Why price action is King
To be fair no one here is saying that systems and EAs don't from time to time perform well, 10.x is a great example and for those "in the groove" for a few months earlier this year made decent profits because the markets were trendly strongly. Sadly I wasn't "in the groove" because at the time I had some work to do on my psychology, and a kind member here sent me some great reading material which made a huge difference, so the day when I really had my mindset sorted and took the plunge was a monday a few weeks back when the markets were changing into the current mode and I suffered along with many some losses (about 6%) which was enough to make me stop quickly and have a rethink. The reason I liked 10.x is because it gave a rules based system that was working well so it was easy to know which way to trade and when. I have great deal of respect for people like Bob who have contributed so much with a genuine desire to help others become successful, and so I take nothing away from his contribution or others, and who knows when we get into the trends we saw earlier this year, maybe I'll give 10.x another crack, BUT I WOULD MUCH RATHER TRADE PRICE. But for anyone still trying to trade by the rules, and EA or an indicator based system - beware the wiles of the fox, not saying it can't be done, but like CJ posted recently, think about all the hundreds of hours spent perfecting a model which still doesn't churn out the profits consistently, and compare that to xrismak humble approach who has beavered away trading price for four months and tell me who's the winner  xrismak I congratulate you, you and others have shown that even a little of the genius of CJ can pay huge rewards.
Price action is king because it is reality. It is what it is, it needs no indicators to be understood so why use them when all they will do is distort the reality that is right in front of you? IMHO we would do better to not understand where price has been but where it is going, and the only way to do that is to understand market behaviour, why price moves the way it does, and for that our hunt puts the fox firmly in the scope. Things which hold value from the past are the things that can still affect the future, but only because the fox uses such areas for accumulation and manipulation because he needs volume to do business with. Make no mistake we're not trading the charts. We're doing business with the fox. It's good old fashioned business of buying and selling, but you're not selling to the chart, you're selling to the fox, and you're not buying from the chart, you're buying from the fox. So these key things are like the high and low of the day, session high/lows, support and resistance etc, purely for the reason that here orders are lurking and the fox can collect volume to do his business.
Price action is king because it can be traded with greater profitability and consistency regardless of what the market is doing. Whilst the fox is in business there are profits to be had, and the fox always has an insatiable appetite that is never filled and a thirst for money that is never quenched, so whilst we still have a platform to trade from, there are still profits to be made, but only if we trade with the fox. You can't outsmart the fox because it controls everything apart from one thing, your participation.
I want to be able to trade consistently and profitably no matter what the market is doing, and to do that I need to trade pure price action, and if I can do that, then I don't need anything else. I believe the efforts made here are a wise investment, so my thanks again to CJ, xrismak, kwanann and everyone else who have given so much to make this possible.
Pips 400 |
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). I just think this needed to be brought up.