The Dawg Pound

Quote from droth:

Hi dawq,

I'm working through your thread and of cource the original one of Jack and some related ones (..and I hope that bashing in some of threads stops soon).

Anyway: I appretiate your work and I'm trying to learn. So here is my question:



How did you know that this is going to be a "perfect" short entry ?
Following the original rocket setup you "shouldn't" have taken this entry (Stoch(14,1,3) at this time is below 75).

What have I overseen ? Your comment will be appretiated.

Dierk
More...


sorry hadn't noticed this question before...

here is my current approach i want all my trades to become rockets, but by waiting for a rocket to appear you leave way too much money on the table...just trading rockets is the way get tuned into and learn the market...ideally you want to be able to get in as early as possible and have the trade become a rocket.

one of the keys is identifying a change in trend and there are numerous signals/sequences you can look for to identify them.

in this case i believed i had identified a change in trend.

ok now the fed day are a nuts, so you have to treat them a little different meaning i do everything i can to minimize my loss exposure than i proboably would on a normal day.

this is how i saw it...

14:20 we get the massive price/vol spike down

14:25-14:40 is the counter trend move

14:40 and 14:45 are sideways price bars with the 14:50 slightly increasing down volume...the 14:50 was also BELOW the 50 on the stoch...i look at the 50 as a pivot. (this whole move looks a volume drying up...thus a really big channel traverse and down trend will resume)

mkt went from above 50 to below and if you draw a trend line from lows it is broken.

14:55 is an irb...this sucker is ready to move

so i viewed this counter trend move as a point 2-3 type move with downtrend resuming at 14:50 bar.

15:00 price moves near the highs of the counter trend move offfering a great spot to enter a low risk/high reward short. normally i would probably let this bar close (especially after and irb) and get short below it, but b/c i could minimize my risk so much in this case by like 2+ points i took the trade earlier than normally.
trade turns into rocket.

once this bar closed with the increasing volume i felt the trade would be sweet.


anyways hope this helps...this isn't really a good example due to the craziness, i will try and post some trend b/d examples to explain....and a little luck never hurts.
 
dawg,
I want ask you about, ho did you handle to do not trap in early exit. I meant in mentality aspect. I always trapped in early exit when my P/L, say 2pts profit and stoch still in zone.
Thanks.
 
Quote from brich:

dawg,
I want ask you about, ho did you handle to do not trap in early exit. I meant in mentality aspect. I always trapped in early exit when my P/L, say 2pts profit and stoch still in zone.
Thanks.
More...

this definitely was the hardest thing to overcome, but eventually i have taken the outlook that i make the market take me out of my position in rockets(if i am up 10pts i will take all profits) after watching myself leave tons of profits on the table i just stopped fighting it. if i take early profits even if i make money i feel like i am failing by taking early exits. your goal is trade it the right way, not trading for small profits. don't worry about this particular trade think about how pissed you will be when you take your measly 2pts and watch the mkt rip in your face. i keep a stack of rocket charts next to me and are always looking at them to keep me cool. if you are going to make big points it will be thru holding rockets.

one thing i did was keep a spreadsheet showing p/l with my exits versus letting rocket go till end...i was significantly underpforming the 'theory' so you just have to pound it into your brain and accept it...it is not easy...the whole key is the few really big trades a week (the 8+ winners) and taking quick profits assures you of mediocrity/breakeven.

i would take the approach of holding all rockets until the end and as you do this you will begin to see what are the best possible exit sequences.

some outher thoughts on exits:
-you can exit early under the right conditions...high volume (25k) price/vol spike that pierce the upper part of your channel...i have found that to be an excellent early exit and you can get back in on the bottom of the channel.

-if you ever going to try and take some profits early always try and exit on the away side of the channel b/c then you at least may have a chance for re-entry as it traveses the channel. i would not adovcate it, but if you are going to exit. give yourself the best opportunity for re-entry.

hope this helps.
 
Hi Dawg,

What setup are you using these days for:

1. Internet connection
2. Chart service
3. Data feed
4. Broker

Any comments?

JohnnyK
 
Quote from JohnnyK:

Hi Dawg,

What setup are you using these days for:

1. Internet connection
2. Chart service
3. Data feed
4. Broker

Any comments?

JohnnyK
More...

1. cablevision cable modem...dialup backup...works great. (nj)
2. esignal (just switched from qcharts)
not as pretty but so far has been more stable...very happy so far
4. ib - can't beat the pricing since i only trade es about 5 rt a day.

i am pretty much just a basic setup now ..i used to have tons of crap tick, trin, vix...got rid of it alll.
3 monitors
es 2/5/15/30
ym 5
nq 5

there's no need for any cluuter...no tv and i check briefing.com if something crazy happens.

hope this helps.
 
since Jack use your trades as 'tool box' so I thought I should 'interview' you, lol

1) Did you know Jack or trade his set up before he show up here.

2) What made you decide just do it Jack style instead of go on and on with back testing, asking for his acct statement etc.
 
Quote from nkhoi:

since Jack use your trades as 'tool box' so I thought I should 'interview' you, lol

1) Did you know Jack or trade his set up before he show up here.

2) What made you decide just do it Jack style instead of go on and on with back testing, asking for his acct statement etc.
More...

1. saw jacks writing on MIF but never read much of it until he came to ET

2. i read what he was saying...followed along on the charts and it just 'clicked'... to me what he was saying was pretty clear to me on the charts, i was just trading off trendlines so this fit in perfectly...and took some more guesswork out of the equation.

as far as statements and stuff, this was free...i am making the trades, so i don't care what his p/l is...it is my responsibility not jacks.

 
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