I’ve often read posts by experienced successful traders that you should be more concerned in protecting your profits than in looking to see how much money you can make. If you do that first then the gains will take care of themselves.
From what Tymen is teaching us it looks like that philosophy is loud and clear. If I understand him correctly, he is saying to look for signals of an exit first and foremost…when the pa touches the BB, look for that clear candle…if you see it, then get out. Protect your profits by minimizing your losses when pa goes the other way.
Too many times I have hung in there while watching my profits erode into losses (just knowing it’s going to come back)…but not any longer. Thanks a whole whole bunch Tymen.
Tymen in the above scenario we can see that if you were to enter long at the re-entry point after step 2 we would make a nice profit, but what if the price was to go against us almost immediately before pa touched the upper BB? At what point & what strategy would we employ to exit then?
In fairness to [B]Kockneerebel [/B]and [B]PTB[/B], a certain clarifying post was not yet made when they attempted the exercises…
[B]Kockneerebel [/B] - 90%
[B]PTB [/B]- 70%
In conclusion, it does not matter too much if you cannot differentiate the BB bubbles from the sausages when they are under development.
In both cases, the simple exit method without indicators comes to the rescue.
[B]However, if you wanted to avoid the messy operation of the simple exit method with the BB sausages, and use the parabolic sar instead, then recognition is essential.[/B]
Anyhow, we have 2 exit methods for either case, and with practise, we can learn to recognise what BB pattern is developing.
We have covered much!!
We are coming to the end now.
We will look at the MMACD signal line to see if it helps us.
Then everything will be put together as a trading method and we will try some live trading!!
I looked back through the thread an could not find settings for the Parabolic indicator. I’m using GFT. Are the settings the standard -AFine 0.020- and AFmax 0.200? By the way FYI I took your 10 chart quiz and answered;
1-B
2-B
3-S
4-S
5-S
6-B
7-B
8-S
9-B
10-S
So I missed 7&8. Middle of the class huh. I get a C+.:rolleyes:
With MT4 you can easily see your closed trades. Just open your account history…click on a trade…drag it to the chart of that trade. Presto! You can see the entry and exit with a red or blue (depending on if it was a buy or sell) dotted line in between. Put your cursor on the close of the trade and it will tell you the price of the entry and exit. Put you cursor on the entry and it will tell you your entry price and your stop loss. I can already see how many mistakes I have made. This is great stuff!
Another great tool is the cross hairs. Click on the scroll wheel on your mouse and it will bring up the cross hairs…no more needing to go up to the top of the screen. But the BEST is…left click on any bar or point on the chart and just drag your cursor to any other bar or point on the chart. It will show you 3 sets of number as you drag. First number is the number of bars in between your two points. Second number is number of pips between the two points. Third number is price at the point of the cursor.
Thank you tymen for your encouragement
as you said in conclusion
it does not matter too much if you cannot differentiate the BB bubbles from the sausages when they are under development.
In both cases, the simple exit method without indicators comes to the rescue.
However, if you wanted to avoid the messy operation of the simple exit method with the BB sausages, and use the parabolic sar instead, then recognition is essential.
Anyhow, we have 2 exit methods for either case, and with practise, we can learn to recognise what BB pattern is developing.
IF I go with [B]SIMPLE EXIT METHOD[/B] i am safe from bubble and sausage
Hello Teacher Tymen1, I am on apprenticeship; a rather quiet apprentice. Just had to say it. I followed you on your other 2 threads, Ultimate Candlestick Trading Methods 1 & 2. And now this thread; The finest in trend trading! The title is turning out to be apt. I am mighty grateful:) However, I am not surprised at your generosity, you have severally quoted scriptures. It is who you are!
I am about ready, my decision to open an account with Kinetic Securities is informed basically on your good word concerning them in you other thread(I hope I mention to Jay Pace I am also your student? It took me this long because I had to be ready. I see trading as a marathon, so I work on running on green lawn…only green pipsland:D
Ok, I have to catch up on study now…. Still plenty to cover. Many thanks again.
