Quote:
Originally Posted by pipmutt Seriously, do you really believe certainty exists in this market? |
I do! Certainty DOES exist. I know EXACTLY where my charts are headed everyday...
to the RIGHT 
haha. that was corny but it always cracks me up.
buttt to stay on topic...
i've been reading through this thread for a few days.. as it piqued my interest since I had been working on something along the lines of trading
with the big boys. i'm superstitious about sharing a trading edge until its actually made me some $.. and i'm still demo'ing this strategy as i demo everything before i add it to my live trading plan. but its been working consistently so far this week.. and in my very rough backtesting it tested well. obviously a week of consistency is by far nothing to hang your hat on, but it does show that its worth trading(demo or live) to ascertain if its an edge or random luck so far.
all im doing is,
1. figure out where the big boys took action in the past(
yesterday,last week, last month, whatever)
2.
assume they'll take action there again (
probability, not certainty)
3. figure out which direction they're
likely taking(
think of trader psychology.)
4. have a way of getting in with them that minimizes whipsaws(
as there inevitably will be.. again, we're dealing w/ probability. notice the words "assume" and "likely" in my explanations)
5. have a money management plan to manage these trades to suck the most profit out and keep the losses relatively small
what im doing may not be one of the edges that sk was referring to, although i suspect it might be, but its definitely got potential to be an edge itself.