GREY1 P/L daily

[Nastrader]

I interpret the 'staying out of consolidation' slightly differently to what you do. My interpretation is that each trading day has certain times in which the stocks are in consolidation and it is these times when it is best to stay away from the market. Friday -as a whole did not show much of a movement (as you have quite correctly stated) but it had its moments.

I took one trade yesterday as I had to be out of the house most of the time but lt did produce good results as the stock was showing a good momentum even if the market was sluggish. ( I am very much in a learning stage so pl. feel free to correct me if I am wrong).

Cheers

Raj

edit -PS- there were other stocks (apart from RHAT) like LRCX which showed good movement at the time (this one was good for shorting).

Hi Rai,
Yesterday as a whole was IMHO, a consolidation day. One main reason could be that it was the end of month & end of quarter, where institutions seemed to be happy with their positions for publishing their portfolios to the public; again this is speculation on my part.

But, as I’ve stated in my previous post on consolidation, the Market had a no momentum. In any case to me it just meant that trading risk is higher with no momentum and that any trades should be done with lower trade size, which you did well.

Your entry and exits were right on for a Long, while the INDU was going no where but sideways (the INDU moved up 7 pts at your entry, and finally moved another 8 pts starting at 16:35 (EU). I am not trying to criticize your trade just critique it, the INDU, at your time of entry was moving down & MACCI 1-min was + 165 apprx & still going up for another 3 mins, while RHAT was moving up with excellent volume, & being divergent to the DOW (meaning they were going in opposite directions, from 15:00 till 16:26 was in a down trend). All I can say it was a good trade, although not proper in TA terms. My guess is that due to the consolidation movement of the Market, it didn’t have any affect on RHAT. But, this is my take on the trade, others may differ, the key was your small position size that allowed you to test the trade.

I also did a trade at 14:54 with RIMM for a + 0.29 trade, but was risky, since it had a 1 min ATR of $0.44. But it was a huge Gap play, which IMO had a lot of momentum (too much actually – LOL), and allowed me to ignore the INDU, due to the stocks huge momentum. After this trade, I noticed that all of the Index’s had no momentum & their ranges were noticeably much lower to previous data that I watch, therefore I waited for the market to show me some more volatility, which didn’t occur the rest of the day, so I stayed put.

I found several potential VWAP trades, long and short, but their risk to reward were only 0.10 to 0.20 cents and not worth it for the stocks that I had on my list. Normally, these same stocks have a much higher R:R.

Hope this helps!

 

[rajibde]

Hi Rai,
Yesterday as a whole was IMHO, a consolidation day. One main reason could be that it was the end of month & end of quarter, where institutions seemed to be happy with their positions for publishing their portfolios to the public; again this is speculation on my part.

But, as I’ve stated in my previous post on consolidation, the Market had a no momentum. In any case to me it just meant that trading risk is higher with no momentum and that any trades should be done with lower trade size, which you did well.

Your entry and exits were right on for a Long, while the INDU was going no where but sideways (the INDU moved up 7 pts at your entry, and finally moved another 8 pts starting at 16:35 (EU). I am not trying to criticize your trade just critique it, the INDU, at your time of entry was moving down & MACCI 1-min was + 165 apprx & still going up for another 3 mins, while RHAT was moving up with excellent volume, & being divergent to the DOW (meaning they were going in opposite directions, from 15:00 till 16:26 was in a down trend). All I can say it was a good trade, although not proper in TA terms. My guess is that due to the consolidation movement of the Market, it didn’t have any affect on RHAT. But, this is my take on the trade, others may differ, the key was your small position size that allowed you to test the trade.

I also did a trade at 14:54 with RIMM for a + 0.29 trade, but was risky, since it had a 1 min ATR of $0.44. But it was a huge Gap play, which IMO had a lot of momentum (too much actually – LOL), and allowed me to ignore the INDU, due to the stocks huge momentum. After this trade, I noticed that all of the Index’s had no momentum & their ranges were noticeably much lower to previous data that I watch, therefore I waited for the market to show me some more volatility, which didn’t occur the rest of the day, so I stayed put.

I found several potential VWAP trades, long and short, but their risk to reward were only 0.10 to 0.20 cents and not worth it for the stocks that I had on my list. Normally, these same stocks have a much higher R:R.

Hope this helps!

Hi Naz,

I have been trying the Darvas b/out strategy for the last one week at different times of the trading day and I find that the trick is to identify and shortlist the right stocks and apart from that I am using the EE only as a secondary indicator during entry ( the EE becomes a primary indicator during exit). It is very early days yet and hence I am using small trade sizes, but for the first time in my trading life, combined with a tight money management, I have had (please do not laugh) one week of consistent profits- this might sound peanuts to many in this BB but believe me after a very long time, my confidence and hopes have started to rise. One big advantage of this strategy, I find is that now I find it relatively much easier to contain the losses to a very small value. (ofcourse, always a top down approach ).
Thanks for your comments. Would any one else like to comment also?

Raj

PS- 1)reading G1's posts, it is clear that when he says 'VWAP Engine' he refers to the Darvas strategy (and not pair trading)- the only link to the VWAP is possibily what Paul had mentioned in his post above.
2) G1 has also mentioned in one of his earlier posts to 'identify the stocks which seem to have a mind of their own and do not mirror the market'- this seems to be a very important aspect of the strategy.

 

[fibbo]

Hi Raj...Nas
.........my take on fridays market and RHAT trade is that...we can still use GREY1s strategy 1 and 2 in a consolidation market ...providing the stock in question is a good deal stronger/weaker than the market, RHAT obviously fit into that catogary so IMO a very valid trade.
NAS you question RAJ´s entry because EE was over 100 but where was the 3min and far more important where was the 5min EE at that time, if these were at low to middle numbers and RHAT was NOT over bought then the only problem i see is that RAJ possibly would have had to take a bit of heat on the trade from entry untill the 1min EE levelled off somewhat.
Entry timing IMO is somtimes of lesser importance if we want to get into a trade, for example if a stock is strong and we are expecting the market to follow, lets say after a small correction
(im not saying RAJ was thinking this way) As we dont use stops in the coventional way we are "allowed" to take an early entry as long as we are prepared to take the heat that may follow.
These are just my thoughts and my own way of interpretating Grey1 ´s method ,for what they are worth, or maybe i am just trying to validate my own friday trades on RHAT....lol

Regards Steve

 

[Grey1]

HI

I am 100 % back to be on the BB as all my guests are now gone . Looking forward to concentrating on trading

Grey1

 

[Grey1]

HI

I am 100 % back to be on the BB as all my guests are now gone . Looking forward to concentrating on trading

Grey1

Hi Guys,

Trading is a difficult business and learning part of it is even more difficult . The best way to learn how to best make use of the VWAP engine and Pair trading as well as divergence and EE is showing you all how it can be done in real time . This is best way . It takes few days to demonstrate the power of VWAP technology and risk managment as well as the application of EE in real time and I have arranged to have 5 people on SKYP on Wednesday to trade the market live with them . If it all goes well and does not affect my own interests then i will expand this to more people and we take it from there . FIBBO has been trading with me on SKYP and he told me "HE FEELS MUCH MUCH MORE CONFIDENT " and also he feels he has learnt new things specially on stop loss that he never thought he would have learnt from reading any books .( and he has read loads of books )


I can tell you now that It be another week before FIBBO can sit there and trade just like myself and make his target of $500 /day day in day out

Grey1

 

[gulam]

Welcome Back G1, Looking forward to more of your feedback on trading.

HI

I am 100 % back to be on the BB as all my guests are now gone . Looking forward to concentrating on trading

Grey1

 

[gulam]

Hi Guys,

Trading is a difficult business and learning part of it is even more difficult . The best way to learn how to best make use of the VWAP engine and Pair trading as well as divergence and EE is showing you all how it can be done in real time . This is best way . It takes few days to demonstrate the power of VWAP technology and risk managment as well as the application of EE in real time and I have arranged to have 5 people on SKYP on Wednesday to trade the market live with them . If it all goes well and does not affect my own interests then i will expand this to more people and we take it from there . FIBBO has been trading with me on SKYP and he told me "HE FEELS MUCH MUCH MORE CONFIDENT " and also he feels he has learnt new things specially on stop loss that he never thought he would have learnt from reading any books .( and he has read loads of books )


I can tell you now that It be another week before FIBBO can sit there and trade just like myself and make his target of $500 /day day in day out

Grey1

G1, as a thought can these skype sessions be recorded so we all can benefit?

Thx

 

[Nastrader]

By way of another example, I took a VWAP pair trade yesterday with CELG and LRCX at just after 10.30am UK time. The trade worked but it took a little longer than normal. Would be interesting to hear from other traders if this was a reasonable selection or not.

Cheers

Steve

Hi Evostik,

The VWAP pair trade you made of Friday looks good me, the length of time it took for both trades was probably due to the low volatility on Friday. Both the S/LRCX & L/CELG looked as if they had about $0.40 in them at the time of entry (which was very strong R:R, especially on a day like this.

My assumption for Monday is that we should have a stronger trading day (climb out of consolidation), since the Market should easily outperform the trading range of Friday’s. But our TA indicators will show us the way, and thanks to Gray1 for showing us these strategies.

WTG Steve!

 

[evostik]

Naz, thanks for the feedback. Its good to get a second opinion so, in trying to understand and implement Grey1's teachings , rather than just a lucky entry I might actually be starting to learn!!!

Cheers
Steve

 

[rajibde]

Hi Raj...Nas
.........my take on fridays market and RHAT trade is that...we can still use GREY1s strategy 1 and 2 in a consolidation market ...providing the stock in question is a good deal stronger/weaker than the market, RHAT obviously fit into that catogary so IMO a very valid trade.
NAS you question RAJ´s entry because EE was over 100 but where was the 3min and far more important where was the 5min EE at that time, if these were at low to middle numbers and RHAT was NOT over bought then the only problem i see is that RAJ possibly would have had to take a bit of heat on the trade from entry untill the 1min EE levelled off somewhat.
Entry timing IMO is somtimes of lesser importance if we want to get into a trade, for example if a stock is strong and we are expecting the market to follow, lets say after a small correction
(im not saying RAJ was thinking this way) As we dont use stops in the coventional way we are "allowed" to take an early entry as long as we are prepared to take the heat that may follow.
These are just my thoughts and my own way of interpretating Grey1 ´s method ,for what they are worth, or maybe i am just trying to validate my own friday trades on RHAT....lol

Regards Steve

Hi Steve,

Thanks for your reply-this helps me to re-enforce the G1 concepts into my trading.

Cheers

Raj

 

[Trader333]

Well GILD was a bit of a surpise, I managed to limit my loss to just over $900, still that is trading for you and no complaints as I will get it back


Paul

 

[vegas]

Well GILD was a bit of a surpise, I managed to limit my loss to just over $900, still that is trading for you and no complaints as I will get it back


Paul

Hi Paul,

I have no doubt you will, and very soon !

 

[samtron]

Well GILD was a bit of a surpise, I managed to limit my loss to just over $900, still that is trading for you and no complaints as I will get it back


Paul

Paul, Chin Up! as Grey1 would say,
I must admit its my biggest downfall, one loss and my resolve just goes! and I want to go for a starbucks.

 

[moreagr]

Paul fight back and dont lose your cool...at least it was not more. one or 2 good days and your back. try losing $2700 in one day

 

[Grey1]

We traded the market with FIBBO yesterday . The first trade was AKAM and i lost £490 in no time . Both Fibbo and myself went down to around $600 but we managed to get our money back soon and come on top . FIBBO was up $1043 and myself $1600

Losses are in evitable... This is Trading for you .

Paul be very very careful on stocks such as GILD that gap down or up a lot , They are still subject to the news and behave NON TECHNICALLY

iraj

 

[Trader333]

Paul be very very careful on stocks such as GILD that gap down or up a lot , They are still subject to the news and behave NON TECHNICALLY

Thanks Iraj I will do as suggested.


Paul

 

[Grey1]

We have been trading the market using SKPY conferencing ( which only allows 5 people ) with IANH,JULIAN,FIBBO,LEVII and myself last past three days with no losing days. We all made good return relative to our position size using the same concept that I have been discussing on this BB. My promise to the guys was that they wont be having a LOSING day . Stick to what I have written and the strategy 3 specially and you wont look back ,,

Perhaps other guys (from the team above ) can make a comment on their experience on the use of my trading methodology .

Trading knowledge comes from sitting next to a trader and watch him trade than BOOKSSSSSSS.

Mucha Gracias Mr Market

Grey1

 

[LevII]

We have been trading the market using SKPY conferencing ( which only allows 5 people ) with IANH,JULIAN,FIBBO,LEVII and myself last past three days with no losing days. We all made good return relative to our position size using the same concept that I have been discussing on this BB. My promise to the guys was that they wont be having a LOSING day . Stick to what I have written and the strategy 3 specially and you wont look back ,,

Perhaps other guys (from the team above ) can make a comment on their experience on the use of my trading methodology .

Trading knowledge comes from sitting next to a trader and watch him trade than BOOKSSSSSSS.

Mucha Gracias Mr Market

Grey1

The learning curve is exponential but the main learning is:

1. Go where Mr Market takes you, do not attempt to lead or predict him.
2. Go long the strongest stock when the market is strong & rising.
3. Short the weakest stock when the market is weak & falling.
4. Do not try to buy low sell high and vice versa - go with the market - in other words follow the trend.
5. Do not trade against the market direction.
6. CORRECT POSITION SIZING is paramount.
7. CORRECT POSITION SIZING is paramount.
8. CORRECT POSITION SIZING is paramount.
So far, no losing days.

Merci beaucoup M. G1, muchas gracias senor Market.

LII

 

[evostik]

Hi LII

Thank you for posting your points. They raise an issue/question I have been grappling with for a while now. Please could you explain to me how "Do not trade against the market direction" fits with Srat 3. What I mean is that I find that in a rising market I get OB signals in three timeframe MACCI but I don't (generally) get OS Signals. In other words, I only get, by one definition, counter-trend signals. Are you suggesting that one should ignore OB signals in such a rising or strong market?

Kind regards

Steve

 

[rajibde]

The learning curve is exponential but the main learning is:

1. Go where Mr Market takes you, do not attempt to lead or predict him.
2. Go long the strongest stock when the market is strong & rising.
3. Short the weakest stock when the market is weak & falling.
4. Do not try to buy low sell high and vice versa - go with the market - in other words follow the trend.
5. Do not trade against the market direction.
6. CORRECT POSITION SIZING is paramount.
7. CORRECT POSITION SIZING is paramount.
8. CORRECT POSITION SIZING is paramount.
So far, no losing days.

Merci beaucoup M. G1, muchas gracias senor Market.

LII

Hi LII,

Thanks a lot for your feedback from the session with Grey1. G1 emphasises position sizing- although I have a basic idea of what he is saying in terms of keeping the position size as a function of the atr but it would be really helpful if you (or someone) can explain this with an example (entry position size; if the atr changes then what and at what point etc.)
(Any suggestions on how to code this in the ELA will be a real bonus

Regards

Raj