Moment-by-Moment (MbM) Trading strategy

[rajesheck]

Here this is example of another invalid entry because the first support is not proportionate to the second support. The first one is huge compared to the second one which is a smaller.

 

[rajesheck]

100% Success rate of avoiding loss

This strategy if carefully used will give us a 100% success rate in avoiding loss. We give top priority to avoid loss. To make profit we go with the flow instead of a fixed target.

Guess what
If we close all the doors for loss then the remaining is profits. This is understood only by people of business mindset. Also an average person cannot have sufficient skills to close all the doors of loss.

 

[fordewind]

There is a valid entry here on the second support level marked by a green candle. However the red candle marks the exit to avoid a possible loss. The momentum has failed and most probably this wont take off as expected. This is emergency exit. Our first preference is to avoid loss. Profit making is on our second priority.

A normal exit for a bullish trend would be on the second consequent resistance, mostly happens to be a profit booking. This strategy has a high success rate for takeoff.

Thanks for posting this chart. It has very important lessons in it.

View attachment 175401

If you don`t filter those entries somehow, you`ll get 90 stops out of 100 entries.I`ve backtested similar strategy and got those results.

 

[rajesheck]

If you don`t filter those entries somehow, you`ll get 90 stops out of 100 entries.I`ve backtested similar strategy and got those results.

I can discuss on case by case chart analysis. You will never see the power of 0.4% volatility in this strategy unless you do case by case manual study or live trading.

I started my career as a software programmer in 1995 i guess. Yet I don't give a shit to automated trading or back testing stuff. Trading is a blend of science and art. I believe only in manual trading.

I would have never been a successful trader if I resisted to let go my programmer's mindset. I can see many traders struggling to let go their analytical mindset and nurture creativity.

Most traders who proclaim themselves as successful traders are actually not professional traders but just successful in trading as a hobby. Professional traders are simple, humble and creative in their approach towards trading and earn more than 20% ROI per month.

The professional traders talk less and earn more. The hobbyists and other traders talk more and earn less. That is the side effect of analytical mindset.

 

[fordewind]

I can discuss on case by case chart analysis. You will never see the power of 0.4% volatility in this strategy unless you do case by case manual study or live trading.

I started my career as a software programmer in 1995 i guess. Yet I don't give a shit to automated trading or back testing stuff. Trading is a blend of science and art. I believe only in manual trading.

I would have never been a successful trader if I resisted to let go my programmer's mindset. I can see many traders struggling to let go their analytical mindset and nurture creativity.

Most traders who proclaim themselves as successful traders are actually not professional traders but just successful in trading as a hobby. Professional traders are simple, humble and creative in their approach towards trading and earn more than 20% ROI per month.

The professional traders talk less and earn more. The hobbyists and other traders talk more and earn less. That is the side effect of analytical mindset.

I understand what your saying.So you basically look for a perfect picture, so the more beauty in it the more chanses it`ll work.

Still unclear about the 0.4% rule.So that`s why i pulled two different charts with the different scaling.You can squeez or extend the chart and it`ll change the picture...So,could you be more precise on how you determin the scale, timeframe, etc.For e.g., if it`s a 1 min chart as you say, then how many bars in the chart, etc.Is it something exact, or an art, as well?

 

[rajesheck]

I understand what your saying.So you basically look for a perfect picture, so the more beauty in it the more chanses it`ll work.

Still unclear about the 0.4% rule.So that`s why i pulled two different charts with the different scaling.You can squeez or extend the chart and it`ll change the picture...So,could you be more precise on how you determin the scale, timeframe, etc.For e.g., if it`s a 1 min chart as you say, then how many bars in the chart, etc.Is it something exact, or an art, as well?

My big picture about the chart has these three vital observations. First a minimum of 0.4% volatility(within trend/range), second whether the price is trending or reversing or stuck in a range and third whether the two consequent support/resistance are proportionate to each other.

One minute chart is perfect to observe the big picture more accurately.

Now the 0.4% volatility and the 1 minute chart are kind of the science part. Identifying the trend, trend reversal and the range and judging a proportionate support/resistance are the art part.

 

[fordewind]

My big picture has these three vital observations. First a minimum of 0.4% volatility(within trend/range), second whether the price is trending or reversing or stuck in a range and third whether the two consequent support/resistance are proportionate to each other.

One minute chart is perfect to observe the big picture more accurately.

Now the 0.4% volatility and the 1 minute chart are kind of the science part. Identifying the trend, trend reversal and the range and judging a proportionate support/resistance are the art part.

I got you.But can you at least suggest the reference point from which you`d start looking for the 0.4% rule?The extreems are clear to me, what i`d like to ask is some reference point to start counting.

 

[rajesheck]

I got you.But can you at least suggest the reference point from which you`d start looking for the 0.4% rule?The extreems are clear to me, what i`d like to ask is some reference point to start counting.

The only effective way our minds can communicate is through charts. Please post as many charts as needed by you. This strategy becomes more simple as we practice more.

 

[fordewind]

The only effective way our minds can communicate is through charts. Please post as many charts as needed by you. This strategy becomes more simple as we practice more.

Ok.Here`s the same euro futs chart.It qualifies for the 0.4% rule?But now it seems in downtrend.

 

[fordewind]

Here is the same chart, which i streched a bit.It also falls into the 0.4% rule, but now it`s ranging and we have the two conseq. supports, so we buy it.