Rule of 10 Journal

[volente_00]

Quote from mitsubishi:

Thanks for this journal jag, it kicked off a few ideas to add to my existing strategies.Guys, i think you should take note of what jag is saying and apply the idea in your own way.To attempt to follow another traders' system exactly is almost guaranteed to lose you money (imo)- demonstrated by the confusion here as to entries/exits. Personally i am using r10 and applying it to prev ohlc. Nearly all ohlc's are connected by fibs and r10 seems to fit in well with that. I would also point out that price and TIME should be given equal weight.For example how many times have you seen a reversal from 2.30pm into the close? Today 1264 (sp cash) around 2.30pm target 10 points- close 1274.5

I have stated this all along.

Quote from volente_00:

I enter drilling the bid or ask , i never wait in line with the masses, FIFO, volume, day bias, is there a gap above or under for the day, are we near a key reversal time such as 3 am est, 10 am, 10:30 am, 12 pm, 3 pm.

 

[mitsubishi]

Quote from volente_00:

I have stated this all along.

I hadn't seen that post vol, i was just chipping in my 2cents !

 

[volente_00]

So why 10 ?

Anyone care to guess the importance of the 10 multiple ?

What is the correlation to ?

 

[sandygray66]

100 Dow points

 

[volente_00]

Quote from sandygray66:

100 Dow points

We are talking ES and S&P.

 

[sandygray66]

Yes, I know.

You asked what 10 ES points correlates to, and I replied that it correlates to 100 points in the Dow.

Obviously, that wasn't the answer you were looking for.

 

[volente_00]

Quote from sandygray66:

Yes, I know.

You asked what 10 ES points correlates to, and I replied that it correlates to 100 points in the Dow.

Obviously, that wasn't the answer you were looking for.

If this is true, and s&p had a range of 14.85 today then why was the dow range 163.57 and not 148.5 if there is a correlation ?

 

[volente_00]

Hint

Quote from jagmot:

a bunch of the trades went from +5 to +8 before failing.

 

[Prevail]

because no correlation is perfect. volente is right as a whole.

Quote from volente_00:

If this is true, and s&p had a range of 14.85 today then why was the dow range 163.57 and not 148.5 if there is a correlation ?

 

[monti1a]

Quote from volente_00:

R10 is far from the holy grail. It is just another tool to put in your box if you can grasp some basic concepts. In the end is up to each individual trader to put together what works for them. When this volatility dries up and the ranges contract, most of you will not stick to the principles. When es trades in a 6 point range all day long, what will you do ? Adapt or die. Til then CARPE DIEM.

That is the post of the day.....I think it would be wise to listen to Volente as he has traded the system for more than a mere couple of months...One of the biggest mistakes traders make is the Crime of Small Numbers.....which is simply trying to draw a conclusion from a small sample size.......This market will eventually change it's colors, and when it does, you must be prepared.