Hello, I would like help building a practice template for live trading.
-I have worked through the TPT course.
-I have practiced on static charts or BAR by BAR-Signal bar identification, Trendline and channel work, Reversals(LH/HL), 2nd entries, S/R, Context. I compared with Mack, Thomas wade, and Marco's charts. I feel confident.
-I have practiced on dynamic charts in the simulator. Working on momentum identification, signal bar identification, marking every perfect signal bar in real time at 2-10x speed. Another 5 days placing a trade on every perfect signal bar. Another 5 days trading every 2E I saw with a perfect signal bar. I feel good but exhausted.
-I want to now practice on live charts. I have 4 hours a day to do this(how many breaks should I take?). What is the recommended place to start when practicing live. One thing at a time or put everything together at once? I need to be able to track my progress. Do I start just by taking every 2E at a KEP w/signal bar? and compare to Mack's chart? When do I add context? When do I add other setups(LH/HL,3t, etc.)? Any rec's would be appreciated.
My goals are to properly track mechanical performance and improve over time and to achieve 70%+ win rate.
Thank you!
Derek
Transitions From Static->dynamic(sim)->Live
Re: Transitions From Static->dynamic(sim)->Live
Derek,
First, congratulations on creating the time to study diligently! Studying price action is a very large scoped project. Note, this isn't about a final goal line and to work towards profitability.
There are a few questions I have though. Note, other than psychological performance issues, and Lecture 7 covers how to work through many of those important issues, there isn't much difference between using a simulator account on a live data feed versus a live one. Until you are trading many contracts (50+ on regular volume days), it generally behaves the same. This is good news as the skills you develop to execute with 1 contract are the same with 5. After 4-5, you might decide to include a "runner" for swing trading.
Knowing the above, you can trade a simulated account against a live market to give you a good sense of where your current evaluation metrics are.
1. What is your Mack % ratio? Having worked through the material, you should be generally 85-95%+. If this is not the case there is still a bit of internalizing to do.
2. When item number 1 is above 85%+ you'll have a much stronger sense of confidence in your trading capability.
3. Context is EVERYTHING! This is not about counting but becoming aware of what prices are doing within the state cycle [ trend / trading range etc], which helps to set directionality, and then waiting for the appropriate time to execute on the appropriate signals. Without understanding this, there is nothing to be done. Remember, we are not pattern traders.
4. The strongest place for everyone to begin is taking 2nd entries with the trend at KEPs. This is enough, however sometimes it takes a bit of patience.
70% - - - ? Having practiced, I would expect your success ratio to be much, much, much higher. At least from a scalping strategy perspective. I would not recommend going "live" until you feel comfortable both with your metrics and evaluations. Let your metrics be the deciding factor (80%+). What you will find is that over time, "the excitement" of having to perform wears off, and you find yourself in a rhythm of simply evaluating and executing.
As you gain experience, you may choose to participate in a trader funding program. As many of the companies offer very good specials, it is a good way to test yourself without bias and minimal capital exposure. Many of the tests are fair in their challenge and it helps a trader to better understand the concept of appropriate money management and sizing.
From every session, study how you evaluated the day, the trade selections, the directional biases you had before, during and after you have taken trades. Measure yourself and correct where appropriate. Most importantly, write down your trade plan - what you can execute on, and how? It can be a visual plan, but that is what you want to be able to execute against. Measure if you can stick with your trading plan. Through doing this, you can match your actual actions against your "intended actions". You will also find that the market, well yes it does move in specific patterned movement and geometry. It is simply watching how momentum builds, ebbs, subsides and transitions.
Hopefully helpful and good trades to you! Keep up the good work!!
First, congratulations on creating the time to study diligently! Studying price action is a very large scoped project. Note, this isn't about a final goal line and to work towards profitability.
There are a few questions I have though. Note, other than psychological performance issues, and Lecture 7 covers how to work through many of those important issues, there isn't much difference between using a simulator account on a live data feed versus a live one. Until you are trading many contracts (50+ on regular volume days), it generally behaves the same. This is good news as the skills you develop to execute with 1 contract are the same with 5. After 4-5, you might decide to include a "runner" for swing trading.
Knowing the above, you can trade a simulated account against a live market to give you a good sense of where your current evaluation metrics are.
1. What is your Mack % ratio? Having worked through the material, you should be generally 85-95%+. If this is not the case there is still a bit of internalizing to do.
2. When item number 1 is above 85%+ you'll have a much stronger sense of confidence in your trading capability.
3. Context is EVERYTHING! This is not about counting but becoming aware of what prices are doing within the state cycle [ trend / trading range etc], which helps to set directionality, and then waiting for the appropriate time to execute on the appropriate signals. Without understanding this, there is nothing to be done. Remember, we are not pattern traders.
4. The strongest place for everyone to begin is taking 2nd entries with the trend at KEPs. This is enough, however sometimes it takes a bit of patience.
70% - - - ? Having practiced, I would expect your success ratio to be much, much, much higher. At least from a scalping strategy perspective. I would not recommend going "live" until you feel comfortable both with your metrics and evaluations. Let your metrics be the deciding factor (80%+). What you will find is that over time, "the excitement" of having to perform wears off, and you find yourself in a rhythm of simply evaluating and executing.
As you gain experience, you may choose to participate in a trader funding program. As many of the companies offer very good specials, it is a good way to test yourself without bias and minimal capital exposure. Many of the tests are fair in their challenge and it helps a trader to better understand the concept of appropriate money management and sizing.
From every session, study how you evaluated the day, the trade selections, the directional biases you had before, during and after you have taken trades. Measure yourself and correct where appropriate. Most importantly, write down your trade plan - what you can execute on, and how? It can be a visual plan, but that is what you want to be able to execute against. Measure if you can stick with your trading plan. Through doing this, you can match your actual actions against your "intended actions". You will also find that the market, well yes it does move in specific patterned movement and geometry. It is simply watching how momentum builds, ebbs, subsides and transitions.
Hopefully helpful and good trades to you! Keep up the good work!!
Re: Transitions From Static->dynamic(sim)->Live
Thank you Eric. This is very helpful.
Yes this is defiantly a large scope project. I have been working at it for over a year now but after a review of the last year I noticed I was not, Learning properly or getting better. The TPT lectures will help drill in the steps I need to take and how to practice. I have also bought a 4 week course called "learn how to learn". I will be returning to the market again with new thought patterns
I will continue to work on creating mechanical repetition and review to track my progress. I will also start building a play book to help track my rule following.
Thanks again.
Derek.
Yes this is defiantly a large scope project. I have been working at it for over a year now but after a review of the last year I noticed I was not, Learning properly or getting better. The TPT lectures will help drill in the steps I need to take and how to practice. I have also bought a 4 week course called "learn how to learn". I will be returning to the market again with new thought patterns
I will continue to work on creating mechanical repetition and review to track my progress. I will also start building a play book to help track my rule following.
Thanks again.
Derek.