Rule of 10 Journal

Quote from jagmot:

Trade long was filled at 1264.75
Stop 1261.75
Target 1274.75
More...



This is a very flawed exit strategy unless your entry is filled at the very low or high of the reaction. Using this style you were looking for a 12 point move from the reaction in order to exit.
 
Quote from volente_00:

This is a very flawed exit strategy unless your entry is filled at the very low or high of the reaction. Using this style you were looking for a 12 point move from the reaction in order to exit.
More...

V,

At the time of the trade, the last reaction high was 1274.75 (9:35AM EST 5min bar).

Are you referring to the absolute bottom at 1262.75? I've stated that I ignore price action once I'm in a trade. I probably sound like a broken record but here goes one more time. Unless I hit the exact low or high tick with my entry, I will always be reversing my trade before I hit my 10pt target.

Since we are on the subject, how is it possible for you to get a runner of 20+ points that you have claimed in the past. Perhaps you can explain why you sometimes reverse and sometimes don't.
 
Quote from jagmot:

V,

At the time of the trade, the last reaction high was 1274.75 (9:35AM EST 5min bar).

Are you referring to the absolute bottom at 1262.75? I've stated that I ignore price action once I'm in a trade. I probably sound like a broken record but here goes one more time. Unless I hit the exact low or high tick with my entry, I will always be reversing my trade before I hit my 10pt target.

Since we are on the subject, how is it possible for you to get a runner of 20+ points that you have claimed in the past. Perhaps you can explain why you sometimes reverse and sometimes don't.
More...


So you are saying your target on this was really 1262.75 + 10, even though you posted it was 1274.75 ?


:confused:



As I have always said getting in the trade is easy, the exit is the hardest part. I use a number of factors, such as is there a gap above or below for the day, a predetermined day bias, due to factors such as how many days is the market up or down in a row, option influence, volume spikes, 9, 18 ma's on a chart can help predict a trend or chop day. As long as I am right side and see the grind materialize I will slowly trail the stop down. If I am not on the right side of the trend I will take a loss, or end up with a lot of stop outs at break even or for small gains of ~ 3 points while fighting the trend. These are the worst kind of days for me, mentally they will wear you out. So to answer your question, 9 years and 1000's of hours of watching price action plays a big part on how I manage the trade once in it. This experience is something you will never be able to program into a computer. My work on rule of 10 is used as a signal to enter, you are the one who decided to use 10 points as the objective. Attached is the very chart that I used to determine monday was a trend day. Notice what the simple ma's show. Tues was an example of a trend day that I was not on the right side of and I had to fight and the result is small gains per trade and lots of breakeven stop outs on partial positions. As a contrarian, I prefer chop over trend.
 

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Quote from volente_00:

2 x 10 from 83
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The 83.00 being the high...so when I had a buy @ 73.00 which got stopped @ 70...then the next low buy is/could be 63.00 ,because it was the 2 times the 10 from the high of 83.00?

That is simple enough to follow, so I would get a second bite of the apple ()BUY). Would have worked overnight, too.
 
I think now 1261.50 should be a long entry

Edit: Would be out with breakeven, it reached 64.50 then dropped back...
 
Knocked out again...didn't take long. The irony of this trade was that it was the EXACT opposite of the real trade I had taken!!

This the third successful loss...I will stand back and wait for the 2 multiple =55.00.
 
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