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thalestrader

Reading Charts in Real Time

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Here is what a daily CL looks like with a short at 78.77 and a stop loss at 78.84 ...

 

 

attachment.php?attachmentid=19643&stc=1&d=1267192638

 

I run my daily bars for crude to coincide with the pit open, and here is how that short looks with a stop and reverse to go long above yesterday's high ... Stop on the long, if triggered, will be the pit session low preceding the long entry, if it should trigger. Otherwise, I am short and will trail a stop ...

 

attachment.php?attachmentid=19644&stc=1&d=1267193007

 

 

Best Wishes,

 

Thales

5aa70fdbe0f2e_2010-02-26CLSIM3.thumb.jpg.a3ed0505853c4f4b28fa0a3b207d7871.jpg

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... Stop on the long, if triggered, will be the pit session low preceding the long entry, if it should trigger. Otherwise, I am short and will trail a stop ...

 

If the long triggers, I do reserve the right to get short again if price runs into to trouble at 78.87-78.91 +/- and so on and so forth ...

 

I will not likely be able to post a blow by blow if price breaks the high as decision making becomes nimble ...

 

 

Best Wishes,

 

Thales

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Hey Thales,

 

I had an "idea" and I just wanted to run it by you (or anyone else here) because I'm sure your experience would give you a good idea whether this would be beneficial or not...

 

Basically, my idea is to trail my stops by R...for example, once I have an unrealized gain of +1R, I move my stop to BE, once I'm up 2R, I move my stop to +1R, once I'm up 3R, I move my stop to +2R, etc.

 

I know a downside to this is that it's "dumb" vs trailing natural stops...but it's just a nice way to lock in gain...it always stinks to be up 2R at one point and get BE on the trade...

 

Thanks,

 

Cory

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...Basically, my idea is to trail my stops by R...for example, once I have an unrealized gain of +1R, I move my stop to BE, once I'm up 2R, I move my stop to +1R, once I'm up 3R, I move my stop to +2R, etc.

 

I routinely do this, though I do give deference to actual chart points - if a +1R stop puts me in front of a nearby support level, I'd rather have a +.8R stop beneath support, than a +1R stop out in the open.

 

Best Wishes,

 

Thales

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Yes sir, I do. DX1, she's my baby.

 

It was made just up the road from me a piece. I have all Gibsons - two Les pauls and an old ES-335. But I shall dreadnought, for someday I'll go ahead and get myself a Martin as well.

 

Welcome to the thread.

 

Best Wishes,

 

Thales

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I run my daily bars for crude to coincide with the pit open,

 

Long at 78.84 ... It pulled all the way back to .66 after a rally to 79.34. It rallied off that .66 back to 78.99, and then again pulled back to 78.85, so at this point, I am moving my stop loss to break even at 78.84.

 

attachment.php?attachmentid=19651&stc=1&d=1267197752

 

If price encounters difficulties at 79.43 - 79.60, I will exit at market. I am really looking to exit somewhere aroung 80.25.

 

Best Wishes,

 

Thales

5aa70fdc09960_2010-02-26CLSIM5.jpg.d6ccc043d8eee6b7468715053d107d40.jpg

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I settled on a sell limit at 80.20, current stop loss is 79.20 ...

 

 

By the way, I am still just trading a one lot of CL. If I had multiple contracts, I would definitely have taken some off up here, and I'd likely have staggered stops. But, since I am one lot with this until next week, I will be willing to let it retrace back to 79.20 in my effort to see it through to 80.20 ...

 

Best Wishes,

 

Thales

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Here is what my EURUSD/6E short looks like - short at 1.3646, stop loss is 1.3652, and I have a profit target at 1.3428. If I am not stopped out, this will be closed by end of day whether the target is reached or not. I had an initial stop at 17 ticks on the 6E short, and lowered it to the prsent -6 ticks, which makes the open risk on the trade -.35R ...

 

attachment.php?attachmentid=19657&stc=1&d=1267199673

 

I read somewhere that the EURUSD did have a 51% chance of making a high at 1.3651 today. Very sloppy thinking though, as the actual high fell short by 2 whole pips! (This thing could, of course, stop the pullback in an instant and rally 200 pips more into the close - the point is that if you know where price is with respect to S/R, its cycles, prior highs and lows, etc., you are able to take your shots with a limited and known risk, and fell good about it either way - whether you are stopped for a loss or you capture a +13R profit - which this trade will be if it gets to my target. Doubtful, but hey ... I'm taking my shots, right?

 

This will be my last position of the week. If this is stopped at 1.3652, I am done. I may pop in to watch from time to time, but this is m last at bat for this week.

 

Best Wishes,

 

Thales

5aa70fdc29b5b_2010-02-266EShowSimShort1.thumb.jpg.23fa14fe7af3f13dd96b9cbe71f845e3.jpg

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Great Post on Taylor Thales,

The subject has been discussed in greater detail on this link:

http://www.traderslaboratory.com/forums/f110/taylor-trading-technique-2623.html'>http://www.traderslaboratory.com/forums/f110/taylor-trading-technique-2623.html

 

As you mentioned Taylor's book is not an easy read, even Angell and Linda Raschke failed to understand the core strategy:))

 

The heart of the problem is that vast majority make the biggest mistake to take price action of the day and then designate that as a Buy day (if prices rose on that day) and SELL or SS day(if prices dropped all day).

Taylor's rules are quite clear and objective. It will take considerable effort to get your head around it at first:)))

I am afraid there just are no short cuts:

 

Study the thread on Taylor (80pages),

http://www.traderslaboratory.com/forums/f110/taylor-trading-technique-2623.html

all the clarification one needs is there, focus on questions from Hakuna, Bearbull, Monad and responses from WHY?, Frank, Richbois, ignore all else especially posts by those who are trying to introduce any variations.

However initial exchanges between dogpile and WHY? are worthwhile, unfortunately despite lengthy clarifications, you will observe that dogpile just did not get it:))) as he was constantly trying to fit the days action into the cycle.

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Some of the Posts by WHY?

 

"Post 101 “Keep it simple guys Taylor didn't need all that nor did he have the computer. He just sought to capture the main trend each day. He woudn't have known what you guys talking about.”

 

Post 306 “Of course, the key in Taylor is how do you start the count and do you allow re-cycling and if so, how do you determine when to re-cycle and how long does the re-cycling last. Of course, these are keys that I won't be revealing. However, I might say this; if my explanation confuses you then simply learn Taylor well...follow his rules...keep his sequence...and I think you will be pleased with the results providing you are disciplined and can trade on facts and on what the market is doing and not on emotions. Taylor, I like to say, devised a system to "clock" price movement in the markets and it is a pretty good system in my books with a high win rate (at least for me) if one can understand it and follow it...especially the rules. Read the book and study it 50 or more times over the course of a couple of years. I have many trading books. If I were forced to keep one it would be Taylor, no if, ands, or buts about it!!”

 

Here is a post by Richbois:

I had to re read the 1st 4 chapters more than 100 times just to start my trading book. Than read the rest of the book many times just to understand the stuff that is written between the lines

 

There is lots of good stuff on that thread and as a matter of fact I copied lots of Frank's quotes in my book (with his permission of course) and he was using market profile to mix with Taylor which i had to take out as I was trying to explain Taylor not MP

 

We all have a different tool box and what I can see is that TTT must be part of it

Edited by rigel

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SOME QUOTES BY WHY?

"Post 101 “Keep it simple guys Taylor didn't need all that nor did he have the computer. He just sought to capture the main trend each day. He woudn't have known what you guys talking about.”

 

Post 306 “Of course, the key in Taylor is how do you start the count and do you allow re-cycling and if so, how do you determine when to re-cycle and how long does the re-cycling last. Of course, these are keys that I won't be revealing. However, I might say this; if my explanation confuses you then simply learn Taylor well...follow his rules...keep his sequence...and I think you will be pleased with the results providing you are disciplined and can trade on facts and on what the market is doing and not on emotions. Taylor, I like to say, devised a system to "clock" price movement in the markets and it is a pretty good system in my books with a high win rate (at least for me) if one can understand it and follow it...especially the rules. Read the book and study it 50 or more times over the course of a couple of years. I have many trading books. If I were forced to keep one it would be Taylor, no if, ands, or buts about it!!”

 

Here is one by Richbois:

I had to re read the 1st 4 chapters more than 100 times just to start my trading book. Than read the rest of the book many times just to understand the stuff that is written between the lines

 

There is lots of good stuff on that thread and as a matter of fact I copied lots of Frank's quotes in my book (with his permission of course) and he was using market profile to mix with Taylor which i had to take out as I was trying to explain Taylor not MP

 

We all have a different tool box and what I can see is that TTT must be part of it

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This is what the EURUSD/6E looks if you had shorted it at 1.3544 ...

 

short at 1.3544, target 1.3444, stop loss is now at 1.3430, which is just a shade or two under +1R ...

 

attachment.php?attachmentid=19663&stc=1&d=1267206299

 

 

I don't feel like snapping off another picture, but just before posting this I decided to raise the profit target to 1.3492, and I lowered my stop to 1.3524, so if I reach target, it is just a shade under +3.5R, and if I am stopped out, it will be +1.25R ...

 

Again, I do not trade live in Ninja, I am only using the demo chart trader function for those who seem to think that if it isn't in Ninja, it didn't happen ...

 

Best Wishes,

 

Thales

5aa70fdc41b6f_2010-02-266EShowSimShort2.thumb.jpg.b3f5ac9a59184813d815182f4d7d9e09.jpg

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I decided to raise the profit target to 1.3492, and I lowered my stop to 1.3524, so if I reach target, it is just a shade under +3.5R, and if I am stopped out, it will be +1.25R ...

 

Price has made no headway either way here, it is Friday, and the afternoon ... I have lowered my stop to 1.3514 which will be a +2R result, and still holding for the revised 1.3492 profit target ...

 

 

attachment.php?attachmentid=19665&stc=1&d=1267207929

 

Best Wishes,

 

Thales

5aa70fdc4fa76_2010-02-266EShowSimShort3.thumb.jpg.26053d5e209d731a433e5ed604b3c39c.jpg

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stalking a long on EU again. Will not follow this one around too long given the time of day and week. Opportunity is there nevertheless and needs to be pursued.

 

Cheers,

eNQ

 

Update:

Cancelled all orders - done for the week.

5aa70fdc5be96_26FebEUlongstalk3.thumb.png.2f3866541e632546ca4b44fbfb338c8d.png

Edited by fxThunder

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