That's all I do. I never got into tape reading? Not sure what it is?Trade the trend...very important in my method...tape doesn't matter either.
The TREND is your friend.. The biggest lie ever!
- Thread starter MarketAddict
- Start date
I only use tape at home if GF cannot shut up when I'm trading.
For me...I enter setups that have a good probability of breaking out or a good probability of reverting to the mean...trend means nothing...the setups are going to work or not work...trend may be a visual that surrounds my setup...but I only notice "trend" after the fact. I'm never going to tell someone my method is the only one that works and that their method sucks...hate when people say that. I've been around this game too long...used many styles that have worked in the past...desire for more effective approach has brought me to current methodology. Not many traders trade the way I do...apparently many traders trade the trend. In your opinion, why do so many "trend traders" fail? Is it just to EASY for any trend trader to construct a "terrible" trend following approach...because it's lacking a unique element or the trader hasn't developed a "trained eye" yet? Or, is it the common sense issues everyone seems to expresses ..discipline...bad R:R...psychology...etc...in your opinion? You appear to have a good edge...glad to hear your're doing well!!!Trade the trend...very important in my method...tape doesn't matter either.
I only use the "tape" or DOM to get out of trades. Watch the DOM for signals of pressure or supply...I'm going to get out earlier or wait for larger profit depending on "SIZE" of orders at different price levels. Trained eye is important because of a lot of FAKE orders trying to manipulate perception of price direction. If there's truly a "wall" in front of my long position, I'm not going to HOPE that demand will pick up and push me through...unless that demand shows up immediately. For me, the tape doesn't necessarily signal an end to the trend, it signals that a pullback is likely!
Because building a performing trendsystem is very difficult. Many try to trade the trend, but trying is not equal to being successful.
Probably many tape readers fail too. There is not a single approach that has a high successrate, failure exists in every discipline.
Each trader should find out what works best for him. So there is no "best system".
I know that in my system I can see which pattern will develop in future with fairly high probability. I have no clue how I should tape read, and I surely cannot see in tape reading what I see in my system. I even don't know if LT traders use tape reading for positions they hold for weeks?
A very big advantage for me is that I don't have to watch and analyze my position continuously. I think tape reading means continuously watching the tape. That would destroy my quality of life, and I cannot be focused from opening till close without possibility to take a rest. Seems to me very stressful, a lot of pressure all the time. I can trade very relaxed.
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Sounds like your system fits your personality and life style very well! Yes...I have long periods of somewhat stressful concentration. I don't see how any long term trader would use the tape. Out of curiosity, what time frames do you use?
Trend definiton is based on hourly calculations. Depending on the strenght of the trend the system chooses the subsystem that fits best. During the trade the system monitors the strenght automatically and switches if necessarry to another subsystem that fits best at that moment. There are no standard timeframes (anymore). Trend is managing all the subsystems and the corresponding optimal timeframe.
Because of the trendfollowing most position go within minutes in profit and stay there. For me this is obvious as the trend tells which way to go, and prices never go far against the trend.
I see some complexity in your system. Another confirmation that a successful methodology may require a unique element to be effective! In your case...trend following wouldn't be classified as simple and vanilla...like a moving average breakout with good R:R system. Something to think about for newbies? Thanks for the info.
The cool thing about talking with another veteran is we get to appreciate the idiosyncracies of the market, otherwise lost on newbs.
The way I see it, when a trader goes long or short, they anticipate either an uptrend or a downtrend in prices, respectively. So whether someone says they don't believe in trends, or whether those trends are random, when they take a directional bet on the market, in my opinion, they are betting on a trend and its direction.
The problem is that a trend is made of baby steps.
You can have a higher low then draw a line,
But chances are that it will certainly break.
Even if in hindsight, there was a trend.
An uptrend as you figured out.
There are many ways to follow the trend.
First it really depends what's a trend is for you.
Is it a moving average ? Lines ? An indicator ? What else ?
A trend trader see some force, then he wants to get into the party.
That's his job. To push the move forward. Not to bend the market.
A trend follower is simply a positive feedback.
It's true that there are trends out there.
But there's also volatility, squeezes, chops ...
It's a wild world that has more dimensions than two.
But of course, someones buy because he expect followers.
Or a liquidity hole. Whatever force that make the market move.
Preferably into his direction. Now the problem ! Is that lot of peoples :
- Give remedies without even diagnosis of the patient
- Wish their patient will act as they expect he ought
- Make mistakes but prefer to blame the patient
- Or even the remedies ...
There is time for everything.
80% of the time markets are choppy.
But trend followers are always hunting.
So they are de facto wrong 80% of the time.
And as a consequence, fearful 20% of the time.
Those who know when don't listen to the tape / market.
They apply what they learned and wish / pray it will cooperate.
As a matter of fact they buy to early and sell too late ...
Then there are those who know their tools & patient.
They take the right decision, the right time.
Easy ...
You can have a higher low then draw a line,
But chances are that it will certainly break.
Even if in hindsight, there was a trend.
An uptrend as you figured out.
There are many ways to follow the trend.
First it really depends what's a trend is for you.
Is it a moving average ? Lines ? An indicator ? What else ?
A trend trader see some force, then he wants to get into the party.
That's his job. To push the move forward. Not to bend the market.
A trend follower is simply a positive feedback.
It's true that there are trends out there.
But there's also volatility, squeezes, chops ...
It's a wild world that has more dimensions than two.
But of course, someones buy because he expect followers.
Or a liquidity hole. Whatever force that make the market move.
Preferably into his direction. Now the problem ! Is that lot of peoples :
- Give remedies without even diagnosis of the patient
- Wish their patient will act as they expect he ought
- Make mistakes but prefer to blame the patient
- Or even the remedies ...
There is time for everything.
80% of the time markets are choppy.
But trend followers are always hunting.
So they are de facto wrong 80% of the time.
And as a consequence, fearful 20% of the time.
Those who know when don't listen to the tape / market.
They apply what they learned and wish / pray it will cooperate.
As a matter of fact they buy to early and sell too late ...
Then there are those who know their tools & patient.
They take the right decision, the right time.
Easy ...
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