Most helpful positive review
5 of 5 people found the following review helpful
Worth a read but don't take as gospel
on 22 November 2013
There are a lot of good things in this book. The author covers the details in regards to the practicalities of running a strategy. There are some good bits of advice such as “you should always think first about what can go wrong about a trade and not get emotional“. Tehre is also some practical tips on working out stop loss levels and how to walk the stop loss through the trades lifetime. There is a little bit of fudging assumed by the book in regards to when to ignore certain patterns but the author is right to do this if there is an assumption the reader is not a novice. The other thing that I liked a lot is talking about timing and trade entry. To its important to let bars close before they are used and to look for strong confirmation bars before risk is taken.
There are some statements made early in the book in regards to the types of trades that should be taken which I would question. The authors advice is to trade 4 hour bars and to look for trades with 1:2 risk reward ratio. This is only their personal preference and it should be pointed out there is nothing wrong with trading lower or higher time frames or taking different risk reward ratios. Some of the justifications around why a person should trade on a longer time frame I would also call into question. If you truly scalp then you’re less susceptible to event/data release risk as you do not have to hold risk over economic numbers. The other thing I will point out is a single bar can be the difference between a really good trade and missing the boat. What if that bar happens at 4 in the morning when japan comes in and you’re not awake to trade? Then next entry could not be for a week.
The book has good ideas and good advice. It is for the reader to separate personal preference from the more general good advice.