Re: DRAIN THE BANKS
Posted: 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.
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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.
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PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.