ABC Trading

[brad01]

Hi guys this concept has helped me a lot to be a better player

Casino gambling in my mind is investing

Its the same as property, shares, sports betting, horse racing

We should take the tools form the other forms of investing and use them in this game

Well sports betters promote mostly flat betting and strict MM and always having a better than 50% hit rate

58% they consider good

This is about share trading and I did a course maybe 10 years ago but never took it any further as didn't have time then and the platform per year cost money to be able to have access and analyse trades.

The concept was called ABC trading and if you look at a sharemarket graph you will see its a series of repeat patterns either rising or falling but the curve dips down and then goes back up - This is the A section.

Then it rises a certain length of which can be calculated based on previous patterns - It hits a peak which is the B section

Then it dips down again to a plateau and that's the C section

The whole cycle repeats

Well the idea is when you see the curve dip you get into the trade with a stop loss - you can do it automatically so that if it hits then theres an automatic sell

The stop loss is calculated to be just more than when they expect the curve to reverse and rise

If you don't stop out then you are on the positive cycle and that's where your profit comes in

You have to have a predetermined profit you expect to make and you can also put in place what you call 'trailing stops'

As the curve goes up if it reverses to the trailing stop then you sell automatically with a profit.

As the curve rises your stops go higher so you can lock in a higher profit

When you reach the top of the expected length then you hit the B section

After that the curve peaks out and starts to go down and this is where you should sell if you haven't already

This then hits the C section

This is for a rising market - a falling market is reverse where you can buy contracts and you actually can make money as the market falls

THE POINT IS WE SHOULD THINK OF EVERY BET WE MAKE LIKE AN INDIVIDUAL TRADE WHERE YOU SEE AN OPPORTUNITY - YOU PICK AN ENTRY POINT AND GET IN

USE A STOP LOSS IN CASE THINGS REVERSE ON YOU AND IF THEY DONT THEN YOU LOCK IN A PROFIT WITH TRAILING STOPS OR UNTIL IT HITS EXPECTED PROFIT AND YOU GET OUT

THEN YOU START AGAIN WITH ANOTHER BET / TRADE

THIS IS WHAT SHARETRADERS DO - THEY HAVE MULTIPLE TRADES GOING AT ONCE AND A LOT OF WHAT THEY DO IS AUTOMATED

I WILL POST A PIC OF THE ABC GRAPH

 

[brad01]

A - the point where things plateau out and a rising trend starts falling

B - the point where the falling trend hits an expected low and starts rising

C - the point where a rising trend hits an expected plateau and starts falling.

[William Looi]

4 hours ago, brad01 said:

4 hours ago, brad01 said:

A - the point where things plateau out and a rising trend starts falling

B - the point where the falling trend hits an expected low and starts rising

C - the point where a rising trend hits an expected plateau and starts falling.

A - the point where things plateau out and a rising trend starts falling

B - the point where the falling trend hits an expected low and starts rising

C - the point where a rising trend hits an expected plateau and starts falling.

For stock trading and forex trading this is one of the methology and interpretation of market behavior , There are three type of eliot wave , 1, trending 2. Range 3. Consolidating.

[William Looi]

I  do not have enough money to buy stock , so I seek gambling baccarat to generate enough money to trade stock and forex.  Stock trading is profitable and easy , buy stock and sell option which will  exp in one month or more.

[William Looi]

B 1312311312132152211141117111121

 

ss  1312  L

Otb  23  LL

Tb4l 3113 W

ss 312  W

otb  32 LW

RE  5  W

OTB  22  LL

oppsite   211 W

TB4L  211141  W

No bet   7  Tb4L in momentum

oppsite  111 W

 

total 1+

 

[brad01]

I know of 3 market types

Rising (bull)

Falling (bear)

Sideways

 

Most basic traders only look for rising market

More experienced can short trade on falling market

Nobody likes sideways that I know of and that's quite often how the markets go

[LOU30]

Hi Brad, Great topic,this is something I know nothing about but would love to learn more and I find really interesting.

If you can find some time and have any more info can you please keep posting.

 

Best wishes Lou.

[brad01]

Hi Lou,

Well I really believe we should learn from other types of investing.

What we do is hopefully closer to investing than gambling - well that's what I hope anyway.

Sports betters can do the best they can with picks and still lose and there's nothing they can do.

We can change approaches or biases, they cant - they can only choose what they believe to be the winning team or result.

Therefore they rely on a very solid Money Management and Bank Size to get them through.

Stock Traders as I see it have very defined targets in place.

They can predict how they think the market will go but they still can be wrong.

I like the way they use an automatic stop loss and trailing stops in their trades.

That way they can sleep and if the market falls there's an automatic sell option there locking in a profit.

I think we should learn from that in having automatic stop losses but also defined win goals.

Its easy to say when it goes your way keep betting but what is your target?

Many people play with no win goal per bet or per session.

I believe we should treat every bet like an individual trade in itself - it must have a stop loss and a win goal.

The course I did taught this type of technique they called ABC trading which the diagram shows.

Eg

If you see 4 players in a row and you choose to go with the bias (rising market) - what is your stop loss?

1 unit? - then you can only bet 1 unit and if you lose you have hit it - you lost that trade - move on

If you win you won 1 unit - what is your win goal?

If its 1 unit then you should not bet again.

If its more than 1 unit then you bet again.

Where is your trailing stops?

-1 unit?

The if you lose the next bet you have hit the trailing stop.

 

 

   

[Fedda]

Gambling is like trading with 1:1 risk to reward. In trading, you have to pick out high probability trades and not trade every signals you get. Fixed take profit is ok if you have an idea how long or short it goes. If not move your stop loss to breakeven and then use trailing stop. You could actually compare Mdb with trading using high probability entries!

Edited April 26, 2016 by Fedda

[brad01]

ABC trading was based on the sine- wave pattern that happens in the share market - trying to pick the length of the peaks and troughs

Never put the time into it - did the course and then didn't apply anything and then when I went to start they wanted to charge me $500 to renew my trading platform software.

You cant beat baccarat for ROI and liquidity - instantaneous decisions and instant payout.

In this country - no tax 

[brad01]

I am reemphasising the principles of A B C trading can be applied to baccarat / gambling

I propose:

A = trigger point where you see a potential bias forming

B - stop loss 1 - 2 units where you decide that you potentially picked the bias wrong and cut your losses rather than risk more $$ that it will turn around

C - the maximum range you expect the bias to go for before a potential change - by this point you should have locked in a win or be prepared to quit from a high point after 1 - 2 losses. If in doubt lock in a profit before