TheRumpledOne
6,529 posts
msg #81311
- Ignore TheRumpledOne
modified |
10/17/2009 9:54:42 PM
My first question is this - would an equally correct definition of a cow be one that can be regularly milked for 1% profit each day?
No.
My second question is this - why is the buy zone a set amount in cents, versus a set percentage of the open?
Because that is the way I designed it. If price moves X cents, what are the statistical probabilities it will move Y cents.
RUN FOREST, RUN was designed for percent changes.
MILKING THE COWS is for INCOME GENERATION. Trading 1000 shares, you make $100 for every 10 cent movement in your direction. $400/day * 250 trading days/year = $100k/year.
RUN FOREST, RUN is for AGGRESSIVE GROWTH. Compounding your account by 2% or more per day will make you rich.
I am not disputing the success of the system - quite the opposite. What I am trying to do is understand if the system can be played on lower priced stocks.
I DO NOT ADVISE USING LOWER PRICED STOCKS DUE TO VOLATILITY, VOLUME AND RANGE considerations.
It always amazes me how people want to change something BEFORE they master it.
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Kevin_in_GA
4,599 posts
msg #81332
- Ignore Kevin_in_GA |
10/18/2009 10:00:41 AM
My first question is this - would an equally correct definition of a cow be one that can be regularly milked for 1% profit each day?
No.
(Kevin pokes the bear with a sharp stick) - Why not? Other than the pedantic view that "it is not a cow because it is not AAPL or RIMM", can you explain why a daily $1 move on AAPL makes it a good "cow" but a 1% move on another stock does not qualify it for the same status?
My second question is this - why is the buy zone a set amount in cents, versus a set percentage of the open?
Because that is the way I designed it. If price moves X cents, what are the statistical probabilities it will move Y cents.
RUN FOREST, RUN was designed for percent changes.
So the difference is in definition (cent versus percent) - if a stock statisitcally moves 50 cents a day, regardless of its stock price, it is a COW, and if it moves 1% a day or more, it is a RFR stock?
MILKING THE COWS is for INCOME GENERATION. Trading 1000 shares, you make $100 for every 10 cent movement in your direction. $400/day * 250 trading days/year = $100k/year.
Every trade I make is for income generation - at least that is my goal when I hit the button. However, I don't have $200K to trade every day on AAPL. I am looking to take the simplicity and statistical edge seen in MTC and adapt it to my limits and goals.
I am not disputing the success of the system - quite the opposite. What I am trying to do is understand if the system can be played on lower priced stocks.
I DO NOT ADVISE USING LOWER PRICED STOCKS DUE TO VOLATILITY, VOLUME AND RANGE considerations.
Understood.
It always amazes me how people want to change something BEFORE they master it.
I knew asking questions regarding adapting this strategy would evoke this response. You are correct in that I am nowhere near mastering any strategy yet, as I am still trying to master my trading behaviors - until that is done, I put my monies at risk with every trade. Hopefully you'll be willing to continue a dialogue on this?
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luc1grunt
622 posts
msg #81358
- Ignore luc1grunt |
10/18/2009 9:11:55 PM
You have not been around long enough Kevin. The "bear" will not be boxed into a corner. It will result in...."it's not what, but how", or "you should know what it is without explanation".
Just trying to save you some time bro, LOL!.
See you on the finnyvizzy.
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Kevin_in_GA
4,599 posts
msg #81366
- Ignore Kevin_in_GA
modified |
10/19/2009 8:13:25 AM
I'm an optimist. Willing to listen to what TRO says, but willing to ask questions about it as well. Following without questioning is exactly what TRO rails against in other threads (which shall go nameless for now).
Hopefully he sees this as a positive trait.
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timfor
17 posts
msg #81386
- Ignore timfor |
10/19/2009 3:13:00 PM
Hello,
I have been reading this thread with great interest and was wondering if anyone who has a Ninjatrader Script for the various zones would be willing to email it to me at: timforest@hotmail.com
Thanks in advance to anyone willing to share their Ninjatrader script.
Tim
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TheRumpledOne
6,529 posts
msg #81402
- Ignore TheRumpledOne
modified |
10/19/2009 8:13:16 PM
I invented this so it is what I decided.
I was using cents and not percent when I ran the statistics.
I had certain range and volume criteria that I wanted.
There is no other answer.
Feel free to use it, not use it, or alter it to fit your trading needs.
"I am not forcing you to accept my concepts. I only request the traders to review the market from time to time keeping in mind my concepts and if found suitable use in the trades or just ignore."
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Kevin_in_GA
4,599 posts
msg #81404
- Ignore Kevin_in_GA |
10/19/2009 8:21:47 PM
TRO:
You wrote "It always amazes me how people want to change something BEFORE they master it. "
Got me thinking. You're right. I'll focus on mastering this method first before altering/adapting it. You spent a great deal of time developing it, and doubtless thought of the same things I did as you refined this system.
If it ain't broke, don't fix it.
Paper traded it today @200 shares. Made $220 on one trade, and was done. Should have thought a bit more about it being earnings day and held off, but I saw a profit and took it.
Kevin
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TheRumpledOne
6,529 posts
msg #81405
- Ignore TheRumpledOne |
10/19/2009 8:24:47 PM
Well, they do the same thing in FOREX.
I have been posting the RAT REVERSAL trade for a couple of weeks now. It is a very simple trade to learn yet SOME PEOPLE want to mess with it. I guess there's always a Yale graduate or 2 in the crowd!!
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Kevin_in_GA
4,599 posts
msg #81408
- Ignore Kevin_in_GA |
10/19/2009 8:56:20 PM
Not me ... I'm a Columbia grad.
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tmanbone
124 posts
msg #81415
- Ignore tmanbone |
10/19/2009 11:22:53 PM
school of hard knocks; admirable gentlemen.
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