The Stochastic Indicator
- Thread starter jack hershey
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Jack,
I was wondering if i may ask you a question that you probably wont like. Optimally(pts), I think that its' a good risk to reward ratio to get out and reverse on the second pt 2 in strong trends and reverse back towards continuation when the second pt 3 is formed. This is of course dependent on ones' ability too see the true second pt 2. You probably think this is taboo.
Eitherway, i would really like to hear how you percieve this pt in time. thanks.
I was wondering if i may ask you a question that you probably wont like. Optimally(pts), I think that its' a good risk to reward ratio to get out and reverse on the second pt 2 in strong trends and reverse back towards continuation when the second pt 3 is formed. This is of course dependent on ones' ability too see the true second pt 2. You probably think this is taboo.
Eitherway, i would really like to hear how you percieve this pt in time. thanks.After thinking more about my last post, i realize that this earlier flaw oriented thinking is only good for the summer. After labor day, we will probably have less failed second pt 3's which would lead me too believe to just stick with waiting until a flaw pops up too reverse since labor day is just around the corner. now that was a runon sentence
.
jc
.jc
Quote from nwbprop:
Jack,
I was wondering if i may ask you a question that you probably wont like. Optimally(pts), I think that its' a good risk to reward ratio to get out and reverse on the second pt 2 in strong trends and reverse back towards continuation when the second pt 3 is formed. This is of course dependent on ones' ability too see the true second pt 2. You probably think this is taboo.
We will get to this.
the trading choices are:
Beginner rockets only
Intermediate at the beginning icebergs only on the 14,1,3 then on 5,2,3 then linked on 5,2,3.
Experts are wide open using all the above and two strategies: continuation (entry/exit) and change (reversal). they go in on bracket trades at open and at the end of CCC.
Flaws are conditioning for making high money velocity. Points 1,2,3 are for taking everything out of each trend we have.
You can see the comments I made on risk/reward.
An alternative when you are seeing a point 1,2,3, channel is to slalom it. If it is a C of CCC you are working it to be pushed by scalpers and edgers making mistaken entries by betting on thier edges. You will notice while slaloming everything but CCC (lateral) that it is a tough cookie to bite, in a long or short channel.
Any one can post after the fact.
However, today was a zinger for for learning.
The rocket on the 15 min was where to be as a beginner.
One trade day for icebergers.
expers bracketed in on the open.
Amost everyone saw the IT channel being pummelled. this was the longest leg so far in the ES03U since rollover into it.
We hit a rollover in our first few weeks of post labor day to take us to the end of the year.
We have made super progress on the real time live today. It will be an international support team from the past so I think we will roll. A voice run on phone did not make the two hours today. It will not be a problem by labor day.
This was a day that experts could not make the 3x's H/L. Many will not understand this and think I am retracting my view of 3X's. When the market is a straight forward one trade day from the left IT line through to the right IT line, you just ride out an SCT "away" into the next IT trend. It is an overlap trade (overlapping two IT's) where you max out the old IT and go into the new IT ahead of the trend beginning as seen by edger's etc.). This low return for the day has to be expected under the IT change condition.
From a perspective, you can see the three formation settings we work: the quarter showing the six, now seven IT legs; the contemporary IT leg that sets the dynamic, not horizontal, S and R; and finally the intraday action based on the 5 min chart.
However, today was a zinger for for learning.
The rocket on the 15 min was where to be as a beginner.
One trade day for icebergers.
expers bracketed in on the open.
Amost everyone saw the IT channel being pummelled. this was the longest leg so far in the ES03U since rollover into it.
We hit a rollover in our first few weeks of post labor day to take us to the end of the year.
We have made super progress on the real time live today. It will be an international support team from the past so I think we will roll. A voice run on phone did not make the two hours today. It will not be a problem by labor day.
This was a day that experts could not make the 3x's H/L. Many will not understand this and think I am retracting my view of 3X's. When the market is a straight forward one trade day from the left IT line through to the right IT line, you just ride out an SCT "away" into the next IT trend. It is an overlap trade (overlapping two IT's) where you max out the old IT and go into the new IT ahead of the trend beginning as seen by edger's etc.). This low return for the day has to be expected under the IT change condition.
From a perspective, you can see the three formation settings we work: the quarter showing the six, now seven IT legs; the contemporary IT leg that sets the dynamic, not horizontal, S and R; and finally the intraday action based on the 5 min chart.
Thanks a lot. I see why it is much better to just keep it simple and exit and reverse only when you have flaws. I figured you wouldnt like the risk to reward comment(taboo)
. I defintely see your point that slalming through pts 1,2, and 3 during nonCCC is a tough cookie too bite(like the analogy). I am really glad that you mentioned today was NOT one of those days you could make 3X daily H/L. This morning i made 8 pts and i took one BO trade in the afternoon that failed to continue so i quit for the day. I watched for the rest of the day and noticed that i would have had a much tougher time discerning the afternoon trends.
Anyway, hope everyone has a good weekend.
jc
Update:
Thu Aug 21
#1
synch -> rocket -> execution in ES by mistake (BT set to ES)
long 9:48 1004.50
wash 9:49 1004.50 on execution error. Turns out I exited from a good trade - ES was rocket too but I didn't realize.
0.00
#2 YM
failed rocket -> lower high -> stoc 50 BO
short 11:08 9450
cover 11:10 9440 at away side, in fact 1m effect + fear of losing profits
+10
Left a lot of money on the table so I quit as I was experiencing serious spite.
Day +10 (2 trades). Modest but in the black. HAIR TRIGGER still.
Fri Aug 22 on the other hand I traded like "puke. Pure vomit."
Took 9 trades (!)
-10, +6, -7, -7, -4, +6, +6, +6, -10
To keep it short I commented on the chart. Only 4 legitimate trades (marked in green), the rest (in red) being no setup trades #1, 9; anger trades #4, 5; error trades #8.
Day -26 YM (9 trades)
Week -13 YM in 14 trades = -14 commish
-27 after commish
Luckily I was trading YM, I would've been hooped if this were ES.
I went back and carefully analyzed each trade and the reasoning behind it. I have identified a few problems:
1. 1m chart leads to HAIR TRIGGER trades.
Fix - I had a 1m beside the 5m. It's gone. Now all I have is 5m YM, 5m ES and T&S for YM.
2. Fear of losing profits -> early exits
Fix - exits only on flaws
3. my own baggage leads to anger and breaking rules after I make a mistake or miss a trade
Fix - 4 stepper for discipline
4. setups - not sure what level I should trade at. Before I was paper trading rockets (beginner), icebergs (intermediate), reversals out of failed rockets and BO out of CCC (expert).
I am most comfortable (and have had the most success on paper) with:
- rockets = beginner
- stoc 50 BO -> rockets = beginner but this includes CCC BOs = expert
- reversals out of failed rockets = expert
It's funny how the mind works. I have a good feel for the market, I monitor sequences and keep a stop log, I have confidence in the method but yet the emotions get the best of me.
Jack, first of all, it's great to have you back.
If you could find the time, I need a fix for these problems please.
I hope sharing the problems that plague me will benefit the others trading the metod. Suggestions are appreciated.
Cheers,
Vorzo
Thu Aug 21
#1
synch -> rocket -> execution in ES by mistake (BT set to ES)
long 9:48 1004.50
wash 9:49 1004.50 on execution error. Turns out I exited from a good trade - ES was rocket too but I didn't realize.
0.00
#2 YM
failed rocket -> lower high -> stoc 50 BO
short 11:08 9450
cover 11:10 9440 at away side, in fact 1m effect + fear of losing profits
+10
Left a lot of money on the table so I quit as I was experiencing serious spite.
Day +10 (2 trades). Modest but in the black. HAIR TRIGGER still.
Fri Aug 22 on the other hand I traded like "puke. Pure vomit."
Took 9 trades (!)
-10, +6, -7, -7, -4, +6, +6, +6, -10
To keep it short I commented on the chart. Only 4 legitimate trades (marked in green), the rest (in red) being no setup trades #1, 9; anger trades #4, 5; error trades #8.
Day -26 YM (9 trades)
Week -13 YM in 14 trades = -14 commish
-27 after commish
Luckily I was trading YM, I would've been hooped if this were ES.
I went back and carefully analyzed each trade and the reasoning behind it. I have identified a few problems:
1. 1m chart leads to HAIR TRIGGER trades.
Fix - I had a 1m beside the 5m. It's gone. Now all I have is 5m YM, 5m ES and T&S for YM.
2. Fear of losing profits -> early exits
Fix - exits only on flaws
3. my own baggage leads to anger and breaking rules after I make a mistake or miss a trade
Fix - 4 stepper for discipline
4. setups - not sure what level I should trade at. Before I was paper trading rockets (beginner), icebergs (intermediate), reversals out of failed rockets and BO out of CCC (expert).
I am most comfortable (and have had the most success on paper) with:
- rockets = beginner
- stoc 50 BO -> rockets = beginner but this includes CCC BOs = expert
- reversals out of failed rockets = expert
It's funny how the mind works. I have a good feel for the market, I monitor sequences and keep a stop log, I have confidence in the method but yet the emotions get the best of me.
Jack, first of all, it's great to have you back.
If you could find the time, I need a fix for these problems please.
I hope sharing the problems that plague me will benefit the others trading the metod. Suggestions are appreciated.
Cheers,
Vorzo
My quotes lagged majorly on Fri. I missed the 10:00 MACD x down, which I was anticipating, because of that.
I was using QCharts instead of Sierra for YM because I noticed that YM quotes were not delayed anymore, although I haven't added CBOT to my exchanges. Anybody else noticed that?
I'll try ESignal for a month. They have a great deal for IB customers: $49 + exch/month for ESignal equities basic, which includes US stocks, EMinis and YM.
I was using QCharts instead of Sierra for YM because I noticed that YM quotes were not delayed anymore, although I haven't added CBOT to my exchanges. Anybody else noticed that?
I'll try ESignal for a month. They have a great deal for IB customers: $49 + exch/month for ESignal equities basic, which includes US stocks, EMinis and YM.
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