Jerome's Journal

Jerome32 · June 27, 2019, 10:02pm

Risk to reward ratio of 1:13

Something very interesting here

I was only really aware that four of my scout trades are DD
(read Defiantly Delinquent )

We have scotomas, or blind spots, which prevent us seeing
our self destructive behaviour

but what about our success?

I was truly unaware of any success at all, I see only DD,
so my bottle seems half empty

but just checking my accounts is quite a revelation!

only one significant loser, and profits over losses
equate to 184/14

Lets say I made $184k and lost $14k, which would, if sustained,
mean a risk to reward ratio of 1:13

the fact I’m playing with Polish cents is not the point here, thats
just about the decimal point after all. if you can make 184 cents
and lose 14 cents, you should be able to make a fortune in theory.

I think most traders could live with that

but too early to bring the champagne out. DP did make a very
good point, it only needs one delinquent scout who won’t
be turned back to eat away all that profit

so in the end it is all about recouping at least most of any
losses made on these scout trades, and maybe even
profit on the recovery trade

There is quite an element of scalping at play here

I tend to think of scalping on the Lower time frames,
but I do set very attainable TPs

thats the similarity

These easy targets are invariably hit

Part Two as DP correctly reminds us, how do we cope
when things do go seriously wrong

we don’t panic

You do get a feel for when a new trend has formed

Keep alert for opportunities to recoup

Jerome32 · June 27, 2019, 10:12pm

Does anyone have any opinions about this? Not exactly
sure what Jon means

frandlost · June 27, 2019, 10:42pm

May be something similar to winners turning to losers because they didn’t hit a very specific target. Perhaps if he is a golfer he’s happy with “that’s a ‘Gimme’” (Give me meaning close enough)

Jerome32 · June 28, 2019, 8:35am

Some Possibilities shaping up

Gold still looks like it wants to come down after
its recent upsurge, will check on closing candle tonight

but BBs are all pointing ominously up

USDJPY looks a good proposition, having bounced
repeatedly off same MA

which MA?

not important. what is important is that it has bounced
off same MA consistently, but its 20 which is a firm
favourite

Trendswithbenefits · June 28, 2019, 10:00am

Hey @Jerome32… Try the DiNapoli Stochastic as a base for the Slope overlay… will likely improve your Oscillator reading… as opposed to the standard Stochastic… Gives similar accuracy with a smoother result…

Wow… MA20… this looks very familiar…

dpaterso · June 28, 2019, 10:09am

There’s something I don’t understand on this thread:

I cannot say for sure because I don’t have the indicator so it’s a bit difficult to align the indicator with the charts posted. I’m talking about what appears to be Stochs. (with a twist in the method of displaying them is all). But in just looking at those charts: seems to me that if you just went long when the thing was at the bottom and turned green and then went short when the thing turned red at the top then…???

Alright there’s obviously a catch somewhere and I guess you’d get chopped up in a range bound market. But with ironclad discipline i.e. risk management, position sizing, and being able to stop and reverse a trade even at a loss???

Jerome32 · June 28, 2019, 12:08pm

Only one thing! I would think most would understand almost
nothing! )

On Strategy 2 Stoch needs to be above/ below 90/10
and break through line

Strategy 1 Stoch agrees with retracement so may not
help us, it may, as above, tell us price is moving up,
but it doesn’t know or care that it may likely respond
to MA

It is a question of what to do when reading price
action conflicts with an indicator

it is easier to obey indicator which can be quite
objective, whereas reading price action is subjective.

Jerome32 · June 28, 2019, 12:10pm

I don’t use standard stoch, but I will have a look at DiNapoli anyway

frandlost · June 28, 2019, 12:21pm

Yeah baby!! I’m a convert of the “20” xlv4!!

Jerome32 · June 28, 2019, 12:44pm

Found a DiNapoli strategy that also uses a WMA crossover
arrow.

If you know what you are doing ( only trade with trend in direction
of higher TF ) it seems remarkably accurate

Trendswithbenefits · June 28, 2019, 1:05pm

Hey @Jerome32… Quality, informative thread you have running here… Glad to be of help…

From memory you’ll use the 8,3,3 and overlay the signal(?) line for best results…

dpaterso · June 28, 2019, 1:13pm

Jeepers. Talk about complications!!! LOL!!!

Can somebody, anybody, just tell me which platform this is and what indicator that is (the thick line at the bottom of that Gold chart that changes color).

Seeing as I am flat at the moment I have time to play. And from what I am seeing that thing could have two very different but profitable applications on its own

Trendswithbenefits · June 28, 2019, 1:28pm

Hey @dpaterso, It’s the DiNapoli Stochastic Signal line with the XLV4 Indicator overlayed on the D1.

DiNapoli Stochastic (8,3,3,Curve 10) (Above)

DiNapoli Stochastic (6,3,2,Curve 10) (Above)

Edit: False signals dialed out by tuning the settings… some serious pips on 95%+ of the signals.

Surprisingly accurate, If you know what you’re doing.

dpaterso · June 28, 2019, 1:43pm

I cannot see any signal line in the pic. But what I do see is how that thing would perform with my core trading system’s method of entry.

Which platform or charting software is that (I most certainly don’t have any Dinosaur Dino Stochs. on mine!!! LOL!!!)???

Trendswithbenefits · June 28, 2019, 1:52pm

Jerome is using iTradeaims Proprietary Platform, I don’t know it.

The “Dinosaur Dino Stochastic” is underneath the (XLV4) Coloured Slope Indicator…

It’s a more accurate Oscillator than the Coloured Moving Slope so the way it’s applied in Jerome’s charts is it uses the “DDS Indicator” data to draw the XLV4 Coloured Moving Slope…

dpaterso · June 28, 2019, 1:56pm

Pity. I just looked there. Doesn’t help. I don’t want to know THAT badly that I have to pay for the privilege!!! LOL!!!

Damn sure I’ve seen this before though. Seem to remember that exact same indicator being on ThinkOrSwims’s trading platform some many years back (friend of mine traded Options with them).

Constadino · June 28, 2019, 7:58pm

cousin how much have you made so far since the beginning of your journal?

Jerome32 · June 29, 2019, 8:06am

( - $300 approx )

Jerome32 · June 29, 2019, 8:37am

I’ve got a bit lost in some of the interchanges, but I don’t use
’Itradeaims’ platform, they don’t have a proprietry platform.

I just use bog standard MT4

Their proprietry AIMS boxes are simply a helpful way of viewing
Fractals, which I’ve never really found that profitable. You can
buy those boxes for £3 independently of AIMS

But they also have modified Bill Williams’ Alligator to include
’Purple Line’

this represents the Green of Gator on the 5 x Higher Time frame
and I think the Green is MA 20, not certain about that, nevertheless
I do still use purple as a quick guide as to whether I am under or
over 20 on the HTF, and thus trading with trend or not.

COLOUR STOCHASTIC 10 3 3 is quite good, its what I’ve been using,
you can pick this up anywhere. I just like it visually, but so far I
would say the DiNapoli has the edge

In fact I have just changed my colour stochastic to 6. 3. 2 as suggested
by TWB and it is definitely an improvement

but 6,3,2 colour stoch or better defined cross of 6.3.2 DiNapoli?

The jury is still out, they both do a very similar job, its just what
works best for the individual trader

and whilst I’m editing my edit, I will add that using DiNapoli 6.3.2
when price closes out of and then back into a wide open
BB, would seem to be extremely profitable

but TWB adds a criticallly important caveat that applies to
all these options …

‘if you know what you are doing’

A far better system is to spend thousands of hours improving
your chart reading skills. I don’t believe there is any susbstitute for that.

frandlost · June 29, 2019, 11:02am

This is an excellent point! Having a better understanding of what the chart “saying” is critical. There is a lot of information in each candle/bar and even more as you look at groups of them. I think indicators paint a different picture of the same information that can make it easier to understand for different people.

It’s all lagging information - even PA - “You can never step into the same river twice” - But the impact of the lag depends on the time frame you are trading.

Tx @Jerome32 for posting the details of your journey from demo to live! It’s been an educational trip for me - a real learning experience!

KC