X.7. Trading according to the methods of Linda Raschke.

A world-famous female trader, known for her acclaimed book “L. Raschke. Exchange secrets”.

The book contains a fairly extensive set of very different techniques used in their activities by Linda and her friends. Let’s consider the most striking of these techniques.

The main goal of each transaction is to minimize risk rather than maximize profit.

Don’t leave a losing trade the next day.

If you keep losses to a minimum in each trade, you will already win the battle by 80 percent.

The “Turtle soup” model implies the use of false breakouts and entry on a market reversal.

The “Turtle soup plus one” model. Similar to the previous strategy with the difference that we are looking for a market that made a new medium-term high/low and then turned around the next day.

Model “80-20’s”. A day trading strategy using the following observation: when the market closes in the upper/lower 10 percent of its range, there is an 80-90 percent chance that it will continue moving in the same direction the next morning, but will actually close higher/lower only 50 percent of the time.

The “Momentum Pinball” model™. The strategy is based on the use of the RSI indicator.

The “Two-Period ROC” model. It is based on the transfer of a winning position to the next day. The Momentim indicator (2-perid rate of change) is used.

The “ANTI” model. The semiperiodic stochastic %K (“fast” line) and the 10-periodic stochastic %D (“slow” line) are used. The entry point is sought at the moment when the price behavior causes the fast line to turn again in the direction of the slow line, forming a hook.

The “Holy Grail” model. It is based on the ADX (Average Directional Index) indicator. The stronger the trend in any direction, the higher the ADX indicator. When prices in a strong trend make new highs (lows), you should always buy (sell) on the first pullback.

The “ADX Gap” module. The strategy is similar to other break reversal strategies, except that it uses ADX and +DI/-DI as a filter, increasing the overall profitability of trading on breaks.

The “Whip” model. The strategy uses price gaps by entering a position at the close of the market. These and other models with a large number of examples can be found in L. Raschke’s book “Exchange Secrets”.

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