With all the problems ahead of the world, there will be plenty of volatility to go around for day traders. Stories such as this one from the Sydney Morning herald and my own observations, makes me think that this year will be even better than 2011 for trading.
The transition in the markets continues. Moves are more sporadic as news, rumours and HFTs push prices around in a less rhythmical manner.
My discretionary trading is moving more towards Renkos to get rid of yet more noise. Stops need to be closer than intra bar with these types of charts.
Today's Light Crude continued to pay and pay. The EL methodology is to buy pullbacks in the direction of the identified trend. It's really simple. Simplicity is important in trading as otherwise you have ambiguity and with ambiguity is impossibility to backtest. The dotted lines are simple ATR dots that can be used as last resort or runner exits. There is a Keltner and Bollinger that can be used for exits too. The FloBot version of this discretionary trading is just as simple. The first arrow in a new direction corresponds with my identification of the change of trend.
I have been learning a lot being a member and reader of your blog. I have to tell you after some struggle I'm finally CP with your mentoring. I'm not making loads of money yet but definitely +ve. Thanks for all your help.
ReplyDeleteOne thing i would request you is to put your exits as well on your blog. One of my biggest problem is not knowing when to exit. I dont have problems in entering the trade but where i exit seem to make lot of difference. Love to see your exits and learn from them. i'm sure it will be helpful for others as well.
Thanks
Chak.
Chak, Well done!!!
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