DRAIN THE BANKS

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Re: DRAIN THE BANKS

Postby TheRumpledOne » Wed Jun 22, 2011 9:07 am

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"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat."

P64 HOW WE DECIDE (italics added)

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"Now, 2 patterns of market behavior happen on a regular basis:

1) the price breaks to new high's (or low's)

2) the price reverses from new high's (or low's)

They happen regardless of time frame (with the obvious limitations explained above)

They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden

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1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

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WHY ISN'T EVERYBODY DOING IT?

Most of you know I catch a lot of flak on my forums because SOME PEOPLE don't like the way I post.

One worn out argument that is used repeatedly is, "If this is so (simple, great, profitable, ), then why isn't everybody doing it?"

Simple answer is because SOYLENT GREEN is people!

We all know exercise is great, but how many actually exercise?

We all know smoking is bad, but how many do it anyway?

We all know which foods are bad for our health, but how many eat those foods?

We all know that we should save for our future and spend less than we earn but who does that?

The list is almost endless.

As long as there are people, there will always be some STUPID people and some smart people making STUPID decisions, where STUPID is defined as knowing better but acting otherwise.

Meanwhile, the RATS are still beating the Yale students.

=============================================

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Wed Jun 22, 2011 11:26 am

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1) Price within 20 pips of the daily low (ClLo < 20) - that is OPPORTUNITY

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The important part is to enter WITHIN 20 pips of the daily low. The RAT REVERSAL is only one entry method.

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Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS.

THINK ABOUT IT!!


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MAXIMUM RISK = 2% * ACCOUNT BALANCE.

STOP LOSS = 10 PIPS. (INCLUDING SPREAD)

POSITION SIZE = RISK / STOP LOSS.

<-------------------------------------------------------------------->

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

<-------------------------------------------------------------------->

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Thu Jun 23, 2011 11:54 am

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GREEN RATS get ready for some SMART MONEY cheese!
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Wed Jun 20, 2012 3:45 pm

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As many of you may know, I have moved back to my ranch. At the moment, I don't have 24/7 internet access due to the rural location. This will change my trading style. I will use the DAILY RAT and look for entry opportunities at/near the weekly open price and at/near the weekly ATR zones. I can set and forget these trades.

There are videos of the ranch on my YouTube channel. I'll be making a video on my new trading style soon.

In the chart above, the EURJPY had a RAT REVERSAL setup on the daily chart AND the entry was near the weekly open price. This is an example of the trades I will be doing.

IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!
TheRumpledOne
 
Posts: 356
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Re: DRAIN THE BANKS

Postby TheRumpledOne » Wed Jun 27, 2012 10:59 am

2012.06.27 DAILY RAT REPORT

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AUDUSD showed a GREEN RAT REVERSAL at/near the weekly open.

GREEN RAT REVERSAL - LONG ENTRY CRITERIA:
1) RED CANDLE CLOSES
2) GREEN CANDLE CLOSES
3) PRICE TOUCHES HIGH OF PREVIOUS GREEN CANDLE - ENTER LONG. STOP LOSS IS ALWAYS 10 PIPS.



DRAIN THE BANKS - LIKE A RAT

1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

3) green candle closes - note the high price of the green candle.

4) enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.


================================================================

Let's clear things up:

1) To trade like a RAT is to ALWAYS trade in ONE DIRECTION - either LONG or SHORT. Once you pick a "team", you can't switch.

2) The "within 20 pips of the daily high/low" is the BEST possible entry to get the maximum run BUT the RAT REVERSAL entry works ANYWHERE on the chart.

3) The TRAINING WHEELS only signals LONG trades ABOVE the weekly open and SHORT trades BELOW the weekly above. This bias keeps beginning traders, as well as experienced traders, out of trouble.

Trading is GUESSING. If it wasn't, you wouldn't need a STOP LOSS. THINK ABOUT IT!!
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Tue Jul 03, 2012 11:26 am

2012.07.03 DAILY RAT REPORT

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GBPUSD showed a RED RAT REVERSAL setup with the daily open at/near the weekly open.

The BUY ZONE entry is used at/near the daily and/or weekly open.

I am also working on the DYNAMIC HIGHEST GREEN OPEN/LOWEST RED OPEN indicator.

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Long for short opportunities at the HIGHEST GREEN OPEN and long opportunities at the LOWEST RED OPEN.
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Wed Jul 04, 2012 12:12 pm

2012.07.04 DAILY RAT REPORT

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The AUDUSD had the RAT REVERSAL setup today but took back the profits if you didn't take them first. Price bounced up off of the weekly open only to return.

It's the 4th of July but why is America celebrating? INDEPENDENT FROM WHAT?
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby TheRumpledOne » Thu Jul 05, 2012 12:00 pm

2012.07.05 DAILY RAT REPORT

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USDCHF had the RAT REVERSAL setup. Once price broke through the ATR ZONE, it was time to move the stop up and protect profit.

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

Re: DRAIN THE BANKS

Postby thinkoutsidethebox » Sat Jul 07, 2012 9:46 am

Hey TRO, I googled your indicators and I couldn't find them. Please help.
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Re: DRAIN THE BANKS

Postby TheRumpledOne » Mon Jul 09, 2012 1:19 pm

2012.07.09 DAILY RAT REPORT

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AUDUSD triggered a RED RAD REVERSAL at/near the weekly open.

The previous week's low, was a potential target or area to move the stop once penetrated.


PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
TheRumpledOne
 
Posts: 356
Joined: Thu Sep 03, 2009 10:48 am

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