Iterative Refinement

Quote from romanus:

A few questions for Icarus, Aurum, Jack Hershey or anybody else who practiced wash trades successfully. Having no success with my interpretation of guidelines in the past, I would like to attempt to make these potentially very valuable wash guidelines as idiot-proof as possible.
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I'm not sure that's possible but I'll do what I can to address your questions.

Quote from romanus:

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1. Does the designation 'pt3' highlighted in red above means the bar that one believes to be a future Point Three of the new channel based on: (a) increasing PRV on that bar and (b) the presence of an FTT in the previous channel signaling change in sentiment in the direction of the wash trade.
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Sounds good. Go for it.

Quote from romanus:


2. "Watching volume confirm" - does this statement refers to the same 5 min ES bar where one enters, or the following bar.
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It doesn't make reference to any bars. It refers to the periods prior to and following the entry.

Quote from romanus:

3. If the "volume confirms", whether it's the same bar, where the entry occurred, or the following bar - when does one exit?
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It's a wash drill. You hold until you can wash. The trade might go 10 points in the green before it comes back and you can wash. Be patient and remember to take a tick or two as part of the wash.

Occasionally you will wait the entire day without a wash. Just bank the profits at end of day then and count it as a wash and tell yourself you'll get some good washes the next day. If you bank 20 points or more, count it as two washes.

Quote from romanus:

4. How does the presence of pennant/formation fits into the wash trade?
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I don't know. You can probably find a lot to consider if you think about them enough. I haven't done that. I recommend starting out with p3 entries.

Quote from romanus:

5. Should one pay attention to any YM signals a the time of wash entry?
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There's nothing special about an entry for a wash. I recommend starting with entry at p3's. If YM helps you pull the trigger, by all means use it.

Quote from romanus:

I would greatly appreciate any insight.

Every statement or observation with respect to this methodology can not be taken literally and is only valid within a specific context.

The statement - "entering at p3 and watching volume confirm. If volume doesn't confirm, you exit immediately." - requires a qualifier, if not several.

By example:
  • YM leads ES (at points of change)
  • Jokari Window signals change (only within specific context)
  • Drawing trendlines gives one a religious experience (but not necessarily teaches one how to annotate correctly)
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I merely provided general advice to a person who asked me about doing wash drills. Nothing more.

All the best.
 
Quote from icarus618:

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It's a wash drill. You hold until you can wash. The trade might go 10 points in the green before it comes back and you can wash. Be patient and remember to take a tick or two as part of the wash.

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Thank you, icarus618!
As always your insight is greatly appreciated.:)
 
My apologies on daily chart.
The daily bar from yesterday is missing. When I refreshed, it popped up but I already posted.
Yesterday the daily bar was increasing price decreasing volume, and today gave more increasing price and decreased volume.
This does not change the annotated red down tape started on 8/11.
Signal of change still in effect.
 
Quote from Aurum:

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These instructions are clarifications for conducting wash drills. (i.e. see Jack's "Crow's nest" post) ...
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Thank you, Aurum! I did not mean to give a wrong impression of sounding frustrated.
:D Seeing the expressions such as: "trading for real", "while learning", "grow the account a little" and "entering at p3", which are also known to appear in the same context as "bread and butter trades", made my heart beat faster causing a temporary overflow of blood to my brain.
Following the responses from you and Icarus, the clarity has been restored and the reality of "your mileage may vary", (which I came to appreciate as :D successful application requires individual's qualities, that are beyond of the scope of current discussion) still applies.

Thank you for responding.
 
Here is what happens when things get clear and a better understanding.

This is just some part time hours over the last week while I found some time to trade.

Commissions had totaled Around $60.00
This is gross before deductions.
Mr_Black is always so generous to share, so this is a little look at past week.
 

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Here is a look at 3 trades I did on the 8th.

* First trade - A loss of 1 point.

* Second trade - break even wash.

* Third trade - 4 point profit.

This is a clip from my statement.

A look at mistakes and profit. Even with mistakes a nice profit made.
 

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