Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I don't know that it's "obvious". Traders rarely discuss any of the various kinds of risk, only "Risk". The sticks in the spokes for the intended audience for the SLA have always been price risk and ego risk.
Are you in a bull market? Are you in a bear market? Or, are you in a trading market? lf you are to extract profits from these markets, you must apply the correct methods to trading these markets. If you incorrectly assess your market stage, your trading decisions will be flawed. They will be flawed not because the trading decisions are in themselves bad, but because the premise upon which you apply these decisions is incorrect. Most readers instead blame the trading decisions as being bad.
Do you allow Forex pairs in this thread? If not I will remove these pictures.
I attached a couple of charts from the EUR/JPY Daily and Hourly. PA seems to be locked within a range in the Daily, while the hourly shows price locked in a range within the Daily's upper range limit and median.
I'm not interested in it, but if you can make it work, why not?
However, it isn't going to do you much good unless you draw your lines in real time. And unless whatever you're trading is mean-reverting, you will in effect be playing dodge ball with price. Add to that the fact that the SLA is of little use in ranges and of no use in chop and you may be running after the wrong train.
I don't want to interfere in journals unless asked, and I'm not a fan of the ES anyway, but I would like to point out that trading the ES under these conditions is particularly difficult, regardless of whether or not one is trading the SLA/AMT.
If the following chart is not self-explanatory, I'll be happy to elaborate.