What is your "TRADING HOLY GRAIL"?

Quote from Grob109:

great reference for this thread.

the drill I want people to do as my fav is the wash trade.

By doing them for two pruposes: daily practise and in sets of 100, you get to connect all parts of the market operations together and you see sequences form.

One by product is the wash that makes money despite you attempts to get out flat with no profit.

It is strange that for most people who do intentional entries to make money, that most of them do chalk up a lot of losses.
If they were to just do sets of wash trades, they would get to be more comfortable with their needs to be entering under unfavorable circumstances.

Thanks for the reference.

In glider flying, one of the constant aspects is picking up thermals. Almost all pilots have the habit of banking into any lift on any side. The most common way to connect with a thermal is to fly along and be sensitive to lift on one or the other wing.

You bank into it immediately (I mean very very rapidly) and then you circle to stay in the lift continually. Learning to center on a thermal is a nice exercise that closely resembles doing washes in trading.

A nice strong tight lift would be a 2G force level where you are banked about 60 degrees and rising over 1500 ft per min.

The fighter 40 second example is very applicable to trading. All washes involve the four steps being repeated: monitor, Analyze, decide, act.

When you are used to chasing thermals to stay loft for a few hours, you get used to going xcountry and taking pauses to renew your enregy periodically. After trading and before sunset it is often possible to knock off a few hundred mile from one tow. I usually cut the rope (so to speak) after about 900 elevation gain (a 100 feet above landing approach altitude) and make a go of the afternoon.

Trading is the same. You get in the market and soon the "feel" keeps you on the right side of the trade from then onward. the fighter example ofjust needing 40 seconds to get on the right side of the fight is a good example of getting into the groove.

It does come down to the mind and the process of equiping your mind to do the maoney making. Like a fighter pilot flies to do combat a trqder goes in the market to continuallly make money.

Sports memory is the final resulting level.
More...
Jack,
You mean we all have to take up flying lessons now?
nono
 
Quote from osho67:

Could you please explain this some more? How do you create a prediction model for prices, are there any books, websites that can get me started, or perhaps you could provide some specific details, for example , "I use excel and in excel I use these functions to predict the price a set number of intervals in the future " Is this what you mean when you say a predictive price model ?

"The Holy Grail is not chart based. You have finally to analyze and systemize the correct data"

How do you go about doing this, what software can you use that will help in achieving this ?

I always thought it was impossible to predict prices, at least on a consisent basis, to the level you are suggesting, so I would be very interested in your ideas on this


Thanks
More...


There are many ways to make money in the market. Try to get to the place where if you have a view of the market that is out there, you are not going to fall off the edge of the world.

Day after day the market moves about. Do a simple test for yourself. Pick entries and exits for a long trade and a short trade.

Use a steno pad to keep tabs on how many successful trades you could have executued in a day using each of those pairs.

If you can succeed in tabbing the above, see if you can do some more complex tabbing. Set up five long trades and five short trades with a range of values. Then sit there with ten columns and put consecutive numbers in the columns for each trade that is completed and the order inwhich it is done.

Here by doing these kinds of drills you get theidea that the market is continually passing various numbers (values) in the range of its operation.

Who cares what the order of the trades was, they just occurred.

AMTSWA did some good trading here a while back, he,among other things made some people aware of how you could with one account have two kinds of trades going on simultaneously. This is probably beyond most people's reasoning but it is a concept derivable from your steno pad monitoring.

People usually do trades in a series because of account and capital constraints. On the other hand they could use more than one account. Or they could look at the steno results and see that timing can be eliminated for trading one account only. It is a case of saying that you want x amount of profits and getting them using to preset values within the range of movement of the markets.

Using a high and low for a day is asking a lot. It makes you choose the values and the order of occurrance. What if you did two trades where the first was from the middle and the exit was at the extreme; then repeat it. That is not so difficult. You will be puzzled for a while about how to pick the time to begin and how to repeat it but it will come to you.

There are about 80 edges that are commonly used. you could get a very wide steno pad and list them and then just make notes on when they occur each day as thedays go by.

Anyways, you can see that you already know before the day starts where the market is going to move. By picking some values for entry and exit at your leisure you can set yourself up for making that amount of money on the two different values. as you know, the closer the values are the more likely they will work in the order you need.

If you want to start out slowly on this kind of thing choose the same value for the entry as the exit. This will almost always work and it will work a lot of times during the day.

Ask yourself, if people chose values close together every day, how could 90% of then continually screw this up? It is very difficult to do (I mean the screwing up is very difficult to do).

buy a packet of steno pads, they are fun to use to learn how to make a hell of a lot of money. without charting.
 
Quote from wilburbear:

http://www.thememoryhole.org/corp/finance/sec_amex_report.htm

Holy grail? How would you like the chance to disavow a trade a few minutes after you've made it, depending on wether it's profitable? How about being able to withdraw your quote After an order comes in that corresponds with your price, and then not allowing a cancel - you just hold the order and fill it when you want? A second swing at the pitch is a holy grail in the financial markets.

Become an options market maker. Remote market-making from your home is available. The options industry has reduced the SEC to a helpless regulator. As an options market-maker you can do anything you want with the order flow, and the exchanges, and the SEC can't stop you. See link above.


I still have the only repeatable, definable edge listed on this thread. It's how the pros make money.

The options industry has worked over the SEC. Now is the time for options.
More...
 
my best results over the yrs have been
when I have found arb situations
in certain markets

I wish I could automate this ... some really
smart people have done this ...
now whether my -human eye-
and -market saavy- gives me a
small edge over the -bots- maybe
but surely I will go blind before the bot does

:p
 
OK, as I mentioned earlier on, I intensely dislike the term "holy grail." But I'll play along. I will give you the corollary to the "holy grail" rather than the "holy grail" itself for reasons that will be self-evident.

A trading strategy is like a knife: the more people that use it, the more blunt the edge gets.

Keep it sharp, people!

:D
 
Quote from Thunderdog:

OK, as I mentioned earlier on, I intensely dislike the term "holy grail." But I'll play along. I will give you the corollary to the "holy grail" rather than the "holy grail" itself for reasons that will be self-evident.

A trading strategy is like a knife: the more people that use it, the more blunt the edge gets.

Keep it sharp, people!

:D
More...
Corollary:
(1) Few people believe this and keep on butchering with blunt scrap-heap knives;
(2) Reassuring for the guys with the sharp knives. Lots of opportunity for superb cutting. Keep your edges well hidden and whet as required.

:) :cool: nononsense :cool: :)
 
See the handle on the cup sell the break of the handle

See two tops or two bottoms buy the breakout or sell breakdown of the 2
 
You must log in or register to reply here.
Back
Top