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Now coming to the next step we need a framework with precise entry and exit signals which is commonly called a setup.There are as many setups as there are traders,infact I have to keep them indexed to keep track of them.I would post couple of them having good risk to reward ratio.I had better start a new thread and link it here as this thread will become very difficult to read otherwise.There will be a lot of new terms introduced and it will be difficult for me to explain each and everyone of them in detail so I will provide links or suggest books regarding those.
Also one point I would mention here is that if you are serious enough to have your own system than there can be no half measures,every part right from setup to position management has to be written down and double checked so as to avoid any contradictions or errors.Those who dont have access to charting software can have tape based strategy as trade setup while keeping the other parts similar to those mentioned here.Minimum requirement will be access to excel and notepad.
Another important about setup selection bfore we go on to the next step is about mixing different non-correlated strategies.People who have trendfollowing systems will do better only if they add some sort of contra trend setups which may help them trade in markets which are moving sideways.By merely looking at a chart many can conclude that markets do move sideways for considerable period.My support for the theories of gann,fibonacci and elliott is precisely for that reason.They add a new dimension to market forecasting which is not possible with normal market indicators.Also a very important thing to consider is that these theories focus entirely on price itself unlike various other theories which derive their relationship from price without considering it in its entirety.Tony Plummer books are good read explaining them.
So lets get on with it with the setups
Also one point I would mention here is that if you are serious enough to have your own system than there can be no half measures,every part right from setup to position management has to be written down and double checked so as to avoid any contradictions or errors.Those who dont have access to charting software can have tape based strategy as trade setup while keeping the other parts similar to those mentioned here.Minimum requirement will be access to excel and notepad.
Another important about setup selection bfore we go on to the next step is about mixing different non-correlated strategies.People who have trendfollowing systems will do better only if they add some sort of contra trend setups which may help them trade in markets which are moving sideways.By merely looking at a chart many can conclude that markets do move sideways for considerable period.My support for the theories of gann,fibonacci and elliott is precisely for that reason.They add a new dimension to market forecasting which is not possible with normal market indicators.Also a very important thing to consider is that these theories focus entirely on price itself unlike various other theories which derive their relationship from price without considering it in its entirety.Tony Plummer books are good read explaining them.
So lets get on with it with the setups