A Need For Thought

BarroMetrics Views:  A Need For Thought

We have just completed the 4-week live session for the Barros Swing seminar.

All in all, I think it will prove to be a winner – by that I mean we will see traders who will join the elite 10% to 20% who make money consistently. One thing I did note though: quite a few attendees would do better if they are more willing to think through the ramifications of concepts rather than rely on being told.  The best lessons I learned were the ones I thought through for myself and where I made clear connections that were implied the content I had been taught.

Let me give you an example of what I mean.

For inter-day timeframes, I use swings that correspond to calendar periods e.g. the 5-day swing to trade the weekly trend, the 18-day swing to trade the monthly trend etc.

In determining the intrad-day time frames, I divide the dominant period by 5. I do the same for each lower timeframe. What this means is each 5-period swing in a timeframe is the single bar in the next higher timeframe.  So when I am asked what intraday timeframe I trade, I answer the 5-period swing on the 60-minute. So what timeframe am I trading? Effectively the single 290-minute bar which is  the 5-period swing on the 60-minute.

One question  I am inevitably asked is why do I prefer to trade the 18-day on daily charts and the 5-period swing on the 60-minute? The answer is: because that is where my edge lies. This does not  mean that an attendee should necessarily follow my lead. Indeed, once she has an understanding, she ought to make the material her own and trade whatever swing-timeframe suits her. The key is to first acquire an understanding and then adapt the material to suit his personality and needs.

The passing on of knowledge is important; but even more important is to exercise our grey matter and make the material our own.

5 thoughts on “A Need For Thought”

  1. Successful traders told us that trading system must fit the trader’s unique personality.

    Grey Matter Questions – 🙂
    1. Just wondering, the elite 10% to 20% who make money consistently has what kind of (trader) personality?

    2. Barros Swing best suits Strategy Trader, or Planning Trader, or Detailed Trader, or … ?

    3. Would the average Barros Swing attendee’s performance be (greatly) improved after going through the trader personality test/workshop, and adapts the BarroMetrics System to best fit his/her personality?

    4. How could Barros Swing be adapted for those traders who believe in trading with indicators (like Dr. Chris Kacher)?
    – One HOS attendee told me that she must trade with indicators.

  2. Hi Paul

    For me, the comment, “trading system must fit the trader’s unique personality”, relates more to a trader’s attributes rather than any fixed personality type.

    I am not a big believer in personality types whether they be Van Tharp’s or Enneagram or whatever.

    Turning to your questions:

    1) The most common traits I have observed is risk management and the willingness to back their judgment when the feel the risk is warranted.

    2) I am not sure the question applies, and in any event, it has been ages since I read Tharp’s personality styles.

    Barros Swings is theory on the nature of markets and some tools to apply the theory.

    Like any charting tool, it would suit a visual trader. Digitals could adapt the theory into a mechanized system.

    3) In my view no. It seems to me that human nature is so varied that pigeon-holing us into specific types, based on major characteristics, is at best a starting point for self-awareness. The time and effort would be better spent in observation and journaling.

    4) Just because I saw no value in traditional indicators does not mean attendees should follow me. My take has always been for an attendee to make any material her own.

    The common problem, as I see it, is attendees fail to first become acquainted with the material before they start to adapt. Then they complain, ‘it doesn’t work’. With that approach, few, if any methods, will work.

  3. Hi Ray,
    Thanks for your valuable comments/reminder.

    So, a trading system must fit the trader’s unique attributes. 🙂

    But what exactly are those important attributes you are referreing to?

    I would appreciate if you could elaborate with an example how Barros Swing (or other trading systems) could be adapted to fit a trader’s unique attributes.

    Do attributes include:
    – Preference for indicator,
    – Visualization capacity,
    – Degree of reliance on others (for trading advice/decisions)?
    – Intellectual ability to adapt (other working systems to fit one’s objectives, attributes, strengths etc)?

    All successful traders (must) have the excellent ability to adapt other systems to fit them, and also to adapt to the ever changing market conditions?

  4. Hi Paul

    Impossible to give an answer that would do justice to question in this medium. Perhaps I’ll devote a blog or tw (or three) to the answer.

  5. Hi Ray,
    A HOS attendee told me that she must trade with indicators.
    She may not be a good visual traders.

    It would be a great learning experience to learn from you how to adapt what were taught during HOS to develop a trading system that suit her.

    Looking forwards to your (paid) HOS Newsletter for the HOS attendees. 🙂

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