Rule of 10 Journal

Quote from jagmot:

Remember while in a trade we ignore price action.
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I understand not entering a new trade, while a position is still playing out, but why do we ignore the PA? As the example shows, the difference is 13 pts for you this morning...

Also, since one 10 pts gain pays for 3 unsuccessful attempts, you should stop only after 3 failed tries. You might want to test how many failed trades happen in a row.
 
Quote from Pekelo:

I understand not entering a new trade, while a position is still playing out, but why do we ignore the PA? As the example shows, the difference is 13 pts for you this morning...

Also, since one 10 pts gain pays for 3 unsuccessful attempts, you should stop only after 3 failed tries. You might want to test how many failed trades happen in a row.
More...

Nothing against PA...I'm a proponent. Nothing against trailing a stop either. But let's face it, either of these techniques will cost you some of the 10 point gains too. So whether it actually improves jagmot's method really depends on a discretionary method that as of yet has not been set forth by anyone.

If you're gonna trail your stop for example, how are you gonna do it?

Price action? What are we talking about?

Jagmot has been clear about his methodology. Why not just define your method for stop movement, price action, or whatever else you have decided to use along with this "rule" of 10.

OldTrader

PS. How many of you guys took that 10 point dip and were stopped out, other than jagmot?
 
Quote from OldTrader:


PS. How many of you guys took that 10 point dip and were stopped out, other than jagmot?
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I would have been short from 1304 and probably taken the 7 pts gain, which would have been early, but I take a 7 pts gain over a 3 pts loss anyday. (I am usually early)

Now about your other questions, each trader is different, because there are no clear rules for the exit, although Jagmot admirably is trying to use strict rules. Maybe this journal will bring a conclusion which approach is the best...

The best part is that so far all 2-3 approaches have been profitable!! :)

Edit: Next long entry is 1286 we are almost there...
 
Quote from OldTrader:

Jagmot has been clear about his methodology. Why not just define your method for stop movement, price action, or whatever else you have decided to use along with this "rule" of 10.
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Thanks OT. In addition to helping people understand r10 better, I've also tried to be as clear as possible because I know that sometimes I will not be able to post in real time. So far, not in one case has anyone said something to the effect of you didn't call that trade out in advance...it doesn't count etc.

Quote from OldTrader:

Nothing against PA...I'm a proponent. Nothing against trailing a stop either. But let's face it, either of these techniques will cost you some of the 10 point gains too. So whether it actually improves jagmot's method really depends on a discretionary method that as of yet has not been set forth by anyone.
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Definitely correct as well. I know of at least one successful trade in the journal so far that the trade would have been stopped out if I had moved the stop to breakeven.
 
Quote from OldTrader:

OK, there a 96.25-86.25. 10 points. Anyone long?

If so, I'd love to see the methodology used to exit the position.

OldTrader
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I would have to see an 86.00 to confirm the buy...

Given it hits my "trade" would be BUY @86.25 s/l 83.25...SELL @96.25.

Should it hit 89.25 I would be inclined to adjust the stop to 86.25. If it rolls back would be square on the exercise.
 
Quote from Now is Now:

I would have to see an 86.00 to confirm the buy...

Given it hits my "trade" would be BUY @86.25 s/l 83.25...SELL @96.25.

Should it hit 89.25 I would be inclined to adjust the stop to 86.25. If it rolls back would be square on the exercise.
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OK...that's clear enough. Anyone else?

OldTrader
 
Quote from Pekelo:

I understand not entering a new trade, while a position is still playing out, but why do we ignore the PA? As the example shows, the difference is 13 pts for you this morning...

Also, since one 10 pts gain pays for 3 unsuccessful attempts, you should stop only after 3 failed tries. You might want to test how many failed trades happen in a row.
More...

I ignore the PA because unless I hit the exact high or low with my entry, I would always need to reverse before we hit the 10 point target.

For example, say I enter a trade long at 1294.00 (from a previous r10 signal) and have a stop at 1291.00 and target at 1304.00. The market moves to a low of 1292.00 before moving towards my target. Based on the r10 rule, I should get short at 1302 before my target point is hit. This is why I ignore PA once in the trade. Hope that makes sense.

I agree with you I could use 3 fails before pausing for 24 hours. There are a few other options as well. Another trader recommended restarting at 4:30PM EST which makes sense to me as well. At this point, I don't want to change the rules, so I'm going to keep the 24 hour rule the same.

As a side note, I invite everyone to post clear rules and keep track much in the same way that I do. As I am papertrading the r10 rules myself, I do not mind whether you are using real money or paper money.

As an example, I'm interested in someone using 2 contracts with a target at 5 pts and 10pts. Once you hit the 5pt target, move stop to breakeven.
 
ditto what NiN said.1286 now is in play....

(Volente also does the same)

Quote from jagmot:

This is why I ignore PA once in the trade. Hope that makes sense.
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I understand. The difference this morning was, that the stop came first and the new signal entry after that, so there was no overlapping between entries/exits...
 
I am long at 1286 my target is the close rather than a price target due to the nature of fixed odds bets.Interesting journal and studying ohlc data on sp cash over weekend demonstrates possibilities for my strategies.Keep it going jag
 
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