Never Lose Again!! TheRumpledOne

[TheRumpledOne 14]

 

"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 (italics added)

 

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

 

"Now, 2 patterns of market behavior 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)

 

They happen regardless of time frame (with the obvious limitations explained above)

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

 

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

 

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

 

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

 

WHY ISN'T EVERYBODY DOING IT?

 

Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

 

One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?"

 

Simple answer is because SOYLENT GREEN is people!

 

We all know exercise is great, but how many actually exercise?

 

We all know smoking is bad, but how many do it anyway?

 

We all know which foods are bad for our health, but how many eat those foods?

 

We all know that we should save for our future and spend less than we earn but who does that?

 

The list is almost endless.

 

As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

 

Meanwhile, the RATS are still beating the Yale students.

 

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[gpw797 10]

dear rumpled,

 

for a long time i couldn't understand your posts because they were too simple.

if you had said " within 20 pips of the low of the daily bar " it would have made more sense to me.

 

anyway... i appreciate your posts.

all those forums who have banned you are insane.

i thought big mike's trading was a good site until i saw that they had banned you and a few other intelligent posters.

 

thanks

elo

 

I am no longer a fan of Big Mikes.. he posted some results of a strategy that he said he was going to enter is one of his robot competitions. I entered under the premise of him sharing his code like he said he would.. well he didn't and they banned me from the competition and forum for calling him out on it! He has banned some real good traders and programmers.

[TheRumpledOne 14]

 

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

 

"Now, 2 patterns of market behavior 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)

 

They happen regardless of time frame (with the obvious limitations explained above)

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

 

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

 

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

 

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[tulanch 10]

Been a long time since I posted to you... many moons ago on Stockfetchers...

 

Oh and thanks a lot my head hurts... I got hit by a ton of bricks...not to mention run over by a heard of rats going for the cheese-wizz

 

Given...

Green Body bar is an up bar

Red Body bar is a down bar

 

Nice Number lines (I simply adjusted Ninja's grids to “fixed tic” lines)

You indicated 00 25 50 75 for Pips

After a little review, I sorta like the 5 ‘n’ 10's (dime stores) for the 6E

 

Recently I’ve liked smaller time frames...

but seems like 5min is lowest for this with 6E

 

Lower than 5min seemed very choppy, fuzzy, and unclear, sorta pixelated

so I stepped back.

 

Process...

New bar opens

 

The Open of this new bar establishes the next

Green Line and the next Red Line

 

Nice number line above open is next Green line

(go long line if/when this new bar’s body goes green )

 

Nice number line below open is next Red line

(go short line if/when this new bar’s body goes red )

 

The new bar now progresses (keeping simple)

 

Keep asking one’s self,

1.) What is the color of the body of this new bar, Red or Green?

2.) Has price passed the corresponding Red or Green line?

 

Entry if...

Both answers Red - go short

or

Both answers Green - go long

 

Get/set your profit....

6E 4 ticks is nice

 

Stop Loss is "natural"

Example, if your long cause the bar's body was green, and

now bar's body has gone red...

 

1.) conservatively - exit right there when it turns red...

2.) aggressive/riskier - set stop loss at other line

(if in long, the other line would be red line)

 

Bank is made trading multiple contracts...

1 for the scalp to feel good and cover commissions

1+ for the runner(s), scale out at desired profit target

typically one moves their stop loss to break even after 1st lot is won.

 

Most important be done when one hits their daily quota

( I like your 2% concept)

 

 

Exceptions...

 

If price/market is already in a run/trend...you may have missed the boat...

it does not appear to be as simple to jump back in, so to keep it simple, simply wait.

 

 

Reversals

3 bars in one direction (same color)

 

ding ding ding ding ding ding (thats my alert sounding)

 

Enter counter trend (CT) direction using rules for the CT direction...

ie, if 3 Green Bars, enter short on a Red bar at it's Red Line

established using the process defined above .

 

Ps I still like my squiggles....maybe one day I'll remove my training wheels...

 

Thanks...

[TheRumpledOne 14]

 

"Now, 2 patterns of market behavior 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)

They happen regardless of time frame (with the obvious limitations explained above)

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

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

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

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

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

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

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[elovemer 10]

may i ask a question...

your chart is showing that GBP was within 16 pips of the daily low

 

is that correct ? thanks

 

GBP/USD * 16

TE=TheRumpledOne;131507]http://i44.tinypic.com/5mh9ia.gif[/i

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

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.[/QU

Edited November 11, 2011 by elovemer
good

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

may i ask a question...

your chart is showing that GBP was within 16 pips of the daily low

 

is that correct ? thanks

 

GBP/USD * 16

TE=TheRumpledOne;131507]

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

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.[/QU

 

No, that is not correct. The GBPUSD is 16 pips above the daily open.

 

ClOp column is the distance the price is above/below the daily open.

[TheRumpledOne 14]

 

 

"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 (italics added)

 

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

 

"Now, 2 patterns of market behavior 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)

 

They happen regardless of time frame (with the obvious limitations explained above)

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

 

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

 

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

 

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

 

WHY ISN'T EVERYBODY DOING IT?

 

Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

 

One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?"

 

Simple answer is because SOYLENT GREEN is people!

 

We all know exercise is great, but how many actually exercise?

 

We all know smoking is bad, but how many do it anyway?

 

We all know which foods are bad for our health, but how many eat those foods?

 

We all know that we should save for our future and spend less than we earn but who does that?

 

The list is almost endless.

 

As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

 

Meanwhile, the RATS are still beating the Yale students.

 

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[elovemer 10]

xie xie : 0 )

 

 

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

=TheRumpledOne;131593]No, that is not correct. The GBPUSD is 16 pips above the daily open.

ClOp column is the distance the price is above/below the daily open.

[elovemer 10]

today monday....

.... close to previous daily low .... EURO

[TheRumpledOne 14]

 

 

<-------------------------------------------------------------------->

 

1) Price within 20 pips of the daily low (ClLo < 20) - that is OPPORTUNITY

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

 

THINK ABOUT IT!!

 

 

<-------------------------------------------------------------------->

 

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

 

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

 

POSITION SIZE = RISK / STOP LOSS.

 

<-------------------------------------------------------------------->

 

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

 

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

 

 

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

 

 

 

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

 

 

 

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

 

 

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

 

"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 (italics added)

 

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

 

"Now, 2 patterns of market behavior 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)

 

They happen regardless of time frame (with the obvious limitations explained above)

 

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

 

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

GREEN RAT REVERSAL TRADE

 

1) price within 20 pips of the daily low - that is OPPORTUNITY

 

2) red candle closes

 

3) green candle closes - note the high price of the green candle.

 

4) enter long at the green candle's high price

 

5) STOP LOSS IS 10 PIPS

 

6) Take whatever profit you can.

 

7) If the rules do not mention it, then it is of no concern.

 

 

"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."

 

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

 

WHY ISN'T EVERYBODY DOING IT?

 

Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

 

One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?"

 

Simple answer is because SOYLENT GREEN is people!

 

We all know exercise is great, but how many actually exercise?

 

We all know smoking is bad, but how many do it anyway?

 

We all know which foods are bad for our health, but how many eat those foods?

 

We all know that we should save for our future and spend less than we earn but who does that?

 

The list is almost endless.

 

As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

 

Meanwhile, the RATS are still beating the Yale students.

 

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

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[dealmein 10]

TRO, thanks for the thread. It looks like you use MetaTrader for your charting, and I've read elsewhere in this thread you use MB Trading as your primary broker. I'm curious which platform you actually place your trades from? BTW, I find your repetitive posts to be a source of encouragement; continuing to show how the same patterns repeat day in and day out.

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

1) Price within 20 pips of the daily low (ClLo < 20) - that is OPPORTUNITY

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

 

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

 

THINK ABOUT IT!!

 

 

<-------------------------------------------------------------------->

 

MAXIMUM RISK = 2% * ACCOUNT BALANCE.

 

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

 

POSITION SIZE = RISK / STOP LOSS.

 

<-------------------------------------------------------------------->

 

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

 

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

 

<-------------------------------------------------------------------->

 

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.

[TheRumpledOne 14]

 

<-------------------------------------------------------------------->

 

The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

 

<-------------------------------------------------------------------->

[phantom 16]

 

The RAT REVERSAL is only one entry method.

 

Did you get the rattail from my thread???