TheRumpledOne

More information about THE RAT: Language Log: Rats beat Yalies: Doing better by getting less information?

DRAIN THE BANKS REV 9 IS NOW AVAILABLE. Remember what H. Rearden said: Now, 2 patterns of market behaviour happen on a regular basis: 1) the price breaks to new high's (or low's) 2) the price reverses from new high's (or low's) <--------------------------------------------------------------------> If price is NOT making a new high then it must be reversing from the high. If price is NOT making a new low then it must be reversing from the low. <--------------------------------------------------------------------> "Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative. The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat." P64 HOW WE DECIDE <--------------------------------------------------------------------> This is a simple method that, when applied properly ( and don't load up the charts with SQUIGGLY'S ), will enable you to NEVER LOSE AGAIN! 1) Only trade if there is a 1, 2 or 3 semafor on the current or previous H1, H4 or D1 candle. NO EXCEPTIONS. 2) After you see the semafor on the chart, look at the chart for the long(indigo) and short(magenta) triggers based on TRO RAT ZONE indicator. 3) When price touches the trigger you enter. DON'T THINK, JUST ACT! 4) STOP LOSS IS 10 PIPS 5) If price went against you and makes a new daily high or daily low, get ready to enter at the trigger. If you can't see how this works, then DO NOT TRADE IT. 6) What's the TAKE PROFIT? You take what you can. <--------------------------------------------------------------------> DRAIN THE BANKS REV 9 exploits the fact that the size of the daily wicks is usually greater than 20 pips based on the frequency distribution of wick sizes. You can see the frequency distribution in the above chart shows, for the last 100 days, wick length of 20 pips or more occurred over 66% of the time. <--------------------------------------------------------------------> The best trading opportunity is right after a new high or low has been made. That is when you should begin trading rat reversals. Price does NOT have to be in the "rat zone" to enter a trade. GREEN RAT REVERSAL TRADE - ANY CHART PERIOD 1) price within 20 pips of the daily low - that is OPPORTUNITY 2) red/black candle closes 3) green/white candle closes - note the high price of the green/white candle 4) enter long at the green/white candle's high price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can. <--------------------------------------------------------------------> RED RAT REVERSAL TRADE - ANY CHART PERIOD 1) price within 20 pips of the daily high - that is OPPORTUNITY 2) green/white candle closes 3) red/black candle closes - note the low price of the red/black candle 4) enter short at the red/black candle's low price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can. <--------------------------------------------------------------------> You are either a RED RAT, a GREEN RAT or a YALE STUDENT. If you do not understand the reason you can not be both a red rat and a green rat then you are YALE MATERIAL: http://www.yale.edu/admit/freshmen/application/index.html <--------------------------------------------------------------------> "The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books." Try these methods using a micro lot or 0.1 mini lot. Trade it this way until you feel comfortable and are profitable on a consistent basis. Just trade it, AS IS, and don't add anything to it to improve it. You'll be amazed at how profitable a simple method can be. Many traders will say this "is not a system" because there is no set take profit. They also say to "cut losses quick and let profits run" which is in direct contradiction of having a set take profit. No wonder 95% of traders lose - they follow traditional trading education! <-------------------------------------------------------------------->

1) price within 20 pips of the daily low - that is OPPORTUNITY 2) red candle closes 2) red candle closes 2) red candle closes Trading is waiting... you must learn to wait for you entry trigger. 3) green candle closes - note the high price of the green candle. 4) enter long at the green candle's high price 4) enter long at the green candle's high price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can. You could have made 10 or more pips for a 2% gain. "The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books."

You really do NOT need any indicators. LONG ENTRY CRITERIA: 1) RED CANDLE CLOSES 2) GREEN CANDLE CLOSES 3) PRICE TOUCHES HIGH OF PREVIOUS GREEN CANDLE - ENTER LONG. STOP LOSS IS ALWAYS 10 PIPS. TAKE PROFIT WHEN YOU CAN. Notice the numbers in the ClLo ( close - low ) column. Subtract 20 from the number. The result is the potential profit of the RAT REVERSAL trade off the daily low.

Notice the numbers in the ClLo ( close - low ) column. Subtract 20 from the number. The result is the potential profit of the RAT REVERSAL trade off the daily low. If the number is 20 or less then it is RED. That means it is a candidate for a RAT REVERSAL trade.

What is price action? Let's take a look.... Most trading charts are 2 dimensional. Price on the vertical or Y-axis and time on the horizontal or X-axis. Price either moves up or down. The distance price moves over a period of time would be its speed or velocity. The distance price covered from high to low would be its range. Therefore, price action would be the movement of price over a period of time and its velocity. In other words, how far did it move and how fast was it moving. Any other definition complicates the issue and misleads the trader.

Trading the Asian Box Breakout during the news if very profitable. THE DRAINING CONTINUES...

I started this thread. If you do not like me, what I do or how I do it then leave and do not come back. NO ONE IS FORCING YOU TO READ THIS THREAD. "An ad hominem attack against an intellectual, not against an idea, is highly flattering. It indicates that the person does not have anything intelligent to say about your message." - Nassim Nicholas Taleb "The Black Swan" P-297 "I am not forcing you to accept my concepts. I only request the traders to review the market from time to time keeping in mind my concepts and if found suitable use in the trades or just ignore. Thanks for your opinion." - Dr. S. Sivaraman

MT4 version

Drain The Banks is still draining the banks.

You can be like that in trading... always turn left!

Have you ever visited "my site"? Can you back up your claim that I "fleece" people? Do you have evidence that I have ever "fleeced" someone? I have been posting FREE indicators for years. How can someone get "fleeced" if what they receive is free? I post my code in one location so I don't have a maintenance nightmare. If you do not like what I do, that is your business. But please cease and desist with your libelous posts.

Each trader is entitled to their opinion. If you do not think my charts have any value, you are more than welcome to be the counter party on any of my future trades.

Don't let the rat beat you. "Unless you experience the unpleasant symptoms of being wrong, your brain will never revise its models. Before your neurons can succeed, they must repeatedly fail. There are no shortcuts for this painstaking process." Pg 54 - HOW WE DECIDE "Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative. The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat." Pg 64 - HOW WE DECIDE "Think about the stock market, which is a classic example of a "random walk," since the past movement of any particular stock cannot be used to predict its future movement. The inherent randomness of the market was first proposed by the economist Eugene Fama, in the early 1960's. Fama looked at decades of stock market data in order to prove that no amount of knowledge or rational analysis could help you figure out what would happen next. All of the esoteric tools used by investors to make sense of the market were pure nonsense. Wall Street was like a slot machine." Pg 67 - HOW WE DECIDE TRADING IS SIMPLE: * Price either goes up or down. * No one knows what will happen next. * Keep losses small and let winners run. * POSITION SIZE = RISK / STOP LOSS * The reason you entered has no bearing on the outcome of your trade. * You can control the size of your loss (skill) but you can't control the size of your win (luck). * You need to know when to pick up your chips and cash them in.

The code is posted there and you can download it for FREE. How is that "fleecing"? The reason I only post my code on one forum is for ease of maintenance. If I fix or enhance the code, then I only have to upload once. IT IS THAT SIMPLE! Just because YOU do not find value does not mean that others don't. "An ad hominem attack against an intellectual, not against an idea, is highly flattering. It indicates that the person does not have anything intelligent to say about your message."

"I am not forcing you to accept my concepts. I only request the traders to review the market from time to time keeping in mind my concepts and if found suitable use in the trades or just ignore. Thanks for your opinion."

Glad you like it. There are also versions for eSignal and MT4.

My indicators do not repaint. Some of the indicators that I have modified may repaint.

People never cease to amaze me. Some people always look for a "dark side". I code indicators because I can and most traders can't. My degree was in computer science. I have been trading and programming since 1977. I have posted hundreds of free indicators for TradeStation, eSignal and MT4. Not all indicators are created equally. The SQUIGGLY LINE variety are LAGGING INDICATORS. Most of what I code are GAUGES that tell you in real time what price is doing, where it is at in relation to other prices, how far price has traveled, etc... I also code multimeters, multipair and dashboards so you do not have to look at dozens of charts to see what price is doing on each chart. Do you need indicators to trade? NO. Can indicators help with your trading? Perhaps. It is up to the individual to decide which, if any, indicators they want to use. As far as donations go... some people sent me donations and gifts because they appreciated what I do. I decided to do something for them to show my appreciation and that's how the donational indicators started. Why it has created so much attention is beyond me. Why should someone care if someone else sends me a donation and receives indicators? No one is forced to send me a donation. If I wanted a business, then I would set up a web site and sell indicators one by one. As it stands right now, if someone sends me a $50 donation they receive about 200 indicators. I receive about $0.25 per indicator. Not to mention, they will receive any new indicators that I create so the price per indicator will go down. That's not a business model that anyone would want to adopt. Yes, I am an IB for MB Trading. I used to post and got banned for spreading the truth that there is NO FIXED SPREAD in forex. I told everyone I could about EFX Group, who has since been acquired by MB Trading. Because I did that, they offered to make me an IB. At the time, I didn't even know what an IB was. You should be less afraid of me because to be an IB, they run your fingerprints. It seems no matter where I post someone always brings these things up. For what reason? To turn people against me? To get me banned from the forum? To ruin my reputation? I hope I have answered your questions.

Thanks for sharing VolumeJedi. I don't know much about the CW battles on this forum but I know the ones I have to fight elsewhere. Such a waste of time but one has to defend their reputation.

MT4 MOTHERLODE JUNE 2009 available now!

Would volume * ( Close - Open ) / point be of any use? My thought is it shows the "force". Similar to VWAP. If you look where price bottomed, you'll see there wasn't much downward force. As price climbed, the downward force that appeared was also weak.

Where is the formula or code for PRESSURE that you use?

We have been duped into playing this game of chance by those who say it's not a game of chance.