Bakwaas Trading

So, now I will take only simple trades, with simple entries. And lets see where it goes.

Discretionary Trading involve thinking . . . Doubt & Hesitation is part and parcel of thinking (only now we call it critical thinking

With a clearly defined system, lots of thinking can be avoided, But now . . . we start on a path to define the undefinable


A trader has to somehow finds his balance some where in this grey area . . .


And the trader can find this balance, it might be anything, A defined, coded, automated system, a method of operation . . . ,
a simple strategy . . or a pattern or even gut feel . . .

But it for everyone their own . . .

Cheers

Happy

That is the precise point of contention that I intend to highlight. Please answer this question: With what another more fitting/correct word could we replace the word "thinking" in the following quotes:

"With a clearly defined system, lots of thinking can be avoided"

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This is the game our minds play with us. While we are trying to define and code what we are really trying to do is avoid wrong trades. This tendency goes way too deep.

I have come across very few consistently successful traders. And none takes defined or coded trades. Their charts are simple, all entries are very alike and exits are need based and discretionary.

Market has a tendency to adopt that's why what works now won't work later and a trader has to keep on upgrading there skill sets, may be that's why RICHARD DENNIS had to liquidate his FUND. Its like solving DYNAMIC RUBIK'S CUBE. (Just a thought )

I have been working with a belief that success in trading comes out of some sort of a machine, which I need to build. But, conceptually it felt incorrect for similar reasons as you mentioned.

It now feels that trading is a creative business.

NR Sideways Filter

Over the last three weeks, I have been using Narrow Range (NR) bars as sideways filter. In a sideways phase, there usually are continuous series of NR Bars. I like this filter better than even ADX(14).

The definition of NR Bar that I am using is:
H-L <= Ref(MA(H-L,75),-1)

I have an AFL. So, I get Buy/Sell signal for each scrip. I just need to manually execute the signal.

I also stagger the bars, so that I do not get all the signals at the same time. The code for that is posted here http://www.traderji.com/trading-diary/90116-dasara-system-26.html#post897072
With this code, which uses 5 minutes timeframe,
YESBANK bar completes at 9:16, 9:21, 9:26, etc.
DLF bar completes at 9:17, 9:22, 9:27, etc.
SBIN bar completes at 9:18, 9:23, 9:28, etc.
and so on...

However, I know of people who do not have pre-defined rules or AFL, and trade multiple scrips based on their some discretionary method. I have not really tried that, so I cannot comment about that.

On Monday, I will be trying to monitor 12 scrips simultaneously. At least, that is the plan.