Tribute to Brooks

oraclewizard77 said:
My thoughts on stops is that they should be placed where the market proves your trade direction is incorrect. This will prevent as many stop outs.
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Brooks feels risk should be minimum...i never used to use his stops he suggested because i was sure they would be hit.

but i am trading the casino way now....keeping the overall odds in my favor and tolerating losses, ensuring that they are small, at the risk of whipsaws.

if you see the emini i noticed, correct me if i am wrong, that there not many whipsaws that trigger stops and then continue merrily in the original direction.

maybe that is why Brooks prefers tight stops
 
oraclewizard77 said:
This will prevent as many stop outs.
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i have been trading many set ups just to see what happens.....
however i have been blindly holding on and not booking profit even at 4 R.....

Monday i will get out at 2R.....and see what happens.

if i make a great many profitable trades...it may show that Brooks is right .....he does advocate target at 2R
 
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oraclewizard77 said:
View attachment 250292

Yes TA works. You can also use your chart program to generate reports on your trades. This is mine for the month of Jan 2021. I use PA and TA. I read Brooks but only like 2 things in his book. One of them being don't trade during barb wire.View attachment 250292
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you are obviously a matured trader.

your advice is very much appreciated and enthusiastically solicited because it may help newer and struggling traders.
 
padutrader said:
Brooks feels risk should be minimum...i never used to use his stops he suggested because i was sure they would be hit.

but i am trading the casino way now....keeping the overall odds in my favor and tolerating losses, ensuring that they are small, at the risk of whipsaws.

if you see the emini i noticed, correct me if i am wrong, that there not many whipsaws that trigger stops and then continue merrily in the original direction.

maybe that is why Brooks prefers tight stops
More...
In certain scenarios like MTR brooks advocates tighter stops because these have about a 40% chance of working out into a successful trade and they may fail several times on the entries before a trader manages to catch one that works. So SL's are tight to render a trader the ability to take several hits until he gets on board with one that does succeed. He actually suggest that a novice trader learn to trade MTR first because you may lose several times before you hit the homerun but when you do hit it right the reward is bigger than with high probability trades. Usually, you will get an intraday swing trade with two legs or more.
 
oraclewizard77 said:
My thoughts on stops is that they should be placed where the market proves your trade direction is incorrect. This will prevent as many stop outs. However, feel free to do exactly what the book says and see what is better for you.


Also, my thought is the more automation you can do, the better. If you can use your charting program to automatically set the targets and stops so you don't need to watch the trade, it's better. If you want to watch the trade, feel free. Too much stress and boring for me.
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absolutely correct, both statements


100% automation is very challenging task. More realistic goal is human+algo. Those how are old farts like me remember movie ‘Robocop’ and understand the difference between robot and cyborg. In trading world cyborg can be symbiosis of human (who analyses context and decide whether algo should be activated or not) and algo (execution and managing risk of opened trade).
 
oraclewizard77 said:
Yes TA works. You can also use your chart program to generate reports on your trades. This is mine for the month of Jan 2021. I use PA and TA. I read Brooks but only like 2 things in his book. One of them being don't trade during barb wire.
More...

and the second is never go counter trend? :)
 
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