Immy's Corner [The Setup The Hunt - T20's and more]

[immy]

A Kiwi Trade

after the above Kiwi Trade ended, i waited through wave 4 abc down was clear and wanted to go long for wave 5 but just never got it... I did put a PO YD but later deleted it as below.

[immy]

What happened today... more focus on H1/M15 charts. Trading DAX m1 was dull today. no trades for me. I like to see it moving first before I put a trade.

AU went long, then chickened out. Now its in the WCS list.

2014-06-12_1708.png

UJ



UJ Same Setup on M30... hmm makes you wonder... excellent setup but box would be considered big...

[immy]

Gold Surprised me with another strong move up. I should have trusted the setup like I did on Swissy long.



Swissy H1 - BE



Technically I should have waited for the bounce marked with horizontal line but I was out well before that. Entry was refined by SEED on M15 so even low risk and higher lot size but was supposed to manage on h1 targetting Wave 5 TZ1 if there was new one like GOLD did

[immy]

UJ Seed Long. Managed on M5. hene the exit.



picture on M5.

[Dave]

Hi Immy,
I know you love questions and pictures and thorough explanations.... So I have a question about trade management.
I often notice you are able to hold M1 entries through PC, obviously with a regard to the overall trend. While I am the opposite, often being taken out of a trade by PC in a trade's infant stage, only to see it carry on for some decent profit. This picture is a prime example, M5 trending nicely but M1 gets me.

image.jpg

So my question is. In clearly trending markets like the one above, do you initially give the entry some extra breathing space with a HTF stop loss and in doing so avoid the minor corrections of M1?
Thanks

[immy]

Hi Immy,
I know you love questions and pictures and thorough explanations.... So I have a question about trade management.
I often notice you are able to hold M1 entries through PC, obviously with a regard to the overall trend. While I am the opposite, often being taken out of a trade by PC in a trade's infant stage, only to see it carry on for some decent profit. This picture is a prime example, M5 trending nicely but M1 gets me.

image.jpg

So my question is. In clearly trending markets like the one above, do you initially give the entry some extra breathing space with a HTF stop loss and in doing so avoid the minor corrections of M1?
Thanks

Hi Thank you for the question. I am getting ready for my cricket match this Saturday but I thought I'll reply to your question with fresh mind. Its a good question. Trade management is always tricky part.

Its just a matter of how you want to manage your trades. Do you want to simply follow a strict formula or do you want to be more human like and make decisions within a set or "parameters". In this case with the benefit of Hindsight i am sure I would have stayed in because my SL would be above the other aims level , the initial level but later it would have got me for sure the second arrow. but then you will have to get back in it just below the 3rd arrow

READ THIS: when the range is lose, when the density is low, the distance between aims levels on m1, include lesser number of price levels and hence lower probability of new orders kicking in. When the charts are compressed, with more price levels (pips) there are more chances of more levels triggering within the uppper and lower range of aims levels/boxes or candles which makes them higher density more active charts. So if you move to a higher density chart i.e has more ticks i.e. more orders per level , you'll have smoother action, more chances of new order kicking in. So when you take an entry and it only more 2-3 pips and create an aims level perhaps its best to allow it that extra space using pips rather than the picture of the box. As box with low pips have lesser value than box with higher number of pips. i hope it makes sense.

[Dave]

Thanks for your reply. Makes perfect sense and was what I was looking for. I know recently I've been looking for hard and fast rules about my trade management (Grant's rules) because I was letting my losers get a bit big, but your suggestion regarding management within a set of subjective parameters is one for thought. Clear HTF trend, hang in there! Thanks
Watch the ball :-B

[immy]

Dave,

Imagine this, you're playing cricket, you're batting open and you're batting first. The other team is a decent team. What do you do? You know you should play straight, play on merit and try to hit the bad balls. Your job is to get runs at an acceptable rate while keeping your wicket. No one can give you a set of rules, how will EXACTLY will you bat tomorrow. They can only tell you play straight, play on the merit, watch the ball hit the bad ball. Its acceptable to live by these "subjective" rules in almost all the sport that we play, all the things that we do in general in life .

But in trading for some reasons there are load of people out there who stress too much on Hard Objective Rules. I bet Ronaldo does not know how exactly is he going to play tomorrow. but he knows this, he's gonna turn up on time for play and for practice sessions,he's going to look for goals and he will play his best. This is not objective , this is subjective. Nearly all the things we do are not 100% objective there is always a degree of subjectivity, and that is CHAOS.

This is what Bill Williams writes about in his books and strategy. We think that Linear geometry and mathematics are superior but we are wrong. The human judgement, which is considered as "subjective" is actually far more objective and precise than many objective methods. Indeed the argument of being objective or subjective in itself is invalid. The things we call objective actually have a narrow scope where as the human judgement and intuition is considered subjective because the scope is quite wide and untestable. But the reality is that its actually CHAOs as in the science of Chaos. Its higher form of organization. Just as we thought the universe was a result of a random explosion but we now have found that its actually highly organised. So the point i'm trying to make is, that its actually not just ok but actually a better idea to work within parameters instead of hard fast rules because that way you will become an EA and EA's only work up to a certain extent.

all the best... (btw we won the match I scored 37.. oh welll the team scored 327 for 9)

[immy]

A Quick 40 pipper on DAx, sorry guys I wanted all of you to get in on it and before I could type "this level is worth trying. it triggered and went up like a rocket. I took profits at the peak as it went 40 pips that is 4 times of my risk, its more than probabilistically enough. Note, I did not say, its more than enough. Rather probability wise a gain like this within such a short period doe not happen often so best to take it. I know there will always be these odd few where you'd take profit 1:5 and next moment you'll repent over it as you could have taken 1:10. but you gotta stay GRATEFUL at those times haha .




ps: Although I wrote modestly 1:4 but if you check the picture carefully my SL was set at 6 pips as I don't like to give back to much. My thought process was, if it breaks out in style, as in break violently like it did then fine but if just kicks me in, stops and starts pulling back I'll get out quick. So actual Risk Reward should be 6:40 i.e. 1:6.6

[immy]

A Quick 40 pipper on DAx, sorry guys I wanted all of you to get in on it and before I could type "this level is worth trying. it triggered and went up like a rocket. I took profits at the peak as it went 40 pips that is 4 times of my risk, its more than probabilistically enough. Note, I did not say, its more than enough. Rather probability wise a gain like this within such a short period doe not happen often so best to take it. I know there will always be these odd few where you'd take profit 1:5 and next moment you'll repent over it as you could have taken 1:10. but you gotta stay GRATEFUL at those times haha .




ps: Although I wrote modestly 1:4 but if you check the picture carefully my SL was set at 6 pips as I don't like to give back to much. My thought process was, if it breaks out in style, as in break violently like it did then fine but if just kicks me in, stops and starts pulling back I'll get out quick. So actual Risk Reward should be 6:40 i.e. 1:6.6

Further to above, it was Dax's day today.

This Slide is VERY IMPORTANT



The Chat session.