They turn into a persistent bias toward the market, which brings emotion into it. I see numbers, they don't have emotion and neither should traders.
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tight stop really work?
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They turn into a persistent bias toward the market, which brings emotion into it. I see numbers, they don't have emotion and neither should traders.
I'm not sure about websites that give good reviews of the basics of fractal geometry, but this book is still the best introduction I have found. There is some math involved but even if you don't have any calculus (mine sucks) you can get a lot out of it.Quote from joemiami:
Hmmm.. FRACTAL is word ive heard over and over again
http://www.amazon.com/Chaos-Fractals-New-Frontiers-Science/dp/0387979034
There does exist a video based on this book which has amazing interviews with Mandelbrot and Lorentz and a good exposition of the basics, but for some reason I can't find it on the 'net. It's published by Springer-Verlag and it would be a hell of a lot quicker than the book, if you can find it. I'm almost sure it goes by the same title as the book above, but it was a long time ago that I viewed it last. I'm still looking, and I'll post the link if I find it. I know they have it at York U. in Toronto, if you feel like flying out here : )
Let me put it this way. If you get into fractals, watch out. It can be addictive.
You must have an strategy to enter a trade right? If you do then that strategy is NOT correct unless you also know it's failure point, that point is you stop.Quote from fearless9:
You will need to expand this concept, otherwise I am lost
regards
f9
Here's the most basic example which will only help you understand the concept and is NOT a real strategy.
Let us assume you are entering a trade based on a 0.3% Zig. therefore you'd reverse or get stopped on an opposing Zag. Hence, while the Stop was totally Mechanical you actually practiced an entry and exit strategy.
The ZZ examle above does not work and is ridiculous as an strategy but best describes the concept of having an exit strategy based on the failure of the entry strat.
HTH
Quote from ML_QUANT:
You must have an strategy to enter a trade right? If you do then that strategy is NOT correct unless you also know it's failure point, that point is you stop.
Here's the most basic example which will only help you understand the concept and is NOT a real strategy.
Let us assume you are entering a trade based on a 0.3% Zig. therefore you'd reverse or get stopped on an opposing Zag. Hence, while the Stop was totally Mechanical you actually practiced an entry and exit strategy.
The ZZ examle above does not work and is ridiculous as an strategy but best describes the concept of having an exit strategy based on the failure of the entry strat.
HTH
This strategy maximizes loses, or would only be acceptable is you are 100 percent correct on all trades.