Best Thread My Journal at a Prop house

[fiatmoney]

EU has started to move so I'm looking for a pullback and then long entry.

Hi All,

Look's like Pozzy is busy the last few days so to keep the journal going I taught I'd post a little setup on the EU, hope you don't mind Pozzy

Looks like EU is range bound the last couple of days so I'm looking for a breakout pullback "Pozzy style" trade.

So lets sit tight and see what happens.

 

[fiatmoney]

EU has started to move so I'm looking for a pullback and then long entry.

Pending order long 1.3070.

 

[fiatmoney]

Pending order long 1.3070.

Long 1.3070, s/l 1.3051, scale out at 1.3081. Hope this one works out...

 

[fiatmoney]

Long 1.3070, s/l 1.3051, scale out at 1.3081. Hope this one works out...

I'm scaled out so free trade now on...

 

[neilthomsonuk]

I'm scaled out so free trade now on...

Fiat Money:

Re EU I missed the break out ( i was out on my bike ) however given the 2pm Hrly high @ 1.3107 I have a pending order:
Long 1.3115, SL 1.3065, Target 1.3340.

Interested to understand how you got your "Long 1.3070, s/l 1.3051, scale out at 1.3081"

Re EJ, I'm not confident enough to trade off fib levels so waiting for a break on the 4 hr range 114.73/ 113.17.

 

[neilthomsonuk]

So question out there to those with more knowledge than I.

I have read with interest this thread and woudl appreciate some clarification on a couple of points.

1. given a range, if the price breaks the range but then closes within the range, the range remains valid and is extend to the breakout limit correct?
2. if the price breaks and closes outside of the range what then, does the range become invalid? - if a trend has formed within the range can you then trade that trend?
3. if I understand Pozzpy correctly to trade a break out we look for a close outside the range, a pull back and then entry give or take 5 pips above/below the high/low. Question is. (lets take a break out long) does the pull back have to close outside the range? or is a close inside acceptable?

apologies if these are mumpty questions but I will play on my "newbie" status !!!! I've been upgraded to Rookie - I feel blessed

 

[fiatmoney]

Hi Neil

1. Correct

2 & 3. If price closes outside range I looking for pullback in or outside of range doesn't matter. Long trade enter on the high +2 of the breakout bar, stop is at the low -2 of the pullback. Trade in 3 lots, scale out 2 lots at entry + half of initial risk( this ensures a free trade early on ), let the last lot run.

Hopes this helps...

So question out there to those with more knowledge than I.

I have read with interest this thread and woudl appreciate some clarification on a couple of points.

1. given a range, if the price breaks the range but then closes within the range, the range remains valid and is extend to the breakout limit correct?
2. if the price breaks and closes outside of the range what then, does the range become invalid? - if a trend has formed within the range can you then trade that trend?
3. if I understand Pozzpy correctly to trade a break out we look for a close outside the range, a pull back and then entry give or take 5 pips above/below the high/low. Question is. (lets take a break out long) does the pull back have to close outside the range? or is a close inside acceptable?

apologies if these are mumpty questions but I will play on my "newbie" status !!!! I've been upgraded to Rookie - I feel blessed

 

[fiatmoney]

I'm scaled out so free trade now on...

Not much momentum today.This trade is just bouncing around entry. The markets have been very choppy the last couple of weeks. This is why it is important to get the risk off early imo.


Moving stop to 1.3058 to lock in a small profit. Putting a t/p at 1.3125 and leaving this overnight. 1.3125 is the 38.2% fib from the high's of Nov '09 to the low's of June, so I think there will be resistance at this level.

 

[pozzyp]

So question out there to those with more knowledge than I.

I have read with interest this thread and woudl appreciate some clarification on a couple of points.

1. given a range, if the price breaks the range but then closes within the range, the range remains valid and is extend to the breakout limit correct?
2. if the price breaks and closes outside of the range what then, does the range become invalid? - if a trend has formed within the range can you then trade that trend?
3. if I understand Pozzpy correctly to trade a break out we look for a close outside the range, a pull back and then entry give or take 5 pips above/below the high/low. Question is. (lets take a break out long) does the pull back have to close outside the range? or is a close inside acceptable?

apologies if these are mumpty questions but I will play on my "newbie" status !!!! I've been upgraded to Rookie - I feel blessed

Hi Neil

Thanks for the message and sorry for the late reply.

I know some of the others answered your questions but thought I would chuck in as well.

100% on point on one, if price false breaks I like to move the extremes of the boundary to the break out.

I don’t usually wait for a close outside the range I will usually use price action on the lower timeframe to get me into the trade. For example if a range breaks out to the upside then I’ll be put in long, if the market starts trending again then I’m on the move and banking pips. If it’s a false break then price will turn around and stop me out in which case it will back within the range again.

If on the long setup the pullback breaches the previous swing low the setup would be void. As my entry is above the breakout high if price pulls back into the range it doesn’t matter as my trade hasn’t triggered, if then price rallies and puts me in Long then that’s great stop goes at the pull back low. If the pull back breaks the previous swing low then the long pending order is cancelled.

A trend forming within the range is usually going to be price moving to the opposite extreme of the range. I trade the turn a rounds at the boundaries of the range and try to ride the position all the way to the opposite extreme so you could say that you are trading a trend within the range. I personally would only enter at a reversal at support or resistance.


Hope that all makes sense

Pozzy

 

[cristiano]

I'm with Cable Sal - cheers for all your work on your journal. Your explanations have made your trading style understandable to even those with little trading experience (err, like me).

I have a question for any of you guys trading breakouts (apologies if it has been covered already previously) - how do you know you have the range right? When trying to plot my ranges, I find there are half a dozen I could draw as high and low boundaries.

Any advice?

Cheers, Chris

 

[pozzyp]

Hi Chris thanks for the post,

There seems to be ranges all over the place at the moment!!

Usually I look for price to be contained within its previous swing high and swing low to define a range. So if its not making new swing points on the move the previous can be used to define the boundaries of the range.

Another way is too look for multiple touches of you’re support or resistance lines. So if you mark of the last swing high and swing low with horizontal lines if price is bouncing between the two with multiple touches at each level then it’s a well defined range.

If there’s been a narrow range of trading overnight through the Asian session you could even use the days high and low to see if you get a breakout and trending movement through the London session.

Hope that helps mate.

Pozzy

I'm with Cable Sal - cheers for all your work on your journal. Your explanations have made your trading style understandable to even those with little trading experience (err, like me).

I have a question for any of you guys trading breakouts (apologies if it has been covered already previously) - how do you know you have the range right? When trying to plot my ranges, I find there are half a dozen I could draw as high and low boundaries.

Any advice?

Cheers, Chris

 

[flipyouforit]

Pozzy,

Thanks for the update.

I'd be interested in hearing about your experiences to coding your trading style. What software are you using for this? Just how automated is it, for instance are you inputting your key S/R levels each morning? What troubles and pitfalls have you found along the way?

Thanks.

 

[JRP2891]

Pozzyp, what did Phil Newton a.k.a Newtron Bomb, think of you posting your journal, and basically his strategy, which you were praised endlessly on here for?

 

[JRP2891]

It's a perfectly legitimate question.

 

[pozzyp]

I think Phil Newton is a decent trader who knows his stuff and also think he would be the first to tell you that there is nothing new in trading. There’s whole threads on here and other forums about trading range break outs and price action including Phils own strat of the over night range and other methods so I cant quite see how you can be accused of stealing something that is openly available for free? Trading a breakout of an overnight range is a strategy that can be found via many sources. You can’t claim that anyone who has read a strat about moving avrgs or fibs or whatever it may be and then employed it themselves of stealing the Idea? The whole point of learning is that you take bits and pieces from other peoples experiences in order to develop your own way of doing things and hopefully make a living. I like certain methods of Phils which I trade and others that I don’t I have never once given away any information from his paying site!! He has other trading strategies which I don’t use as they don’t work for me, I have traded numerous strats throughout this journal. It is simply a journey of my trading experiences when I first started out on a prop desk and I don’t really see what the issue with that is!!

Surely every trader on this forum has spent time reading and researching methods, theories and other peoples strategies?? If anything that’s entirely the point of a site like this. I have never charged anyone for this information! And have recommended Phil’s site to a number of people.

Furthermore I can’t really see what any of this has to do with you? If you don’t like mate don’t read it.

It's a perfectly legitimate question.

Its a perfectly legit question

 

[Black Swan]

So is the suggestion that this pozzy character lurked on Phil's forum, then spat out shadow trades to Phil's, in order to impress with a view to charging as a mentor?

Questions; how would he carry that off whilst working (full time) at a prop shop even if way down the food chain and why would he be that ar5ed? Doesn't make sense..but then again this place is littered with mental/psycholigical cripples and hidden agenda fooktards so nothing surprises.

However, who really gives a 5hit anyhow? I always have a chuckle at how much ar5e licking goes on here with regards to prop shop bottom feeders.

 

[pozzyp]

Think trading prop often gets given a bad name. There are many chops shops out there but actually if you find a decent firm its 100% worth while. You’ll get good line from them as well as much better trade execution compared to punting away with some sh**ty spread bet firm or retail platform, Particularly if you are trading a market where latency is an issue. Furthermore it gets you out the house to a place of work as apposed to sitting at home with your hands down ya pants having no social interaction. I have trading prop for a year and a half now and it works well for me.

Not really to sure what Food chain you’re talking about Black Swan or why I’m a bottom feeder? I don’t claim to be a multi millionaire but I make a living out of it, I’m self employed so don’t have a knob head boss doing my head in and I enjoy what I do. It certainly beats a 9 to 5! Not quite to sure why you feel the need to put that down?

 

[Black Swan]

Think trading prop often gets given a bad name. There are many chops shops out there but actually if you find a decent firm its 100% worth while. You’ll get good line from them as well as much better trade execution compared to punting away with some sh**ty spread bet firm or retail platform, Particularly if you are trading a market where latency is an issue. Furthermore it gets you out the house to a place of work as apposed to sitting at home with your hands down ya pants having no social interaction. I have trading prop for a year and a half now and it works well for me.

Not really to sure what Food chain you’re talking about Black Swan or why I’m a bottom feeder? I don’t claim to be a multi millionaire but I make a living out of it, I’m self employed so don’t have a knob head boss doing my head in and I enjoy what I do. It certainly beats a 9 to 5! Not quite to sure why you feel the need to put that down?

I have noticed an ignorant fawning towards prop shop traders on T2W. Not putting you down, it wasn't a personal dig at you. If you read my post carefully and correctly I was asking how you'd have the time to shadow Phil's trade's and its hardly rocket science what he does is it? And I'm not really ar5ed what you do tbh, ripping off Phil, ripping off the market, spamming folk a year back offering mentoring (after being in the job 6 months)..who cares?

In fact I have very little interest in what most traders do on 'ere, because, other than one or two exceptions (who very rarely post), we're mostly all at the 5hitty end of the pipe; either making money for ourselves or others in the fairly one dimensional the way most of us (FX/indices/futures etc) traders do, or not.. and yep we could all get gigs at prop shops, if we felt the need/saw the benefits..

 

[rosehound]

The reason this thread was originally appreciated wasn't because it was an original strategy, or because people like to blow up prop traders, it was because Pozzy was taking the time and effort to post constructive, instructive and detailed real time information on a method he was trading in real markets. This is so much more helpful and interesting than the snidey bitter sniping that jokers such as black swan spend their time depositing upon T2W.

 

[Black Swan]

The reason this thread was originally appreciated wasn't because it was an original strategy, or because people like to blow up prop traders, it was because Pozzy was taking the time and effort to post constructive, instructive and detailed real time information on a method he was trading in real markets. This is so much more helpful and interesting than the snidey bitter sniping that jokers such as black swan spend their time depositing upon T2W.

and yet others. who were spammed by Pozzy, and or accuse Pozzy of plagiarism, may have other opinions..It was clear after a while that the OP (Pozzy) had ulterior motives..but heh..like I say wtf, there's huge chunks of chunks on T2W that have agendas..