I was reading Bemac's excellent "Killer" thread and came upon the following posts which really piqued my interest:
I am just trying to figure out how such a trading method would work. Is it something like trading towards the high/low when price gets close to it? But then how would the multiple high/lows from all the different time frames would work into that? Any insights will be really appreciated.
QuoteDislikedThe best trader I have ever met was this hippy looking guy who came down from the mountains or something to this local 4x meeting I happened to attend about 5 years ago. He turned 4k into 60k in 3 months or something doing nothing but trading the bid/ask. He kept a note book and would keep track of what numbers kept showing up as the high/low of every time frame from 5 minutes up to the weeks and months. Doing that, he scalped every nook and cranny and basically beat the crap out of FXCM to the point where they called him a cheater and put him on manual execution. I don't get the calling him a cheater, but I can understand putting him on manual. Anywho... I was so completely blown away what this guy did just watching the bid/ask and writing down numbers in his little notebook. That was one of the major inspirations for going chartless and focusing on just the numbers.
QuoteDislikedHe didn't use big leverage. Just a ton of trades when all was said and done. The one that really stuck out to me that I think got lost on everybody else in the room was that he was also a very good craps and blackjack player. Good enough to almost make a living at it. The part that stuck out was that this guy was not afraid to lose a trade or a hand of blackjack. He said keep'em small and get on with the next trade. Stay with the game plan because you'll come out ahead in the end if you stick with it. Take care of risk blah blah blah. Everybody else in the room was too busy asking about the money they thought they could make doing it his way. These were almost all 4x Made Easy users btw.
I am just trying to figure out how such a trading method would work. Is it something like trading towards the high/low when price gets close to it? But then how would the multiple high/lows from all the different time frames would work into that? Any insights will be really appreciated.