April 10, 2012 at 7:35 am | | Comments 3

Yard Crew Traders – When The Bell Rings 2

Today, I bring you Episode 2 of When The Bell Rings.

Hopefully you caught Episode 1 last week which lays the groundwork for where this series gets its name. If not, check it out first!

In this episode, we’re talking about something which many traders fall into the habit of doing, but fail to recognize it until it’s too late. Once that happens, they tend to just accept it even though it leaves them at a huge disadvantage.

I hope you get a lot out of this second installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!

(Direct video link is here for those interested in embedding it elsewhere to share).

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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  1. Hi Jeff,
    I did the Bandit “combo university” course as you know, during the 2011 Christmas break, and it did indeed teach me the skills and knowledge necessary, not only adapt to changing market conditions, but also to adapt to the changing conditions and perspectives within my own mind. It gave me the freedom and confidence to develop trading styles and plans as required and as desired.
    I was a fanatic and hungry for information, and you responded to my countless emails in a broad minded, encouraging, and extremely helpful way. I learnt, not a trading style, but the skills to develop my own style.
    I am forever a contrarian, determined to be independent, to think outside the box, and determined to succeed. My last 8 consecutive day trades during this past week were all positive with the following percentages 8.37, 0.77, 2.11, 2.28, 2.96, 0.44, 0.35, 1.90. Probably a run of beginners luck, maybe not, I am still working on improving the trading plan. If it doesn’t continue to work, or if I get bored again, I will change the plan, or add another one. It’s my own plan and very individual. I turned many of the traditional ideas on their head to get there and you helped me through the process as well as teaching me the skills. I had my share of losses along the road as I learnt to trade (the cost of contrarianism), I believe that’s how most learn their trading lessons though.
    I am here to say thank you for all the help. Mostly I want to say thanks because I have thoroughly enjoyed the whole process.
    Oh! I enjoyed the video too. Very entertaining!

  2. Thanks so much for the feedback, I’m of course glad to know you found the courses to be so thorough. Better yet, they delivered what we promised in equipping you to trade in your own way. I love hearing it!

    Congrats on the streak of wins too, that’s cool!

  3. (Me again…sigh!)
    Here’s my plan Jeff,
    I’m not recommending this plan by any means, but it may be a starting point for people to modify and, at the very least (hopefully) may be of some intellectual interest to you or your readers.
    I don’t mind sharing it, and I am hoping that you or your readers might have some comments to improve it. I am day/swing trading gold ETF’s which are dependent on the global price of gold. Your readers are hardly likely to influence the global price of gold so it’s all good.
    It needs some perfection for sure (nothing is perfect), and I am hoping that someone might be able to help with that.
    First select a gold ETF. Either a gold miners ETF, GLD on the NYSE, or any gold ETF. Pick a leveraged ETF for more bang for the buck, and some ETF’s have bear versions to simplify shorting (and limit risk) when gold is going down. All of these gold ETF’s seem to behave the same way.
    I named the plan: TRADING THE MACD (Mac Dee) HILL. (First described on the Bandit.)
    It has to be an ETF to limit overnight risk (particularly when shorting). And this plan involves taking your ETF home with you to catch the morning gaps. The plan more often than not picks the tops and the bottoms (unheard of in trading circles.) Some morning gaps will work against the plan but more seem to work with it so it pays off.
    Once you have picked your ETF that’s the end of daily research, stock picking, looking for patterns etc.
    Plot that ETF on a 5 day chart only with hourly bars only. Add to the chart a MACD histogram with default settings and also an RSI, but change the RSI from the default 14 period setting to a 3 period setting.
    Don’t put volume on the chart. The fact that X number of people want to buy the ETF has no relevance to global gold prices. These ETF’s correlate strongly with the global spot price of gold. Don’t look for patterns either. Volume, patterns, support and resistance are not part of this trading plan (they do feature in my other more labor intensive plans though)
    Once you have set up the chart you will see a definite hill and valley formation of the MACD histogram. At the top of the hill sell short and at the bottom of the hill buy long. It is that simple.
    If you are at the top of the MACD hill and the 3 period RSI is above 50 and the MACD histogram bars go one bar lower go short. If the RSI is below 50 and the MACD histogram goes down wait for three consecutive short drop down bars, or two long drop down bars before going short. Conversely if you are at the bottom of a MACD histogram valley, go long after one up bar if the 3 period RSI is below 50 and three up bars (or two long up bars) if the 3 period RSI is above 50, before going long.
    Look at your charts only once per hour, at the beginning of each new hour. You will confuse the whole thing if you try to jump in. Stick to the plan!
    That’s it!
    I tried adding in futures information and that adversely affected my judgment. Then I thought that most people lose money trading futures, so in that case the majority are always wrong. When I first started this plan I sent myself an email saying “I beat the futures!” to record the date. Now I am bored with futures charts as they are always about six hours behind me. I looked at global gold news and real time international gold spot price charts and that screwed me up too.
    If you, Jeff, or anyone has any modifications or improvements I would appreciate them.
    I have always maintained that traders are a species of superhuman intelligence, and I think my yardstick for measuring intelligence is an understanding of people/human behavior, which is what trading is based on. That comes from my mother. My father was a highly respected intellectual, but I always thought my mother was the most intelligent because she always understood me……no easy feat 🙂

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