profit targets

[Happyguy]

I believe the method of getting in and exiting is a function of each person's trading methodology and his personality.I always enter all in one go. I had tried to exit by scaling out but I find that most often, I end up earning less points than if iI had exited all in one go. When I reviewed my trades, I discovered that the first price level that i scaled out was too early an exit for the way i trade. This is why the total points made in 'one' exit is greater than the scaling out exit.

[Anonymous]

LOL. Clearly no method is without some negatives.

First, do you scale out, or exit all the position on the first WRB? While one needs to do what fits their individual personality, the idea is once the first pt is hit, all other pts MUST be higher than the first. So if price does move in the opposite direction you would NOT be exiting at further WRBs.

Now as for the trailing stop. I would place it 1 or 2 ticks from the low of the body. As long as the that is not on an even number or a round number. More correctly, 1 tick below unless that is an even number or a round number (which of course, is even). If it was, then I would use 2 ticks.

I don't know what happened in this chart, but it looks like you would still be in on the last bar shown.

[brownsfan019]

	Quote:	PivotProfiler
	LOL. Clearly no method is without some negatives. First, do you scale out, or exit all the position on the first WRB? While one needs to do what fits their individual personality, the idea is once the first pt is hit, all other pts MUST be higher than the first. So if price does move in the opposite direction you would NOT be exiting at further WRBs. Now as for the trailing stop. I would place it 1 or 2 ticks from the low of the body. As long as the that is not on an even number or a round number. More correctly, 1 tick below unless that is an even number or a round number (which of course, is even). If it was, then I would use 2 ticks. I don't know what happened in this chart, but it looks like you would still be in on the last bar shown.

OK let me see if I have it - first, you exit some of your contracts on the first WRB. Your trail stop is placed 1-2 ticks below the body on the remaining portion and either another WRB will form later or that trail stop on the remainder will be taken out... correct? And how long are you willing to wait for that next WRB? You could easily have a stop that would not be in jeopardy of being hit, but also not get a WRB shortly after the first. In other words, if price just slowly chugs up and down far enough from your stop, but not enough to create another WRB, what's a trader to do? Just sit and wait? At that point, I think that's more hope than anything... Just my view though.

It's kinda funny how our views and ideas can change over time... With WRB's as exits, I am getting in, getting out and waiting for the next set up. If you have multiple WRB's or set profit levels, you can stay in a trade for many minutes or even hour(s). I used to do that - sit and wait b/c my profit level was +20 and I wasn't budging till then. For me, this is a much better way for me to trade as I am not always the most patient. So, instead of getting into a trade and feeling like it is taking forever for my profit to hit, I am simply looking for a boost of volume in my direction and then exiting the trade. And while it does create more trades during the day, it keeps my attention more and with more round turns, I can keep negotiating that rate down. :p

[Anonymous]

BF, do you scalp?

As far as waiting for another WRB, correct, one would just wait as long as it takes. But remember, the definition of a WRB is the largest body of the last 3 intervals. So WRBs are not simply ultra huge bars. The wider the more significant but a "narrow" body could be WRB of the prior intervals are extremely narrow.

I am glad you are finding value in this concept. Like I said, I like the fact that WRBs are market driven. The more we can get out of our own way and listen to the market the better.

[brownsfan019]

	Quote:	PivotProfiler
	BF, do you scalp? As far as waiting for another WRB, correct, one would just wait as long as it takes. But remember, the definition of a WRB is the largest body of the last 3 intervals. So WRBs are not simply ultra huge bars. The wider the more significant but a "narrow" body could be WRB of the prior intervals are extremely narrow. I am glad you are finding value in this concept. Like I said, I like the fact that WRBs are market driven. The more we can get out of our own way and listen to the market the better.

Pivot - I don't call myself a scalper, but some might think so. :p

I see what you are saying about the WRB and the largest body of the last 3 intervals. I am equating WRB with big candle and that is not how you are using them. My only concern with using the last 3, 5 or whatever intervals was that when I looked at doing that and coded into TS, it was giving me 'WRBs' that I did not think were good exits at all... Again, I may be using a very simplified and literal interpretation of WRB, but I was just not impressed saying of the last X intervals, if this body is bigger, I am out. Have you really tested and looked at that analysis? I guess it also depends on the type of chart and timeframe being used. I am using 450 share bars on the YM, so with that 'low' of a setting, it's easy for many WRB's to print based on the interval analysis, which ends up taking me out of trades almost immediately after entry... So, that's not going to work for me.

After some more analysis on my end using WRB's in the literal sense, I am comfortable with them as exits, but only after the trade moves so much in my favor. In other words, once the trade moves +8 on the YM, then I will look for a WRB as reason to exit. The idea being that I cannot be taken out at +3, even if a 'WRB' technically showed up. I realize that this may conflict with the idea of taking what the market gives you, but I also cannot turn a trade that would have delivered nicely into +3.

[NihabaAshi]

	Quote:	brownsfan019
	Pivot - I don't call myself a scalper, but some might think so. :p ...I am using 450 share bars on the YM, so with that 'low' of a setting, it's easy for many WRB's to print based on the interval analysis, which ends up taking me out of trades almost immediately after entry... So, that's not going to work for me...

Hi brownsfan019,

Can you post a annotated chart example of what you consider to be WRB's via a 450 share bar chart?

Thanks because I'm curious to see what this looks like.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

[Don4]

well im certainly no expert on the mater we can never realy be sure where price will go but to me scaling only adds to the problem, it keeps u glued to the screen and only adds more emotions in the trade. (just my opinion)

[brownsfan019]

	Quote:	NihabaAshi
	Hi brownsfan019, Can you post a annotated chart example of what you consider to be WRB's via a 450 share bar chart? Thanks because I'm curious to see what this looks like. Mark (a.k.a. NihabaAshi) Japanese Candlestick term

Mark - I don't want to hijack this thread, so I posted screenshots at the thread I started - http://www.traderslaboratory.com/for...es-1480-3.html

Let me know what you think!

[walterw]

Brown : I would appreciate if you could remeber me whats the soft you use to mark your charts.... thanks Walter.

[brownsfan019]

	Quote:	walterw
	Brown : I would appreciate if you could remeber me whats the soft you use to mark your charts.... thanks Walter.

http://www.techsmith.com/snagit.asp

It is the best $39.95 you will ever spend. I use SnagIt for so many things, esp to annotate charts quickly. I used Microsoft paint, but what a pain that thing is. SnagIt is one of the most useful programs I use for anything and everything!

And if you want to make videos and such, Camtasia is a great program as well! http://www.techsmith.com/camtasia.asp