Linda Rashke: Trading Sardines - PursuitOfEdge/books GitHub Wiki
Chapter 13: Market Technicians
Alan Shaw p.89
the market is a discounting mechanism
the market tops out when things could not look any better; the market bottoms out when things could not look any worse
in price there is knowledge
Robert p.91 liked 3 pushes up or down on SP 5-min charts
Bob Buran p.92
even if lost money, great job as long as followed the system
you must take every trade, you can always get out manually if you need to, but don't miss best entries
have a basket of markets because there will always be 1-2 that don't make money that year
you never know which markets are going to produce the best trades
a high percentage of profits come from a few trading days each year
Murphy's Law: if u skip a day to go to the World Cup or something breaks that day that's gonna be the big day
Chapter 14: Working the System
p.95 inspired by George Angell's ROC(2) systems
Linda liked 1-5 day patterns and ROC(2)
Chapter 15: My Trading Program
Program 1: mostly trades SP futures day trading, some Russell or NASDAQ
used to use market internals like Ticks, Trin, trend of breadth, VIX, but not really anymore
get the main idea right: will it be a low to high day or high to low day?
ideal trend day: get long, stay long, scalp every continuation pattern
on consolidation days: fade small spikes up and down after a big move
Program 2: futures
Program 3: p.104 daily and weekly pinballs, five fingers, Antis, black trade, 1-3 day patterns based on LBR310 and divergences near and into a Keltner channel on bot/mid/top
Program 4: call/put spreads at extremes
> the longer the holding time, the greater the risk
Chapter 16: Queen of Spades
Protect your capital
Protect open profits
Set loss limits from your high point in equity, only give back so much
Chapter 18: My Name is in the phone book
Tony Crabel works with holding times of less than 2-3 days p.122
> Professionals often develop concentration and consistency from other disciplines
Chapter 19: It's a profit deal!
Linda backed 16 traders over 3 decades and only one made money: Bob Buran, with a volatility breakout system
Bob Buran trades a momentum long-only strategy based on the previous day high/low that stays in trades anywhere from 1-3 days, thce magic is in the stock selection looking for things that trade through
Chapter 22: Moving up the big leagues
the 3/10 buy divergence was her staple but there was a problem with it p.153
momentum oscillators are useless in consolidations when there is too much price bar overlap
if there is a low ADX, which measure the amount of price bar overlap, toss them out the window because there are no swings to measure
trades with the same size # but adjusts the stop
does not keep resting stops in the market but definitely uses mental stops
Chapter 28: Mr. Bill
Linda had a stint as a bodybuilder and this chapter emphasizes exercise as a base, consistency, rituals, writing down goals, tracking progress
Chapter 32: Enter Enter Enter
"> Correct Mistakes Immediately" and "Winners Admit Errors" p.220
Chapter 41: bulls and bears make money, pigs get slaughtered
emphasis of "getting smaller" and "lower size until your sleeping point" - Livermore in order to trade and recover a drawdown, stay in the game
Chapter 45: What do you do for fun?
Linda was so stressed out with high cortisol levels that she stopped producing hormones
emphasizes getting at least 7.5 hours of sleep a night
talked about 2 interns who traded opposite strategies: one traded BBands countertrend midday when volume was low and the trend couldn't push it, the other traded MACD early in the morning both on SP 5-min charts