bracke said:
bracke,
Good question.
To start with, I really don't know what "bespoke" means
( maybe it has something to do with the different looking flags under our names. )My goal is to take as much of the guess work, out of my trading as possible. And the best way to do that, ( as far as I know, at this point) is to have a way of recognizing the set ups that have the best chance of succeeding.
For instance, it's my belief that the best place to observe a change of price action, is at S/R. And with that change, is opportunity. Therefore, that part is mechanical, I need to have price at S/R, to set up any trade.
As far as a pullback, I have to define what it is, that price is pulling back from, so that I will recognize it in the future, if and when it presents itself. So yes, I'm trying to make that part mechanical as well.
As far as "patterns", it does seem like markets are continually changing from expansion to contraction, and back to expansion, over and over.
So I look for conditions that will tell me when one cycle will "likely" stop, and the other will "likely" begin. Once I recognize that possible change, I then need to be mechanical with my actions, to be able to take advantage of the change.
I hope this makes sense.
sulong said:bracke,
Good question.
To start with, I really don't know what "bespoke" means
My goal is to take as much of the guess work, out of my trading as possible. And the best way to do that, ( as far as I know, at this point) is to have a way of recognizing the set ups that have the best chance of succeeding.
For instance, it's my belief that the best place to observe a change of price action, is at S/R. And with that change, is opportunity. Therefore, that part is mechanical, I need to have price at S/R, to set up any trade.
As far as a pullback, I have to define what it is, that price is pulling back from, so that I will recognize it in the future, if and when it presents itself. So yes, I'm trying to make that part mechanical as well.
As far as "patterns", it does seem like markets are continually changing from expansion to contraction, and back to expansion, over and over.
So I look for conditions that will tell me when one cycle will "likely" stop, and the other will "likely" begin. Once I recognize that possible change, I then need to be mechanical with my actions, to be able to take advantage of the change.
I hope this makes sense.
sulong
Thank you for your reply
My use of 'bespoke' is described in my reply to dbphoenix above
I understand the need to identify certain aspects of charts eg s/r and the need to remove guess work.
I suppose my difficulty is with deciding when chart analysis becomes 'mechanical' trading. I thought I knew but I am now having doubts. Perhaps someone can define the difference between them.
Regards
bracke
dbphoenix
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bracke said:
You seem to be equating planning a trade with mechanical trading. If you don't define your setups, how can you test them? If you don't test them, how can you detemine the probability of success? If you have no idea of the probability of success, how do you decide whether or not to take a trade?
bracke said:
I'm certainly no expert on this sort of thing, but the way I explain it to my self is, once you've determined a reoccurring pattern, and then determined the principals behind the pattern, that causes the pattern to react in a certain way, ( for me, a process of elimination), you then have the means to "act" mechanically.
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bracke said:
I suppose there is, but I don't see how it is pertinent, which is why I asked. I may be mistaken, but the purpose of the thread -- as I understand it -- is to define a pullback or retracement and the conditions for taking a potential continuation trade (given the number of posts, forgive me if I don't look it up). Whether one calls it mechanical or not is less important than the business-like approach to the trade.
dbphoenix
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Since the subject has come up, anyone who's interested in the process of choosing a strategy, defining the tactics required to trade it (the setup) and testing the plan may be interested in the following thread:
http://www.elitetrader.com/vb/showthread.php?threadid=40343
On the other hand, if this is off topic, I'll be glad to delete the post. Just let me know.
http://www.elitetrader.com/vb/showthread.php?threadid=40343
On the other hand, if this is off topic, I'll be glad to delete the post. Just let me know.
dbphoenix said:
dbphoenix
If there is what is it ?
It is pertinent only in as much as sulong appeared to be advocating what I thought was a mechanical method of trading ( oh dear here we go again ).
sulong has now said that he identifies the pattern and then acts mechanically. So be it.
But I would still like to know what mechanical trading is !
Regards
bracke
dbphoenix said:
The elitetrader thread is well woth reading.
The originator of the thread is day trading. Although that is not my own method the principles that dbp is advocating are applicable to any form of trading.
A number of thoughts occured about dbp which include: persistent, exacting, no place to hide, not for the faint hearted, cruel to be kind.....I think you will get the drift.
Regards
bracke
dbphoenix
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sulong said:
Everyone has the option of defining words however he chooses. However, this can lead to communication problems if the words happen to be commonly used.
There is no essential difference between a pullback and a retracement unless one assigns a difference to them. What is more important is whether the "*" takes place in a trend.or not. In which case, one gets into the necessity of defining trend, and whether or not it's possible to have a trend within a range.
All of which gets back to the necessity of imposing one's own structure on what he sees, part of which is determining whether or not a given pullback or retracement or whatever is "important".
The market moves in 3 directions, uptrend, downtrend and sideways. This sideway move is what we regard as a trading range? " This type of sideways action reflects a period of equilibrium where the forces of supply and demand are in a state of relative balance."
As regard to retracement can we say a base is formed and the price plays between support and resistance of that range many times before "breaking out?"
As regard to retracement can we say a base is formed and the price plays between support and resistance of that range many times before "breaking out?"
