First Trade of the day...everyday 3-28-05
Far far away and long time ago there lived this guy who had dreams of great wealth and all he had to do was trade the futures. But before long, as we walked through the forest of indicators, oscillators, market gurus and elliot wave he stopped trading. The stress of taking the next trade, hoping it would work, praying that this one was not another loser and there were losers...lots and lots of them, "Robert the trader" (name is being withheld to protect the next to kin)turned into "Bob the analyst". Sitting in front of 8 screens with 12 different time frames, 9 different markets, 11 different indicators, 6 oscillators plus the wave count. Was that a 5 inside a bigger three...or the end of a 2....SCREAMmmmmmm.
Checking charts and filters just to make sure it was the perfect setup, but by that time the market had moved and he ended up buying the top.
See "Robert the Trader" had turned into "Bob the analyst" not because he wanted to, but because his defense system in his brain would not allow him to take trades anymore because of the stress and pain involved. The brain had shut down Robert ability to trade because of one thing.....FEAR AND GREED.
Then came an idea, what if I went to Chicago and watched the floor and out of the forest and into the windy city Robert and Bob went. What they saw was amazing, people screamming at each other, spiting, steping on each other. It was called order flow. Here was a room full of people trading without charts, indicators and oscillators and elliot wave. They just watched price and order flow.
So back to the forest Robert and Bob went, but they decided that tomorrow they would wait for the first bar to close and sell the low or buy the high. The chart below is from today.
Bar #1 is the first bar of the day on a 3 minute chart with the high of 618.20 and a low of 317.20.
Bar #2 is an inside bar, which just means that neither the high or the low of the last bar was taken out. Setup is still valid.
Bar #3 the price took out the 618.20 high of the setup bar (the first bar) and we went long, placing a stop under the low plus a tick. (617.10)
Once the price closed above the entry bar we trailed the stop.
Bar #4 this is where the bar went below the low of the last bar and we take half off and move to breakeven.
So the rules are simple, even if you are from Alabama.
1. The first bar is called the setup bar.
2. When the high of the setup is taken out without taking out the low of the setup bar. Go long......if the low of the setup is taken out without taking out the high Go short.....
3. Place a stop at the low of the setup bar or a tick or two below the setup bar.
4. When the close of the current bar closes above the high of the entry bar trail a stop.
5. When the stop is hit, take half off and move to breakeven or cover the entire trade.
What happened was that Bob left the world of trading and started selling indicators, oscillators and elliot wave and Robert got the monkey off his back and is building a new castle up on the mountain......
Just one more side note to this, remember the article about Bor"sell"ino and at one time he was doing 10% of the volume in the S&P500.....Thanks Lewis, I enjoyed you being my order flow.....ROTFL.
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37 comments:
Robert,
Congratulations!
Can't wait till its done, and to take you up on your offer.
Fritzer
The "Frist" trade was probably the best entry ever on this blog. Primo stuff, Dennis. Thanks for that. Too bad the peanut gallery has had their heads up their poopshoots for so long, they only like the smell of fresh crap everyday. Oh well. Thanks again. Good trading to you as always.
-BL
Dennis,
For the first bar of the day trade your entry rule is: When the high of the setup bar is taken out without taking out the low of the setup bar, go long. If the low of the setup bar is taken out without taking out the high of the setup bar, go long.
Do you wait for the takeout bar to close before entering? Otherwise it's not possible to know that the other side won't also be taken out by further action of the takeout bar.
Dennis,
For the first bar of the day trade your entry rule is: When the high of the setup bar is taken out without taking out the low of the setup bar, go long. If the low of the setup bar is taken out without taking out the high of the setup bar, go short.
Do you wait for the takeout bar to close before entering? Otherwise it's not possible to know that the other side won't also be taken out by further action of the takeout bar.
can anyone tell me without hype and lies adn rhetoric what happened with GIO?
please be detailed. i missed it.
thanks.
What happened to your House updates? I was enjoying that more than your elucidation of your trade system. Which seems to be a variation of Opening Range Breakout and has been around forever. And what happened to GIO? I rather liked her. Has she had enough of Woodie?
Gio is just on vacation for a short time. Great trading everyone and that first bar trade is a joke.
Dallas was a joke without Gio, I mean how much of Clint can you take. Where is Biggs at? Did something happen to Biggs? At least we still have Rover, YeanYus and Mplay.
Biggs is just on vacation for a short time. Great trading everyone and that first bar trade is a joke.
jeremy how right you are. gio was great in palm beach and denver. dallas was pretty much a waste of time without gio. i've had about enough of woodie walking around telling us how wonderful "his" cci is and yet we never see him actually use it.
I'm more than sick about watching tonyuk drink away the money that should be going to MAW. we'd all be better off sending tony a couple cases of wine, it'd be a whole lot cheaper than his first class seats and that bar tab.
jeremy,
Last time I saw biggs moderate, he was still selling support and buying resistance because an indicator based off of a 14 period moving average "told him to". That is, until price reversed after he had been suckered in and stopped out.
The reason the Woodfests are busts is not because precious, precious gio is not there. It's because there is nothing new to talk about that hasn't been hashed over hundreds of times in the chat room already.
The majority of traders who survived the original teachings of Woodster are the ones who realized (finally) the CCI can be a part of your toolbox but it is not the primary reason for your success in this business.
What happened was that Bob left the world of trading and started selling indicators, oscillators and elliot wave and Robert got the monkey off his back and is building a new castle up on the mountain......
You forgot he changed his name to... (Insert your favorite Guru's name here)
anon at 9:22 you are mostly correct but what you missed is what makes gio so precious is that she doesn't use cci in the same way that woodhead does. Unfortunately that's not allowed in woodland and it's only shown when she is trading without the tight reigns of woodie while he watches over her moderating with his finger hovering over the text-b-gone button. gio (and soren) have said outside the chat room that cci is just part of their arsenal. woodie doesn't want to be shown up by his own moderators - not good for business.
Dennis-
Thanks for the first bar trade. I used a version of this when the naz used to move.
I have the same question as Phil (see above) - by definition, you must wait for the take out bar to close and then enter, correct?
There's 2 aspects to Dennis's trading that 99.9% of the readers here I think don't fully understand:
1. Dennis trades size. He has already stated that his winning pct, at best on average is somewhere around 62-65% and his win/loss ratio is around 2:1. They're about what you'd expect from the average seasoned futures trader who is not scalping the majority of the time. But SIZE matters in trading. There could be others of you out there who have the same odds as Sport experiences but you will never be as prosperous monetarily because you're not trading enough contracts to make a difference in your lifestyle.
2. Dennis DOESN'T push the trading button. His wife does. Somewhere early in his trading life, Dennis came to the conclusion that one of the major factors holding him back from getting the most from his market analysis was the psychological/emotional problems encountered when he had to push his own trading buttons. It doesn't sound like a big deal, but it really is. There's nothing wrong with this. But don't for one minute think that that other button-pusher isn't a major relief to his psyche and allows him to do what he does best without getting in his own way.
The only truth in how someone really trades is what's written on the brokerage sheets. Without that to show for, anyone can sound bigger and better than they really are. I think Dennis trades large (20-50 contracts) but I also think he loses a lot more than what's ever posted in this blog.
I give Dennis a lot more credit that someone like gio. She's got a real head-trip going because she cannot even talk about losses from personal experience or ever admit to them publicly in her trading. She'll brush you off and say, well, that's part of trading. No ma'am, that's a big part of trading and you have issues that only you and your brokerage sheets know. If you didn't, then cheese's little poke at fun wouldn't have made you jump so high.
did he actually kick gio and soren out of his room.
Just testing if this works (:
Hi Dennis,
What can i say? Your first 3min er2 bar system worked real nice today...
Well it may or may not last although with good risk management rules, it IS profitable!
You may claim ownership for inventing it -or not.
That's even beyond the point.
The point is that with all the flak you are taking, you are still willing to share simple and powerfull systems that make money and that even a donkey could work out.
What does it say about you? you are a good man.
Forget about the people bashers, some people just can't be saved.
I thank you again for sharing this system.
Btw, Anon 6:53, you are right about several things, like size matter and brokerage sheets....
But who gives a monkey about who is pulling the trigger ? Does it really matter ?
And if Dennis is losing big, it is all relative to size just like you said. If he is losing $5000 bucks on a trade (say 10 ticks stop on 50 contracts), that would be a huge loss for me, but probably insignificant for Dennis' account.
The trick is not how much you loose but how much you make when you win... You could be loosing 1 mil on a tradebut who cares if you make 10 on your winning trade.
I wish you (and everyone) the best,
Regards,
Chris
to drbob from 12:18 PM
I'm drbob from 12:02 PM, which drbob is the real one ?
LOL
Well said. Dr Bob is getting known to be quite the "woodie" in his sly ways of doing this.
His room is of no use. It's a clique of 5 people and the rest they could care less about.
So who really cares about him and his posts. No one follows his trades, comments or even likes him.
I kick people that don't agree with me. And yes angela does ban people, harrass people and PM people that are smarter then her. It's a flaw she has. She has no one else to be with so I feel bad for her.
Any other suggstions?
The reason they hide behind the "come to my room" crap is so they can have all the lambs backup whatever he says without thinking about anythting. kool-aid drinkers just like in woodies room. its no different. He wont answer posts here. none of them will. sport deletes them and drbob wont respond.
i was looking over the posts today like previous poster mentioned (regardless of if he used a name or not ROFL) and he was right. dr bob never exited his trades when they went against him.
can't you people trade?
can't any of you post your trades like the rest of us?
loosers.
First I was working up on the hill today and didn't trade....live or like you on yesterday's newspaper.
Second, any language that I don't like will be deleted...it's my blog and I will run it the way I want.....
Go play in someone elses sandbox....I hear from the grape vine that Duke needs mods badly right now.
I miss DrBob and wish he would come back. Everyone is welcome back. Except you Sport.
here we go again, everyone that can't trade, which is all of you lol, thinking "OH MY GOD 3 MIN TRADE" is great... just busting your nutties today beause you really dont have rules, dont know how to trade and cant think for yourself.
actaully, its a 3 bar trade, wait for the high low of the first 3 bars to be taken out, then take the trade. you wouldnt be whipped so much.
lambs. pure and simple lame lames. baaaahhh! baaahhh!
Ok....
I guess I to have two rules...
1. NO foul language.
2. Respect others.
Now maybe you should go over to the claukboard and write that 100 times...
when will angela go away?
{angela} flat +14
ok sure angela, that price was 3 minutes ago before prices whipped back up and gave you a loss. why did it take so long to post? lol
oh wait i forgot about this:
{angela} +8
hmm, funny how she doesnt post price. whats even more funny is how when the trade doesnt keep going your way you wont post anymore exits as if your were flat then. lol, unless it keeps going your way then you post more exits later. lol
again i ask...
when will angela go away?
she doesnt trade live. she cant trade. she talks too much. she cant focus.
sorry ang, dont take it personal, dont go away mad... just go...
away.
Angela is a non trader that is for sure. You are right about her posting late and in her favor. She can barely trade at that and when she does its emotional.
I too with she would focus on trading and quit talking so dang much.
Gio is at http://www.tradingelements.com/, and doing a daily hotcomm room with Jean Yus.
Gio is at http://www.tradingelements.com/, and doing a daily hotcomm room with Jean Yus.
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