The Actual Grail

Quote from AlpineTrout:

Do you have any preference for location of closing price within the bands? In other words, you'd still take a long entry even though price closed above the upper band, right?

I noticed you trade a diversified group of futures. Do you find that your methodology works better with futures than stocks?
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Yes, I would take a position at the upper band, although the idea is to already be in befere it reaches the 20 MA .As far as the second question, I never trade stocks, only futures s I'm not certain.
 
Ok, I thought maybe you were adding to positions since your charts show back to back buy or back to back sell signals. You're just showing possible entries.

Just curious, how many different flavors of future contracts do you generally have a position open with on an average day?
 
Quote from AlpineTrout:

Ok, I thought maybe you were adding to positions since your charts show back to back buy or back to back sell signals. You're just showing possible entries.

Just curious, how many different flavors of future contracts do you generally have a position open with on an average day?
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I would typically be managing positions in 5 markets (average)
 
B1S2, I guess I am a bit slow, and have been told that also, but am is missing something regarding you RSI grail? It seems that the basis is just a price swing failure at top or bottom. In any case the rsi would be following price. Have I just not read enough posts? If I am just missing it, please direct me to the post that may help me.

Thanks,
 
Quote from bmwhendrix:

B1S2, I guess I am a bit slow, and have been told that also, but am is missing something regarding you RSI grail? It seems that the basis is just a price swing failure at top or bottom. In any case the rsi would be following price. Have I just not read enough posts? If I am just missing it, please direct me to the post that may help me.

Thanks,
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Yes, the swing failure is a key component and yes the RSI is following price. It just helps paint a picture for me of how good the momentum is. The degree that the second higher trough is above the first lower trough can tell a lot about the momentum. However, as stated before, I like the RSI best when it diverges with price and there is a failure swing at the OB/OS line. So in summary, the pattern that I mention helps me "see" the action and the divergence pattern which is stronger helps me play reversals which is my preference. I then follow the new trend. :)


Note: you are not slow, it's just that the grail is really that simple.
 
Quote from AlpineTrout:

On this FX (15) chart, would you agree that before that short Grail there were 3 short Grails that ended up with losses?
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No. You always defer to trailing stop once in a trend which we were from the long grail. This prevents you from being too active and keeps you in the trade. We then look for the obvious grail that has failure swing like short grail that I took. However, I would mention that if you ignored my rule about trailing stops and took each one that even slightly resembled a grail you would still be fine with tight money management. What make the short good that I called in the journal is the sharp nature os the RSI peak. Good question! Always defer to the trailing stop first. :)
 
If you must always defer to the previous trailing stop, then by definition a short Grail entry, would then consist of not one, but two qualifiers:

1) Lower RSI peak

2) Price must close below last pivot point


Is this correct?
 
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