The "Flip" Trade (support and resistance changing roles)

[walterw]

Nice interaction here... I am so glad I ended my monologue...

Don : thanks for the inputs on the news issue, we could state that the movements are not necesarily related to the news... thought the news can boost momentum, any way there can be momentum without them...


Maildigger : yes, it is posibble to take a flip on a older level... now on the case attached you can see it is agressive because you are on the oposite outerband...

Notice the "far flip" thought it was not on the exact level, it was more conservative as we where on the outerbands area, momentum showed up and it worked for almost 20 pips...

The overall idea of the "momentum flip" its to time a trade that will travel outside the outerbands with momentum... this thread recalls the concept http://www.traderslaboratory.com/for...um-1763-3.html

Thanks for interacting... cheers Walter.

[walterw]

Here is an example on YM with Ztrade paramenters on chart...

Notice what a super trade this could had been if used the super runner exit...

In the week, picking a couple of this trades could optimize the overall RRR... cheers Walter.

PD : Super Runner exit is defined by the re-entry of the white keltner...

[Don4]

Well walter, i was watching this trade when i was at work, got home a little over an hour later and look what happened.

[walterw]

I love to see those bars outside keltner ¡¡ I asume you will track the super runner exit for that... so this week starts with the right foot... jejeje this will be a super flip week ¡¡ keep that good work Don, I see your eyes are more sharp to find flips... cheers Walter.

[walterw]

Hello everyone, today I had been following YM U7... I am using Z trade parameters for keltners wich are 100 exp atr 1 and 2.5 on a 55Tick chart... (thanks Z trade)

There where lots of flips... but I only did take the more well formed ones... I mean by that, the ones that tested the S&R level without going any further (violation of level)...

Momentum was there, and on the last example we see how using a super runner would give exellent rewards... I still dont know how to manage that... but figuring out some money management idea... cheers Walter.

[Z_trade]

Looking for the simple way to make an exit as clearly defined as possible, I am testing the Parabolic SAR with default setting. The option that it can be easily incorporated into trading software as a trailing exit/stop gives the choice of *set the trade and go away*.

On the chart below, the red dots are Parabolic SAR (0.02, 0.2). The entry was obvious after the market showed the potential momentum to the upside; restatement inside the outer bands to the KC (100,1) and CCI cross -100 from the below. The red arrows demonstrate the difference between exits by the CCI +100 cross and the SAR stop.

[walterw]

	Quote:	Z_trade
	Looking for the simple way to make an exit as clearly defined as possible, I am testing the Parabolic SAR with default setting. The option that it can be easily incorporated into trading software as a trailing exit/stop gives the choice of *set the trade and go away*. On the chart below, the red dots are Parabolic SAR (0.02, 0.2). The entry was obvious after the market showed the potential momentum to the upside; restatement inside the outer bands to the KC (100,1) and CCI cross -100 from the below. The red arrows demonstrate the difference between exits by the CCI +100 cross and the SAR stop.

Interesting... it would deserve some analisis, would you exit the entire position there ?

[Don4]

Hey walter,ive been trying to figure something out with money management too. The 50/50 scaling out works really good when u catch a big move but when u lose 2 to 3 in a row plus commission it really starts to add up,so scailing in maybe would take the sting out of that string of losers. here is what ive been doing, instead of putting the whole position in at first only use half and make sure that the trade is at least going in your favor,if you lose that trade no big deal because u only risked half of it anyway,it would auctually give 2 chances compared 1 to hit that super runner. If the trade does go in your favor exit the scalper position (lock in some profit) then add the super runner. At least you know that momentum is somewhat on your side.

[Z_trade]

	Quote:	walterw
	Interesting... it would deserve some analisis, would you exit the entire position there ?

well, the idea of using Parabolic SAR comes from one of the trading books that describes trade setup based on bunch of moving averages crossovers and an SAR as a filter and stop signal.

To answer your question, I don’t really know the answer yet, as I just began the research, but I always have mental problem with exists, so I m trying to implement some sort of mechanical way to close the trade.
Usually, in your *flip* trade setup I would partially close on the out of range extreme $tick reading or a couple of ticks below/high previously significant high/resistance or low/support level

[walterw]

	Quote:	Don4
	Hey walter,ive been trying to figure something out with money management too. The 50/50 scaling out works really good when u catch a big move but when u lose 2 to 3 in a row plus commission it really starts to add up,so scailing in maybe would take the sting out of that string of losers. here is what ive been doing, instead of putting the whole position in at first only use half and make sure that the trade is at least going in your favor,if you lose that trade no big deal because u only risked half of it anyway,it would auctually give 2 chances compared 1 to hit that super runner. If the trade does go in your favor exit the scalper position (lock in some profit) then add the super runner. At least you know that momentum is somewhat on your side.

That would open a new dimension to the entry timing... should you consider a 2nd timing entry criteria there ? what would that exactly be... ? in terms of math makes sense... the technicall aspect is the hard one there...