Did you ever back test your trading setup when you developed it ? I am asking since you are using the DOM to time your entry and that might be difficult to back test.
The mind of a trader
- Thread starter djmartin
- Start date
Yup I did a lot of back testing. The use of DOM came later on in my trading but before that it was all pattern recognition. Learning to read the Dom was icing on the cake. But your 100% right its hard to back test the DOM. You just have to stare at it, it'll start making since after awhile. I combine pattern recognition along with reading the DOM. A lot of the market action is just noise, I wait until I see a lot of activity(volume) then I make a decision to enter or not.
Ok got it. I trade similar to you and currently just use pattern recognition to enter. Which at times is tricky, since a pullback is a pause in the action / counter trend move and by nature highly random/noisy. So maybe observing the DOM will add some edge.
What the Dom does for me is help me determine which pullback to enter or pass up on. It also helps me get a better entry price.
DJ
Per your last video
You suggested struggling traders try something different - for 30 days
You offered up - indicator(s)
I get the impression you're suggesting adding an indicator may / will improve one's trading
The - this doesn't work..., so now try/ add that - wait that ain't working..., so let's try/ add something else
What about trying;
Establishing a process - for each trade - then strictly / solely following that process come hell or high water - to each trade's conclusion
It's been my experience - people (the struggling trader group) can't maintain any modicum of discipline from trade to trade..., let alone day to day
===========================
The final hurtle to consistently profitable - is when one moves from knowing - to doing..., consistently and repeatedly
Just a thought Sir
RN
Per your last video
You suggested struggling traders try something different - for 30 days
You offered up - indicator(s)
I get the impression you're suggesting adding an indicator may / will improve one's trading
The - this doesn't work..., so now try/ add that - wait that ain't working..., so let's try/ add something else
What about trying;
Establishing a process - for each trade - then strictly / solely following that process come hell or high water - to each trade's conclusion
It's been my experience - people (the struggling trader group) can't maintain any modicum of discipline from trade to trade..., let alone day to day
===========================
The final hurtle to consistently profitable - is when one moves from knowing - to doing..., consistently and repeatedly
Just a thought Sir
RN
I'm not saying to add an indicator, I'm saying to try different things. Look at trading ideas you never looked at before. It could be an indicator or it could be something else. Doesn't mean you have to add it to your trading plan, your just expanding your knowledge. What if your intra day trading and you find out swing trading better suits you. I know trader who stuggled for years with intra day trading then switched to swing trading and now there profitable, If they would of never looked into swing trading then they would still probably be a struggling intra day trader. Some trader are just attracted to the sexiness of intra day trading lol but you and I both know that certain styles of trading isn't for everyone. Hope this helps on what I was trying to get across.
I don't recommend trying "something new" involving the trade signal strategy until you've backtested it and understand the strengths & weakness of that "something new"...that's a several months learning duration at the minimum for most traders.
Instead of messing around with the trade method considering most struggling discretionary traders (those not using automation) has discipline problems, risk management problems...
Why not try something new involving discipline accountability, risk management procedure, position size management, collaboration resources, stress management, exercise & nutirition and so on instead of messing with the trade signal strategy itself.
For example, there's a thread about discipline (how to ensure we have it) by a retail trader @ http://www.elitetrader.com/et/index...nd-how-you-force-yourself-disciplined.292966/
There's no discussion in that thread about the differences in how professional traders does such versus a retail trader with discipline problems. Pros trade with others in person, they have compliant office, they have classes specifically about such whereas retail traders tend to be trading alone (nobody in the same office, no compliant office, no alerts to tell someone in real-time we're exceeding our risk levels or something is wrong with our discipline until "after the fact" if lucky). Simply, retail traders approach trading by ourselves in real-time and then try to get help "after the fact". Professional traders approach trading as a "team" in real-time while trading...this is something struggling retail traders with discipline problems need to strongly think about especially after countless times of having discipline problems that keeps sabotaging their trading.
To many struggling traders underestimate the importance of those things mentioned above as part of a trading plan. Instead, they prefer to mess with their trade signal strategy because its an easy thing to do instead of messy with other things in a trading plan that involves re-shaping who they are and how they interact with the markets.
Therefore, if we're going to try something new...it should involve variables mentioned above that improves our discipline, risk management and so on because it will help to complete a trading plan that most struggling traders do not have.
Instead of messing around with the trade method considering most struggling discretionary traders (those not using automation) has discipline problems, risk management problems...
Why not try something new involving discipline accountability, risk management procedure, position size management, collaboration resources, stress management, exercise & nutirition and so on instead of messing with the trade signal strategy itself.
For example, there's a thread about discipline (how to ensure we have it) by a retail trader @ http://www.elitetrader.com/et/index...nd-how-you-force-yourself-disciplined.292966/
There's no discussion in that thread about the differences in how professional traders does such versus a retail trader with discipline problems. Pros trade with others in person, they have compliant office, they have classes specifically about such whereas retail traders tend to be trading alone (nobody in the same office, no compliant office, no alerts to tell someone in real-time we're exceeding our risk levels or something is wrong with our discipline until "after the fact" if lucky). Simply, retail traders approach trading by ourselves in real-time and then try to get help "after the fact". Professional traders approach trading as a "team" in real-time while trading...this is something struggling retail traders with discipline problems need to strongly think about especially after countless times of having discipline problems that keeps sabotaging their trading.
To many struggling traders underestimate the importance of those things mentioned above as part of a trading plan. Instead, they prefer to mess with their trade signal strategy because its an easy thing to do instead of messy with other things in a trading plan that involves re-shaping who they are and how they interact with the markets.
Therefore, if we're going to try something new...it should involve variables mentioned above that improves our discipline, risk management and so on because it will help to complete a trading plan that most struggling traders do not have.
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DJ, on reading the DOM, can you recommend any material/videos that give a good intro into that type of tape reading ?