Rule of 10 Journal

[Decel]

If I read the chart correctly there was a reaction high at 1281.75, so entry's at 1271.75?

Too bad I can't post during work, or else I'd be more active on these boards

 

[volente_00]

Quote from Pekelo:

Irrelevant to the R10, but what do I know?



Hightick was 81.75 at 15:15, closing with 76.5....Again, there were 2 entries at 79.5 and 82 (missed by 1 tick) from the reaction lows, it is personal who picked which one....

9.5 points ? Did the hard 10 style miss yet another signal ?

Flexibility is key, 9-11. This is not about getting in exactly 10 points from the exact reaction low or high. If it hits 63.75, you don't have to try to get filled at 73.75, I look for the zone, so if it touched anywhere in 63 then 73 will get my attention even though that is only 9.25 points away instead of 10 exactly.

 

[volente_00]

Quote from mitsubishi:

vol, could you give me an insight on that? Using r10 on ohlc from prev day worked today if you bought the first dip (prev close 1274.5 go long around low 1265.2) i agree with you that looking for an absolute exact 10 point entry isn't ideal

http://finance.yahoo.com/q/op?s=SPY

 

[volente_00]

Quote from OldTrader:

Between you and me, I've never really used the 24 hours charts anyway.

And in that regard, just using RTH charts seems like it works fairly well too. For instance, yesterday's last swing high during RTH was 1275.25. This morning we opened slightly over 10 points under that level at 1264.75. Just an observation.

I don't know about you, but if I were using this strategy, I wouldn't be doing it at night. LOL.

OldTrader

To old to do a little night trading with the young ones ?

Still a skeptic ?

 

[volente_00]

Quote from Pekelo:

This whole 10 entry/3 loss is empirical. Maybe after backtesting dozens of variations we would get that 9.25 with a 2.25 loss is the most profitable. Nevertheless lots of variations would do just fine, so I really don't think there is an explanation to it, beside that the market tends to pull back after a bigger move one way....

I have toyed with stops and the ranges for years now. 9-11 range with a 3 point stop seems to be pretty much the winner, but what do I know.

 

[volente_00]

Notice the red and blue lines and what they do that indicates the daily trend

 

[volente_00]

Quote from Now is Now:

Since we are gambling why not SELL@83.25 as that is 2 times 10 low? Or on the 9-11 entry method SELL 82.25 and 84.25...

What was the reaction low from where this move started ?

What is 20 plus it ?

where did this pull back from ?







71's look buyable, ihs pattern setup on the daily and 50% retracement level.

 

[Pekelo]

Quote from volente_00:

9-11 range with a 3 point stop seems to be pretty much the winner, but what do I know.

My point was that maybe there is no logical explanation why the 10 points seems to be the best. But if you know why, I am begging you, because I can't go to sleep until I know the answer!

(maybe a huge HF's blackbox is set up that way)

The best part is that we don't even need to know, as long as it works!

 

[Pekelo]

By the way, are we going to credit 1279.5 as a legit short entry? So far hasn't been stopped out and up 6 pts....

 

[volente_00]

Quote from Pekelo:

My point was that maybe there is no logical explanation why the 10 points seems to be the best. But if you know why, I am begging you, because I can't go to sleep until I know the answer!

(maybe a huge HF's blackbox is set up that way)

The best part is that we don't even need to know, as long as it works!

The answer has already been posted today.