The Original Taylor Trading Technique Book Method

[richbois 10]

something that puzzelled me at first about TTT that I 'd like input on. Trading rules applied to an instrument or it's inverse (take etf's for example.... SPY vs SH or QQQQ vs PSG) should not contradict each other.

 

So is it too simplistic to count an SS day as essentially a Buy day on the inverse index, a Buy day as essentially an SS day on the inverse index, and treat the day in between (S day in this case) as typically a transition day between SS and BU or vice versa?

 

It appears that taking into consideration the additional TTT rules (Buy day violations, opens below or above previous days highs or lows, etc., that this high level simplistic view would result in the fewest contradictions in the more specific rules day by day.

 

All thoughts welcome.

 

snowbird

 

Very interesting Question

 

This is one that any of us TTT user would have to decide by ourself. Dont forget that back in Taylor's days, there was no ETF's, the markets were just plain and simple. There was no globex session to complicate life and most in the US would find out that a crises happened in other parts of the world just few days later.

 

I am not even sure that there was futures on the Indices yes let alone the Spy or QQQQ.

 

Futures were mainly on commodities and that is a big part of what he was trading. Only pit hours. He also traded stocks and again that was only during pit hours no extended session.

 

I think he had it simpler than us but his system still works today.

 

To come back to your question, in my case since I found that the Positive 3 Day Ratio is a very important factor in establishing the cycle, I would use that to decide the cycle for SH or PSG.

 

In my trading books I have cash and Futures for FX. Euro for instance is on a different cycle and most would say that is impossible. But I have customers that use that to there advantage.

 

Either way as long as you trade what you see and follow the TTT rules it could be on the wrong cycle and you would probably to well. Reason is that most of us trade differently than Taylor. We are intraday Daytraders .

 

Have a great weekend

[DugDug 10]

This idea of BIAS is the key of TTT to me. (While I might not be a true adherent to the complete method yet it)

It resonates with the idea of putting everything into context, and to developing a trading style that suits you as an individual, and getting in sync with the market that you are trading.

(I believe that unless you can get this sync in some form you will never make money, as you will always either get chopped out, or will never be able to run profits enough)

 

The perfect example of this introduction of getting in sync with a market is "trade with the trend".

There are many examples of people who seem to be able to make money when trading with the trend, AND AT THE SAME TIME, there are those that are able to trade counter trend and also make money at the same time, in the same instrument - this is because each trader is in sync with the flows they are focusing on.

 

Take this as an example......

 

So far on looking at the TTT,

if say I dont think it suits me to be trading counter trend - then the example being that if I determine a trend to be up, it does not work for me to be selling short....yet, if the TTT can give me the BIAS to only take longs in an uptrend this actually achieves a number of things (I hope).....

1) it allows me to focus on one direction only...stopping the ideas of trying to extract every little move from an instrument, fretting over missing trades etc;

2) it stops me trying to run shorts in an uptrend.

3) it puts me in sync with the larger trend, this usually leads to bigger wins, lower risk entries, and less time fretting over getting stopped out.

4) it focuses the idea that I am looking to enter only the appropriate times to achieve this - ie; in the ebb and flow, these entries are pullbacks, and hence are less likely to chase a trade and buy it just before a pullback.

5) it keeps the trades that I may want to do in context.

6) it helps keep you grounded on what you are trying to achieve - profits - who cares if you only go long, and not long and short - so long as you make money.

 

So the idea that TTT gives you a bias for me makes a lot of sense - as any instrument does not go up or down in a straight line. This I think can be applied in both a short term -intraday timeframe - as well as longer term 3-5 day swings, and even longer term trend trading. (Has anyone applied TTT to weekly charts?)

[thalestrader 14]

...In my trading books I have cash and Futures for FX. Euro for instance is on a different cycle and most would say that is impossible. But I have customers that use that to there advantage...

 

Indeed!

 

Best Wishes,

 

Thales

[richbois 10]

(Has anyone applied TTT to weekly charts?)

 

Great way to think and use TTT.

 

By the Way i tried to make a book using weekly data and it symply didnt work.

[maxima 10]

The main purpose of TTT for me as a DAYTRADER, is to get a BIAS for the day

i actually paid for few months exactly for that. and i can tell it is very helpful if you know what to look for

[snowbird 10]

it is very helpful if you know what to look for

 

Would you care to expound on what you personally found "important to look for"?

[maxima 10]

that phrase didnt mean any hidden treasure map or anything. it just says - the TTT method provides actual help to those who needs it.

 

it is too complicated to explain. for me it just a good heads-up.

[richbois 10]

For me it means that based on the action of the previous day together with the relation of where we close on that action, and knowing what day of the cycle we are in, it does give you a bias or heads up on what to exoect the comming day.

 

Add the levels to that for additional ammunition.

 

wow my english is starting to looks like Taylor's :rofl:

[DugDug 10]

wait until someone starts the Yoda trading method.....then the language problems will be comical, plus given that some countries seem to have actually accepted Jedi as a religion as there are supposedly enough practitioners of it, imagine the dogma and discussions!

 

short you are when you are neither long or not.

[richbois 10]

Today on the DAX was a Buy day for me. We therefore needed a decline,

 

DAX decline to the previous day low and failed to go lower, therefore establishing the Buy Day Low and a rally started. PH the previous day High capped the rally so far

[jrcata 10]

Im sure this has been brought up in one of the Taylor threads but I figured I'd ask in the most recent one. When determining the high and low for the day, are you guys using a 24hr timeframe or basing it on regular trading hours?

As I have recently read through the Taylor material for a second time I am trying to start a book on crude oil but I am not sure whether I should use 24 hr data for the highs and lows or regular trading hours.

[richbois 10]

Im sure this has been brought up in one of the Taylor threads but I figured I'd ask in the most recent one. When determining the high and low for the day, are you guys using a 24hr timeframe or basing it on regular trading hours?

As I have recently read through the Taylor material for a second time I am trying to start a book on crude oil but I am not sure whether I should use 24 hr data for the highs and lows or regular trading hours.

 

In the EBook that has Crude Oil, Nat Gaz, Gasoline , Heating Oil, Gold, Silver and Copper, I use 24 Hour data.

 

The only Futures that I compile both 24hr and Day session is for the Index Futures.

 

Rich@taylortradingtechnique.net

Edited June 3, 2011 by richbois
typos