Have you used dbphoenix's teachings to become a successful trader?

[Gringo]

The SLA method is a great trend following system, I see that, but for a scared trader, the entries are often too late. Its obvious that 40D and Db do not wait for RET entries that appear on 1 minute charts. So on the one hand this system is supposed to be for the scared trader, and yet, the pros who do this take different entries. I think what a scared trader needs the most is more wins with minimal losses, even if the wins are small. For me personally, this actually means getting in right at an extreme level at the slightest sign of a reversal with a 2-3 point stop that if hit, means that price really isn't bouncing off, at least not yet. To wait for that 1 min RET to appear is much riskier in terms of price.

You see, I think that if these entries are ideal, then why aren't the guys who are killing it taking these same entries? Now don't get me wrong, I know everyone is different, and everyone has different fears, and a trading plan and entry criteria must be matched to the psychology of the trader, so SLA cannot account for all of this. But in a sense, if what is good for 40D and Db, and by good I mean most profitable, then why does it take so long to see this and why isn't this right on the first page?

I didn't take those crazy entries you are mentioning when I traded the intra-day for training. I prefer a bit of price risk over information risk. I only used 1 min and nothing smaller. Even if you have two or three 2 point losses don't you get that 20-30 point run eventually?

I think that since this whole game is about a series of trades and thinking in terms of probabilities, its best to take trades earlier, with less confirmation, and less price risk, rather than later trades, which naturally means a higher stop.

This is EXACTLY right. Now what you 'think' is only your guess or feeling or a partially cooked idea. This is what everyone has been saying for you to go and test some idea. This is that bloody idea. That's what testing is all about. You're on the right track. See whether earlier trades give you a better entry and exit or cause more problems. Just one idea that's it. Stick with it. DO it.

Now of course this is just me, and maybe I have this all wrong, but I think this is what feels right for me. I am sad that I come across as blaming everyone else because that really isn't my intention, but if most of you get this feeling from what I write, then I have to concede that this is what I put out there. I am only human, and although I might be negative and sound ungrateful, what I am striving for most is honesty.

It is true that understanding feelings on a written post isn't easy. It is also true that at least I sense a bit of blame going on in your head. You sound as if you've been 'had' and now you're pissed at not getting that key to the kingdom. Your frustration is understandable but your lack of drive to do the testing isn't.

In a lot of your posts you speak your mind about the frustration and how something is missing from the documents or what others are saying and then you pretend it was all in fun you said that stuff by putting a at the end. We're not super humans but also aren't retards either that the repeated instance of such behavior is missed. You are free to do whatever pleases you. There is no one stopping you from become a CEO. Yet life is passing you by and you're realizing you're not as sharp as you have been believing yourself to be. This self doubt is real. You are a loser (joke ) and you're very likely to end up in the ash heap of wanna be traders . But let me not dissuade you from doing the work that needs doing. I certainly don't wish to hurt your feelings even though I am trying my best to convey the obvious message that you are great and your kind and loving nature is a source of great admiration and pride for me.

Within a few weeks you can get some preliminary testing done and let us know how it went. Do you feel comfortable taking the entry before a proper retracement or do you prefer to wait? Keep in mind though that if the trend is 'real' it will go for miles and that 2 point isn't going to make much difference.

Gringo

Edit: Some might be able to see a paragraph that stands out. It was meant as an example and not as an insult. Now don't get me wrong as I sincerely apologize to those who're offended by it and hope our good relations will continue till eternity.

 

[k p]

I didn't take those crazy entries you are mentioning when I traded the intra-day for training. I prefer a bit of price risk over information risk. I only used 1 min and nothing smaller. Even if you have two or three 2 point losses don't you get that 20-30 point run eventually?

Eventually yes, but you never know when they will come, and often by then, you've too scared to enter. After two scratches, you're supposed to wait for price to go somewhere else, and once it finally breaks out of whatever range/chop it was in, that breakout may not be clean.

You sound as if you've been 'had' and now you're pissed at not getting that key to the kingdom. Your frustration is understandable but your lack of drive to do the testing isn't.

I'm pretty sure we are going to go in circles here!

You see, on the one hand, SLA shouldn't need to be tested as it is backtested, but because there are some little qualifiers that each trader must work out for themselves, like what constitutes an exit, then this backtesting is nullified if the person who trades it doesn't exit the same way as the person who backtested it. Furthermore, if a RET entry takes 3-4 mins to fill, then you've clearly got a mini range, so when price jumps up to fill you at 1 point above the lowest high of these 3-4 bars in a row, then this isn't the best place to keep the trade on. I'm sure a great filter might be something like if it doesn't fill in 3 mins, take the trade off. But once you start skipping trades because of whatever criteria, then you've gotta backtest the whole thing.

Now I of course am not saying that I shouldn't be testing any of this myself. There simply is no blame that I am trying to put on anyone. I'm just making the observation that a new trader, given the rules of SLA is very likely to do lots of things with it.

Its like that great post Db shares about the guy in class who is given a barometer and has to explain how to use it to measure the height of building. The beauty of this story comes to life when the young student is presented as Neils Bohr.

So what's my point? I know it sounds like I'm bitching that the PDF didn't make money for me. (truth be told, most of my losses are from so so many entries that are in no way SLA entries) But all I'm simply saying is that as a new trader, the head was spinning between trying to follow SLA rules, yet at the same time seeing the niggles and wiggles that make it less than ideal for a new trader to follow. Db likes to teach the intricacies of price action, which is pure gold, but this is in contrast to what the SLA is about, which is somewhat mechanical. So on the one hand you're presented with a system that says you can trade like this, but here are reasons why looking at all these other things might be better.

Its just my opinion, what goes on inside my head, which clearly isn't worth much to anyone else, and this is of course how it should be.

 

[Gringo]

If SLA doesn't work for you then stop using it. It's supposed to be a crutch anyways. What you seem to be doing is trying to become Db or 40D which isn't helping.

Do you have enough funds available that a 2 point loss is too big for your psyche? We all have our quirks and only you can determine what scares you. I have known traders who keep stops at one to two ticks. They just reenter and don't want the fear of getting caught.

You've somehow identified what needs to be tested. I have pointed it out. Yet you've found a roundabout logic to convince yourself if testing fails you'll have to redo the whole thing and it will all be a waste. It's not a waste if you find out that it doesn't work. Why don't you find that out yourself? Dreaming isn't going to get things done.

The point of testing also is to get one to start trusting in whatever one's doing. Theory is all good as far as theories go but the belief and trust comes only when you start using it based on your preferences.

That's all that needs to be figured out by you.

Gringo

 

[dbphoenix]

From the SLA/AMT:

The three-legged stool here, as I've said, is constructed of a thorough understanding of supply and demand, trend, and support and resistance. A surprisingly large number of people are absolutely convinced that they possess this understanding when in fact they haven't the least idea what support and resistance and trend and so forth are all about.

But even if one has no idea what these three fundaments are, much less how to apply them, he can still turn a profit if he knows how to draw a straight line. Unfortunately, quite a few people can't do that either. These people ought to find some other way to trade. Or quit. Otherwise they will find themselves trading congestion, day after day, and getting chopped up in the process with no understanding of what wrong and blame the method ("another method that's all baloney, another scam, more snake oil").

 

[pokito]

I'm pretty sure we are going to go in circles here!
[/quote]

Son, I would tell you this much son....
(draw your own conclusions) - we will see if you're around in 5 years.

 

[marketsurfer]

http://faculty.haas.berkeley.edu/odean/Papers/gender/BoysWillBeBoys.pdf

 

[dbphoenix]

I'm pretty sure we are going to go in circles here!


Son, I would tell you this much son....
(draw your own conclusions) - we will see if you're around in 5 years.

We passed the going in circles point about a hundred posts ago.

As for me, I've been around since '77.:eek:

 

[FeetFirst]

The circles discussing db's abilities to trade or motives are irrelevant.

The pertinent question is has anyone used his teachings to become a successful trader?

 

[dbphoenix]

The circles discussing db's abilities to trade or motives are irrelevant.

The pertinent question is has anyone used his teachings to become a successful trader?

Asked and answered. You seem to be primarily concerned with how many. And what difference does it make?

Your success or failure depends entirely on (a) your willingness to do the work and (b) doing it. Absent this, you may as well play video poker.

 

[FeetFirst]

Not quantity just a good example. You have two in the pipeline - let's see if they pan out...