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

[immy]

I was trying to write down a definitive and descriptive answer to this question. It was supposed to be something that is easy to understand and logical.
While I do understand my reason for my decision I was finding it a bit hard to put it into words. The answer to this question is of particular interest to the newbies of the system and/or trading as a whole.

While I was scratching my head trying to compile words and phrases I hit upon a great article. The article explains exactly what is the difference between Immy's Approach vs Grants Trading Approach. Let me also state again, that the two people behind this trading strategy are Grant and Immy (thats me 8-} ).
I learned from him a lot and I hope he may also have learned from my mistakes at least.

I proudly say that I shall follow Grants approach for Trading M1/M5 on EURUSD. Here is the Article.


Trading and Intuition

By Adam Milton, About.com Guide

I was once asked by a trader how they could determine if a market was moving decisively (i.e. was moving in a single direction), and my answer was that if they were not sure, then the market was not moving decisively. In other words, if they looked at a chart and they didn't immediately know which direction the market is moving, then it was not moving in a single direction.

Intuition and Instincts
I was suggesting to the trader that they use their intuition and instincts in deciding if the market was moving as they required, rather than a fixed measurement (e.g. an indicator being above or below a particular level). Intuition and instincts either play an important role in trading, or they play no role at all. This is because they apply differently to discretionary and system trading.

Discretionary Trading
Discretionary traders can (and very often do) use their intuition to confirm (or negate) their trading decisions. For example, a trader might decide not to make a trade because the trade would require a slightly larger stop loss than usual, even though all of their entry requirements had been met.
While discretionary traders are able to use their intuition and instincts in their trading, they need to make sure that they do not confuse them with fear and greed. (Immy: This is a Very Important Point)
For example, whenever a trader decides not to enter a trade based upon their intuition or instincts, they need to know why they are doing do, otherwise it is possible that the decision is based upon fear of a losing trade. Similary, if a trader decides to hold a trade longer than usual, they need to make sure that it is their intuition rather than greed that is making the decision.

Knowing the Difference b/w Intuition and Emotion
Knowing the difference between intuition and emotions is something that will come with experience. (Immy: Here is an Easy Way to Find Out whether you are trading with Intuition or Emotions? The newbie might find him/her self mostly in the later category.) In the meantime, if you are making a trading decision and you find that your heart is racing or that you are starting to sweat, you are probably making an emotional rather than an intuitive decision.

System Trading
System traders on the other hand, cannot use their intuition in their decision making process. System traders make their trading decisions during their testing and analysis of their trading system, rather than during live trading. If a system trader starts using their intuition and instincts to modify their trading decisions, they are no longer a system trader, and they may need to modify other aspects of their trading accordingly (i.e. there is no such thing as a part discretionary and part system trader).

Conclusion: The two approaches have 1 fundamental difference. The Approach as presented in AIMS Stress Free Trading - The Setup eBook involves 'Discretion' better named as 'Trading with Intuition'. This is what we call the Level 3 Trading. The Competent Level. Where you add on to Increase your Return on investment and you may some times experience level 4 or may be even level 5 where you "know without knowing how you know". (More on the levels later. Where as Grants Approach, and I love it and am going to be trading mainly this approach during most part of this new year, is Systems Trading. (Not in the strictest sense though) The flow chart is a Trading System. It does require bits of discretion, but with the advent of Steve's Dimension that discretion may also be, hopefully, taken care of. A Great Trading System Indeed! Thank You Grant and Steve and the AIMSters! and the members of this forum. (wd) (hug) :-bd (hug)

[immy]

I had said to myself today I'm going to hi 5%. Was taken jokingly but the 'Sub-Concious' Believed in it! The sub-concious can take things literally! Say you're an idiot and it makes sure you become one!

So 1% in the am, then a -.3% rent and then 3.2% growth! here is the lovely picture!

May the pips be with you

11-01-2012 11-28-29.png

[Julius]

The other days trades. Some tiny little trades that really makes a huge difference

Immy, in all these trades what are you targets? How did you know you had to exit on 10 pips in the first picture? Also in some other. (I am talking about your Mon Nov 28, 2011 7:12 am post on this thread)

Julius

[immy]

There are days when the market does not move and you dont get setups you get frustrated, then there are days when the market moves and you dont get setups you get frustrated!

The only one who makes money is the one who is Patient and Disciplined 1. Waiting for Setups, 2. During Trades.
We waited the entire day and finally got a setup after hours for most! But I traded it since i was on my desk. I was just about to say bye bye but I saw it and it was great looking setup. All the boxes were ticked so put the pending. The whole AIMSters group save Grant was in it! It was good fun. no movement in 19 candles and 1 candle did the job. The funny thing was we were saying 'jokingly' it will do this either side! this time it was to the up side. It was nice. I did my MM on 10 pips hence hit 1.4% bringing my weekly total to over 5%

[Randy Cha]

Hi Immy,

Nice trades!

It seems to me that you like to trade off M5 charts often. Is that correct? Any factors which make you to do that? Please advise.
And you also let the profits run .... nice.
Like your stuff.

Good trading, Randy

[immy]

HI Randy

I trade M5 but trade Entries on M1 or lets say
I Trade M1 but in the direction of M5

Thanks for the good words!

The Factors are: Double AIMS, distance between M5 aims level and m1 level
I'm aggressive when M5 Alligator is open and conservative when its closing or closed!

cheers

Immy

[Dennis]

Immy

The standard input setting for the new AIMS Waves V5.1 is 0.0006. When I am on this input setting I get soooooo much orange AO. Doesn't seem to be very selective or objective. After some experimentation I think this input setting should be at 0.0002 or 0.0003. Makes for much more conservative trading. I heard you were discussing this in the Aimsters trading room. Can you please give me your reasoning For or Against my suggested change?

[snorm]

Immy

The standard input setting for the new AIMS Waves V5.1 is 0.0006. When I am on this input setting I get soooooo much orange AO. Doesn't seem to be very selective or objective. After some experimentation I think this input setting should be at 0.0002 or 0.0003. Makes for much more conservative trading. I heard you were discussing this in the Aimsters trading room. Can you please give me your reasoning For or Against my suggested change?

Dennis - since it was my idea to change settings to 0.0006, I'll endeavour to explain how that came about ...

The AIMS Waves today has ranged from -0.0045 to +0.00195; yesterday was from -0.00309 to + 0.00290. You can see from those numbers that 0.0006 is a very small fraction and pretty close to zero. The AIMS Waves shows price moving away from the mean and reverting to the mean. When it's close to the mean we can assume that price has reached an equilibrium from which it will bounce back in the direction of the prevailing trend or cross over and change direction. In a highly volatile market, price doesn't hang around the equilibrium point for too long and so there won't be so much orange. During periods of consolidation, price will remain at its equilibrium point and there will be a lot of orange. We look to enter trades when price is close to its mean, since there is a good chance of getting a good move. We avoid trading a long way from the mean as there is little chance of price travelling much further - the rubber band effect. The non-orange histogram bars clearly shows the rubber band being stretched; whilst the orange on 0.0006 shows the rubber band has plenty of stretch in it.

I programmed the alert indicator to filter out waves over 0.0006 to allow for some movement within the AIMS Box before breakout. Had I filtered on 0.0002, we would have far fewer alerts. So, the AIMS Waves setting lets you see what the indicator is testing. Feel free to reduce the setting in both the Alert and Waves to suit your trading style or the trading session. The current settings are just those that are currently being used by the AIMSters - these may be further refined in due course.

cheers
Steve

[immy]

Immy

The standard input setting for the new AIMS Waves V5.1 is 0.0006. When I am on this input setting I get soooooo much orange AO. Doesn't seem to be very selective or objective. After some experimentation I think this input setting should be at 0.0002 or 0.0003. Makes for much more conservative trading. I heard you were discussing this in the Aimsters trading room. Can you please give me your reasoning For or Against my suggested change?

Dennis - since it was my idea to change settings to 0.0006, I'll endeavour to explain how that came about ...

The AIMS Waves today has ranged from -0.0045 to +0.00195; yesterday was from -0.00309 to + 0.00290. You can see from those numbers that 0.0006 is a very small fraction and pretty close to zero. The AIMS Waves shows price moving away from the mean and reverting to the mean. When it's close to the mean we can assume that price has reached an equilibrium from which it will bounce back in the direction of the prevailing trend or cross over and change direction. In a highly volatile market, price doesn't hang around the equilibrium point for too long and so there won't be so much orange. During periods of consolidation, price will remain at its equilibrium point and there will be a lot of orange. We look to enter trades when price is close to its mean, since there is a good chance of getting a good move. We avoid trading a long way from the mean as there is little chance of price travelling much further - the rubber band effect. The non-orange histogram bars clearly shows the rubber band being stretched; whilst the orange on 0.0006 shows the rubber band has plenty of stretch in it.

I programmed the alert indicator to filter out waves over 0.0006 to allow for some movement within the AIMS Box before breakout. Had I filtered on 0.0002, we would have far fewer alerts. So, the AIMS Waves setting lets you see what the indicator is testing. Feel free to reduce the setting in both the Alert and Waves to suit your trading style or the trading session. The current settings are just those that are currently being used by the AIMSters - these may be further refined in due course.

cheers
Steve

Hi All!

I'd like to fully endorse Steve's post above!

Cheers - Many Pips to you!

[Dennis]

Immy

Page 49 of the manual published on 11-11-11, you talk about Bracketing trades. You give the rules for Bracketing and we would place a Buy and Sell trade on. One thing you don't mention is whether or not we should take the High or Low of the 5 min chart into account when placing our Bracket trades on the 1 min chart. I assume we should always, even on Bracket trades, see if the 5 min High or Low is close and Bracket outside these 5 min Highs and Lows. Please advise.

Dennis

PS- How soon do you anticipate an update of the manual to discuss the changes made with V5 indicators?