Taylor Trading Technique

[garp 10]

Just an aside -

 

Failure to Traverse was a term coined by Jack Hershey (or so I believe) to describe when price does not make it to the 'other side' of a trend channel.

 

Did you get any idea how to code TTT in EL? Of course not as an indicator, but as some kind of reminder/scheduler.

[elovemer 10]

... i am not sure if i was answering the questions that you were asking.....

.... but all that stuff is unnecessary....

..... even reaction plays are unnecessary

....... just to keep it simple.... on a buy day .... low made first and early....

.... on a short day .... high made first and early.....

.... if you can get the swings.... then you can trade less....

.... if you sit out days where your criteria are not met.... that means you can trade less....

.... to take it a step further....just ignore short days in an uptrend and vice versa for downtrend....

.... that way... you have only one trade every three days....

.... if the trend is strong enough.... as the down trend has been in the past.... Taylor suggests the possibility of just adding to total size every third day....

 

.... for me the whole goal of trading is to trade as little as possible.....

..... for me ...more trading means less efficiency.....

..... one reason i like Taylor's method.....

 

....still learning here.... like everyone else..... :0)

Thanks elovemer,sounds a little complex,but it is simple to understand ones own techniques rather than someone elses i guess.

Edited March 29, 2009 by elovemer

[garp 10]

Not trying to be rude,but why would you need to code what is only a 3 day cycle? And btw,for those reading but hesitating to join the discussion,don't be shy!Even new questions help move the debate along. If you are struggling with your trading,taylor could be the answer.In any case,we never stop learning stuff in this game and it's fascinating hearing about other traders methods.And i'm sure there are some very knowlegeable traders here who could give us their thoughts.Check around page 21 of this thread for example.

 

I'm not a novice for trading. And doing quite well for the last four years. I've read TTT book couple of years ago, but just across. I like the concept. I think everybody feel truth in the concept based on rotation of the markets. But for me it's not seems to be so simple.

 

Now I have a bit more time and would like to come back to TTT study. As the system declared as mechanical, its possible to code the indicator and backtest it. But I'm below zero in programming.

[elovemer 10]

....a couple of guys on this thread have already programmed their own software based on TTT.... i think rich and why both have......

 

.... i am sure they will both be happy to give you the code for free... :0)

llll

I'm not a novice for trading. .

[garp 10]

....a couple of guys on this thread have already programmed their own software based on TTT.... i think rich and why both have......

 

.... i am sure they will both be happy to give you the code for free... :0)

llll

 

Yes, I know. And both of them were here for promotion. Not for research.

[elovemer 10]

23.75 61.75 2.6

=================

25.5 62.75 2.46

===================

39.25 61.25 1.56

===================

36.5 43.5 1.19

===================

? ? ?

 

edit.... i don't remember Why ever promoting anything... ?? ....

[elovemer 10]

....condensed version

.....boy is that easier to read !!!!

 

 

Buy day

…. if closes thru previous day's high.... close out before the close of session....

...buy at low of previous day …..short sale day low....

.... try to make all longs on the low made first

 

… compare to past declines from short day high to buy day low....

...compare to past buy day rallies.....from buy day low to close....

 

…. when high is made first on a buy day ….

 

….. when flat or weak close on a buy day ….

----------------------------------------------

 

Buying on a buy day low violation...

----------------------------------------------

 

Selling day

--------------------------------------…..

Short sale day...

… try to make all short sales on the high made first on penetrations of selling day highs....

 

---------------------------------------------------

Short sale at high of buying day made first

-----------------------------------------------------

 

Failure to penetrate...... possible turning point in trend....

[elovemer 10]

swing ALT at 788 on globex

 

friday sell day was also failure to penetrate

Edited March 30, 2009 by elovemer

[elovemer 10]

....anyone take that SWING alt size .... long entry ?

.... only off by 1.5 points.....

[elovemer 10]

....lower cycle ends.... at session close.....

 

....looks like no one else wants to post anymore.... what a bore.....

[elovemer 10]

betonmarkets... interesting

 

..... swing trading is holding.... the only Taylor scalp trade is a reaction play... unless large gain is made in single session.....

 

... i guess not many folks use Taylor's method...

----------------------------------------------------

Don't worry mate still here!. Yeah i bought 789 (cash) as it was elliott support but with this strategy, i am using betonmarkets fixed odds and my trade expired on the close -so i lost! I am using this type of trading because i am starting another business and don't want to be watching the market for the entire session. Do you hold overnight trades? Also someone was asking about taylor on another forum and i did mention this thread here,

[elovemer 10]

.... for me .... wednesday is my next short day ....

... last upper and lower ended right on time....

... next upper cycle end is premarket wednesday

[elovemer 10]

.... for me .... wednesday is my next short day ....

... last upper and lower ended right on time....

... next upper cycle end is premarket wednesday

[elovemer 10]

.... for me .... wednesday is my next short day ....

... last upper and lower ended right on time....

... next upper cycle end is premarket wednesday

[elovemer 10]

....sorry my mistake.... 6 pm ... today ... not premarket tomorrow....

 

 

.... for me .... wednesday is my next short day ....

... last upper and lower ended right on time....

... next upper cycle end is premarket wednesday

[richbois 10]

TTT nailed the high for today as we had a cluster of TTT levels and a nice Sell signal to go with that.

[richbois 10]

Yes, I know. And both of them were here for promotion. Not for research.

 

Buy the way WHY never tried to sell anything. As far as I am concern I came to this site to add to my knowledge. I found some very interesting posts in this tread and even used some of them (with the owner's permission) in my Guide to trading TTT. Some guys on here have really studied TTT and are very well versed in it.

 

We may not all have the same approach but as long as it works, that is all that counts.

[elovemer 10]

...it is the same cycle chart i already posted

.... since the cycles are hitting..... you don't have to draw new cycles....

.... you just move the old one over.....

.... so on that last one....upper... it was supposed to end at 6 pm

.... but the high came early.... before the close......

.... so then that means the cycle can invert.... in which case it RUNS the other way before 6pm ......

.... so by 6 pm you have a low instead of a high.....

....so now because it inverted..... your upper cycle becomes slightly shorter....

 

.... you keep the same lower cycle.... until it has passed the end of the lower cycle....

 

.... i will post an annotated chart later

[elovemer 10]

....here is the same chart i already posted....

.... i just added three red dots... to show where that the cycles came in exactly on time.....

 

.... the third dot highlights that last high..... and shows that it came in a little earlier than expected.....

.... and the result was the quick run in the opposite direction before the cycle actually ended...... exciting stuff....

[elovemer 10]

55 point decline

buy day rally 11.5

31.5 point rally total so far (not including short day)

- 1.746

 

 

23.75 61.75 2.6

=================

25.5 62.75 2.46 first cycle

===================

39.25 61.25 1.56 second cycle

===================

36.5 43.5 1.19 third cycle

===================

? ? ?

 

...

[elovemer 10]

DOWN TREND area

…. expect … two decline sessions and buy day low violation

…..

 

UPTREND area

…. expect.... corrective decline to be complete in one and perhaps same session

(low made on short sale day)

….. from a fast decline with an active fast rally from this low up to the close

…..with result that get a higher buy day bottom and penetrated selling objectives

 

....condensed version

.....boy is that easier to read !!!!

..

[elovemer 10]

..... my buy day was monday ....

... and today's low was above monday's low...

....today was my short day .... i was looking for a high made first.....

... instead got low made first....

.... but did get the penetration of tuesday's high on this short day....

 

.... my next buy day is still tomorrow....thursday.....

.... so i will look for a low made first before 10.30 am

.... as long as that low is above monday's low.....

.... others have different counts.....

 

.... also ... if you connect the globex highs/lows.... you can get a buy/sell point..... to call the low or high..... basic but very effective....

.... sometimes you connect a previous low and a previous high... to get your trendline....

... today the TL was connecting the lows of 21st and 31st......

 

Buy day low violated,and we are close to yesterdays high,so unless we sell off later looks like i will lose.Are you long from around 784?- Disadvantage of fixed odds is you can't take profit early.

[elovemer 10]

23.75 61.75 2.6

=================

25.5 62.75 2.46 first cycle

===================

39.25 61.25 1.56 second cycle

===================

36.5 43.5 1.19 third cycle

===================

55 47.75 - 1.15

======================

 

55 point decline

buy day rally 11.5

34.75 point thru sell day high

47.75 total rally

- 1.15

[elovemer 10]

....cycles....

...the lower cycle is in grey .... upper in green.....

.... the lower cycle in grey came in early.... with a pivot low.....

 

.....so price runs the other way fast.... and the expectation is that this run will end by the time the lower grey cycle ends.....

..... normally it would show the pivot low time... but in this case it switches to show the pivot high.....

 

..... after the lower cycle ends....the next cycle end is the upper cycle....

..... but since price inverted... it is up in the air as to whether the next upper cycle end will pull price up or down.....

 

....in other words... since price inverted.... after the end of the lower cycle.... price could either pivot or continue in the same direction.....unknown...

 

...... it sounds complicated... but it is really not.....

..... anyway..... on a possible gap up here..... it looks like the short day high could be violated on buy day ... thurday.......

 

.....so it seems that the trickiest part is being thrown off when the high or low is not made first and early..... and yet.... if the trend remains intact....

..... in these cases.... in the short term it appears that the trend has changed....but in the longer term... it hasn't.....

..... this is where the importance of the reaction position comes into play.....

..... and paying attention to violations....

 

.... like yesterday was my short day .... wednesday .....

.... was looking for a high made first.... instead got a low made first.....

 

.... the very short term trend was changing back to up ......

.... and therefore it was important to take the reaction position long on a low made first.... in order to catch the big swing back into the main trend.....

..... of course the reaction position would be closed out the same day .... but still the move is huge and not to be missed if possible.....

 

.... so looking to thursday.... buy day for me .... would like to get a low made first and early for the long....

.... but it looks like price is going to gap up pretty big....

..... so on this gap up....the expectation changes to one of a reaction short position which will be closed out at some point intraday ... maybe by 10.30 am

...because of the likelihood of a high made first intraday....and possibility of gap fill

 

..... of course by the end of day ..... it could turn out that the initial high.... is not EOD high.....

..... so reversing position to long on an obvious pivot low around 10.30am would be the order of the day ....

 

.... sorry about the long post.... but i enjoy the Taylor method and... no one seems interested in posting..... which is a danmmmm shame.....

[elovemer 10]

.... forgot cycle pic