Firewalker's Journey: A path of discovery in search for enlightenment

This is a discussion on Firewalker's Journey: A path of discovery in search for enlightenment within the Trading Journals forums, part of the Reception category; Originally Posted by firewalker99 Do you mean it's all crap I wrote? I'm not sure in what direction a trading ...

Closed Thread
 
LinkBack Thread Tools Search this Thread
Old Aug 3, 2006, 10:33pm   #81
 
dbphoenix's Avatar
Joined Aug 2003
Quote:
Originally Posted by firewalker99
Do you mean it's all crap I wrote?
I'm not sure in what direction a trading plan should look like then... I've seen examples, people saying "if I see two shadows above a resistance line, I'd short", if I see a shooting star after high volume down bar I'd short, stuff like that... I was just trying to sort out something for myself and I've assembled some screenshots where my entries do actually work. But it's not a guarantee for success, but then again, no strategy works for every trade right?
No, it's not crap. It's all part of the process. And everything you've read and everything you've heard and everything you've tried will be used in some way at some point. Nothing is wasted.

However, now it's time to put it all together into something that works for you. Looking at the examples of others is fine as far as that goes, but what works for somebody else is not likely to work for you because it won't be yours. And, no, not every trade will yield a profit. However, that doesn't mean the strategy is at fault. But the strategy has to yield a consistent profit over time or it's not worth using.

Quote:
Could you perhaps give me a hint about what a plan should look like then?
As for your suggestion, I'll start doing that tomorrow and leave volume out of the equation as you also suggested. To be honest, I'm not sure how I'm going to place an entry with leaving all this in the trashcan, only using S/R and not using any theorie. Seems like throwing darts at a cheesecake...
Don't put it in the trashcan, then. Just set it aside and focus on one thing. Try whatever seems most logical of everything you've tried so far.

As for the plan, you've made a good beginning, but it's very complex. Have you tested all of that? Take your "1", for example. Does that tell you exactly what to look for? If so, you'll at least be plotting potential S/R levels. You'll also be posting the previous day's, week's, month's chart. Then, according to what you've written, you'll be waiting for a WRB. Translate all of that into specific actions. Then, when the trading day begins, all you have to do is wait for the conditions you've specified. You don't have to guess. But you have to specify first (see my last post). That's part of the plan.

If you want comments, post this at night in order to give people plenty of time to look at it and ask their questions or offer their suggestions.



Db
__________________

dbphoenix is offline  
Old Aug 4, 2006, 8:41am   #82
 
firewalker99's Avatar
Joined Jul 2006
firewalker99 started this thread
Quote:
Originally Posted by dbphoenix
If you want comments, post this at night in order to give people plenty of time to look at it and ask their questions or offer their suggestions.

Db
Well, as I'm in quite a different time zone as you are, I'm not able to post it at the evening because that would mean the middle of the night here in Belgium


I invite everybody to give me their comments, whether it's on a chart from a couple of days ago doesn't matter, I don't expect to have immediate responses although I appreciate any "live" feedback.
firewalker99 is offline  
Old Aug 4, 2006, 9:59am   #83
 
firewalker99's Avatar
Joined Jul 2006
August 4 - taking it from the beginning

firewalker99 started this thread As Dbphoenix suggested, I'll begin today by stating charts, entries, stop, targets, exits.
It's all very basic, because I want to avoid having endless discussions back and forth. Let's focus about essentials, if I'm unable to get that right, no use in letting myself slip away in the details.

1. Pre-market: I attached a chart of previous month (1day bar), week (30min bar) and day (5minbar) with S/R lines.

2. After the open:
- when near 5710 short
- if price drops below previous S 5690 wait for it to retrace up to the line, then short again
- if price drops below Support 5670 wait for it to retrace, then short if selling volume was still high enough (not after probable selling climax)

* In case price breaks up through 5710 on high volume bozo, wait for next bars and try to enter long around 5710 if you see the signals as described in "1". Than wait and see what happens if it reaches previous resistance around 5737.50. Anyway, that's where points 4 & 5 come into play.

3. Stop: my stop will be placed at ATR. So depending on the volatility at the time of entry, stop can be small or large. Why? I don't want to get stopped out to early.

4. Target: if I trade two contracts the first target is 2x ATR, second is 3x ATR.
Why? I think is risk:reward of 1:2 or 1:3 is not aiming too high. If I'm unable to take small profits, I don't think I'll ever be able to take big profits.

5. Exit: After my first target is reached, I'll place my stop to breakeven. So either I'll exit on BE or on 3x ATR with second contract. If first target isn't reached, than both contracts will be out on the stoploss.
Attached Thumbnails
daxmonthly.jpg   daxweekly.jpg   daxprevious.jpg  

firewalker99 is offline  
Old Aug 4, 2006, 1:26pm   #84
 
firewalker99's Avatar
Joined Jul 2006
firewalker99 started this thread So, let me start be getting into detail with the first three trades of the day.
I added S/R lines that formed throughout the day in blue.

"Near 5710 short": didn't happen unless you take in account first bar.

"Price drop below 5690":
- short at 1 following steps in my plan, after breakthrough S on WRB bars.
- stop = ATR = 4 points
- first target = 5682 and second target = 5678 were both hit so I'm out of the trade

After what I believe to be SC, application of same principles:

"Long near 5690":
- Exactly what I've described in my plan "break through a previous resistance level 5690 should occur on a wide range body" then go long on retracement. So at 1100 I went long @ 5690 marked by point 2 (placed a limit order before).
- stop = ATR = 3.5 points
- first target = 5697 and second target = 5701 were both hit so I'm out of the trade

"Long near 5695":
- Same situation actually, although I "blend" the three upbars from just after 1100 together in one WRB that moves through 5695 without hesistation. So after that I placed a limit order @ 5695 that was triggered at 1200
- stop = ATR = 3 points
- first target = 5701 and second target = 5704 were both hit so I'm out of the trade
Attached Thumbnails
20060804-.jpg  
firewalker99 is offline  
Old Aug 4, 2006, 1:27pm   #85
 
firewalker99's Avatar
Joined Jul 2006
firewalker99 started this thread I'll try to put this in perspective:

Ok, so 3 trades that easily made it to target profits. But in this case signals were quite clear and a clean trend move. Furthermore, I think I got lucky because of those spikes that just touched my S/R line, in many cases they just hover above without me entering and missing on a profitable trade. On other occasions all S/R are all mixed up. Apart from that, suppose you'd just had to buy on the retest from S in uptrend, or sell from R in downtrend after retest than determining your entry would be piece of cake for everybody, not?

Also I have to note that my basic rule of entering after three bars has been violated through the use of a limit order. In this case it just happened to work out, but if I'd were to follow my plan in detail that would only leave entry 1.

I tried a little experiment: removed all red lines from my chart and looked where I'd draw S/R starting today without reference points. Then looked where I'd enter based on the plan. Check out the difference: would have missed 1st entry, lost out on 2nd and been stopped out on 3rd.
Attached Thumbnails
20060804-wrong.jpg  

Last edited by firewalker99; Aug 4, 2006 at 1:45pm.
firewalker99 is offline  
Old Aug 4, 2006, 2:56pm   #86
 
dbphoenix's Avatar
Joined Aug 2003
Quote:
Originally Posted by firewalker99
Well, as I'm in quite a different time zone as you are, I'm not able to post it at the evening because that would mean the middle of the night here in Belgium

By "evening", I meant after your market closes. If you wait until just before your market opens to post anything, you may not get much response.

Db
dbphoenix is offline  
Old Aug 4, 2006, 10:14pm   #87
 
firewalker99's Avatar
Joined Jul 2006
Applying principle 1 (S/R) on ER2

firewalker99 started this thread no entries here
but one big uptrend, one big downtrend
so strategy 1 means nothing in a trending day

attached: 1 month chart,
intraday 3 chart of yesterday and today
Attached Thumbnails
20060803-er2.jpg   20060804-er2.jpg   er2july.jpg  

firewalker99 is offline  
Old Aug 4, 2006, 10:18pm   #88
 
firewalker99's Avatar
Joined Jul 2006
firewalker99 started this thread
Quote:
Originally Posted by dbphoenix
By "evening", I meant after your market closes. If you wait until just before your market opens to post anything, you may not get much response.

Db
Do you have any other charts with annotations like the red dots that you made?
firewalker99 is offline  
Old Aug 4, 2006, 10:28pm   #89
 
dbphoenix's Avatar
Joined Aug 2003
Quote:
Originally Posted by firewalker99
I think I got lucky because of those spikes that just touched my S/R line, in many cases they just hover above without me entering and missing on a profitable trade. On other occasions all S/R are all mixed up.
And in all other such occasions, did you follow exactly the same protocol?

Db
dbphoenix is offline  
Old Aug 4, 2006, 10:47pm   #90
 
firewalker99's Avatar
Joined Jul 2006
firewalker99 started this thread
Quote:
Originally Posted by dbphoenix
And in all other such occasions, did you follow exactly the same protocol?

Db
It's the first time I've used charts from the day/week/month before to draw S/R lines, in all those other occasions S/R lines where drawn throughout the day itself.
What is your impression now that you've seen my "plan"? You may be honest, I'd rather know where I'd stand than beat around the bush.
firewalker99 is offline  
Closed Thread

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Strategy discovery program rsidivergence Trading Software 9 Nov 8, 2010 2:09pm
A Step Toward Enlightenment? trendie General Trading Chat 1 Jun 29, 2008 1:30pm
Firewalker's Journey: A path of discovery in search for enlightenment firewalker99 Trading Journals 569 Nov 6, 2007 9:48am
Enlightenment colinn First Steps 5 Nov 10, 2004 10:26am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)