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Well , I see some traders are still interested in drawing all these lines on a chart and expecting a positive result.
No problem . Thats your choice. But do youself a favour.There are better methods.Lots better.
Search ""Volume Profile "" on this website
Or Google ""Trading with Volume by Price indicators"" Great You Tube tut
Regards
bobc
Volume profile or price indicators have just as equal value as the MM Lines; they are just indicators and perform pretty close to random when you backtest an all in all out position. Are EMAs superior to SMAs, MACD better than RSI, Volume profile is better than MML? Proper money management with almost any trade rules can be profitable, even MML.
In trading, shortcuts lead to the longest path possible.
Hi fminus
Thank you for your post
Please give us all an example of how you use money management with a trade rule ( of your choioce) to trade.
Kind regards
bobc
Money management is an art form in itself and will vary by trader. Most of the traders that I've noticed through this forum trade a very simplistic money management approach which gives the false sense of "properly managing their position" but in reality is anything from it. They live and die by the binary outcome of their stop or profit being hit and leave it up to the market to determine their fate. Yes, it prevents catastrophic blow outs but it is just speculation if you are really honest about it and in the long run not a viable path to consistency.
For those out there that want this to become more than just a pure speculation hobby, you must control what can be controlled, such as your position and money management. This can be anything from taking risk off or adding risk on, hedging, creating synthetic positions, etc. I also will have at any given moment up to 10 positions open and trying to manage the beta risk profile of my entire portfolio.
In any of my given trades, I am always working parts of my position to manage risk. Simply put, I create my own assymetic risk/reward trades. Are all trades winners? No. Are any trades losers? Sure. Are my winners always bigger than my losers? Always.
In trading, shortcuts lead to the longest path possible.
Please show me why volume profile works compared to MML regardless of money management and then maybe we can have a real conversation. Money management is the reason why squiggly line trading strategies work. It is why MML can work. It is why volume profile can work. It is why almost anything can work.
In trading, shortcuts lead to the longest path possible.
I want to test something. It's simple. Place some random lines on your chart prior to the day opening, and see if at the end of the day you feel like those lines were important (try to imagine they weren't random, but some expensive or complicated …
Secondly
Volume, in any format, is the ONLY tool that predicts what the large traders are doing.
Thirdly
Nothing works CONSISTANTLY ,without an edge
Fourthly
Holding 10 positions at the same time and your favourite trades are Treasuries..... bonds, makes me think you are an institutional trader. You have an edge which is so ingrained everything works.Thats why I asked for an example, to try and determine your edge
Finally
You cannot make a bad strategy profitable using just money management
No, sir. Volume by itself can fool you. You have to properly interpret volume - for example, you have a large price move on low volume. You have to know what that means.
Secondly, certain candlestick patterns have a very high probability of predicting what the market will do next. It all works together - if you can show me a consistent trading strategy that consistently makes money using just volume, I'll buy you a beer at your favorite bar. Volume and price action work together.