Rule of 10 Journal

Quote from Pekelo:

Well, yes. My approach was since I had 2 contradictory strategies/signals, to get out with a profit but not get in with the new signal. Looks like the R10 (and the unfilled gap) was the stronger one...

Question is: Would the 1283.75 be the next long signal?(and I guess an exit from the previous short)
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Good question. The way jagmot does this it wouldn't be a long signal, because he's still short and did not get the full 10 points from his short at 92.50 or so. As you may recall, he ignores price action while he's in a position.

I had a buy in at 1283 personally. It touched it, but I didn't get filled. I think I'm going to cancel it for now and figure out another spot.

OldTrader
 
Well, since we touched 83, jagmot could be out of the 10 and now later on entering on the 83.75 since it did yo-yo back, so I take it as a valid signal...
 
Quote from Pekelo:

Well, since we touched 83, jagmot could be out of the 10 and now later on entering on the 83.75 since it did yo-yo back, so I take it as a valid signal...
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I don't see how he would have covered a 92.50 short at 83.00. My understanding of his strategy is that it's completely mechanical. Therefore, his buy would have to be at 82.50.

That said, even if he did cover, he then resets his entry levels at that point. I've never seen him do a stop and reverse.

One of the things about this strategy is that when one of the signals moves 10 points in your direction, then obviously this could potentially be another signal as well. But equally obvious is that the market doesn't stay in a 10 point range. That may be why jagmot resets from that point.

I'd say if you weren't short, that 84.00 would be a long signal.

OldTrader
 
Quote from Now is Now:

Jagmot ,

Have you given any thought as to what kind of money/trading style (allocation) you would use.....the reason I am asking is that I have yet to identify a "hard case scenerio" that would have any real affect on your bottom line, but I do see a couple of methods to build up the account. Not rocket science.

The benefit is the 3:1 ratio.

I am inclined to think this could be successful (still early days) if you stay cool and let the profits build gradually, but I have to say that you may want to consider the allocation to pick up +3 profit or adjust the s/l and let the remaining "freewheel" according your wishes.

Bottom line....YOUR MONEY, YOUR SYSTEM.
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I was thinking that I would use 2 contracts. Targets would be 5 and 10. If the first target is hit, I would move the stop to breakeven.
 
Quote from OldTrader:



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

OldTrader
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I was thinking I would trade it overnight and then when I wake up see what happens. If there is a major news event (planned), I will either be up before it, or not place a setup that night.
 
Quote from Now is Now:

Fair enough, profit is a profit.,,,I am personally 1/16 s/l 92.25 ..1/16 free wheeling to reverse BUY signal...probably around 94.50 /95.00 if it gets there....looking forward to approx 74 though...
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1/16 s/l 92.25 should read 1/8 s/l 92.25...any way academic now as got new BUY signal @ 84.75 so took profits 1/3 X 7.25 points net and 2/3@ 3 mit.
 
Quote from Pekelo:

entering on the 83.75 since it did yo-yo back, so I take it as a valid signal...
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Again, I would take the 3 points gain. I know I tend to be early, but again, I have a Williams sell signal and profit is profit...
 
Quote from rolextrader:

Don't you mean moving the stop to entry? If the trade moves +3 in your favor, your stop at -3 is breakeven. Sorry to state the obvious.
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Yes, I could move stop to breakeven. I could also just trail stop at different points, from the beginning or once I move the stop.
 
Quote from Pekelo:

Again, I would take the 3 points gain. I know I tend to be early, but again, I have a Williams sell signal and profit is profit...
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Did the same for 2/3@87.75 mit...with 1/3 s/l 84.75 (adjusted)
 
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