Tribute to Brooks

[padutrader]

the next question i have put a lot of thought to is where should i scale in?

one option which came to mind was to scale in where you would normally put a stop....not a very tight one .........

what sort of market should you do this......avoid strongly trending markets .......so maybe 70% of the time.

in a market like this too you could do it ... i am practicing to do it. fading each breakout instead of entering it. plan for 3-4 breakouts that is a must in this below chart i did something totally wrong:sold 4 lots close together

 

[Overnight]

you should KNOW it is going to be that kind of market... from the PA the day before........that 'kind of market does not fall out of the sky.
and there is a special way ......enter on limit orders scale in and keep very wide stops

Omg no no no! The PA from the previous day cannot guide the action on the following day! Not in CL, not in equities, not in anything! You'd have to scale out a LOT farther back and draw trend lines for months, and consider fundamentals and seasonality!

I think part of the problem is that when Brooks developed his theses, the markets moved at a snail's pace. Those days are gone, gone, gone. They no longer exist.

 

[padutrader]

Ask Al Brooks: Trading Range Days Price Action - YouTube.

he says very clearly" there may be other ways to trade it but this way suits my personality ,i enjoy it , i make money......."

he does not say you HAVE TO do it my way ....it is my way

it took me 14 years to get out my way of thinking.........and into his.......why? because i want to trade all day long........like he does......

 

[padutrader]

Ask Al Brooks: Can I Make Money Following Al's Commentary? - YouTube

 

[padutrader]

like Al says there are many ways to trade but choose a way that suits you ,,that you like, and that you enjoy.....

Al often gives all the trades at a point and this can be confusing to a newcomer who thinks at any point there is only one trade:buy or sell

 

[padutrader]

the casino owner is not relying upon judgement, intelligence ,psychology,set ups......he is relying upon math.

brooks says trading is math

 

[SimpleMeLike]

use very wide stops scale in

Hello padutrader,

When you scale in and use wide stop, a big loss will wipe out all of your gains for days and even weeks. Mentally this will destroy.

Why do you need to scale in?
Do you not trust your entry?
Why you can not enter above or below bars as your teacher teaches you to do?
Do you not trust your 5 minute bars?
Why do you need to use big wide stop and risks, do you not trust your risk limits?

S

 

[ph1l]

Ask Al Brooks: Can I Make Money Following Al's Commentary? - YouTube

At 00:08 in the video, Al says

I would strongly recommend not listening to me or not listening to anyone.

I give him credit for his honesty there.

 

[Laissez Faire]

like Al says there are many ways to trade but choose a way that suits you ,,that you like, and that you enjoy.....

Al often gives all the trades at a point and this can be confusing to a newcomer who thinks at any point there is only one trade:buy or sell

Well, one thing is for sure and that is that your trading methodology needs to be aligned with the market you're playing in. Many seems to start the other way around and try to make the market fit their method or preferred approach.

 

[padutrader]

Hello padutrader,

When you scale in and use wide stop, a big loss will wipe out all of your gains for days and even weeks. Mentally this will destroy.

Why do you need to scale in?
Do you not trust your entry?
Why you can not enter above or below bars as your teacher teaches you to do?
Do you not trust your 5 minute bars?
Why do you need to use big wide stop and risks, do you not trust your risk limits?

S

because i do not like stops
i dont trust markets or my entry.

brooks also says do what you you psychologically suited to do...he like to scalp......i like to scale in.

but i also like to buy above bars and sell below bars.....but i can only do that 20% of the time