Wednesday 21 May 2008

My understanding of AHG

From what I've read, the key to success using AHG is the willingness to cut lost and let profit run.

Anek did that by scalling in and out of trade, typically starting with 2 cars, number of cars in trade will look something like 2-1-3-2-3-1-4-0, he let profit run. Starting with 2 cars gives the flexibility to bank in some profit, the remaining car will hence have "vurtually" very small stop.

From what I see, Anek trade from Pivot to Pivot, of the "Anchor" chart, typically 4X the trading chart. On trading chart, Anek will make several attempt to "guess" the turning point, he is quick in cutting lost, once he is right, he'll let profit run, which returns is more then enough to cover the lost. Aneks accuracy is less then 50%, many other trading his style has 30%. Mindset is key.

Anek has a few trick up his sleeve, he takes close below/above previous bar as a strong signal. He use also "Market Emotion" as guidance. See how price bounce off 25/50/75% of day high/low