momentom

Re: Exits Great stuff Walter as I said. May I offer this comment. As an ex floor trader, my big problem since leaving the floor over 15 years ago is staying in a trade long enough even though I am a scalper. Exiting on the re-entry into the rainbow of the 1 minute chart looks like exiting very early. That's OK if there is a quick re-entry but there is often not. Maybe a little more optimisation could help here. I tried using ATR stops at first to help me out but looked to the rainbow for a proper solution wanting to remain faithful to your concept. I then looked at each band according to its colour to try and match the ATR. My solution so far is an entry into the 6th colour band of the rainbow on the 1 minute chart - CYAN in my case - as my profitable exit. I have only eyeballed this and have not done a proper backtesting - needs some decent programing in MultiCharts. What do you think?

Walter, the great strength of this methodology for me and other rule based traders is that setups can be defined VERY precisely. This means that pulling the trigger is easy and the best trade locations can be achieved if your setups are a bit aggresive.

Here's Blu's Fantail on MultiCharts. Firstly, thanks to Walter, and secondly, thanks to Blu for the eld. Entry was Walter's criteria (I hope) and exit was based om the benetration of price into the Rainbow. (see arrows) This looks like shooting fish in a barrel :-)

An outstanding presentation Walter. The way you have documented this powerful but simple methodology is to be congratulated. That you have chosen to disclose will bring you much good karma I am sure. There is an indicator on the Ninjatrader platform (free charting) called Variable Moving Average. The Ninja VMA is alleged to be the VIDYA MA. Is this the same as the VT version? I would love to follow your explanation with real charts on any of eSignal, MultiCharts or Ninjatrader so a little more info would be appreciated especially in the light of VT's recent platform problems. Again, congratulations!

Anyone successfully using MP with currencies? How do you organize your profiles? 24 hour or just the time zone you trade. Currency day is really three days so how do you look at it? What is the real VA and POC?

I signed up and also found the materials good. I'm not put off by any "advertising" if that is what it is, if Balanced Trader speaks well for itself that's all that interests me. However, I think what you are seeing is an enthusiastic customer spreading the good news.

Thanks. I'll sign up.

Hi What markets does he use to teach? Thanks for the endorsement.

Tries to get a position on that is lo or hi of day using tails, VAH, VAL and POC, and then scales out taking profits at logical spots. Teaches it over a few months live trading. Wait until he does a trial week, but sign up as soon as you see its for you as he fills his spots before the week is out.

Have a look at JP's http://www.jpjtrading.com/ He's the real deal.

Control Up and DOWN arrows work too

Does the job.

Probably FX is your answer as its a 24 hour market. Wait for the Asia open. If you want an index, look at the Sydney Futures SPI, Hang Seng in Hong Kong or the Nikkei future traded in Osaka and Singapore (i'm not sure which is more active nowadays)

Cooter, these are awsome rates. More than 20% less than IB at current exchange rates (and getting cheaper by the day ) Do you know who clears e-cry on eurex? Couldn't see them listed as members. Also, what is their trading platform like? I currently use BracketTrader and NinjaTrader. Thanks!

I didn't stay because I learnt MP from Pete Steidlmayer over 15 years ago and did not see anything at JPs room I did not know. Also, I'm allergic to trading rooms. One thing I'd like to emphasise, JP's room is the only MP room I have seen that teaches you setups you can use in real trading, not just wishy washy theory but practical ways to see setups and pull the trigger. Don't be put off by the "longer" trades because its not quite like that in practice. JP's phylosophy is to scale out of trades and to make his position a risk free trade ASAP. You only see him trade in the free trial - no free give aways but this is probably one of the few rooms I'd sign up for.

Dogpile, I remember speaking to Pete and he said 30 minutes. He was looking for price rejection/acceptance, but that was over 15 years ago. With markets of today, I often trade within the first 5 minutes if the setup is there.

Its a matter of concience, I believe. Anyone who is profitable has had help along the way. Helping others is just giving something back. I don't think that the giver gets anything out of it except perhaps a good feeling. At least this is why I try and help.

Cooter, can you make any recommendations of whom to deal with? PM is OK.

Hi Scott I have heard good things about IOAMT from a trader I resspect but have had no personal experience. I would also suggest a look see at jpjtrading.com. I've done his free trial and he is the real deal for MP. You do 3 months in his room @ $300/month and then its free. JP has specific MP setups to trade. His room is in awe of him for the way he trades. I've no connection to JP other than as above.

It depends on what you mean by "a higher level". If you mean "make more money" which to me is the only thing that makes sense as that is why we trade (or should trade), then its fairly straight forward. Firstly, before you go "higher", you should be consistently profitable witha scaleable methodology. If your method is at the limit of the drawdown you can stand then its not scaleable. Once you have a consistently profitable scaleable methodology its a matter of gradually increasing size. This is the way we learned to make more money on the floor and it is the way most locals I know made the transition to electronic trading.

Nigel had some connection with Tom Williams back in the 80s. I think I met him in London at a VSA software demo. So I guess he knows VSA.

The guy is adding a better POC indicator. I got him to highlight the value areas better and that's already in the latest release. This looks like the cheapest MP solution that actually gives the info you need. It paid for itself in the first hour I used it.

Nice setup Walter. Have you tried looking for an entry on the first pullback of the breakout and also to qualify the breakout with, say, 50 CCI > 50?

"A market has to rally to falll and to fall to rally". Pete Steidlmayer

Thanks. Just had a look at IB which was no help on volume and I only found the japanese version of the OSE page so far