Rule of 10 Journal

[Pekelo]

Quote from jagmot:

I think the real problem with r10 is managing the trade in a journal setting. Look at the first trade, the trade went more then 8pts in favor, but because of the rules, the trade was stopped out for a 3pt loss.

As several of us already pointed out, you are missunderstanding the rule. The target is not 10 points. Actually, there is no target. The strategy is just an ENTRY signal.

Giving up 8 points gain and ending up with a 3 pts loss is just bad strategy...

 

[tortoise]

Quote from tortoise:

I dunno...I just "saved" myself a tick...


short at 81.25....stop at 84.25

Exit is 75.25....just 4 ticks away....

 

[tomahawk]

11:24 ET

Are you not in the short right now from 81.25? (LOD 71.25 +10)

This seems to be the current trade for the system, and it is working.

Edit: my question is for jagmot

 

[SWhiting]

Quote from tomahawk:

11:24 ET

Are you not in the short right now from 81.25? (LOD 71.25 +10)

This seems to be the current trade for the system, and it is working.

Edit: my question is for jagmot

I get the swing low as 1271.75 which occurred around 9:36 EST?

I have the entry at 1281.75 with 1284.75 as a Stop; Objective 1271.75? Jag?

 

[jagmot]

Quote from Pekelo:

As several of us already pointed out, you are missunderstanding the rule. The target is not 10 points. Actually, there is no target. The strategy is just an ENTRY signal.

Giving up 8 points gain and ending up with a 3 pts loss is just bad strategy...

Thank you Pek for contributing. I am not misunderstanding the r10 rule. I am of the belief that you need a minimum of 3 to 1 rr in order to be profitable over the long term (if you do not employ any money management), that is where I got the 10 point target.

Since I am using 3pt stop and using .25 for average slippage and commission, we need a minimum target of 9.75, and I just rounded to 10 to keep it simple.

 

[jagmot]

Quote from tortoise:

I was thinking of that...for now, though, I'd like to propose minimizing "x-factors" like trade management. Keep the variables down to a minimum so we can see how the core concept delivers over time. If it is valid, a 2:1 reward/risk should make it profitable. Once that has been established, then tweak and customize to your heart's content.

Tortoise, by all means I would be happy if someone else were to setup a different r10 system and keep score with me the same way. Please keep a running tab at the end of your posts.

0 for 1
1 for 2 etc
+3 points

 

[tomahawk]

Quote from SWhiting:

I get the swing low as 1271.75 which occurred around 9:36 EST?

I have the entry at 1281.75 with 1284.75 as a Stop; Objective 1271.75? Jag?

That is a better entry, but I believe the low was 71.25, unless my charts are wrong.

 

[jagmot]

Quote from SWhiting:

I get the swing low as 1271.75 which occurred around 9:36 EST?

I have the entry at 1281.75 with 1284.75 as a Stop; Objective 1271.75? Jag?

Correct although I had the swing low at 1271.25 not 75.

 

[jagmot]

I am by no means an expert but am happy to answer all questions. If I miss anything and you feel like it was not answered in another post feel free to post it again or send me a pm.

Thanks,
Jag

Need to get back to trading wheat! (for a bit)
We are still in the short at this time.

 

[Palatine]

Here is an example trade that I took today. Price broke down 1280 which to me means that support did not hold. Stop was above the recent peak at 1283.75.

It fell like a rock in the first few minutes after the open and I was slightly late at covering. But overall 1270 acted as support in this case (1271.25 to be precise).