The 100-Pip Tradercompletely justifiable short-term buy trade on the British pound
that would conflict completely with what someone might see on
the 240-minute chart. What that does in my estimation is create a
little bit of a conflict but if through testing and statistical evidence
I can prove that incorporating a longer timeframe chart into my
shorter timeframe trading makes it more profitable, then I’m per-
fectly willing to do it. Like I said before, I think nothing is really
valid or invalid in trading, only testing makes it so. That’s one of my
favorite quotes that I made up. You have people walking around
all the time saying never do this and never do that, well testing is
really what makes the difference in whether something works or
not. So I am willing to do that. I’ve on occasion actually traded
short-term from the long-term charts. Meaning instead of looking
at the long-term trend and then picking an entry on the short-term
charts, I’ve actually looked at the long-term charts and basically
just traded for the very short-term when it hits a major level of
support and resistance. So it was actually sort of the opposite of
looking for confirmation.
Q: So do you have any alarms or any beepers by your bed to tell
you if things are happening over night?
A: I’ve tried the whole gamut. I’ve tried the baby monitor thing.
I’ve tried the making my computer make some horrendous loud
noise in the middle of the night, and what I do now is I essentially
set the computer to send an e-mail to my PDA and it just buzzes
or vibrates and I’m sent a text message to the PDA.
Q: What kind of equipment do you use?
A: I do 99 percent of my work on a Dell laptop. No extra monitors
or anything. I do have a desktop that I can hook four monitors up
to, but I usually have it running a music service or cable TV. At the
office, I also have a few televisions and lots of food and music and
other traders around me. It’s a great environment for testing and
trading.