Great New Pattern

[WDGann]

Ummm... ???

Sleeping for a year to answer to this thread>???

 

[praetorian2]

You get slapped around a lot, but it has also made me a few hundred % a year for years. It just takes practice and iron balls.

 

[ges]

Quote from WDGann:

Ummm... ???

Sleeping for a year to answer to this thread>???

No.

I just found this thread. It happens to be my dominant trading method...more or less.

g

 

[ges]

Quote from praetorian2:

You get slapped around a lot, but it has also made me a few hundred % a year for years. It just takes practice and iron balls.

I've got it worked into a mechanical system that is quite good. You have to endure an occasional serious DD, but it still has the best equity curve I've come up with in mechanical systems.

g

 

[pspr]

Are there some basic rules for trying to catch falling knives?

Wally

 

[praetorian2]

Expect to loose pretty big every so often.

Expect to loose small a lot.

Pyramid in.

 

[dbphoenix]

Quote from pspr:

Are there some basic rules for trying to catch falling knives?

Wally

Funny you should ask. Pristine put out a nice lesson on playing climactic reversals a couple of weeks ago in their Trading Lesson Of The Week for Sep 24. Just go to Pristine.com and follow the bread crumbs.

 

[ges]

Quote from pspr:

Are there some basic rules for trying to catch falling knives?

Wally

Wally,

Be patient. Don't go in too soon. Use a limit order to catch volatile selloffs. No stops, except for very wide volatility based stops. Use a very large database and only take the extreme setups. Use a profit target to get a great win/loss ratio and accept that losers will occasionally be large.

The large occasional DD makes this hard to trade for most people. You can cherry pick the trades (this assumes you have a system), but must take them all or use rational filtering methods.

Very few people can trade this type of play because of the fear factor and DDs.

g

 

[ges]

Quote from ges:



You can cherry pick the trades (this assumes you have a system), but must take them all or use rational filtering methods.

g

Correction: that should have read: You CAN'T cherry pick the trades.

g

 

[pspr]

Thanks ges.