r10 works it best in fading chop. It was never meant to fade trend. I have stated this all along and warned about it's weak point if you are on the wrong side on a trend day.
Rule of 10 Journal
- Thread starter jagmot
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r10 works it best in fading chop. It was never meant to fade trend. I have stated this all along and warned about it's weak point if you are on the wrong side on a trend day.
Who cares if signals are below or above the ma ? I am not using it for entries ! It is used to keep you from getting your A$$ steamrolled on a run away trend day.
The lines today show a chop day. Surely you see the difference between today's versus the trend days behavior. This is not rocket science.
I don't think your lines show anything different than any other day.
Obviously if you can determine a trend day in advance, it will cut down on the losses of the R10 system. Just like moving your stops effectively will.
I'm just waiting for someone to do that here in the journal in real time. How about you Volente?
OldTrader
Nice to see the 9-11 survived
Volente,
Do you keep stats of all your trades? I'd love to hear approximate stats, but understand if you are not interested or no longer keep stats. I myself don't keep stats on some of my methodologies because it is too cumbersome.
I plan on keeping stats on my r10 trades.
I'm curious approximately what win percentage you are at and avg profit per contract.
I've decided to change this rule as well. I've noticed that the rule has missed some great winning trades while not protecting me much from losing ones. I'm still keeping being done for the day but waiting an hour till after the previous close.
Here is how I'm setup for going into Sept 2nd when I start live trading this strategy.
2 full stop outs in a row and I'm done for the day. I won't place a new trade until 1 hour after the previous close (2:15PM EST). 2 stop outs in a row should also happen less frequently as I'm now using a 5pt target and trailing stop (once the first target is hit).
I will be trading 2 lots, with targets of 5pts and 10pts with a 3pt stop. Once I hit the 5pt target, stop will move to be and then will be trailed at 19 ticks automatically by the InfinityAT platform.
If I happen to be in front of the computer I will be moving my trailing stop closer as it approaches the 10 point target. If I'm not in front of the computer, then the worst that can happen (if the market goes +9.75 in my favor) is to get stopped out at +5.
My rr will be moving to 2.5:1 vs 3:1 previously, I will need a higher win percentage to breakeven and hopefully make money. (6pt total stop, 15 total profit maximum)
Once I'm in a trade, I will ignore price action for reversal, either getting stopped out or hitting a target. After exiting the trade, I will not ignore previous price action, as I did with the papertrading method.
Let me give a few examples so that hopefully this will be more clear. Lets say I'm long at 1252 with a stop at 1249 and targets of 1257 and 1262. Lets say we reach 1256 (not hitting my target) and then sell off and take out my stop at 1249. I will now look to setup a new trade long at 1246, which I did not previously and also a new short based on previous price action.
A second example, lets say I'm long like before with previous targets, etc. The market gets to 1258 before reversing. I hit the first target and then get stopped out for +1. I would then setup a long at 1248 and also a new short based on previous price action.
A third example, again long like in previous examples. After entering trade, market moves to 1250 before springing higher. Hits my first target, at 1257 and approaches 1260. I will ignore short here (where as sometimes Volente does and sometimes does not) at 1260 as I'm in the the trade currently and waiting for my 2nd target to hit. We hit the 2nd target at 1262. I will not be entering a short here even though the r10 short signal was at 1260. I will wait for a new signal and watch for a long only (and vis-versa when the opposite happens)
I will trade overnight, however since I will be sleeping I won't be able to cancel out the opposite trade once a trade is hit. What I will be doing is using r10 long or short that is closest to the market, which I plan on posting along with a screenshot of my statement every night. If there is a significant known news event the next morning, I will use discretion on whether to trade it overnight.
I will start this trade out with approximately 10,000. This is my backup trading account, so if another account goes down, I might need to hedge in this account (but hopefully not).
I hope that is everything.