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Ideas for struggling traders
- Thread starter steve46
- Start date
I was looking at your examples, and, not sure what problem with the system is being illustrated. Looks like you would have made your first profit of 2 pts, then 3 pts, then the next bounce turns into a trend reversal with a stopout. Maybe you are suggesting a moving stop rather than a static one? The last chart you showed had a section that really showed what I have noticed as a problem in this type of system. I have spent a significant amount of time staring at 200 ma's on my 1 minute charts (actually bollinger bands) and have found that there are certain periods of listless, choppy action where price settles in around the MA and produces whipsaws and subsequent indecision....Sorry, these are just general observations and I really don't have a solution.
One of the important questions was about dealing with chop
As mentioned I like to move from standard bars (or candles) to constant volume or ticks.
Today is kind of choppy so I have attached a tick chart with comments
This illustrates a lot of points but the major ones include
1. Placement of stop loss
2. Possible entries
3. Scaling out vs. holding to a profit target
As mentioned I like to move from standard bars (or candles) to constant volume or ticks.
Today is kind of choppy so I have attached a tick chart with comments
This illustrates a lot of points but the major ones include
1. Placement of stop loss
2. Possible entries
3. Scaling out vs. holding to a profit target
Attachments
Quote from my7tvette:
I was looking at your examples, and, not sure what problem with the system is being illustrated. Looks like you would have made your first profit of 2 pts, then 3 pts, then the next bounce turns into a trend reversal with a stopout. Maybe you are suggesting a moving stop rather than a static one? The last chart you showed had a section that really showed what I have noticed as a problem in this type of system. I have spent a significant amount of time staring at 200 ma's on my 1 minute charts (actually bollinger bands) and have found that there are certain periods of listless, choppy action where price settles in around the MA and produces whipsaws and subsequent indecision....Sorry, these are just general observations and I really don't have a solution.
I understand what you are saying....No matter what chart you use, there are going to be periods where the price action is not right (for your trade) and you have to stand aside...
What I try to do is determine what kind of chart will provide good quality entries. What good is a chart system that has good entries but you have to stand aside most of the time? So this is up to the individual's discretion. For me, I want from 3 to 5 trades per day. I want at least 2 points profit on any entry with the possibility of getting a 10 pointer every day (we are talking about current volatility).
When I anticipate choppy action, I simply switch to CV and ticks side by side. I watch the 2401 for trend and to locate high and low swings. Then change to the slower chart for entries..
The reason I show the 377 tick chart (today) is to illustrate how one can get favorable trade position even in the chop, by slowing the data down..
Good luck
Steve
To give a visual representation of how slowing down your charts allows for more favorable entry, see the attachment.
I think it would have been difficult for most folks to make that entry just off the 5min chart. Compare this to the snapshot 178 above and you will see what I mean.
You can see that the action was choppy all day. The change from 5 min bars or candles to slower constant volume or ticks allows you to see price moves clearly and at least try to get a decent position to manage.
This one really dropped nicely
I think it would have been difficult for most folks to make that entry just off the 5min chart. Compare this to the snapshot 178 above and you will see what I mean.
You can see that the action was choppy all day. The change from 5 min bars or candles to slower constant volume or ticks allows you to see price moves clearly and at least try to get a decent position to manage.
This one really dropped nicely