Noting your comment NihabaAshi, I therefore set out a brief response for the earnest enquiry of Vedanta.
Firstly Iâm not really interested in exchanging PMs and I donât always answer them. If I have any comment to make the BB is the open means and anyone else including myself can make their observations or not.
For everyone, it is what you are attempting to do in the market or what you are not doing which is reflected in the posts you as ET members make .. aside from jesting mode and exchanges or statements of sentiment made by members including myself. Trading is also about clear aims do-able within what a market permits.
Grobs proposal is to follow the daily gyrations using index futures (eg ES) from the open to the close buying the bottom of each downmove and selling the top of each upmove in a series of linked trades, in other words turning around at each bottom and each top. This is achieved through reading the market live using a mix of coarse, medium and fine criteria. Undoubtedly it is useful teaching.
I have not read all his extensive writings posted at ET but the key ingredient in getting rich is weight or betting size. I donât know whether or not moving through ES with 10 lots is the still the standard for that methodology. It has natural limits on position size when part of the process entails trading when frequently move sizes or segments are not large.
I donât sell the shop; thats a big difference. It is up to players to do their own problem solving and homework. I can tell you if you want to set up a predictive model you have to assemble all the data and it will take a lot of time and focus, stage by stage, to establish and understand all the parameters you will need. I know that a few members have bumped into odd bits of all the answers needed but you need first to establish all questions and work through them. New questions keep arising out of attempting to answer the questions you start out with but it is up to the aspirant player.
What a predictive model can do is provide a template. A series of initial parameters take you to the appropriate and specific template for the day you trade. It gives you in advance the day range scale, BS or SB, and timings within the day (plus other derivative track direction as the day progresses). If you donât want to know any of that ..fine. For me I want to know the day in advance and it is an institutional approach to treat the market as place to take out money.
The general backdrop is that everyone arrives at this point in time along the ruts and grooves that make up their knowledge and experience to date. Its easy for anyone to be locked down hard, encased in what they believe is the answer or to reside in a perspective where they believe the only answers lie or to be where they already think they have got the best answers in their view. If your mind is open what experience is it based on? It may well not be enough. If you have long experience, is you mind open enough? It may well be a tired and cluttered wallboard averse to any longer being open enough.
With a predictive model, you do not need chart analysis. I do of course use a visual live chart as I monitor the price throughout the day. Can you use chart analysis as well? Of course you can. I developed a suite of indicators on range bar and volume bar charts and the subject remains interesting. Indicators are perceptions of price behavior which can mislead as well as lead you correctly in your trading. Even with indicators it seems many players do not do the necessary testing, study, repetitive assessment or establish accurate and related readings which only then can be used for smart play to continuously exploit the market they trade in.
But remember I choose to know in advance the day ahead.
