Yes, I want to see and learn your system and I gues to very hard work is behind it. But you have to get me possibility to chose are your system for me or not.
Hi Mike,
Reading your thread and finding it interesting. Would like to know your analysis on GU and why its invalid PA ?
As Rammar mentioned it will be good to have some explanation on the way SPA trade and methods of invalidating or validating the trade ?
Thanks
HA
[/I]
Hemantarora,
The Direct Trend in not in sync BEARISH to support any risk taking on the relevant setup.
Now, what is the “Direct Trend”? It’s a unique and ultra simple concept of SPA. Email me for further explanations.
A COPY/PASTE FROM OUR FORUM:
THE DIRECT TREND CONCEPT
Our trading methodology uses multiple time-frames in a way that enables us to take trades in the trend direction of the higher time-frame command. This means that if e.g. the monthly and weekly time-frame trend points down, we would never consider entering a long (buy) position on the daily time-frame. This would clearly be a counter-trend trade, which needs a different approach than the trend following one.
SPA trading incorporates mechanisms that protect us from entering counter-trend trades. One of these mechanisms is the “direct trend”, which essentially comes down to the immediate direction of the higher command levels. Immediate direction answers the following question: “Where is price currently trading, compared to last period’s close?”.
In order to answer this question, you will need to open the relevant line chart (weekly and monthly periodicity in our case) and look for the inclination of the last section. Now think about an analogue clock. Inclination of the hour hand between twelve and three o’clock is positive (bullish), while inclination between three o’clock and six o’clock is negative. Anything close to three would visually look like a flat line, which indicates no particular direct trend bias. Figures 10a,b,c show examples of the three cases.
The direct trend concept eventually enables us to be patient and wait for price to meet the necessary requirements as described in our checklist. When putting all the puzzle pieces together, we should ideally get a pattern similar to the one shown in Figures 11 & 12.
The monthly and weekly trend and direct trend respectively come in sync (at the green arrow of Figure 12), allowing us to enter a long trade as soon as a bullish price action setup at support reveals the footprints of buyers! The candlestick chart is only used during the latter part of the decision making process
I must inform everyone that:
HERE I WILL POST ONLY LIVE TRADES. If anyone requires further explanation, you are more than welcome to email me.
So in other words SIMPLE PRICE ACTION? :rolleyes:
It can not be more simple than this…Right?
A reminder to read again this statement…
do you realy take trade with 0.4 RR?
Rammar,
Explain your question properly to get the right answer…but I tell you in advance you are mistaken.
according your info on page11, you have take short trade with enter @1.52287 and SL @1.53 (Risk=71 pips)
Your target was @1.5200 (Rewards=29 pips)
My question was: Do you realy take trade with R/R=29/71=[B]0.408[/B]…
Since you nicely explained your question in detail, I will try to answer in similar way.
First of all, ignore the initial target (FCL) box of the SPA position size calculator as it was filled by random for the calculator to work and calculate the monetary risk exposure the trade entailed. Rather focus on the % of the capital risk the touch trade entailed. We accepted the relevant risk and we removed our emotions from the trade. Moreover, the trade is currently stress free meaning if our stop is taken out then the loss will be zero. WHY? Simply because SPA traders are [B]risk oriented[/B] and not profit oriented.
Last but not least, the world famous R:R ratio is an [B]account eater[/B] mechanism and a [B]myth[/B].
Rammar, if you need further explanation please ask…
One short question: I agree with you about R/R but why you in your new system build in [B]the myth[/B]
Rammar tell me something: What are your intentions? Do you understand what I wrote?. I invited you to join our forum and it is free; there is a chance to learn something new unless you know everything. Do not attempt to test me, test yourself in the market.
Now explain again in detailed your question in order to answer in similar manner…
I said to want to learn your system before. All my question was to get info how it work, not more.
And I told you email me…
The potential targets for Rammar!
I have a question for you Rammar: How can I calculate something that I haven’t seen yet?
It is only one way: Hire those car (or train) from “Back to the future” :21:
You have right, R/R you can calculated after the trade not before. Only what you know on begin how much money you want to risk for particular trade.
A copy/paste from our forum:
SPA Exit Method Explained
I would like to share my understanding on the various SPA exit methods. This is the part of trading with less attention compared to the other end of the trade, the entry. SPA documentation will expand on this topic since it is considered the most important part of a successful trade. Although, the reality dictates that the exit approach is the most difficult part of the trade to master. We must state well in advance that there is no perfect exit approach which best manages every trade. You must find the exit principles that work best for you.
Trading realities:
It is common sense that a profitable or a lost trade is a result of our chosen stop loss approach and exit method, not our entry. For the same entry, there are several possible exit approaches. We are not in the position to know beforehand, except with hindsight, what will be the most profitable exit approach of a certain trade. The exit plan should be formulated based on the psychological state in which a trader holds as an intention or premise to be true. A trader must be familiar and understand the following realities:
1st Reality: A trade will only harm you psychologically and not financially.
The actual damage done of a full candle loss is not necessarily the financial damage, but rather the psychological damage. Full candle loss could easily yield a large financial loss due to lack of money management discipline. This is a common mistake of the majority of the retail traders. The psychological impact of such situation is very hard to overpass.
On the other hand, the real damage done by exiting a trade early with a small profit and then watching it explode off without you, to what could have been the trade of your life is not financial. Nevertheless, lost opportunity didn’t cost you any money. Rather, the real damage is psychological.
Similar situation could happen when you are watching a profitable trade turn around and go right through your stop loss. The impact is not financial but psychological.
As traders we must accept the fact of making trading errors. However, the worst mistake of all is tolerating poor money management to continue beyond that one trade, eroding our capital and placing us into a large drawdown. The psychological damage here is often devastating, and is what will take many beginner traders right out of this business.
2nd Reality: The exit method must be formulated to match your trading psychology.
This reality is perhaps the most significant part of the chosen exit method you intent to follow. According to the 1st reality already stated above, we know that the real damage in trading is psychological. Therefore, you must design your exit method which best match your trading psychology. This may not necessarily be what produces the greatest profits meaning do not optimize for maximum profits. Instead, optimize to ensure compatibility with your trading psychology.
Do you hate missing the big moves, more than anything? Then you need to perhaps consider wider stops, to ensure you’re not stopped out before the move, with some form of trailing stop to keep you in the market for the whole move. Of course, this wider stop will come at the cost of a lower winning percentage.
Do you hate seeing a profitable trade turn into a loss? Then you should design your exit method to include aggressive movement of your stop to breakeven, or a small profit. Of course, this will come at the expense of being stopped out more often on a retracement, and missing the real move.
3rd Reality: Standard or fixed exit instructions don’t exist.
The various SPA exit approaches is the part of our methodology that is more subjective rather than objective and I mean that you cannot apply a standard exit to ensure that you will get the best trade outcome each time.
4th Reality: You will never be able to master your exit approach.
You must promptly accept this reality as a weakness and learn to be comfortable with it. Simply, you need to accept this imperfection regarding less than the ideal trade results that you might see on the hindsight.
5th Reality: Defensive trading is better than offensive.
Your main trading objective is to safeguard capital preservation and never allow the market to take you out of business. Simply make sure you will survive to trade another day.
There are five possible outcomes from a trade:
- Large profit
- Small profit
- Break-even
- Partial candle loss
- Full candle loss
As a trader the only variable that you can control is your risk exposure. The nature of the market and relatively price is uncertain. SPA methodology is dealing with probabilities and despite how confident you might be with your analysis; there is always the possibility of being wrong and therefore suffer a loss. The extent of your loss is totally within your control.
On the contrary, you have limited control over price future movement and thus potential profits. A SPA valid PA setup is definitely a high probable setup which could provide a profitable move of an unknown extend. However, your exit method will determine how much profit you will get. Aware of this limitation concerning the length of the future price movement, you must accept whatever the market offers you.
6th Reality: Adjusting your exits according to different market conditions can yield better results.
In a smoothly trending market with what I call nice flow, a trailing stop will generally over time produce better results than taking profits.
In a ranging market, taking profits at pre-determined price targets will generally over time produce better results than trailing a stop.
Also, in a trending market with a very volatile and choppy price movement, once again taking profits at pre-determined price targets will generally over time produce better results than trailing a stop.
So, according to the market conditions you should adjust your exit management and always based on your psychological requirements we discussed earlier.
7th Reality:When the edge is gone, get out.
Initial conservative (wide) stop loss or aggressive (tight) stop loss placement should be at a point that says your analysis or timing was wrong. If your analysis and timing was correct, the price should never get to the stop loss level.
On the other hand, you don’t need to hold your trade till it stops out. No-one is making you stay in the market. If the price is not moving how you expected after the entry then get out.
Pending Text …