Street Smarts Book Coded for Tradestation

if you don't like this, you don't understand trading

2010-04-07T04:47:00.002-07:00

you can always spot s loser by one of (or both) of two reactions:

1- They want to get into a business to make money but think $200 is too much!!

2- They expect what they read to agree with their bias

Anyone who wants to make money but thinks a book is expensive at $170 has the wrong personality for trading. If you are like that, you have no business trading because you are too greedy and a coward.

Secondely, when you are making a comment about someone, it is really important to REALLY be sure that what you are saying is acccurate. The implication that Linda does not make money trading is just ridiculous. The woman is a bloody Market Wizard, for God's sake! She is also a pretty crap promoter of her services.

The book is excellent. The question is: does it contain methods that can make you money? Of course it does. You guys are clearly sleep walking because you are concentrating on believing that every method in the book will make you money all the time under any circumstances. Quit believing that and pick the ones that work under different market conditions.If you can't, it is your fault, not the book's.

If you watch Linda trading, you will see her using those setups under the right conditions. The fact is, if you cannot make money trading the setups in the book, you are either new and have to learn the basics first, or you are not cut out for this business.

Loved the book. Recommend it for serious traders

2010-04-07T04:47:00.001-07:00

With this said, I have to say that the book was beneficial for me as a short term trader. It helped me find patterns that I would've otherwise overlooked before reading this book. Let me also add that the turtle soup and turtle soup plus one does not really apply 100%, per say, to the fast momentum stocks I screen for. However, reading those strategies helped fine tune my entry and exit strategies when I enter a trade. It did so by helping me look for intraday swings and the probabilities of possible price action for next day trading based on what happened to the price at the close. If anything, the book helped me alot because it opened my mind to other trading possibilities and thus form ideas for myself.

Like another reader said, the authors are not mechanical traders. Thus these patterns and strategies should not be taken mechanically. Instead one should trade cautiously using discretionary stops. The book will only teach you about patterns in the market that have a high probable outcome. It's up to the individual to trade the patterns and use protective stops in the case the anticipated move goes wrong.

A good source of ideas that need filtering

2010-04-07T04:46:00.000-07:00

Street Smarts is one of the better trading books out there. However, as another reviewer rightly bemoans, the explanations are too short. The main problem with a lot of these patterns is that most require a heavy amount of filtering. The Turtle Soup strategy will kill you in a trending market, it needs filtering even in non-trending markets. It seems to have some promise in a high ADX environment only when used as a continuation signal and not a reversal. I tried it on the 5 minute S&P's. Trust me, I had to do a lot to make this pattern work. So much that I discarded the idea of using it. Also beware, some time frames are very bad for the anti technique. I know this is not how it is supposed to work, but from what I have seen there are certain intraday timeframes in the S&P which are just horrible for technical indicators. Play around, you'll see. The range contraction patterns have promise, however the authors neglect to tell you that most should be traded in the direction of the trend. I like the statistical studies in the back of the book. LBR is not a mechanical trader, she has mechanical patterns but she decides when to implement them. Do not trade these patterns mechanically unless you want to get ripped to shreds. Hence I refer back to what I have said from the start, the patterns in this book need much filtering!

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2008-03-30T15:46:00.000-07:00

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What is an NR7 day?

2008-03-30T15:40:00.002-07:00

An NR7 is a day in which the today's daily range (today's high price minus low price) is narrower than the previous six days. The significance of this pattern is that it represents a marked decline in price volatility. Range expansion and an increase in price volatility tend to follow an NR7 day. An NR4 day is similar to an NR7 day except that it represents a day in which the range is the narrower than the previous three days. Toby Crabel originally presented the concepts of NR4, NR7, WR7 etc., in his Market Analytics Letter written in the 1980's. We give credit to him for initiating research in this area. His original articles were published in the magazine, Technical Analysis of Stocks and Commodities.
What is a WR7

What is an "Oops" Trade?

2008-03-30T15:40:00.001-07:00

"Oops" is an expression originally coined by Larry Williams. The setup occurs when the opening price gaps outside the previous day's range. A buy (or sell) stop is placed just inside the previous day's range in case the market then closes the gap, indicating a reversal. The trade is best treated as a scalp trade and exited before the close. This pattern has no long term forecasting value.

What is Momentum Pinball?

2008-03-30T15:39:00.002-07:00

Momentum Pinball was originally introduced in the Street Smarts book as setup to indicate a Buy Day or a Sell Short Day ala George Douglas Taylor. Taylor looked to go short after 1-2 days of rally, and cover and go long after 1-2 days of decline. The pinball indicator is calculated by using a 3-period RSI of the daily net change. The "Street Smarts" book contains a complete and detailed description of this trade.
(Momentum Pinball, Anti, Holy Grail, 80/20 and 90/10 bars, and 2-period ROC signals are some of my ORIGINAL concepts. It is repeatedly brought to my attention that there are individuals on the internet offering newsletters and courses based on my original copy-write protected materials. Please note that I do not have any affiliation or association with these entities.)

What is an "Anti" Setup?

2008-03-30T15:39:00.001-07:00

The Anti looks like a small bull or bear flag pattern that occurs either in the middle of a trading range or just after a market has reversed from a sustained trend move. Classic bull or bear flags are continuation patterns that can only occur in a market that has a well-defined trend. Sometimes an Anti will look like the middle retracement of an A-B-C pattern. Thus, we are able to get a measured move objective that is based off the prior swing. The Anti MUST be preceded by a short-term IMPULSE move. Buy Antis are more frequent than Sell Anti setups. The long trades will have the best odds of success if the prior up leg is GREATER than the previous down leg. Oscillator pattern recognition based on either the 3/10 oscillator or a 7-period %K, 16-period /%D combination of stochastics can also be used to identify this setup.

What is a "Grail" Trade?

2008-03-30T15:38:00.004-07:00

The "Holy Grail" trade was originally described in my Street Smarts book. The setup occurs when the market's trend has been strong enough to cause a 14-period ADX to rise above 30. When the price then retraces back to the 20-period EMA, odds favor a retest of the most recently formed high or low.

How do you enter Short Skirt Trades?

2008-03-30T15:38:00.003-07:00

We watch for a price retracement of 1.5 to 3 points from the most recently formed swing high or low. For an untrained eye, it may be useful to watch the 20-period exponential moving average on a 1-minute chart, though the price does not always retrace that far. Sometimes the reactions that go sideways instead of back to the EMA can be the best trades. The initial price retracement lasts about 5 minutes. When the reaction back starts to stall, we usually enter a market order. It is ideal to enter the trade BEFORE the price starts moving back in the direction of the original trend. It is also most efficient to work a bid or offer as the price is correcting back down, but sometimes the type of order used is a matter of personal style. Since the price has already corrected back 2-3 points when a trade is entered, it is rare that the initial 3-point stop is hit. We tighten the stop up after the trade moves off in our favor.

What is the Short Skirt Trade?

2008-03-30T15:38:00.001-07:00

A SHORT SKIRT is a quick scalp trade made in the direction of the short-term trend. The setup occurs after the S&P has made a sharp "impulse" move. The pattern tends to look like a continuation flag on a 1-minute chart. We call it a "Short Skirt" because the trade usually lasts between 3 - 10 minutes. The concept is - "quick in and quick out without getting caught."
We try to look for Short Skirt setups that have the potential for a minimum of three points in the trade. This is to allow for a minimum of ? point slippage in and ? point slippage out. A 3-point STOP is placed from the trade entry price. The objective for the trade is a retest of the previous wing high or low, even though the market often makes a new leg up or down.
Our mechanical system that we run on Trade Station has a win/loss ratio of 66%. However, through proprietary volatility filters and some basic pattern recognition, our real time track record for the past three years in our online trading room, as documented by the room members, has been 90%.

Street Smarts - High Probability Short-Term Trading Strategies

2008-03-30T15:35:00.001-07:00

If you trade Stocks or Commodities, Street Smarts is for you! Linda Raschke and Larry Connors reveal their most successful short-term trading secrets.
Published in 1996 and written by Larry Connors and New Market Wizard Linda Raschke, this 245-page manual is considered by many to be one of the best books written on trading futures. Twenty-five years of combined trading experience is divulged as you will learn 20 of their best strategies.
Among the methods you will be taught are:
Swing Trading–The backbone of Linda’s success. Not only will you learn exactly how to swing trade, you will also learn specific advanced techniques never before made public.
News–Among the strategies revealed is an intraday news strategy they use to exploit the herd when the 8:30 A.M. economic reports are released. This strategy will be especially appreciated by bond traders and currency traders.
Pattern Recognition–You will learn some of the best short-term setup patterns available. Larry and Linda will also teach you how they combine these patterns with other strategies to identify explosive moves.
ADX–In our opinion, ADX is one of the most powerful and misunderstood indicators available to traders. Now, for the first time, they reveal a handful of short-term trading strategies they use in conjunction with this terrific indicator.
Volatility–You will learn how to identify markets that are about to explode and how to trade these exciting situations.
Also, included are chapters on trading the smart money index, trading Crabel, trading gap reversals, a special chapter on professional money management, and many other trading strategies!
TABLE OF CONTENTS
Chapter 1 – Introduction
Chapter 2 – Swing Trading
Chapter 3 – Money Management
Part I - Tests
Chapter 4 – Turtle Soup
Chapter 5 – Turtle Soup Plus One
Chapter 6 – 80-20s
Chapter 7 – Momentum Pinball
Chapter 8 – 2 Period Roc
Part II - Retracements
Chapter 9 – The “Anti”
Chapter 10 – The Holy Grail
Chapter 11 – ADX Gapper
Part III – Climax Patterns
Chapter 12 – Whiplash
Chapter 13 – Three-Day Unfilled Gap Reversals
Chapter 14 – A Picture’s Worth A Thousand Words
Chapter 15 – Wolfe Waves
Chapter 16 – News
Chapter 17 – Morning News Reversals
Chapter 18 – Big Picture News Reversals
Part IV-Breakout Mode
Chapter 19 – Range Contraction
Chapter 20 – Historical Volatility Meets Toby Crabel
Part V – Market Musings
Chapter 21 – Smart Money Indicators
Chapter 22 – More Words on Trade Management
Chapter 23 – Be Prepared
Chapter 24 – Final Thoughts
Chapter 25 – The Secrets of Successful Trading

simple and brilliant

2008-03-30T15:33:00.002-07:00

Trading does not have to be complex nor do the tools used to make money in the markets have to be perplexing. This book clearly demonstrates simple set-ups which occur frequently in the markets and carry a very high probability of success. I believe these methods could be taught to a bright 5th grader and that person will make consistant money. I have used some of these set-ups for years and they are consistantly profitable. Each set-up has a simply defined stop loss placement,for although these set-ups have a very high degree of success,they are not sure things. Of course noone has a sure thing. In trading all you can do is look to trade the most probable outcome,and street smarts certainly gives that format in numerous ,simple and brilliant set-ups. One can make a living off just a few of the set-ups in this book. Some complain about the price, but i feel that if this book is read properly and you use simple profit objectives the book is worth its weight in gold.

Best Trading Book Ever!

2008-03-30T15:33:00.001-07:00

This book is seriously the best trading book I ever read. I've owned it for 5 years, and I still use it for reference. The strategies worked in the go-go 90's when an idiot could trade profitably and the strategies worked in the horrible bear market of 2000-2003. Good stuff. Well worth the price. You get what you pay for. I've yet to find a $30 trading book where I was able to use any of the information to trade profitably.

Worth every cent!!!!

2008-03-30T15:32:00.002-07:00

First of all this is not a novel. After having spent thousands of dollars and to create a trading library, I can say that this one is the best book about the methodology and mindset of a trader. Even if all the setups were unprofitable, the reiterated approach of placing stops at low risk entry points will save thousands of dollars. It is definitely worth reading

Read between the lines

2008-03-30T15:32:00.001-07:00

First of all, I noticed many other reviews written that slagged the book badly. Perhaps they had high expectations in terms of what riches this book could bring them. However, it's clear those readers have the wrong idea.
There is no holy grail or single book that can get you rich. The authors of this book repeatedly say that the strategies are not meant to be mechanical - suggesting that they require flexibility, and the ideas are there to incorporate into your own trading.
I personally would not place much weight on whether this book will make you money or not simply by following the proposed trading 'systems'. Traders are supposed to grow and develop, not copy off some book robotically and become rich.
The book exhibits excellent common sense and simplicity which sometimes traders forget. It will offer you some clarity if you become confused or frustrated with trading. It will also offer the more experienced traders some alternative perspective.
There is probably nothing new in this book that you cannot find elsewhere - but this is probably true for all other trading books.
I do think this book is a bit overpriced - hence 4 stars. On the other hand, I do believe this book is an excellent book in terms of clearing the bunch of mess that is out there with respect to trader education. Simplicity works when applied by the prepared.

exceptional value -- I wish more books were this good

2008-03-30T15:31:00.002-07:00

This has helped my trading immeasurably. It is for swing traders. It is very specific about setups, lots of examples, and lots of setups with explanations and wisdom worth studying. I have probably 50 or 60 books on trading. They all have something to them, but this is one of the top books in my libary and I am using it all the time.

good

2008-03-30T15:31:00.001-07:00

TABLE OF CONTENTS Chapter 1 - Introduction Chapter 2 - Swing Trading Chapter 3 - Money Management Part I - Tests Chapter 4 - Turtle Soup Chapter 5 - Turtle Soup Plus One Chapter 6 - 80-20s Chapter 7 - Momentum Pinball Chapter 8 - 2 Period Roc Part II - Retracements Chapter 9 - The "Anti" Chapter 10 - The Holy Grail Chapter 11 - ADX Gapper Part III - Climax Patterns Chapter 12 - Whiplash Chapter 13 - Three-Day Unfilled Gap Reversals Chapter 14 - A Picture's Worth A Thousand Words Chapter 15 - Wolfe Waves Chapter 16 - News Chapter 17 - Morning News Reversals Chapter 18 - Big Picture News Reversals Part IV-Breakout Mode Chapter 19 - Range Contraction Chapter 20 - Historical Volatility Meets Toby Crabel Part V - Market Musings Chapter 21 - Smart Money Indicators Chapter 22 - More Words on Trade Management Chapter 23 - Be Prepared Chapter 24 - Final Thoughts Chapter 25 - The Secrets of Successful Trading

I was skeptical, but not any more

2008-03-30T15:30:00.002-07:00

This book is a real eye-opener. I am fairly new to charting and was still in the skeptical stage when I bought the book. There are patterns in this book that really work. I wish I had known about this book five years ago.

Good book, but to much technical stuff can make you slow

2008-03-30T15:30:00.001-07:00

However, to make it as a Day trader you will need more practical trading strategies especially if you are a beginner. Day trading keeps getting competitive and the stock market doesn't care if you are experienced or a newbie stock trader. The rules and the opportunities are the same, so either youre going to make money or you are going to lose it in favor of the more seasoned ones. As a day trader your homework is all about studying and testing different market strategies that will help you take advantage of stocks and at the same time protect your investments. Just always keep in mind that a good strategy is SIMPLE and practical. Frankly the worst thing that can happen to a beginner day trader is to get information overload. Complicated technical systems will always make you SLOW in your decision making process or confuse you from the start. There are some very good sites on the web where you can access practical trading strategies that are easy to implement. One of those sites is Stress Free Traders ( StressFreeTraders com) They focus on short term day trading methodologies that can help you identify and handle stocks with momentum while reducing your risk. All in all, day trading is all about picking the best stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

Expensive???

2008-03-30T15:29:00.002-07:00

I bought this book on a recommendation from another trader. I paid a lot less than the $175 they are asking now, but I still thought it was very expensive. I read through half of the book and thought it was interesting. On one of those days I had the book open on my desk and realized that one of the patterns from the book was forming! I waited till the right moment and took the trade on 2 year treasuries. Exited the trade about a minute later with a $225 profit. That paid for the book on a single trade. I realize I could have also lost $225 on that trade, then the cost of the book would have been around $350. I was now happy with the purchase of the book. I looked for more trades, but did not find any that week. Then the book got pushed aside and forgotten about. I found the book again last week because I heard someone mentioning it. I pulled it out and reread it. I think the book has something to offer. Is it too expensive? That is hard to say. For me it became free after one trade. Was I just lucky? I don't think so because I can scroll through charts and see a lot of the set-ups in hindsight. So the trades are there, its just a matter of being there to pull the trigger as they happen. I hope to get more out of the book from this second reading. One thing I have noticed is that many times I read a book and get something. Then upon rereading it I pick up many thoughts that I did not see or understand during the first reading. Maybe I wasn't ready at the time, but having many dozens of books under my belt and lots more life experience in between the first and second readings, I was able to digest more.

if you don't like this, you don't understand trading

2008-03-30T15:29:00.001-07:00

you can always spot s loser by one of (or both) of two reactions: 1- They want to get into a business to make money but think $200 is too much!! 2- They expect what they read to agree with their bias Anyone who wants to make money but thinks a book is expensive at $170 has the wrong personality for trading. If you are like that, you have no business trading because you are too greedy and a coward. Secondely, when you are making a comment about someone, it is really important to REALLY be sure that what you are saying is acccurate. The implication that Linda does not make money trading is just ridiculous. The woman is a bloody Market Wizard, for God's sake! She is also a pretty crap promoter of her services. The book is excellent. The question is: does it contain methods that can make you money? Of course it does. You guys are clearly sleep walking because you are concentrating on believing that every method in the book will make you money all the time under any circumstances. Quit believing that and pick the ones that work under different market conditions.If you can't, it is your fault, not the book's. If you watch Linda trading, you will see her using those setups under the right conditions. The fact is, if you cannot make money trading the setups in the book, you are either new and have to learn the basics first, or you are not cut out for this business.

Excellent book on swing trading

2008-03-30T15:28:00.001-07:00

I read the book and basically confirmed some of the patterns that I've been trading for years. Everyone has it's own name for the setups, but regardless of the name, the patterns describe in the book, do work!
Everyone has their own twist to these patterns. I notice one reviewer had mentioned that he profited on the exact opposite strategy that the book had described. Selling new lows and buying new highs. Personally I think this is more dangerous than the strategy in the book(Buying new lows and Selling new highs). That is what swing trading is about. I do the same exact strategy as they mention in the book, and make money from it frequently. But I am also aware of the fact, that new lows/highs are set for strong fundamental reasons, so instead of using regular stops, I use Stop and Reversal(SAR)type orders. These order give me the best of both worlds. If my estimate is correct, I get an early fill as the market decelerates in one direction and accelerates in the opposite. If the trend continues, my SAR order gets me out, and fills me in the direction of the momentum. Price, Momentum, Time and Volatiliy and how you react to them, is the key to swing trading.
It's not set in stone that these patterns work everytime, but as the title mentions, it's the probabilities of the markets reaction when these patterns form. Like any other method in trading, nothing works everytime, but as years go by, you find out what works best for your trading style and what doesn't. This book didn't teach me anything that I already have found out through experience, but for traders interested in swing trading, it's a fantastic starter book and worth the investment if purchased. It excerises the mind's of traders on how to anticipate the market, thereby always thinking one step ahead of it. And when your anticipation is wrong, get out!
One other important factor. Rashke was a former successful floor trader and Connors was a hedge fund manager. These people know how to trade professionally. They know how other floor traders trade on the floor, and how institutional giants such as ADM,Refco and Rosenthal Collins play their cards and make money. In other words, their livelyhood depended on their attention to detail in the area of trading. They aren't like most us that trade, that have a job to fall back on. This is their job and main source of income! My point is, don't just learn their techniques,setups and strategies, but more importantly, learn their mindset, and what they do when the market moves in favor or against them. Determine how they react to such conditions and take notes! Through time and experience, you'll soon notice that you will be able to react with percision and timing as these professionals do, without doubt but with full confidence!

Loved the book. Recommend it for serious traders

2008-03-30T15:27:00.000-07:00

First of all let me state that you must already have a certain concept of trading and trading terminology to benefit from this book. You must also understand and believe the importance of chart reading as a trader to fully understand what the authors are saying. I believe some of the negativity written about this books is because the readers didnt understand trading concepts as applied to chart reading or disregard chart reading altogether as a valid tool to trading.
With this said, I have to say that the book was beneficial for me as a short term trader. It helped me find patterns that I would've otherwise overlooked before reading this book. Let me also add that the turtle soup and turtle soup plus one does not really apply 100%, per say, to the fast momentum stocks I screen for. However, reading those strategies helped fine tune my entry and exit strategies when I enter a trade. It did so by helping me look for intraday swings and the probabilities of possible price action for next day trading based on what happened to the price at the close. If anything, the book helped me alot because it opened my mind to other trading possibilities and thus form ideas for myself.
Like another reader said, the authors are not mechanical traders. Thus these patterns and strategies should not be taken mechanically. Instead one should trade cautiously using discretionary stops. The book will only teach you about patterns in the market that have a high probable outcome. It's up to the individual to trade the patterns and use protective stops in the case the anticipated move goes wrong.