10-14-2013

Pre-Trading Notes:

1.  Focus on drawing and re-drawing the trend lines.  You have to get a lot of bounces off of a line for it to be legit.
2.  Small bars going in one direction is a strong trend.
3.  When price breaks a trend channel to the downside when in an uptrend and then goes up to create a new high then the rule is we will get at least a correction that lasts an hour or more.  After that you can start a new trend in either direction.
4.  When price breaks a trend channel to the upside when in a downtrend and then goes down to create a new low then the rule is we will get at least a correction that lasts an hour or more.  After that you can start a new trend in either direction.

Post Trading Notes:

It looks like there is definitely some merit to using the Jigsaw tool in conjunction with Mack's 2nd entries.  It looks like a tool to help decipher when to get in on 2nd entries by seeing if there is a high cluster area of trades when a 2nd entry or failed 2nd entry signals.  If there isn't a high cluster area then it may be best to avoid the trade b/c it seems like a 2nd entry with a high cluster area on the Jigsaw tool means there is a very high probability for the trade to be successful.  Will have to start back testing.  Probably not using it correctly but it seems to give you a good entry price.

I am taking the snapshot and adding it to the trade lists to keep track of what the clusters look like with Mack's trades on the Jigsaw device.

Took two bad trades (#5&6) due to frustration after missing a big move.  They worked out but it was b/c of dumb luck.  Very bad habit to get into.

#3 focus point from pre-trading notes netted me the biggest trade of the day.

Need to focus on failed 2nd entries b/c not only are they good on their own but they help confirm 2nd entries.

Mack's Notes:

1.  He didn't like trade #3 b/c there were 3 overlapping bars which creates a trading range and it still had a ways to go before it reached the lower trend line.
2.  Trend lines are the key so keep messing with them until you get them correct.  They are the key to trading his system.  Once you have them correctly drawn then your trading will become much easier.  He likes to find where you get the most touches from the bar closes for either side of the trend line.
3.  The more reasons you can find to enter a trade then the greater the chance for success.
4.  Studying what you did each day is better than trading in SIM.  The best thing you can do is go back over your trades each day and study your work.  Eventually you will get it at some point b/c you will come to realize all of the traps and tricks that fool you, there are a bunch of them.  Figure out what you did wrong and correct it.  Figure out what you did right and build on it.

Trades:

1.  8:01 - 2nd entry long off of double bottom.  Cluster in Jigsaw at 1686.00.

2.  8:32 - This wasn't a valid Mack trade.  Was messing around with the Jigsaw at a high cluster area.  Although it just missed a big run up if I had gotten in a tick better.
3.  8:59 - 2nd entry long off of the EMA at a big cluster area.

4.  9:06 - Got in too early.  Should have waited for the 2nd entry at 9:25 off of the lower trend line then I could have gotten in at a better price and it was where a cluster area was located.  The trade worked out I just had to be in it longer than I should have.

5.  1:33 - This wasn't a good trade at all even though it worked out.  I was a bit frustrated after the big run up I missed out on so I tried to force in a 2nd entry long close to the lower trend line even though it wasn't.  It was also too far away from the EMA.  Horrible trade.
6.  1:42 - Still frustrated after missing the big run up so what is the worst trade you can possibly take???? A short in a huge uptrend!  Somehow I got the scalp.  This is just horrible trading these past 2 trades.
7.  1:56 - Failed 2nd entry short and the 2nd entry long signaled one bar over.  I could have gotten in a lot better and would have had an even bigger runner.  Price had broken out of the uptrend channel for the first time so I was looking for it to go back up and at least test the previous high. There was also a big cluster at 1701.50.  Got out near the previous high.  Good trade.

Missed Trades:

1.  9:22 - 2nd entry long off of support level or the bottom trend line.
2.  9:59 - 2 legged pullback to the support level of the trading range
3.  10:15 - 2nd entry long and a failed 2nd entry short.  This is a perfect trade to take 100% of the time!!!!!!!
4.  11:53 - 2nd entry long and a failed 2nd entry short.