SLAAMT Exercise

N

niko

According to the SLAAMT

http://www.traderslaboratory.com/forums/wyckoff-forum/16270-if-you-can-draw-straight-line.html

There are 6 rules, but people seem to have tangled themselves with extra rules, this tread intention is to come up with a consensus on stuff like SCR and what to consider a line break in order to move forward.

BTW the 6 rules are

1. Track the balances between supply and demand with straight lines. Don't hug price like Spandex. Otherwise your line is guaranteed to be broken for what may be nothing more than a stumble.

2. When price takes off in one direction or the other, wait for a retracement.

3. Enter on that retracement, a few ticks above the trough of a \/ retracement or a few ticks below the crest of a /\ retracement, and stay in until your line is broken. And by "broken" I don't mean that price pokes the line. As long as buyers are in charge, stay long. If sellers are in charge, stay short.

4.When the line is broken, exit and wait for a retracement in the opposite direction.

5. Continue until you enter chop (two consecutive trades that don't go anywhere and are accompanied by a higher low and a lower high, i.e., not trending).

6. Wait patiently. Quit when you get tired and start to lose focus.​

From now on and until these issues are cleared out, I invite chat members to post their analysis here.

Please no trolling or naysayers, you will just be ignored.
 
Looks good Niko... looks good! I never imagined that even giving someone a trading plan that works could cause so much trouble, but here we are! :) Just a few more tries at drilling it in my head "as is" should be enough.
 
Regarding 1. I think we all agree on lines, if not we can discuss it in RT.

2. As we are all using the 1 min, all our RETs will look alike.

3. Entry will be THE SAME 1 point away from the RET (H or L of the last "closed" bar), if an intrabar RET comes along we will discuss it on the way.

Here we need to make a pause to have a debate on SCR, there are different Ideas we have to discuss.
 
Thanks for this Niko.

Hopefully this will get us closer to matching entries and exits.
The drawing of the demand / supply lines may be different in real time, as will the ability to play REVs.
As an example some people will make a trade when price rejects a major level, and retraces before breaking the line. Others will wait.
Looking forward to the discussions.
 
This is what the day looked for me today, there were some operational mistakes regarding reentries, but in general this is what I did.
 
niko said:
Here we need to make a pause to have a debate on SCR, there are different Ideas we have to discuss.
More...

Ok... here is what I see. If we keep the lines not fanned tightly, then exists will have to be based on price moving against us, not breaks of the line. Some legitimate entries are just too far away from the line to hold if your exit is a break of the line. I saw that today with my trades. You know its a down move, you have your RET, hence a crest, and your entry is one point below this. But when filled, that next bar can move against you many points before it even touches the SL, or even before it reaches the high of the previous bar. If your scratch is only 1 or 2 points, you are scratched out for sure, and one or two bars later price continues to drop in your favor. Its almost as if you're better off when price touches the SL and you short there rather than below the low of the bar. I'm not saying this is an entry I would do as I'm not changing SLA, but I see this in the entire down move today.

For discussion, refer to chart.

A is a great entry. Once filled on the next bar, it goes in your favor for quite a few minutes until just past B. The high of this bar goes past your entry point. Then do you exit at line break for a couple of points or hold till price comes all the way up and exit at BE? I doubt you hold for it to come down again.

B - below here you get filled on the next bar, but are you ready to take a short with the surge in buying here? price comes back up again and breaks just after C though.

C - if you short here, you get filled 2 bars later, and price moves against you to above D which is also a line break.

D - if you short here you get filled on the next bar, price comes back to your entry but then slowly goes down again.

E - if you short here, filled on next bar, and goes against you by over 4 points.

F - if you short here you get filled on next bar and this eventually goes down nicely, but 5 mins later price still comes up to your entry level, or a tick below.

G - if you short here, you get filled on next bar, and once again, just before H, price come back to your entry level

H - if you short here, same story, filled on next bar, and price come back to entry on the bar after, but then you are home free.

Of course the entire down move is nice, but each entry carries either just a tick of risk, or even 3 or 4 points. Best entry is always at the beginning of the move, because each entry lower you are left to wonder if the move is done. At least at the beginning, you can just say there was never a move if you get stopped in and it never goes lower.

So scratching is difficult, and in this example, being flexible is what helps you capture the whole move down. Clearly micro managing like this isn't the way, but if talking about scratches of one or two points, this whole down move is mostly missed.

Lets discuss!
 
k p said:
Ok... here is what I see. If we keep the lines not fanned tightly, then exists will have to be based on price moving against us, not breaks of the line. Some legitimate entries are just too far away from the line to hold if your exit is a break of the line. I saw that today with my trades. You know its a down move, you have your RET, hence a crest, and your entry is one point below this. But when filled, that next bar can move against you many points before it even touches the SL, or even before it reaches the high of the previous bar. If your scratch is only 1 or 2 points, you are scratched out for sure, and one or two bars later price continues to drop in your favor. Its almost as if you're better off when price touches the SL and you short there rather than below the low of the bar. I'm not saying this is an entry I would do as I'm not changing SLA, but I see this in the entire down move today.

For discussion, refer to chart.

A is a great entry. Once filled on the next bar, it goes in your favor for quite a few minutes until just past B. The high of this bar goes past your entry point. Then do you exit at line break for a couple of points or hold till price comes all the way up and exit at BE? I doubt you hold for it to come down again.

B - below here you get filled on the next bar, but are you ready to take a short with the surge in buying here? price comes back up again and breaks just after C though.

C - if you short here, you get filled 2 bars later, and price moves against you to above D which is also a line break.

D - if you short here you get filled on the next bar, price comes back to your entry but then slowly goes down again.

E - if you short here, filled on next bar, and goes against you by over 4 points.

F - if you short here you get filled on next bar and this eventually goes down nicely, but 5 mins later price still comes up to your entry level, or a tick below.

G - if you short here, you get filled on next bar, and once again, just before H, price come back to your entry level

H - if you short here, same story, filled on next bar, and price come back to entry on the bar after, but then you are home free.

Of course the entire down move is nice, but each entry carries either just a tick of risk, or even 3 or 4 points. Best entry is always at the beginning of the move, because each entry lower you are left to wonder if the move is done. At least at the beginning, you can just say there was never a move if you get stopped in and it never goes lower.

So scratching is difficult, and in this example, being flexible is what helps you capture the whole move down. Clearly micro managing like this isn't the way, but if talking about scratches of one or two points, this whole down move is mostly missed.

Lets discuss!
More...

So how would you ideal with this kind of environment? Regarding scr
 
niko said:
So how would you ideal with this kind of environment? Regarding scr
More...

Well.. funny you should ask. Clear downtrend means you gotta hold on. Ideally you are in from the top. If you have to exit and re-enter, you have to be a bit generous. A scratch of 2 points is too little sometimes. As to why be generous now and not at other times I don't know. I just see good entries that either don't take off (I know we shouldn't expect it to right away), or entries where prices comes back to us and your feeling is to get out at BE at least.

Knowing what I know today, holding on is best. But any other day, I question if price will just shoot back up so its best to get out. I think the chances of price shooting up are low, it only happened here once, so hold on once again. But you gotta be in at the beginning!

Or I'm completely wrong! LOL... what do you think?
 
We are considering all price movement to be equal and it is not, for example, if after your entry price fails to go above LSH (buy) or below LSL (sell) that is a signal, you dont need to let price go all the way to your stop (LSL and LSH respectively)

For example if price makes a HH the trend is up so perhaps one can give price more wiggle room and await for a LSL break before exiting, in that way you can stay in even in the deep RET environments sometimes we face.

Just an idea, any more?
 
BTW just realized the huge spelling mistake in the thread´s name, just requested the administrator to give me a hand, sorry for not being native. :D
 
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