Tuesday, 1 December 2009

Is Your Edge Sharp?

There was a question yesterday about my charts, indicators and settings. I have quite strong views about this.

To trade successfully, you MUST believe. We all have belief systems from things we learned as children. When we were told not to touch something hot, we touched it and quickly learned not to. A WET PAINT sign is an invitation for the young to touch it. And so to is trading. I believe that you have to prove that your methodology has the edge to give you consistent profitability in the time frame and "style" that you evolve.

Well, how do you do that. There are two ways that I know of (unless you are one of the lucky "naturals"). The first is what I did: trial and error - lots of error plus a few years. The second is to find a teacher who mentors you to find a methodology that fits you and your aspirations. This is what Kiki and I did and it saves a few years and untold thousands of dollars. Before anyone makes a comment about this, Kiki is the first one to acknowledge how thankful she is to be mentored.  Learning to trade is like going to a top university with only a 10% pass rate. You wouldn't be fair to yourself, if you didn't acknowledge the difficulty of the task ahead and the degree of dedication and perspiration it will require to "graduate" and become consistently profitable.

Looking at the trades on my chart and believing that all you need is the charts, and profitable trades will materialise like magic is delusional at best.  Without the knowledge of how to use the charts by invoking the high level of dedication and perspiration I spoke about, you are only fooling yourself. If you think trading is money for nothing, think again. I know that this rant is a bit harsh, but I don't want anyone to think ALL they need to make money is my charts.

I'm glad we trade from Europe and don't have to get up in the middle of the night to catch the local morning time trades.

Click to enlarge


  1. Tom, I've loved your blog and been an advid follower. I totally agree with your "rant" lol but the fact is without the tools you use then we are really just left hanging. I've tried to duplicate them but without specifics or without the template it's pretty darn hard. I think that you should either make this blog private for you and Kiki or you should either charge for the tools or give them away for free (whatever you feel is best). Otherwise this blog is just like all the other could be tradrs on the web that call trades after the fact only to stroke thier own egos. We are not children and if you sincerely want to help us then let us take the tools and follow the blog and figure things out for ourselves. I know you don't owe anyone anything and like I said, I thank you for all you've contributed so far but I feel like I have come as far as I can but without those tools this was really just a waste of time for us. Sincerly and with respect.

  2. Thanks for all the comments. I read each and every comment that I get. I'm doing a post tonight on how you can duplicate my tools, no payment to me.

  3. Sometimes looking to hard blinds you. Just for fun, the EMA are 34 and 102. (34 x 3 = 102)
    30 length Keltner Channel at 3ATR with 30 MA blanked out. (for 34 EMA).
    1.25 Range bars with 2 CCI’s combined. One at 45 and one at 6 length. Oversold at +200/100
    and -200/100. (Not used for oversold or bought but as trigger at 0 if other conditions are met).
    Volume on the bottom can use Delta (Tick at buy or ask) with a cumulative line under (or above) it.

    The MP using TPO as well as VPOC split is key for S/R, structure, etc.

    Doesn’t really matter though. A bat is a bat. Until you get 10000 balls thrown at your head you will not swing with confidence. (A batting coach is a plus though :oP)


    Ps Posting optional at bosses (that’s you) choice.

  4. Tom, it would be great if you could also explain the time frame setting you use for the profile. On the pics it shows, that it's based on 1 minute. Is this really the case or is this just a chart you throw up for the special indicator.

    I'm using Ensign at the moment and try to get more into MP.

    Thanks a lot!

  5. timokrates, my MP is the standard 30 minute but Ninja constructs it using 1 minute bar data. See tonight's post for more info.

    Rino, yes, your numbers a right. Tonight's post will give you more info, especially about the volume stuff.

  6. Steven
    thank you for your post ....
    thank you for nice blog,helpfulness and patience