Making Money Trading

[trader_dante]

yeah, I voted bonds but on 2nd thoughts favour crude oil much more

Hi Arb,

I favour Crude Oil too. But the basic principles I will show everyone can be applied to any market. I will show you something in this thread that many of you reading will use forever. It will change the way you look at charts.

Interestingly enough, I was reading a book on the Futures Markets only yesterday and it had a bar chart titled "Crude Oil Explodes on News of Hussein's Annexing Kuwait" and shows a sharp rise from around $15 to above $40. My eye was instantly drawn to that chart because right at the low was the price action that would have got me long on that trade.

I want everyone to know that this is not going to turn you into market wizards overnight but it will give you an edge in the market. It will give you the confidence to read the markets and trade high probability setups. Once you have this though, you still have to have the patience and the discipline and the risk management to execute your plan. This is the part that takes the time. I strongly believe that trading is a mind game all the way.

 

[forexbee]

Hi Fxbee, I believe Oanda (direct access forex broker) allow you to trade at any size you want. You can certainly trade in increments of a penny. They also offer a demo account. I am not affiliated with them in any way.

HI trader_dante

thanks mate, just checked with another fx broker, they too offer to trade in .01 lots...
i think everyone would believe to start at one point and go on with commodities or indices, just a choice of preference i voted for FX...

looking forward for your article......Go on mate...

Fxbee

 

[superspurs]

looking forward to this thread, good luck.sorry i voted fx

 

[Crap Buddist]

Ive gone for FX, I'd suggest EURUSD as its probably the biggest market traded, 24 hours 6 days a week and will be good to see how the method copes with position or not prior to news data etc, low spreads too ,Oanda 0.9 spot spread on EUR USD so costs are attractive.

In short the whole world and his dog can follow it access free realtime charts 24 hrs a day, Unless we can get free realtime oil or other commods charts ??

Anyway I say FX.

Good luck with it..... anyhow, like you say people can tag the setup to their preferred market, so I dont know what the hell I'm going on about No surprise there....

All the best..

 

[smbtnt]

Going for crude oil - the price action will favour your method of trading...wizard

 

[trader_dante]

Ive gone for FX, I'd suggest EURUSD as its probably the biggest market traded, 24 hours 6 days a week and will be good to see how the method copes with position or not prior to news data etc, low spreads too ,Oanda 0.9 spot spread on EUR USD so costs are attractive.

In short the whole world and his dog can follow it access free realtime charts 24 hrs a day, Unless we can get free realtime oil or other commods charts ??

This is a really good point. It is my feeling that you will learn much quicker if we are all on the same page watching the same market move in real time rather than trying to learn off a historical chart with entry and exit labels and the reasoning behind them.

While you will be able to take what you learn here and apply it anywhere, it's not going to be simple as "buy when the 50ema crosses over the 100". I have found some things work better on some markets rather than others. All markets have their individual characteristics.

So if we all decide to trade EUR/USD then I will teach you all the best way to trade that market and of course we will no doubt discover new things as we go along. But you probably won't find out the the little nuances that would make the strategy different when played in EUR/USD than it is when played in Crude Oil futures.

One difference with futures for example is that because it is not a 24 hour market, I don't place orders for the next session on the close because of the possibility of extreme slippage. That means that without incurring undue risk, you will never be in many patterns that look very good on the chart. With FX you don't have this problem.

Whatever market is chosen, I am going to trade it in real time with real money and show you what I am doing in here. You will learn much quicker if you can follow this.

 

[Vorbis]

Hello trader_dante,

Your method sounds very, very similar to my own so I too am looking forward to following this thread.

I trade Indices, Forex and Gold and Oil so I've no particular preference to what should be focused on though I chose Indices for the vote.
I'm surprised commodities tend to get over-looked because they generally seem to trend quite reliably compared to some more popular markets.

 

[BSD]

For those who like commodities this is a fun site:

www.jimrogers.com

Ex partner of George Soros, very much into an adventurous and fun lifestyle, as a trader he's totally fundamental, but hey nobody's perfect :cheesy:

Lots of good stuff on his site, he's writen some good books too.

Sorry for taking this off topic Dante, done now, and best of luck with your project here

 

[trader_dante]

Sorry for taking this off topic Dante, done now, and best of luck with your project here

Not a problem. I've got a couple of Rogers' books. He is somewhat of a legend in commodities trading. Thanks for the link.

A word on "funnymentals"- this methodology ignores news. I take all setups regardless of news although people are free to tweak. If you are uncomfortable taking a setup just before a news release then no one willl force you to do it. I am just telling you what is working for me.

I have been trading this method properly for around five months now. The only time I happened to remember news having any impact at all on my positions was when I bought the FTSE (because of a setup) almost right at the bottom of the sharp August sell-off and was long when around an hour later there was the US surprise rate cut that put my position 254.5 points higher when I got back from lunch

I developed the method from two time tested and highly profitable ways of trading. It is a not a system that is going to be here today and gone tomorrow. I have read about many that are like this. They produce stellar returns for a year or more and then suddenly they no longer work when the markets inevitably change.

This method is based around price action. That is its foundation. Trading with price action will always give you an edge because these patterns reflect the behaviour of participants in the market place and peoples behaviour tends to repeat itself.

 

[counter_violent]

Not a problem. I've got a couple of Rogers' books. He is somewhat of a legend in commodities trading. Thanks for the link.

A word on "funnymentals"- the methodology ignores news. I take all setups regardless of news although people are free to tweak. If you are uncomfortable taking a setup just before a news release then no one willl force you to do it. I am just telling you what is working for me.

I have been trading this properly for around five months now. The only time I happened to remember news having any impact at all on my positions was when I bought the FTSE (because of a setup) almost right at the bottom of the sharp August sell-off and was long when around an hour later there was the US surprise rate cut that put my position 254.5 points higher when I got back from lunch

Yes and a lot of accounts wiped out into the bargain

so i'm looking forward to how you deal with volatility at price extreme's

cv

 

[jezgw]

Hello,
How long is it going to take? How are you going to release the material -- on a daily/weekly basis or in one fell swoop and when are you starting? After the poll finishes?

 

[trader_dante]

Hello,
How long is it going to take? How are you going to release the material -- on a daily/weekly basis or in one fell swoop and when are you starting? After the poll finishes?

Hello Jezgw,

I am going to release the information as I get time. I work four days a week and I am often watching the markets on my day off (Friday) as well as in the evenings but I will try and check every day and try to get new material up and answer questions as frequently as possible.

How long it will take is hard to say. It all depends on how fast people learn.

The actual method I am going to show you is simple. I can sum it up now: I trade high probability setups by looking for price action at areas of support/resistance. I then look for confluence with fib levels and trend lines.

This basic method will then be combined with a moving average system which I have found to be extremely reliable. This system will be mainly used to deduce when it is the optimal time to add to a position and it is also crucial to staying in the market when it is trending so that you get excellent risk/reward ratios and capture large moves when the market offers them.

Many people may already trade similar to at least the first part of my method. What I am going to show you is how I do it because I am making profitable trades where I know some others are struggling.

Whatever your level of knowledge/experience I hope you will find something useful here.

We will start when the poll finishes which is Tuesday. I will be here as long as people are willing to learn.

 

[rols]

"Abandon hope, all ye who enter here."

Seeing the name Dante, sprung that quote forth from the dark recesses.

Make a good slogan for T2W perhaps?

............

All the best with your tutorial, most community spirited.

 

[trader_dante]

"Abandon hope, all ye who enter here."

Seeing the name Dante, sprung that quote forth from the dark recesses.

Make a good slogan for T2W perhaps?

............

All the best with your tutorial, most community spirited.

LOL

I prefer:

Midway this way of life we're bound upon,
I woke to find myself in a dark wood,
Where the right road was wholly lost and gone

Ay me! how hard to speak of it - that rude
And rough and stubborn forest! the mere breath
Of memory stirs the old fear in the blood;

It is so bitter, it goes nigh to death;
Yet there I gained such good, that, to convey
The tale, I'll write what else I found therewith.

 

[timsk]

How long it will take is hard to say. It all depends on how fast people learn.
We will start when the poll finishes which is Tuesday. I will be here as long as people are willing to learn.

Hi t_d,
Anyone who dares to stick their head above the parapet as you appear to be doing now can expect to be shot down in flames. Such is life. Given that you have expertly got everyone's interest and attention and that you are already on page 4 of the thread, may I suggest that you offer the masses a little 'cud' to chew on over the weekend? This will help to keep the prospective dissenting voices at bay and to ensure that the faithful - and eternally hopeful - remain on side, supportive and as enthusiastic about your intentions as they appear to be thus far. Forgive me if this sounds a tad harsh but, trust me, in my not inconsiderable experience of T2W there will be those who, as I write, are waiting in the wings to shoot you down in flames. So far, everything you've said is 'by the book' and hard to criticize but, sooner or later, the rubber meets the road and you're gonna have to follow through on your intentions. PLEASE don't leave it too long!

Tim.

 

[DaveJB]

If the opener involves anything by Lewis Carroll, or mystifying a warthog by waving grey blankets at it, I'm off!

 

[nashlow]

trader_dante,
I am hooked and can't wait.
And thanks in anticipation of sharing your knowledge.

Cheers,
Nash

 

[Chorlton]

I have recently reviewed all the trades I have done in my account since starting to use this methodology. From this review I can see that my win/loss ratio is just under 80%.

Losses will be cut very quickly and winners will be left to run until it looks like the move is running out of steam. Naturally, some retracement will be necessary before this is realised. Nonetheless, some of the trades I will show you have incredible risk:reward ratios.

The latest trades I took were in the Bund (German Treasury market) and in Crude Oil. The last setup my methodology generated in the Bund returned a reward of 12 times the risk on the hourly timeframe. (180 ticks reward for a 15 tick risk). In Crude Oil, the method generated a reward of 5 times the risk (362 ticks for a 67 tick risk) This is without adding positions which was also possible.

Hello Dante,

With a Win Rate of around 80% (very impressive) and a R:R currently ranging from 5-12 then would I be right in assuming that your are trading short-term?

If so, can I ask what your average time in Trade is and what your Max DD is?

Finally, do you think that your entry conditions/filters could be hard-coded and thus backtested to see how it performs on other instruments? I'm guessing though that with the Fibonacci element this is probably not possible but I'd be interested in your thoughts on this.....

All the best,

Chorlton

 

[hanzam]

trader_dante

Why are you prepared to reveal your trading methods if you have discovered a method which is highly successful? What are you going to achieve by revealing all the secrets in this thread?

 

[trader_dante]

Hello Dante,

With a Win Rate of around 80% (very impressive) and a R:R currently ranging from 5-12 then would I be right in assuming that your are trading short-term?

If so, can I ask what your average time in Trade is and what your Max DD is?

Finally, do you think that your entry conditions/filters could be hard-coded and thus backtested to see how it performs on other instruments? I'm guessing though that with the Fibonacci element this is probably not possible but I'd be interested in your thoughts on this.....

All the best,

Chorlton

Hi Chorlton,

The R:R ratio is not always that high, those are simply two examples taken from the latest trades I entered. The reason they are so high is because the EMA system I use showed me that the trend was strong and likely to continue.

If the EMA system is not showing any particular setup but I still get a price action setup then I usually trade for a fixed target. This can often be a R:R of 1:1. I can afford to do this because my win/loss ratio is good.

I trade daily and hourly setups. If I am in a trade based on a daily setup it can go on for any length of time from being stopped out the day I enter to continuing for several weeks. If it is an hourly setup I often get out same day but if the trend is strong I will often hold until it runs out of steam which may be well into the next trading session or even longer. I will be honest with you, average time spent in a trade is not something I have analysed.

To answer your other question: I don't think this method can be hard-coded. It is not a system with strict rules. You may find the EMA system (which can work on its own regardless of price action) can be hard coded but I will give you a word of warning which also will help to explain why I am here doing this in the first place.

I learnt to trade price action on another forum. All credit for what I am going to show you will go to the other forums and threads which I will name in due course.

What I have done is simply take that knowledge and add my own experience and instinct in trading which I have been doing for over seven years now. That means I have my own unique take on it.

I will give you an example. Recently in this other forum there was a price action signal to go short EUR/CHF. This setup looked picture perfect but for some reason I didn't want to take it. Those that did lost money because it went straight up. Somewhere in that decision I made was my "reading" of the market that differed from what I had been taught.

I am aware that I will no doubt face criticism on this thread. But all I am trying to do is impart what I have learnt.