The losers thread

[lamioxlahami]

Hello guys.

The purpose of this thread is to address my ";testing the market"; views I#8217;ve been asked several times. But in order to avoid misunderstandings, allow me to lay down some ground rules, together with respect.

1) That is my own , private, individualistic, biased opinion about the market. If anyone disagrees or is startled with my " views";. .as anything negative I don#8217;t give a fuck#8230;thanks.
2) I am not here to discuss or argue my views with anyone, nor proving accepting or rejecting any new stuff.
3) I am not teaching your the way to trade, nor showing you any new ";egy"; , ";egy"; or ";egy";.
4) You will need to know at least some basic stuff about trading, This thread is not for newbies. I think, with respect, there # 8217 plenty information everywhere about stuff although I apologize in advance.
5) I am an old school puppy. I use not common phrases such as ";load";, ";stakes"; bankroll"; etc.. It#8217;s just how I#8217;ve ever been increased by dogs , mature of course LOL! .
6) Don#8217;t be shy to ask. Don#8217;t whether you have difficulty apologize or enlarge yourself. Just shoot the query, In my world, everybody is equal #8211; have 1 nose two ears, one mouth , etc.. I welcome everybody if you#8217;re an alien writing from x world( who knows? Right?)

The system II article #495 reads:

";I am a hyper-scalper by nature. Although I am not a scalper in terms of searching for profits, I follow the very same guidelines. Inside my lil publiion I provide no quarters. I use stops. I truly don't care if a miss a go. But that is me. It requires a lot of practice. You don't have to do that.

But. . .just make an effort to see whether it works.


The major thing about exits is that you must reduce your risk immediately as soon as the market moves in your favor.

Remember that my success ratio is reduced....less than 50 percent... I exchanged my (struck)lt;corrected term was misspelledgt; ratio for consistency several moons ago";


It was rather off record commentary, which has sparked a lot of curiosity. Simply put, relies on the venerable "; Maintain your losers short and let your profit operate"; comment. Although is true, people don#8217;t have a clue what the hell is that about. Easier said than done. Like many stuff here on this game.

I8220;examine"; the market many times because I place small bets each time I am out on a trade. I am not searching for any sum of fixed dollar/pips/ticks to win every single day, but to squeeze from the market, whatever I can get from that ";little bet";

My stakes aren't necessarily based on % of risk but in how much I am ready to lose. Just how much is too

The shorts profits I mentioned on that article aren't short in the sense of8220;rapid"; however according to a little bet. Just for clarifiion.

The scalping section, which is a generic phrase incidentally, comes from how many ";little bets"; I am ready to put in order to ch a big wave. At least a profitable one.
After I#8217;m ridding on a tide, I start to pay my ass, giving the trade a reasonable time AKA expectancy, before moving my stop. How much time? How far/distant the stop will be trailed? I will#8217;t tell you that. Maybe a stop for me is too tight for you. How much time? I don#8217;t#8217; understand#8230;perhaps 5 minutes is a lifetime for me# 8230 # 8230; and hour.

My favorite trades ever would be the only#8217;s which can be surfed all of the way to the end of the session. If I # 8217; m trading mini # 8217; stocks or s and I ch the wave AM will be sweet if I will ride that fucker all the way to 4:30 PM. On Forex, if I ch the wave between 9:00 AM and 10:00 AM , will be wonderful to browse this up to 00:00 (eastern time).

I won#8217;t get the opportunity to ride the baby in the closing all of the time. I should state that happens less than. However, I MUST if opportunity knocks. If I can#8217;t ride the tide all the way, I simply play together with the market.

As I place small bets throughout the afternoon, I will ";manage"; to shed several times in order to get on the bus. Why I disagree with this # 8220, here # 8217; s;you have to risk x % of your equity per transaction". Of course, there#8217;s a limit on my testing. There'll be days when I close my platform and go do something else#8230;interval.

Expectancy
That is pretty much the backbone of my trading. Expectancy would be rather abstract, cause there#8217;s no rules on it. The purpose is that, once I place a trade, I have no control over the outcome of that trade#8230;.But it is possible to use this as an asset extend#8230;.

Here#8217;s the way I balance things out. Let#8217;so presume I am putting myself a limit of 4 trades in a day or $100.00 daily loss limit (this is an illuion okay, don#8217;t accept it by heart). I will likely provide more leeway to my trade than my last. Time and lack of volatility are running against me I want to speed up things out of my side as I shed my initial bet. Or, if I believe I gave my bet way too much room # 8230 I can opt to not trade;. .discretion plays with a big role on this.

If I am on a losing streak, common sense dictates that I have no reason to be there.






The Essence of the markets.
They8217;re a mess. I am not gonna head for the ";randomness or chaos" horseshit is. I truly don#8217;t care a rat ass and you shouldn#8217;t too. As sloppy as the markets are, that they supply with plenty of chances for the taking. Attempting to buy ";x8221; when it cross ";y and z" doesn#8217;t cut it for me. Markets runs on bicycles and each of them has a different behavior. EUR/USD is jackyl on 1:30 and Hyde on 1.35. There#8217; s another degree and caliber of participants I must state and each price level at any market so why bother building up and indior like a stop light ";buy when the green is lit and market when the crimson is lit"; The market will take care of whipping this out.


Equity
";In accounting terms, after all http://en.wikipedia.org/wiki/Liability are paid, ownership equity is the residual interest in http://en.wikipedia.org/wiki/Asset. If valuations placed on assets do not exceed obligations, http://en.wikipedia.org/wiki/Negative_equity exists. ";

As straightforward as It might see, I see many people falling flat in their asses with equity boils down set up.

Positive equity can only be built over time. There#8217. It won#8217;t matter whether you#8217;re a hyper scalper or a position trader. Positive equity is all that matters. I chose to be a high- frequency trader because it#8217;s the way more comfortable for me to build positive equity . Period. Actually I really do place bets long duration, don#8217;t get me wrong. But that#8217; s another story.

Here#8217;s a typical scenario:

";I've this method, backtested, forward tested, Under-tested, More than tested. Oven-tested and I am SURE that at least I#8217;ll earn 500 dollars per day#8230;.just 10 pips per day is all I want#8230;ah baby I will do thaaaat(with inflection on the voice). "; Once all#8217; I#8217;ve been hatching this method under my bum for 5 years already#8230;on demo#8230;(oh brother!)

Allrigth, it#8217;s great. But there#8217;s a lil#8217; problem.

Like I said before, when market alter cycles , it changes, like a tremor. I mean, such as the property shifts. You then understand ";gee, this 10 pips per days are getting harder and harder to get"; In the process, you receive a lil#8217; impatience and here8217;s all hell breaks lose. Here#8217;s when equity begins to accumulate.

What will be the specific timing once the market will tremor? Ahh if All of Us knew#8230;


Consistency
Correspondence among associated facets; compatibilitySounds like words but the definition is true to it#8217. I enjoy the ";associated facets" they8217;compatible simply related and re not mandatory in arrangement.

My opinion consistency is based on the realization that in this game, losing is only a way to be closer to positive equity more and more. Although consistency is not currently wining every time except to keep a caliber of trade up to a degree that is particular. If I want to be consistent in the long run, I have to understand expectancy and what to look for when I trade, my goal for that trade. Here # 8217; s why equity and consistency are married.

I want to understand my load if either will be adjusted according to risk or mended#8230;#8230;all beforehand of course. Managing the load goes together with consistency, within this age in which you are able to exchange which shouldn#8217;t be a problem. Hope Obama doesn#8217;like he did with hedging t go crazy and create another # 8220; rule # 8221. Something like"; for now, only full-lots can be used for trading8221?

I think this is all. I will post some charts with some stuff to give an idea how I do it to you.

Also I would like to say that I am a cassette reader (I don#8217;t use charts) and will be real hard to express here the mechanics of my trading. However, I#8217;ll do my best on the charts.

Please be aware that the charts are for illuion purpose only. I am taking some swings based on hindsight This isn't a ";buy Y sell Z"; things.

I#8217;ll be checking this thread very frequently.

Thanks for the time.

Good Karma.

[jolaml93]

Fxahilies!!! It is again me lol...

Sorry for a lot of questions... However...

If I right know - 20-25pips reduction in one trade is your risk tolerance???
So (like exemple) when youre risk tolerance is similar to 15-18 pips, then if market goes longer than 15-18 - you have to stop trade (tolerance reached)...

Other words - If I and you're in precisely the same trade in precisely the same cross, and market goes against our positions, I have ( it's just example) to stop my trade in -17(bcz my tolerance), even when momentum doesn't grow against...

Dim,
It all depends on situation available, and every of them is unique for itself, so its hard to reply, but I really do my very best.
When price goes against me my exit egy is not based on a firm rule, so, is based on multi situations that runs through my mind . . Such as. . How fast is price moving against me (momentum, speed). . How the very candel closes after trigger time. . Where is most. . The preconceived read available on the market prior to entery (maybe not a prediction)and type of read I have on the market in the given moment. . My days' shape profit/loss for up to that point. . And yes, tolorance is among these too and most time is no more than 25 pips bcz I would like to live to fight another day and that function as my only explanation for my own depart decision, at that point how I look at it's 1. I can always tenant (in the occurance of market tricking me) 2. I can e with the market and look to play the other way.
On reversal enteries I exchange manage it a little wider then 1-2-3 breakout setups (system II).
All that said. . I screw up a lot and basically learning the curve in chase to craft this item, its race.

I hope it helps.

[lamioxlahami]

Hi Feb,

It is great to see you back on FF....

You're welcome!

Thank you for your good wishes!

[lamioxlahami]

ah denied the charts LOL!


Again, this can be plain hindsight. Take note!

[Ivanhoe]

Hi Feb,

it's great to see you back on FF. I have been a scalper for some time. I use a 1 Tick chart for trading along with a Five Minute chart for support and resistance areas (based on swing high and swing low). Oh, a couple of items I cover a lot of focus to on my charts would be range and series of highs and higher highs. I've never grasped how to trade as if you do without the charts.

After reading your previous thread, one of the things I found most inspiring was the wisdom you shared. In reality, by the time I was reading the thread, I'd 25 pages of notes! I believe there's never a time when I could say I understand all of it. It seems there's something to be learned.

Once again it is great to see you again. I so appreciate. Best wishes to you.

Coach

[Sem]

Hey feb,

I'm interested in what exactly you look at once you read the tape. Do you utilize TimesSales, DOM, or only a quote board??

Do you use brackets when you watch it and exactly what role plays volume (I read in another post from you which you are trading currency trading) and speed of the tape?

thanks

[lamioxlahami]

Hey feb,

I'm interested in what exactly you look at when you read the tape. Can you utilize TimesSales, DOM, or simply a quote panel??

Can you use brackets if you watch it and what role plays quantity (I read in another post from you that you are trading currency trading) and rate of the tape?

Thanks

Oh yeah brackets all of the time!!

I used to see TS but the DOM is easier on my eyes. Plus I get more data.

The bracket takes preference on the rate of this tape.

[jolaml93]

Hi Feb,
Apperciate you launching a new thread, I liked reading the first post and love the name.
I have been keeping the system II installments as a bread and butter of my trading style, at the same time I have been trying to add new ways of analyzing the market as my read on the 5min charts is improving I see longer entery opportunities.
I got a question in regards to a chart,
I really like the entery and now I have been carrying postion like that, but what I would like to know is about riding the wave, I would have no problem riding it excapt not knowing how to address that bullish possible reversal that's occured hour afterwards from entery (shade), I wouldn't hold on to the postion when I see such motions contrary to my position, how do you deal with that if you're holding to the position to totally ride the wave? Are you not using tight stops on these type of enteries? No more trailing stops?

Thank you.

[jolaml93]

I spoted a simillar opportunity earlier, I took the very first entery then exited to the very first sign of weakness, only wanted to get your comment about how I played it. What did I may improve or do wrong/right?

Thank you.

[lamioxlahami]

Hi Feb,
Apperciate you launching a new thread, I liked reading the first post and adore the name.
I have been keeping the machine II setups as a bread and butter of my trading style, in precisely the exact same time I have been trying to incorporate new ways of analyzing the market as my read on the 5min charts is improving I view more entery chances.
I got a question in regards to a chart,
that I really like the entery and I have been carrying postion such as that,...

This new thread is simply laying online I trade based on tape scanning. The machine II is just another animal. Some people asked me about how do I test the market and here is pretty much how I do it. That charts are meaning like I have all the ducks lined up to make a 26, that I'm simply throwing it .

When you've got a big ass candle coming against your place , and you also get stopped or you simply bail off, to put it simply, start looking for one more entry. If you spread the load across the day, you will not mind a re-entry.


It's a trade off. In reality the outcome is known by none. You have these days the market is wacked off. Seems like that market came back to the long side and reversed back to the brief side. Simply let it show it's aims to go e and long it is song. In this case, it fool ya! . . .no worries, we are smarter .

Trailing stops is the way I do it. Like I said, it's a trade off. It's also valid if you opt to allow it to go all the way. There's no right or wrong. You can tell that both has it's pluses and minuses. On the long run, what works for me is your stop.

If you use a repair bracket, it may be more relaxed. But that may cost ya some profits on the way. You might manage your trail, providing a pause while your trade develops. I have been thinking that this really is a better choice. I do that on longer time frames and I am applying this in my own inventories.

FYI I only collected some coins today on the stocks. I must say I broke-even. So, markets were rather today across the board.

Hope it helps buddy!