Wednesday, 10 August 2011

Tomorrow Will Be My 500th Post

The technology can be used in many ways to improve trading:
  1. Incorporating what you look for at different times into an indicator to provide a visual and audio alert. My Pressure Change Alert ID is one of these.
  2. Creating and algo for a particular setup - turn it on only when the right market conditions come into play (perhaps after an ALERT as above). The algo will enter the market exactly in accordance with your Trading Plan (TP) and do it more quickly and accurately than you can.
  3. Creating and algo that is always on and when it triggers a trade in accordance with your TP, you manage it manually - hybrid. Not as context sensitive as number 3 above but less concentration is needed.
  4. Creating a fully automatic algo that you turn on at the beginning of your session and off when you want it to stop for the day.
Each of these has its own advantages and disadvantages. Each is suitable for a different type of trader with different requirements and skills. What they have in common is that they can provide two of the requirements needed to get to CP:
  • instant trade recognition, and
  • instant or prompt trade execution
There will be an important post tomorrow, my 500th post since this blog began in October 2009. I have been inundated with emails about using technology and how to get to CP. I have been pleased to receive many, many emails from people who have got to CP after reading the blog or attending some of my training and mentoring. Their success has been very good to see.

Today I'm showing two classic EL trades. The first is a pullback - thrust in the direction of the trend and the second is an outside in trade. As the notation on the chart says, I can and have automated the first but not the second as the final decision is context related. BUT, I have created alerts for both. The first, I am happy to take in almost any context so Flo takes care of those. The second, I want to see it and then decide whether to take it. The beauty of trading is that a trader can create a trading plan in accordance with his needs and skill level and then evolve it as his skill improves. Using the technology makes the road to CP shorter and easier.

1 comment:

  1. Congratulations on 500 posts. I hope you'll continue for at least 500 more. Your charts are the most educational I've ever seen.