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Nirvana Trading Lab
Your favorite trading method?
Last Activity 12/18/2014 12:40 PM
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Ryan Olson

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Subject : Your favorite trading method?
Posted : 2/12/2014 9:17 PM
Post #30904



Good Evening Everybody,

So we are now in our third week of the lab. We have had a really good run so far both with the members and with the trading. At some point in the future we will begin to explore some of the lab facilitators trading methods. Some of you are pretty familiar with the way that I trade. Triangles and VWAP are some of my favorite things to watch and trade.

What I want to know is.... What's your favorite method? It's fine if you use a method that we didn't create or it's from another vendor. Did you create something of your own? Did another member make something for you or are you just enjoying the RTX-3 as it is?

We want to hear from you!
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bradkent

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 6:58 AM
Post #30905 - In reply to #30904

For stocks, I am now using VisualTrader 9 with a symbol list containing about 30 to 40 moderately volatile stocks. I don't really use the map concept of industry groups but mostly use VT for the leading indicator to keep an eye on the market trend. My symbol list is monitoring "Trend with Changes in Trend" and I track the 5, 15, and 60 minute timeframes, but trade on the 5-minute. I keep a chart up with MZ levels to help with targets and let certain CPRM patterns show for confirmation. On the symbol list, I have columns for the Composite Leading Indicator, pattern direction, and Setup (MTC in use) which ebb and flow during the day to help confirm trades or pick up early on potential moves.

All signals come from Real Time Stocks Strategy 2.0 which has replaced my previous custom systems for stock trading. A nice balance of intraday signals to cover a range of scenarios and setups. I do not mechanically trade these signals. I check confirmation in the symbol list columns and types of patterns. If I choose to take the trade, my trade plan requires 0.25 ATR movement past the high/low of the signal bar to enter. That helps significantly with hit rate. I use a trailing profit on most days (0.25 threshold, 1 cushion).

Most of my methodology was developed during the lifetime of SignalWatch Live thanks to helpful interaction with Nirvana staff and other traders.

Since I don't own VT10 yet I have been testing RTX-3 in OT 2014, but have not yet obtained performance similar to my current VT9/RTSS2 setup. I am watching this Trading Lab to see what others are doing with RTX-3.

I also actively trade ES on an intraday basis, but I use other software for those trades.


- Brad
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Jim Dean

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 8:27 AM
Post #30906 - In reply to #30905

Hi Ryan

There are a variety of methods I use, mostly unrelated to plugins so I'm not sure it would help to describe them (and would take a long time ;-)

However there are a few absolutely vital rules that I follow which are widely agreed to as being keys to successful trading (ie "long term survival"). They have to do with Risk Control and Money Management - maybe call it "highly deliberative size and exit control with market-responsive diversification and hedging". That's as nutshell-y as I can put it I suppose.

Y'all have never asked me to teach that stuff, so I won't presume to now. However, I would hope that in your "real" trading, you employ carefully developed rules and market-responsive guidelines to trade and portfolio management. The typical OTU methodology snapshots don't seem to allow time to teach or develop these concepts - but since they are so critical to longterm success (and peace of mind on the journey), my suggestion is that you try to find a way to present YOUR methods of dealing with these things, presented as a consistent practice across all your Trading Lab courses.

That training ought to explain and consistently illustrate:
1. How should I adjust my Dollars per Share Risk as a function of the Price of the stock (ie $5 to $500)?
2. How should I adjust my Dollars per Share Risk as a function of the Bar to Bar Volatility of the stock (ie ATR as a percent of Price)?
3. How should I adjust the Number of Shares that I buy in relation to the #1 & #2 Risk that I am taking?
4. How should I adjust the Number of Shares that I buy in relation to the Group and overall Market Volatility?
5. How should I adjust the Number of Shares that I buy in relation to the Group and overall Market Trend direction and speed?
6. How should I manage my overall portfolio dollars at Risk (not equity but sum of all price vs stop times shares amounts) in relation to overall exposed equity?
7. How and how much should I attempt to keep my portfolio positions Diversified regarding Sector/Industry/Group rotation?
8. How and how much should I attempt to keep my portfolio positions Hedged (balanced) in response to Group and Market conditions?
9. What method should I use to find stocks that have exhibited good Reward vs Risk characteristics in the recent past?
10. What Reward vs Risk expectations and filters should I manage my trade selection process around?
11. When should I sit out, or at least dramatically cut back on any trading at all?
12. How should all of those rules be modified as my account size changes (ie 25k to 100k to 500k to 2m? … you have customers in all those ranges …

That I supposed might be called the "Dozen Deliberations" which I think should be a crucial and core rules that are implemented for all trading of whatever sort. The answers to the questions can, will and should vary over time - that's largely the point - but they should be rules figured out ahead of time, and considered as bedrock essentials.

So, amongst those twelve, y'all must have at least a half-dozen or more that you regularly employ (probably via spreadsheets since OT doesn't offer canned tools for managing much of this). I think it would be extremely beneficial to provide training by explanation and consistent example as to how these are conceived and implemented.

… hey - you asked! … :-)

[Edited by Jim Dean on 2/13/2014 8:28 AM]

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Vinay

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 8:36 AM
Post #30907 - In reply to #30905

Originally written by bradkent on 2/13/2014 5:58 PM

I don't really use the map concept of industry groups but mostly use VT for the leading indicator to keep an eye on the market trend.



Bradkent... I have have read at several places about the "Leading Indicator" and have got the impression that it is some kind of very special indicator, though I must confess that I understand very little about VT in general and Leading Indicator in particular.

You said you use it "to keep an eye on the market trend". Is it not possible to keep an eye on the market trend by looking just at the Index value (like DOW, S&P etc) or the Leading Indicator conveys some special information about the market which we can not get by simply looking at the Indices? If the answer is yes then what is that? Thanks in advance.


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bradkent

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 9:23 AM
Post #30912 - In reply to #30904

The leading indicators are hard for me to explain without illustrations which I don't have time at the moment to prepare and upload. Perhaps the Trading Lab guys can demonstrate those for all of us?

In general, the main leading indicator is an animated arc that changes color and width depending on your selected underlying parameters (trend change, reversals, etc) so it is more than just a market trend and contains other useful information about market behavior as it moves and morphs during the day.

I also use the composite leading indicator on each stock which is an animated bar that also changes color and width on a composite view of multiple timeframes behavior of trend, etc. that you can choose. Very powerful visual view of the market and the individual stocks on your list.
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Ryan Olson

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 10:41 AM
Post #30921 - In reply to #30905

Bradkent,

It sounds as though you have a really good trading method setup up here. I was very lucky to be around right when we came out with the MoneyZone. So I instantly fell in love with the systems that came along with it.

SignalWatch Live was a blast that I feel honored to be part of. We had a great team of people working on that project and I was saddened to see it go.

We are very glad to have you in the room and thanks for your feedback!
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Ryan Olson

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Subject : RE: Your favorite trading method?
Posted : 2/13/2014 10:46 AM
Post #30922 - In reply to #30906

Originally written by 210921 on 2/13/2014 8:27 AM



… hey - you asked! … :-)


That I did. Thanks for your feed back Jim. We always like to hear about the projects that we have jumped into. The OTU was our first shot at a really educationally focused project. In retrospect we can see areas where we both exceeded our exceptions and others where we fell short. I personally look forward to another year of it, although, no reports yet of it happening.

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Charlie F.

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Subject : RE: Your favorite trading method?
Posted : 2/16/2014 6:16 PM
Post #30962 - In reply to #30904

Trading forex works best for me because of the flexible trading hours by having three active trading sessions instead of just one each day as with stocks. The other big difference is in how OmniTrader is used. With stocks a few strategies are tested against a very large number of symbols, with forex it’s just the reverse. The Darvas Box and RT Futures Strategy Suite Plug-ins are my favorites.
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Peter Kellard

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Subject : RE: Your favorite trading method?
Posted : 2/27/2014 11:57 AM
Post #31043 - In reply to #30904

I trade breakouts from consolidations on 3 and 15 min. I identify support and resistance levels using 60 min and daily charts and then plot them in OT. I like these intervals because the targets seem to stay valid for a while. Often price will oscillate around a level I have identified, when it does this I know this is a key level. When price breaks I follow it to my next support or resistance level. If price reverses back to my trigger area then either my trade plan will close it out or if it reverses through it very soon after I have entered the trade to the other side then I was wrong and I close the trade (the RTX trade plan is very good at doing this – thanks Ryan).

Attached is an indicator I use to plot my key levels which are held in a csv file (instructions on how to use it are in the file so you can also have a go and plot levels to see how price performs against your own targets). I have included an example input data file for TWTR. I do not know what price will do for TWTR, I do know that recent lows and highs will be tested at some point. I believe currently there is a lot of pressure on TWTR, it is heavily shorted so we could see a move to 50 or there abouts – but I may be wrong – price is the master and we just follow it. Key levels I have for the downside are 55.51 & 54.23, below 54.23 I see 50.09 will we get there – who knows? If not near upside targets are 58.62 and 60.24 ;).




[Edited by Peter Kellard on 2/27/2014 12:04 PM]

Attached file : gIndPlotLine.7z (0KB - 199 downloads)

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Frank K

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Subject : RE: Your favorite trading method?
Posted : 2/27/2014 6:44 PM
Post #31044 - In reply to #30905

Ryan,

First I would like to compliment you and Ryan Belknap for a great job in the Trading Lab. Have been in the room for both sessions and really enjoy watching your trade commentary and ideas within RTX 3. Like everyone trades differently and use different tools to trade.

My trading is intraday, scalp and swing trading, I do not use any indicators at all, only a 20 and 40 day sma and chart patterns that is all.

Many years ago I was mentored by two wonderful people many know them Oliver Velz and Greg Capra, they have changed my life drastically for the best and every year my Profit & Loss is in the plus side. I avergae over 200% returns for the last 6 years now.

Right now working on creating what I learned from Oliver & Greg within my OT platform to create my own trading system.

Also, I have mentioned this many times over I really miss SignalWatch Live, and think the trading Lab should use the same server so we can interact with other users.

Keep up the good work.

Regards,
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jarrod

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Subject : RE: Your favorite trading method?
Posted : 3/28/2014 10:31 PM
Post #31158 - In reply to #30904

Frank,
DO you swing trade according to Oliver Velez rules?
Jarrod
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Frank K

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Subject : RE: Your favorite trading method?
Posted : 3/29/2014 6:14 PM
Post #31159 - In reply to #30904

Jarod,

Yes, I do most of the time, I use several diferent strategies. Would like to create Oliver Swing and day trading strategies in my Omnitrader. would like to create a complete systems that becomes just like Nirvana Systems develops in the advanced strategies.

Do you trade Oliver's swing trading

Regards
Frank K
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jarrod

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Subject : RE: Your favorite trading method?
Posted : 3/29/2014 9:45 PM
Post #31160 - In reply to #30904

Frank,
I just got his swing trading book. According to his setup rules the Three black candles strategy from the OTU swing course helps you find those setups. Also the swing rtm trade plan could perhaps be used to mange the trades.
The book I have just describes this entry with a combo entry using narrow range bars. I'm more interested in eod swing setups. Do you have any others you would mind sharing or steering me in the right direction?
Jarrod
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