thread: Ratios and Harmonics: a Different Way to Trade

YM - extended at 25107, hoping this one finally gets me back to the green/black today.

Still long at 25107, we approached construction having very good momentum, the pull back and further turning extends the profit target.

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quote Still long at 25107, we approached structure with quite great momentum, the return and further turning extends the profit target.

And I'm out for 67

So I ended up earning money today even with a negative point total due to different position sizing.
I'll report the actual points and the prorated points

Wins: 41, 30, 1, 67
Losers: -46, -39, -68
-------------------------------
Total: -14

The prorated version:
Winners: 41, 30, .25, 67
Losers: -37, -39, -41
-------------------------------------
Total: 21 ....ish


Hard fought afternoon, with almost all the winners being following lunch.

quote Sorry to Listen to. Could you please place a chart with your entries?

Hi evocpr19 thanks for agreeing to examine my trades. Chart is connected.

Notes are:
T1: Stopped into the pip. Should have left more space. Would have hit TP. Should have got out with 50 pips on monitoring stop
T2: Got in late but watched quite powerful downward movement on candle immediately following entry so stopped out through fear at BE. Should have left with potential TP in 72 pip on monitoring stop
T3: BE commerce - I feel this was a fantastic entry but commerce reversed.
T4: Got overly fearful and proceeded SL overly shut again for 10. If placed SL above construction would have made 92 pips.
T5: Saw Rotation candle and again losing trade. I think I did everything right here. Expectation failure
T6: Saw a rotation candle for a buy but in hindsight should have been searching for Shorts therefore Error trade. Hit SL very quickly
T7: You can not really see out on print connected but had been looking in a weak pull back for a Sell. Thought price would continue to motor south but it reversed sharply.
T8: Great trade albeit just a 50% change. Hit SL.
T9: Got in late and should have noted change candle and never placed commerce. Price continued to make a new high breaking structure. Had I exchanged I must have placed SL higher which would have been hit.

Overall terrible decision making about the whole specially trade 6 and 7.

quote Hi thanks for agreeing to examine my trades. Chart is attached. Notes are: T1: Stopped to the pip. Should have left space. Would have hit TP. Should have got out with 50 pips on trailing cease T2: Got in late but watched powerful downward movement on candle immediately following entry so ceased out through dread at BE. Should have with potential TP in 72 pip BE trade - I feel this was a good entry but trade reversed. T4: proceeded SL again and Got overly fearful. If put SL above structure...

Regardless of the fact that I don't agree with your first analysis on what to expect (maybe more clear when you see the chart; less observable on the time of your initial entry), you have first to choose exactly what you trade. The different perspective of what to expect, would still not have a big impact on your trade.
Since you've drawn the yellow line (in my chart the red lines), I guess this was what you wanted to trade. So price adjusted to 78,4 fibup. Why did any SL hit? What is your main swing (reference swing) ? Where are the stop? .
Lets have a look what could have occurred if you had your stop at the ideal place (below your benchmark swing), look how long could have passed to still depart with profit!
You make an attempt to trade different orderflows (immediate and longer duration orderflow). Every orderflows has its SL. When you examine the four ticks trade. Where ought to be SL? . Why did you depart at that point (if this could have occurred on another swing, I'd understand).
The past trades are disregarding the circumstance of yesterdays PA and what price attained today. But this is not the vital issue.

It appears that you would like to prevent by all means that price runs against you personally. You can't make sure that you enter always at the spot. When your entry is not valid anymore you have to understand. If the essential SL is too big, switch to ordeflow or await a better chance.

PS: Please don't feel attacked by mepersonally, I want to help you. It is not my intention, if something sounds difficult to you. It is much more my English.

Hope this helps

Update: Just watched in my chart is written NO NSL. This is wrong, should be NO NSH.

quote Regardless of the fact that I do not agree with your first analysis about what to expect (perhaps more apparent when you see the chart; less observable to the time of your first entry), you have first to choose exactly what you trade. The view of what to anticipate, would have a big impact on your primary trade. As you have attracted the yellow line (in my chart the red lines), I guess that was exactly what you wished to trade. So price corrected to 78,4 fib, rotation up. So did some other SL hit? What's your primary swing (reference swing) ? Where...

Thank you for taking the time to analyse the trades I made now. I am extremely new to Harmonic trading and learning. I find your remarks very useful. Following the event on many of the trades now I realise where errors were made by me. Of course that is too late for the outcome but hopefully I shall reduce the instances I make errors later on.

I agree I need to take far more attention with placement of the trades and look a lot more at identifying the swing I am trading to make sure I understand what I am trading for the AB=CD patterns. I need to consider far more carefully what the SL would need to be when I put a trade. A number of my trades weren't the direction. I had been looking too much at the swings and dismissing the more order flow. For example I was looking for BUYs out of 1pm GMT until around 3.30pm GMT yet still made a SELL trade (commerce 4). I have trades that are exited far too early or regretted making the commerce and whilst in trades I neglect to follow my rules looked for a break even depart.

I'm sure that over time that I can improve my comprehension of when entrances are invalid or if a SL is too big and thus I need to pass a lot more potential trades and make sure I do not only cancel a trade when it starts poorly but only await the outcome. If the SL is in the ideal place and it has right R :R when the trade is right (i.e. trading the proper direction) and strikes the SL I understand this would be a 30% likelihood trade, therefore I don't need to beat myself up about the trade (e.g. commerce 5) which though led to a loss was an anticipation failure from NSH to NSL.

In summary now has been an embarrassment for me personally in relation to following rules. When I set 10 trades I am making mistakes on probably 6 of these at the moment which is completely unacceptable and a slope to wiping out the trading bank.

Summary:
a. As I was trading the swings, lots of my trades had the SL in the wrong loion.
b. A number of trades were just plain the wrong direction (i.e. placing a SELL on commerce 4) when no anticipation failures had occurred.
C. Late entries (commerce 7). Should not have placed this. SL would have had to be large.
D. Cutting trades too early if I believe I've made mistakes or if the market moves against me originally. More care in placing the trades are required.

quote that looks fine to me, you know which order flow you're trading and maintaining your expectations in line. My only comment would be when you're trading that immediate order flowa 233T rotation can be overly costly. I try to maintain my tick chart correlated I am expecting and that is ever changing. I want to see rotation candles to create my decisions.

Thank you! So trades look acceptable today, got the shitty end of the stick? Tomorrow I may provide a test to the 144T there was one commerce now that I could have gotten a lot sooner and dropped less.

quote Thank you for taking the time to analyse the transactions I made today. I'm very new to Harmonic trading and learning. I find your comments very useful. Following the event today I understand where errors were made by me. Of course that is too late for the outcome of today but hopefully I shall reduce the times I make errors later on. I agree that I need to take care with placement of the transactions and look at identifying the swing I'm trading to make sure I know what I am trading to the AB=CD patterns. I need to...

You could use a line colour for highlighting your trading primary swing and another colour for drawing on 1:1 correction swings inside your principal swing . This helps to not loose focus. After your primary swing gets broken, then you erase that and draw your new benchmark swing.


Losses are part of the business and learning procedure. If you're new to harmonics, you may also exercise on demonion.

quote You can use a line colour for highlighting your trading main swing and another colour for drawing 1:1 correction swings within your main swing . This helps not to loose focus. Once your swing becomes broken, you erase draw and that your new reference swing. Losses are part of the company and learning process. If you are new to harmonics, you could exercise first on demo.

Good tip. I'll look at recolouring the drawing and main the 1:1 correction swing aims to make sure I do not trade the wrong direction. It has been a difficult week for me with all the trades.

I practised for about a month with victory before switching to reside trading. I used the Playback facility to test my trades would have worked out . When I've traded live it has been like trying to ride a bike for the very first time together with the stabilisers removed. I've realised that I want to practice for more and learn before switching back to trading to choose the emotion out of trading. As you say losses are part of the company and learning process. Hopefully I will get there. Next week it'll be demo trading again but after I am confident enough I'll take the stabilisers off the bike and trade Live.

I also have created a checklist to go alongside my trade plan for myself which should help a newbie like me. It is as follows:

1. Work out Stop Loss - If over 40 pips = No transaction
2. Workout Risk:Reward (R:R) - Should less than 1.4 = No transaction*
3. Irregular Rotation Candle? No = No transaction
4. Is correction at least 50%? No = No transaction

DecisionNinjatrader has a fantastic tool for this can be adjusted (Ctrl F4)

Good luck with your trades now if you do any.