Quote from makosgu:
At one of the lower ends of trading activity paradigms that I rotate thru is about a dozen or so actions in which the aggregate net for the day is relatively low but likely to be greater than the yield of scalping.
At the other end of the spectrum are paradigms in which the activity is easily several hundred action ("trade") points. Someone mentioned today being a "stay out of the market" day since their knowledge and skill is dictating for them to stay out of the market.
Somewhere in the middle, lies minimal activity coupled with maximum profit extrapolation. Looking closely at the zigs and zags within the day shows just how much is on the table. The length of the zigs is the total per contract of what's available. For me, "chop" is very ziggy and often results in a larger multiple of the days range then less ziggy days. Yesterday up until the afternoon had few zigs. For trenders, it was SOP, whereas the afternoon was SOP for choppers...
Today already, I am at 117 actions totalling 8.5 points per contract. For me, it is very inefficient since there is a middle ground somewhere (ie. fewer decision points, better yield). What's more important than the number of trading points is knowing that a trading point has arrived and focusing on the appropriate market values at such points. SO where is this middle ground...
Kindest Regards...
M4K!
You are doing the absolute best transition.
Lets say there is an asymptote to hit for the ratio profits compared to actions.
In ET, a list of 50 or so people could be made to show how they are progressing to this optimum level for their various strategies.
The three approaches going towards this asmptote that differs for various methods are: underdamped, critically damped and over damped.
You are on the underdamped curve. The two advantages are: that you get to the asymptote the first time (the others just Get there in a number of TC's)almost as soon as possible. You do leave the optimum in your wake and that is okay. Secondly, you are better able to get a view of the whole turf involved. This means you can even make determinations about trading fractal advantages along the way. the personal compliment to this is how your nature and character enjoy the "action".
In another thread I got a real wakeup call this AM. A person commented on his preference for trading by associating it with the severely over damped viewpoint. His expression was that when gliding he occassionally passes up a thermal. For a laugh, you can probably guess that I have never passed up a thermal. I miss them on occassion because of skill or whatever but I never do it by choice.
So what are the things that come up on the underdamped pathway. Not being in the channel isn't one of them but within the channel you are dealing with stalls (on money made), hitches (scalp level profits) and dips ( nice quickies). Ultimately all of these contribute to skills and experience. But we are dealing with: "is this trip necessary" type stuff.
Soooo.... the way to diferrentiate on these things is to lightly regard the market pace. the slower, the more hold time is involved so "reading" the fine verniers is not so hectic. What are they? Volume conformity and regularity must be processing or the pace is very low and risk high and noise is possibly disruptive. Cut the action level by sidelining in this very low volatility. So otherwise do all the fine monitoring and trade to scene because you will be making 2, 3, and 4 ticks per unit time of cycle. Note the cycling is very regular no compression (least likely) nor antennuation (more likely). most of this is latral trend chat anyway and the envelope is a medium measure of CCC (Congestion (slaloming), Convegence (momentum all but disappearing and volatility in the lower registers) and Centering(noise dominated bar movement as a regression to neutral (the only time it is statistically significant)). For paces above lateral tending, the stall, hitch and dip are at play on a volume mean average carrier which is much above the lateral trend volume mean average which continually drifts lower. By having a set of rays superimposed on each volume fractal you are using you get to see this automatically which keeps YOU calibrated.
What is coming up for you as you cut actions back towards the asmptote is that you will have seemingly mental lapses. They are not lapses. Here's an example. As kids learn to read they sound out words step by step. after a while they just read and undrstand. By being under damped in your progress you are getting the "full treatment". Lots of sounding out. as you slow down on the actions and do more "holding", you get to "reading" the vernier and seeing more "sylables" in bigger more complex words. The whole words become reeadable all the way through the time it takes for the word to appear flawlessly as yet one more time. Seeing suffixes is sort of fun after a while.
I am so glad you are way past "fear of learning". Actually I absolutely know that it never even came up for you.
