BarroMetrics Views: Risk Management IV
In this blog, I want to consider the elements of a robust trading plan.
There is a correlation between the WinRate and timeframe a trader is trading and whether or not he is in a Flow Phase.
There is an inverse correlation between the timframe being traded and the Win Rate. The shorter the timeframe, the […]
BarroMetrics Views: Risk Management IV
BarroMetrics Views: Trading Plans
Through the years I have been asked: what would you recommend - a discretionary or mechanical trading plan?
My answer has always been the same: “it depends on what best suits your personality and experience”. My preference is for a discretionary plan; but before I get into that, let’s define what I mean […]
BarroMetrics Views: The Maximum Extension
MH dropped me a line requesting I explain what I mean by ‘The Maximum Extension”. I am happy to oblige.
In my approach, I look at three filters when assessing breakouts:
A time filter (Whole Point Count [WPC])
A momentum filter (Line Change Count [LCC])
A price filter (Maximum Extension [ME])
(The WPC and LCC are […]
BarroMetrics Views: Quantified Trading
“Do you believe that quantified trading can be successful?”
Thanks Joan for the question.
I certainly did not mean to give the impression that I am against quantified trading. Indeed, I often refer to Rob Hanna’s “Quantifiable Edges” as a means of checking my reasoning.
What I did mean to convey, is that quantified […]
BarroMetrics Views: Entry Zones III
We were looking at the UK 100 yesterday when I said that for Habits of Success traders, they usually look at the weekly for trend identification and zones. So let’s have a look at the weekly, Figure 1 (the yellow lines are the 1-period swing).
We see that from ‘0′, the instrument […]
BarroMetrics Views: Entry Zones II
The second question this week comes from John (pseudonym). John attended the final Habits of Success Seminar I gave in Singapore. He has been struggling with the idea of zones. The Word doc contains the charts he sent me of the FTSE.
In Habits of Success, I taught this analytical process:
Identify the […]
BarroMetrics Views: Entry Zones
This week I’ll reply to the questions I have received - either to my email or comments here.
ZH raised the questions in the attached doc file. For those who have not read Nature of Trends, I use statistical price and time info as the first filter to position sizing.
You have misunderstood what […]
BarroMetrics Views: Shortening of Thrust
Continuing from Thursday’s ( 05-30) blog….
‘Shortening of Thrust’ is a tool for identifying end of moves. It’s to used within a context - the most important of which are:
a possible termination zone, and
the volume and range relationship. Are we seeing from a possible climax and/or from the volume and range […]
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 - […]
BarroMetrics Views: Quant Studies
As a visual, discretionary trader, quant studies are not my forte. But that doesn’t mean I can’t outsource the expertise. I have found Rob Hanna’s Quantifiable Edges to be by far the best (at least so far as I am concerned). His blog is well worth reading. (My link will take you […]
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