Ideas for struggling traders
- Thread starter steve46
- Start date
What do you expect? If its a given that we don't get 100% of order flow from any data supplier, then the charts between two different suppliers are going to be different.
And since the indexes provide data, they would NEVER have a vested interest in skewing our data....lol. A study in chokepoint offense and defense.
And since the indexes provide data, they would NEVER have a vested interest in skewing our data....lol. A study in chokepoint offense and defense.
Okay folks I am back from dinner and saw your questions.
Look, it is true that suppliers aggregate the data differently. Nothing can be done about that. Unless you have Esignal data, chances are your charts will look a little bit different than mine.
So what to do?
Well, first realize that the concept is the important thing....It does not make a big different whether you use 377 ticks or 390 ticks or 410 ticks....etc...What does matter is that you get the idea I am trying to transmit...That you choose the type of chart that presents the data in a way that allows you to capitalize on it....
To choose my charts, constant volume and tick, I had to go through a lot of trial and error. I would expect you to have to do a little experimenting before you find a setup that suits you....
I am not trying to evade the questions, I just don't know of a better answer.
I hope that puts things in the proper perspective.
Steve
Look, it is true that suppliers aggregate the data differently. Nothing can be done about that. Unless you have Esignal data, chances are your charts will look a little bit different than mine.
So what to do?
Well, first realize that the concept is the important thing....It does not make a big different whether you use 377 ticks or 390 ticks or 410 ticks....etc...What does matter is that you get the idea I am trying to transmit...That you choose the type of chart that presents the data in a way that allows you to capitalize on it....
To choose my charts, constant volume and tick, I had to go through a lot of trial and error. I would expect you to have to do a little experimenting before you find a setup that suits you....
I am not trying to evade the questions, I just don't know of a better answer.
I hope that puts things in the proper perspective.
Steve
Seems to me like eSignal prints roughly 3X the number of 377tick bars in a given time period compared to QT's charts... lol. Still seems like more of a difference than it should be, but I suppose it doesn't really matter, like you said.
Anyway, thanks for your reply, and again - great thread. Keep the charts coming!
Interesting thread; thanks steve46. Please tell me are the examples given for full time or part time trading?
Well these are ideas for "struggling" traders.
I would guess that a significant percentage of those struggling traders probably have other jobs, and are trading part time.
I am hoping that traders will take the basic concepts offered in this thread, and try to modify them to fit either full or part time schedules.
Good luck to you
Steve
I would guess that a significant percentage of those struggling traders probably have other jobs, and are trading part time.
I am hoping that traders will take the basic concepts offered in this thread, and try to modify them to fit either full or part time schedules.
Good luck to you
Steve
Hi Steve,
I'd like to add something to your discussion, and this is what I see in your and others' charts. This is I think very important for successful trading and this is mastered with the experience, regardless of the trading style.
So, if the trade doesn't go as you expected, just GET OUT of it. If the price starts some movements around the entry point, or make deep correction after the entry point, get out. Get our around break even or with a little profit. If you are in doubts - get out. To get out of a set up which with found with efforts and which you think "must" work is not easy, but is essential for the final success. Don't wait till the price hits the stop loss level. Get out.
Of course if the price goes as expected, or over perform your plans - let the profit run.
What do you think about this Steve?
I'd like to add something to your discussion, and this is what I see in your and others' charts. This is I think very important for successful trading and this is mastered with the experience, regardless of the trading style.
So, if the trade doesn't go as you expected, just GET OUT of it. If the price starts some movements around the entry point, or make deep correction after the entry point, get out. Get our around break even or with a little profit. If you are in doubts - get out. To get out of a set up which with found with efforts and which you think "must" work is not easy, but is essential for the final success. Don't wait till the price hits the stop loss level. Get out.
Of course if the price goes as expected, or over perform your plans - let the profit run.
What do you think about this Steve?
Quote from epetrov:
Hi Steve,
I'd like to add something to your discussion, and this is what I see in your and others' charts. This is I think very important for successful trading and this is mastered with the experience, regardless of the trading style.
So, if the trade doesn't go as you expected, just GET OUT of it. If the price starts some movements around the entry point, or make deep correction after the entry point, get out. Get our around break even or with a little profit. If you are in doubts - get out. To get out of a set up which with found with efforts and which you think "must" work is not easy, but is essential for the final success. Don't wait till the price hits the stop loss level. Get out.
Of course if the price goes as expected, or over perform your plans - let the profit run.
What do you think about this Steve?
I will give you the benefit of a lot of experience in this answer.
I will not look good doing it, but hey it won't be the first or last time...
The truth depends on how well "prepared" you are....By "prepared" I mean,
1.) Did you do your own research to confirm that the setups have an edge?
2.) Did you have the patience to take only setups that meet all your requirements.
3.) Was your backtest complete (did it include stop loss and risk management rules).
If YOU answer "yes" to these very important questions, then unfortunately what you saw me do today, was wrong...
and the answer to your question is "follow your system rules to the letter"...if your system requires you to take a 2 point stoploss, then do that without deviation, even if you THINK you know that a trade is going to stop out and you can "save" a couple of points, do not deviate from your plan....
Now I realize you saw me do that today...but frankly that was a bad decision on my part...
I am assuming you want a professional comment.
Generally speaking if you don't have the confidence to take every setup and trade it to the letter of your plan, you shouldn't trade.
I hope this helps. Sorry I didn't show you a better example today.
Steve
Here are some more chart examples of entries into a trending market
Couple of things worth looking at as follows
First, if one looks to the left you can see price moves from above the longer (white) MA down through it. It "takes out" the MA and then comes back to test it. This is a common set-up. After watching this action for a while, one sees that sometimes price will come up and "tag" the line and then run south, other times the trend is strong and price never quite touches the MA. Judging when (whether or not) to trade this is part of the art of trading. For struggling traders, I suggest approaching it this way
1. If you are new to this approach, only trade actual touches. In this volatility I would use a 2 pt stop
2. If you are not new to this, but are "struggling", I suggest incorporating an additonal filter, perhaps the $TICK or the $ADD if you have Esignal data.
Couple of things worth looking at as follows
First, if one looks to the left you can see price moves from above the longer (white) MA down through it. It "takes out" the MA and then comes back to test it. This is a common set-up. After watching this action for a while, one sees that sometimes price will come up and "tag" the line and then run south, other times the trend is strong and price never quite touches the MA. Judging when (whether or not) to trade this is part of the art of trading. For struggling traders, I suggest approaching it this way
1. If you are new to this approach, only trade actual touches. In this volatility I would use a 2 pt stop
2. If you are not new to this, but are "struggling", I suggest incorporating an additonal filter, perhaps the $TICK or the $ADD if you have Esignal data.
In response to important questions about how to trade in the chop, I have another chart showing some setups for this condition
Reading from the far left, you see the multiple "tests" under the small moves down. We see this often. For some reason, the number 3 is important in trading. When you see three tests in a row, often the next move is a continuation. This is a good setup of struggling traders because it allows them to have a moment to think about what is happening and to get ready to react.
The next setup is what I call a "Spike" test. It is actually a retest as price crosses from under the longer (White) MA to above. That long tail or spike tells you that A.) price tried to move back down and B.) buying came in right there.
It is a sign that continuation up is possible.
I hope this helps struggling traders to handle "choppy" conditions.
Reading from the far left, you see the multiple "tests" under the small moves down. We see this often. For some reason, the number 3 is important in trading. When you see three tests in a row, often the next move is a continuation. This is a good setup of struggling traders because it allows them to have a moment to think about what is happening and to get ready to react.
The next setup is what I call a "Spike" test. It is actually a retest as price crosses from under the longer (White) MA to above. That long tail or spike tells you that A.) price tried to move back down and B.) buying came in right there.
It is a sign that continuation up is possible.
I hope this helps struggling traders to handle "choppy" conditions.