The Bollinger Bandit Strikes Again

only 2 trades today, both winners, what could be simpler? I have it all on one chart. It is very simple. All known indicators, so I have many unknown friends trading with me.

I like those breakouts, but I like them even better when they're confirmed. Switching volume to up and down like you suggested is a big help. No doubt about it, volume is the most powerful confirmation if you are going to play this game.

But 6 ticks is too tight a stop for me. I'm doing a lot of soul searching on stops. To get in based on the market, but to get out based on what is happening in my account isn't consistent.

I've tightened up the dmi and am slowly starting to use it and some other things as stops.

But this I know, in a good move, almost no stop is too tight, because the market never looks back. So a tight stop keeps you in the good move and out of the borderline move.

But it was very volatile out there on the edge today, and I could see 2 pt stop wasn't going to work. Don't worry, I'll keep it 3 to 1.
 
Originally posted by profitseer
only 2 trades today, both winners, what could be simpler?
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That's great, buddy...



But 6 ticks is too tight a stop for me. I'm doing a lot of soul searching on stops.


That's cool...just remember one thing. The amount you risk
should be correlated to your account size. So, if you risk 3 handles ($150.00), you should have at least a $10,000 account.
The basic rule is..."Never risk more than 2 percent of your
trading stake on any one trade."



But this I know, in a good move, almost no stop is too tight, because the market never looks back.


I hear you. Sometimes I think I should only be risking 3 ticks.


But it was very volatile out there on the edge today, and I could see 2 pt stop wasn't going to work. Don't worry, I'll keep it 3 to 1.

That sounds great, man. I have a feeling you're gonna be
in that minority group that makes some money in this business!

 
No, but I see where the discrepency is. On the short chart, 6 tick stops are more than enough. As a matter of fact, it would be suicide to use anything wider.

On the 4 minute charts, there aren't that many good breakouts and 2 pt stops is cutting it very close. Too close IMHO.

No wonder so many traders are always bickering about proper stops and time frames. They are very much inter related. Not to mention trading styles. Breakouts are a lot different than reactions and retracements.

I don't have ticks, my charts go down to 1 minute. But I'm getting the best breakouts on the 4 min charts. Man I got a lot to learn.
 
Originally posted by profitseer


I don't have ticks, my charts go down to 1 minute. But I'm getting the best breakouts on the 4 min charts. Man I got a lot to learn.
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I'm not sure what software or data provider you use, but
I know "Tradestation" draws tick charts, and I think
"Metastock" draws tick charts. And I'm not sure, but I'm
pretty sure "Ensign" draws tick charts.

And I'm pretty sure they are all compatible with eSignal data.

(Well, I know tradestation is, but you have to subscribe to
a program called "Dynastore" to get it to work. That's
what I do, and it works fine)

Occasionally, you can find a good deal on Ebay for a
copy of Tradestation or Metastock. And Ensign is an
excellent software that charges $40.00 a month.








www.ensignsoftware.com/
 
Well that'll teach ya. Ever notice how you never learn anything when you make money? I was trading n21 a while back. Got so tired of getting stopped out I started fading at the halfway point between channels. Hit 7 in a row. But that must have been a one day phenomenon. The next day it blew past that midway point so fast it was breaking out the other side before I finally realized I should have stopped and reversed.

Never have gotten caught in one of these IB downtimes. But I had an order lost somewhere in Jtrader once. That one foul up will pay for many mistakes. It's amazing how much money you can make if you let the market move against you by 8 points. When I went back and looked at the chart I said, "Man I'm glad I didn't know I was in on that trade!"
 
Originally posted by profitseer
That's better, I thought maybe you had given up gambling and were attempting a little investing.
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I'm not a gambler, I'm a speculator...lol

(Besides, "Long Term" is relative):D
 
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