line that changes colors.
But some people will always find something to complain about.
I will respond to conversations and debate about learning HOW to trade. I will not address negative comments and I expect others not to either.
In the event we find ourselves in the midst of a disgruntled trader, we need to ignore and move on. Deal?
Debate is healthy, arguing is not.
In the event we find ourselves in the midst of a disgruntled trader, we need to ignore and move on. Deal?
Debate is healthy, arguing is not.
This is a very helpful thread. And mostly contributors were trying to be helpful.
I do NOT hope, that now will establish some guerilla warfare about any miracle indicator or sponsoring.
Also I believe, that in this business all are adult enough to ask, if necessary. Some posts are garbage, some average, some excellent. That's life.
And - there are some points mentioned, to which no reply would be the better decision, for sure.
I do NOT hope, that now will establish some guerilla warfare about any miracle indicator or sponsoring.
Also I believe, that in this business all are adult enough to ask, if necessary. Some posts are garbage, some average, some excellent. That's life.
And - there are some points mentioned, to which no reply would be the better decision, for sure.
This is my first post here. Thanks to jjrvat and others contributing to this thread.
Speaking of exits, my question is this:
Shouldn't exits be according to price action as well?
I mean, instead of taking profit at a fixed number of ticks or pips, shouldn't we be watching the price action such as price not being able to move beyond a
resistance or at least not taking the profit as long as the
candles are green?
In other words, if the price action is the king for entering the trade, shouldn't it be so too for exiting?
Happy trading all..
Speaking of exits, my question is this:
Shouldn't exits be according to price action as well?
I mean, instead of taking profit at a fixed number of ticks or pips, shouldn't we be watching the price action such as price not being able to move beyond a
resistance or at least not taking the profit as long as the
candles are green?
In other words, if the price action is the king for entering the trade, shouldn't it be so too for exiting?
Happy trading all..
A POINT OF ORDER
Itâs amazing how often we small traders tend to lose perspective during a discussion on trading. During the past few years I have found that most of the forums arguments end up dealing with the same issues âthe technicalities of tradingâ which in my opinion obviously reflects one of the key problems that stop day traders to pass to the next level: PERSPECTIVE.
I read the last few pages, there are some very good comments that I will try to comment later and some other that are out of context and I will ignore, but in general I think the thread is losing north for the same reason mentioned above LACK OF PERSPECTIVE.
As a point of order and to try to regain focus for a more constructive discussion I will go, once again, to what is for me one of the basic principles in daytrading:
It âdoesnât matterâ how do you pull the trigger as long as you apply consistent price analysis, âknowâ where do you have more probabilities for a successful trade and you are willing to accept without hesitation the cost of doing business. In other words, the order of analysis will change the end result and itâs impossible to run a business without accepting the cost need it to make it profitable (sure you could aim to reduce âcostsâ but itâs impossible to completely evade them).
To avoid repetition with previous posts I will use 2 charts this time based purely on entries.
1. A typical Holy Grail system that looks amazing at first glance:
INDICATORS FOR ENTRIES:
50 WMA
12 EMA
Slow Stochastic with SMA (10,3,3)
Momentum 7
Standard Deviation Bands Top (HIGHS) Bottom (LOWS), (25 Smoothed Mov Avg, multiplication factor 1.780
MACD Linear Regression (11,18,8)
RULES:
Shorts when: 50 WMA>12EMA, MACD diff RED and below 0, Stochastic moving from overbought and change slope to red below 70, Momentum < 100, Std Bands on the bottom half but with a gap big enough to the lower band.
Longs when: the opposite
PERSPECTIVE: NONE. Who cares this is a valid trade !!!
2. The most basic system that looks as good as the previous one
Indicators for entries:
21 WMA
Rules:
For shorts: Slope is RED + a close below the WMA when price has close above but hasnât change slope.
Perspective: Not much but at least you know when you are in long or short mode.
Which entry is better? The results are the same regardless of the trigger, so what is the point of indicators?....
The answer is very easy a valid trade is a valid trade no matter how hard we try to âtweakâ or improve or indicators to tell us that there is a trade where is not. Therefore, the key for successful trading is not âhowâ but âwhenâ we have more probabilities for a good trade. That is why the whole wave analysis and macro direction and not the specific details on the technicalities of trading.
The problems arise when overtrading, leverage, psychological fears, lack of discipline, capital, wrong timeframe for risk and time of trading, etc, etc, etc lead a small trader to the endless vicious circle of tweaking indicators for potential solutions for sometimes contradictory goals: âperfectâ entries and exits with minimum drawdown, huge profits in short timeframes, small profits in long timeframes, low risk with high profit, etc, etc. The end result is always the same, after a couple of weeks a trader end up trading indicators and not price with more doubts than solutions.
â¦Iâll continue later
jjrvat
Itâs amazing how often we small traders tend to lose perspective during a discussion on trading. During the past few years I have found that most of the forums arguments end up dealing with the same issues âthe technicalities of tradingâ which in my opinion obviously reflects one of the key problems that stop day traders to pass to the next level: PERSPECTIVE.
I read the last few pages, there are some very good comments that I will try to comment later and some other that are out of context and I will ignore, but in general I think the thread is losing north for the same reason mentioned above LACK OF PERSPECTIVE.
As a point of order and to try to regain focus for a more constructive discussion I will go, once again, to what is for me one of the basic principles in daytrading:
It âdoesnât matterâ how do you pull the trigger as long as you apply consistent price analysis, âknowâ where do you have more probabilities for a successful trade and you are willing to accept without hesitation the cost of doing business. In other words, the order of analysis will change the end result and itâs impossible to run a business without accepting the cost need it to make it profitable (sure you could aim to reduce âcostsâ but itâs impossible to completely evade them).
To avoid repetition with previous posts I will use 2 charts this time based purely on entries.
1. A typical Holy Grail system that looks amazing at first glance:
INDICATORS FOR ENTRIES:
50 WMA
12 EMA
Slow Stochastic with SMA (10,3,3)
Momentum 7
Standard Deviation Bands Top (HIGHS) Bottom (LOWS), (25 Smoothed Mov Avg, multiplication factor 1.780
MACD Linear Regression (11,18,8)
RULES:
Shorts when: 50 WMA>12EMA, MACD diff RED and below 0, Stochastic moving from overbought and change slope to red below 70, Momentum < 100, Std Bands on the bottom half but with a gap big enough to the lower band.
Longs when: the opposite
PERSPECTIVE: NONE. Who cares this is a valid trade !!!
2. The most basic system that looks as good as the previous one
Indicators for entries:
21 WMA
Rules:
For shorts: Slope is RED + a close below the WMA when price has close above but hasnât change slope.
Perspective: Not much but at least you know when you are in long or short mode.
Which entry is better? The results are the same regardless of the trigger, so what is the point of indicators?....
The answer is very easy a valid trade is a valid trade no matter how hard we try to âtweakâ or improve or indicators to tell us that there is a trade where is not. Therefore, the key for successful trading is not âhowâ but âwhenâ we have more probabilities for a good trade. That is why the whole wave analysis and macro direction and not the specific details on the technicalities of trading.
The problems arise when overtrading, leverage, psychological fears, lack of discipline, capital, wrong timeframe for risk and time of trading, etc, etc, etc lead a small trader to the endless vicious circle of tweaking indicators for potential solutions for sometimes contradictory goals: âperfectâ entries and exits with minimum drawdown, huge profits in short timeframes, small profits in long timeframes, low risk with high profit, etc, etc. The end result is always the same, after a couple of weeks a trader end up trading indicators and not price with more doubts than solutions.
â¦Iâll continue later
jjrvat
Thanks jjrvat.
I agree with you on PERSPECTIVE.
To, it's funny how SOME PEOPLE try to prove something doesn't work. They'll spend hours, days, weeks, etc... running backtest so they can proclaim they proved you wrong.
SOME PEOPLE see my indicators and freak out. They seem to think I have a HIDDEN AGENDA. I have told people over and over that I do NOT sell indicators. I write them to help me understand a method. If I don't understand the method, then I can't write the indicator. Coding is one of the ways that I learn.
You'll hear SOME PEOPLE say, "Well, if it is so easy then why isn't everybody doing it?" I call that SHEEP THINKING or HERD MENTALITY.
At the same time, there are those who read, listen, study and do whatever it takes to learn and apply the teachings. Those are the ones who are successful.
LIFE IS CHOICE. What you choose is up to you.
Thanks again, jjrvat, I appreciate your time.
I agree with you on PERSPECTIVE.
To, it's funny how SOME PEOPLE try to prove something doesn't work. They'll spend hours, days, weeks, etc... running backtest so they can proclaim they proved you wrong.
SOME PEOPLE see my indicators and freak out. They seem to think I have a HIDDEN AGENDA. I have told people over and over that I do NOT sell indicators. I write them to help me understand a method. If I don't understand the method, then I can't write the indicator. Coding is one of the ways that I learn.
You'll hear SOME PEOPLE say, "Well, if it is so easy then why isn't everybody doing it?" I call that SHEEP THINKING or HERD MENTALITY.
At the same time, there are those who read, listen, study and do whatever it takes to learn and apply the teachings. Those are the ones who are successful.
LIFE IS CHOICE. What you choose is up to you.
Thanks again, jjrvat, I appreciate your time.
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