Rule of 10 Journal

Quote from Now is Now:

So today we start off with a BUY @ 65.00 s/l 62.00 as overnight high was 75.00.

Jagmot had a winner!!!
More...


Why did you not take the short at 73 -74 ?
 
Quote from volente_00:

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


:confused:
More...

No I'm saying my target is 1274.75 using the last reaction high. If I were to use the absolute bottom (the trade went 2pts past my initial entry, then my target would only be 8 pts)
 
Quote from jagmot:

No I'm saying my target is 1274.75 using the last reaction high. If I were to use the absolute bottom (the trade went 2pts past my initial entry, then my target would only be 8 pts)
More...


Why were you not short on the exit ? Because you ignore price action while in the trade ?
 
Quote from jagmot:

No I'm saying my target is 1274.75 using the last reaction high. If I were to use the absolute bottom (the trade went 2pts past my initial entry, then my target would only be 8 pts)
More...

If you truly think this works centered around 10 point directional moves then why are the exits not based on that ?
 
Quote from volente_00:


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.
More...

I agree with everything you said completely, I hate fighting the trend. I love following the trend and slowly moving the stop in my direction. For purposes of my trading here though I chose to keep the stops and targets static. I want to keep the journal as simple as possible, as so many people did not understand the entries. Before you run, you first need to walk.

Remember also that the 10pt target has nothing to do with r10, it has to do with risk reward. I use 3pt stop (as you recommend) and have the target as 10pts because I believe that a minimum 3:1 risk ratio is important.
 
Quote from Now is Now:

So today we start off with a BUY @ 65.00 s/l 62.00 as overnight high was 75.00.

Jagmot had a winner!!!
More...

Thanks Now. It looks like you are using the absolute highs and lows which I don't personally advocate.

Regardless, the trades should work a decent amount of time. Are you keeping track of your results? I'd love to see the results (ie like 2 for 5, 3 for 8, etc)
 
You must log in or register to reply here.
Back
Top