Fibonacci Trading (without noise)

M

MACD

The intention of this thread is to present and discuss how to use Fibs to Trade Profitably. This is an adjunct to 2 other threads ("Am I ready to go live" and "Fibonacci Works because...").

The links for those threads: https://www.elitetrader.com/et/threads/am-i-ready-to-go-live.310884/
and https://www.elitetrader.com/et/thre...ecy-or-becuz-618-is-embeded-in-humans.310929/

Those threads became quite: "Noisey" and consequently, no real value was accomplished. Reference, there may, however, be of some help for prospective and to review posts made by me (MACD).

All the comments that Fibonacci is "bollox", or "worthless" or whatever -- hopefully will not be repeated here as it will not be of contributory value to this thread. Professional conduct is requested and hopefully, the moderator will enforce.

We all know that many successful traders, including institutional traders, use Fibonacci to find levels for trading. So let's leave it that if it does work -- it is a self-fulfilling prophecy. Regardless we shall move on without the back and forth wasted arguments.

Next posts will contain more germane content on trading with fibs...
 
To clarify, I use fibs to trade in all time frames. Some trades may be defined as scalps, or position, or hedged trades. Most trades will be against positions that I already have on. Yes, I do use both options and options on futures as well as just trading the Future Contracts directionally on the DOM or "Active Trader".

The charts that I will display will be those from Think Or Swim (TD Ameritrade platform). The "tools" are readily available on most trading platforms and are all free -- nothing proprietary.
 
Some charts may have a volume graph on the same place the bars are shown. Volume is Not really important to the use of the Fibs. Note also that I prefer clean and as uncluttered charts as possible -- that is why I use just white bars rather than the typical red down and green up. You may note the bars are solid white for down bars and open white outlined for up bars.
 
2017-07-10_15-08-41.png
 
Note some posts will be taken from a simulated account for privacy reasons. However, I will be posting some charts and trades that are from a Live Account.

Note that this is a 15 min 5 day chart of the CL (Crude Oil Future)
 
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Not that I want to derail this thread, but I thought you were getting around to commenting on this.

MACD said:
With hedging using options against futures I have not had a losing day in over 7 months.
More...

Not that I mind you talking about Fibs if this is a precursor, (although its not my thing), but I was hoping that you were going to give specific examples of where you enter a futures trade, and how you hedge this with options so that you don't have a losing.

I'm kind of confused because I thought you were starting a thread on hedging, not fibs.
 
Gotcha said:
Not that I want to derail this thread, but I thought you were getting around to commenting on this.



Not that I mind you talking about Fibs if this is a precursor, (although its not my thing), but I was hoping that you were going to give specific examples of where you enter a futures trade, and how you hedge this with options so that you don't have a losing.

I'm kind of confused because I thought you were starting a thread on hedging, not fibs.
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The world is full of surprises gotcha....make him prove his trades...none of that make believe BS like i do...ROFLMAO. If he doesn't you can dub him MAC-F instead of MAC-D. At D he is only one step from failing. "A tiny step for a trader a huge leap for mankind"

P.S. you make want to ask him if is in into harmonic harmonizing.
 
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volpri said:
The world is full of surprises gotcha....make him prove his trades...none of that make believe BS like i do...ROFLMAO.
More...
In all fairness, much of what you say I like, but then you go back and forth between sometimes showing actual trades, and sometimes showing your thought process on where trades can be placed. You have stops that sometimes were very tight, and other times were 3 times what your profit target was. None of your charts showed trades marked by the platform, and on top of this, not once did you show one trade where you had one of those 5 or 6 ES point losses when all you were going for was 1 or 2 points.

Once again though, its not so much that you're trying to deceive, its just that you're only showing a small part of what you do. A small part or something when it comes to trading is essentially nothing because if one piece is missing, the whole thing falls apart. Not that you're obligated to show anything, but if you're going to attempt to help people by showing your trades that work, you should also be showing trades that don't work, and where and how you take your losses.

There is another poster here who is showing incredible wins, @nakachalet , and at times it seems too good to be true, but at the very least he showed some stats for today which shows a 52% win rate on 17 trades, so this is something that can be believed. (not sure tough why these trades seem to be 1 lots, and when he trades NQ and GC he is showing 10 lots)

https://www.elitetrader.com/et/thre...t-50-win-loss-rate.310888/page-8#post-4483012

You say yourself that someone shouldn't trade like you, for small profits and high risk, so if you're trying to help, but show stuff other people shouldn't do, without backing it up with stats, I'm not sure how helpful that is. I still respect what you are doing, and I certainly do love pure price action and your thought process, but much is left out.

When it comes to trading, the hard facts are especially helpful, and these hard facts are entries and exits, win rates, stats, etc. This is why I'm asking MACD for some specifics about hedging as well because I want to see how the math works in actuality, not just in theory of buy this and sell that and never lose.
 
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MACD said:
The intention of this thread is to present and discuss how to use Fibs to Trade Profitably.
More...

I thought the intention was to discuss how to hedge futures with options with no losing trades, whatsoever. I am still anxiously waiting for the presentation of this concept.
 
Can't post all at once to answer all concerns and questions. This is not a full-time job that ET is paying me to do.
Patience please.
 
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