lets have some fun with crude...!

[linkon7]

Linkon bro, carry on your experience and thought process to enlighten us in crude oil.
HEM

Crude is the only scrip i found that gives us 5 RR intraday consistently... very few scrip move 3 % intraday on an average basis. If a few trades go wrong... Nifty or even most popular stocks wont let you recover without adding on to risk per trade.

Crude has liquidity but some days we get freak spikes that take out the stoploss and they dont even reflect on the charts. Buts its just part of the game and I have learnt to live with it.

 

[doss186]

Crude is the only scrip i found that gives us 5 RR intraday consistently... very few scrip move 3 % intraday on an average basis. If a few trades go wrong... Nifty or even most popular stocks wont let you recover without adding on to risk per trade.

Crude has liquidity but some days we get freak spikes that take out the stoploss and they dont even reflect on the charts. Buts its just part of the game and I have learnt to live with it.

Sir, speaking of ranges, can we define when a scrip is coming in bullish range and vice versa when a scrip is coming in bearish range?

 

[linkon7]

Sir, speaking of ranges, can we define when a scrip is coming in bullish range and vice versa when a scrip is coming in bearish range?

One good way of mechanically defining when a range is shifting its by using 2 different period of Donchian channel. Again this is what works for me and we all choose our own poison and this poison hasnt killed me yet.

I use a 36 bar channel gives me the visual sense of direction. When price makes new 36 channel high, thats when i assume bull are in charge and i wait patiently at 10 period channel low to mark my blind entry on the long side to gain best possible entry location into an existing up trend.

likewise, when price is making new 36 bar channel low, I enter at 10 period High with hope of bears will make new 36 bar low.

 

[doss186]

One good way of mechanically defining when a range is shifting its by using 2 different period of Donchian channel. Again this is what works for me and we all choose our own poison and this poison hasnt killed me yet.

I use a 36 bar channel gives me the visual sense of direction. When price makes new 36 channel high, thats when i assume bull are in charge and i wait patiently at 10 period channel low to mark my blind entry on the long side to gain best possible entry location into an existing up trend.

likewise, when price is making new 36 bar channel low, I enter at 10 period High with hope of bears will make new 36 bar low.

Excellent explanation. Thank you very much

 

[kumudhan]

nice thread linkon bro...

 

[pannet1]

OMG... i cant believe..legend is back .. bring it on sir

exactly same thought was on my mind too .. for a moment I thought its some dupe.

 

[angira]

Nice to see you Linkon7 Sir.....
Most welcome.

Angira...

 

[TraderRavi]

welcome back linkon sir. lets have some fun with crude...

 

[linkon7]

DISCIPLINE is defined as "the practice of training people to obey rules or a code of behaviour, using punishment to correct disobedience". No one does that better than the Market.

No matter how long one is trading, market will slap you hard the moment you develop disobedience. Even worse is, it will reward you for your first few acts of indiscipline and then it will pummel you to the ground and force you correct your ways and learn to respect the randomness of the market.

Keyword here is Randomness. Some days markets and your system wont sync. It appears as if, market is waiting for you to put your stoploss order and then it will take it out. You dont put in a stoploss and it will work for some time and then it will eat away your profit for the last few days in a single trade.

Even the most seasoned of traders have similar stories. That because we are playing with probabilities. Its a law of average game. Some days my system will sync well with the market and I end the day early happy that i made my target for the day. Some days when the system doesnt sync, I end up fighting the market and loose 3-4 days of profit in that single day.

There is so much to learn about how to mentally cope with trading as a profession. And i am still learning....

 

[linkon7]

DISCIPLINE is defined as "the practice of training people to obey rules or a code of behaviour, using punishment to correct disobedience". No one does that better than the Market.

No matter how long one is trading, market will slap you hard the moment you develop disobedience. Even worse is, it will reward you for your first few acts of indiscipline and then it will pummel you to the ground and force you correct your ways and learn to respect the randomness of the market.

Keyword here is Randomness. Some days markets and your system wont sync. It appears as if, market is waiting for you to put your stoploss order and then it will take it out. You dont put in a stoploss and it will work for some time and then it will eat away your profit for the last few days in a single trade.

Even the most seasoned of traders have similar stories. That because we are playing with probabilities. Its a law of average game. Some days my system will sync well with the market and I end the day early happy that i made my target for the day. Some days when the system doesnt sync, I end up fighting the market and loose 3-4 days of profit in that single day.

There is so much to learn about how to mentally cope with trading as a profession. And i am still learning....

This is way its important to constantly back test your system with bar replay. This gives us the confidence to stay with a system even when its failing. There is information flowing all the time. Views are shared on various forums and channels that might encourage you to find reasons to support that bias in the charts. Charts have a wonderful way of looking different when looked under a different time frame or under a different system.

Basically our eyes see what it wants to see and that is why discipline needs to be ingrained into the trading psyche. The more we back test, the more willpower we will develop to learn to ignore the information overflow and stick to what we know works.