BarroMetrics Views: What It Takes To Succeed V
Today, let’s look at elements of a discretionary trading plan. It’s worth bearing in mind that as traders we create plans to help us determine when the probabilities favour a trade (entry) and when they no longer favour it (exit).
There are many ways to frame a plan – what is important is they suit our personality. For example, Rob Hanna is a swing (Quantifiable Edges) trader using quant methods. His approach could not be more different to mine – yet we both succeed.
[Speaking of Rob, he has a new service, Overnight Edges ‘dedicated to taking advantage of overnight movements’. Looks really interesting – a story for another day].
My approach is based on:
- A model to place structure around price action – based mainly on Wyckoff and Market Profile (note the CME is interactive; so, click on the headings to see what they say); and, to a lesser, my re-interpretation of the Elliot Wave (which I call the Ray Wave)
- Testing and validation of the setups that I use in my trading.
Figure 1 shows the Wyckoff-Tubbs model. Tomorrow, we’ll examine Wyckoff’s ideas in a little more depth.
FIGURE 1 WYckoff – Tubbs Model