MajorDutch
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I'm not surprised it went over your head.
oh dont you will hurt my feelings
I'm not surprised it went over your head.
I've decided to be nice and put it into little bit sized chunks, that even the troglodytes on here should be able to understand if they put both their brain cells to work.
Le's say you have your basic pin bar setups, you target 2:1. Now you discover, that the pin bars with the wick >5x the body win 60% of the time, and the pin bars with 5x body legnth> wick >4x body length, win 50% of the time.
What new_trader and J16 is saying, is that you shouldn't trade the later pins, even though they provide positive expectancy. Why? I really can't say, perhaps new_trader will enlighten us.
Le's say you have your basic pin bar setups, you target 2:1. Now you discover, that the pin bars with the wick >5x the body win 60% of the time, and the pin bars with 5x body legnth> wick >4x body length, win 50% of the time.
But both will with 33% of the time, so it's a moot point.
That's precisely my point, but according to this A+ setup nonsense, you don't trade all your +ev setups.
there is merit to taking only the best setups and its most applicable to discretionary traders. if you are a tape reader i guess you could replicate an A+ setup with a scenario. If you are a fundamental trader an A+ setup would also be based on a scenario. this is an arbitrary topic although it should resonate with everyone at some level.
Oh the irony!
I'll agree that being comfortable is what's important, and leave it there.
We're all aware that there are many vendors out there who like to charge 1000's for info that you could probably find for free somewhere else. I have been looking at James16's free stuff this week and i must say that it's the best i've found yet, here's the link... i found the rants and charts vid exceptionally good for a free vid although he is a slow talker lol!
Traders Links at The James 16 Group
What other gems of info have you found?
p.s thanks MajorDutch for that link![]()
People are rarely either a purely mechanical or purely discretionary traders. If you are a purely mechanical trader and have a system that you have back tested then you must take every single trade the system gives so the concept of grading setups (A+, A, B) doesn’t exist. The problems begin when traders add a discretionary element to their ‘mechanical’ systems. The majority who talk about ‘setups’ most likely test their systems under conditions that are completely different to which they will end up trading them which makes the whole % winners theory irrelevant, practice is almost never the same as theory. A perfect long setup that worked under back test conditions will suddenly be doubted because the trader heard some negative news on the TV and now wants to go short...or the less than perfect setup will be taken because the trader has been sat at his desk for 7 hours and feels the need to get busy...or they missed the perfect setup because they went to the toilet and now feel they need to take the next less perfect one to make up for it. This is why I generally avoid discussing the merits of one system Vs another based on theoretical magic numbers.