Hello Graeme,
Firstly, great Thread. The underlying concept of letting your profits run to such an extent that you can capture those profit "outliners/fat-tails" is something which I also strongly believe in.
However, as I am new to FX, I wonder whether you can answer a couple of questions for me.
1) When you close positions which have made gains (so that you can diversify), (i) what % of them do you close in relation to those that you keep running for the bigger gains, and (ii) how do you decide when to move a particular position to the next group?
For example, do you keep a running total of all the pips you have lost in the process of establishing those current legs and simply close those shorter legs which have accumulated enough pips to offset those losses?
Also, I'm assuming that the "top" group is the one which you will never normally exit, so as to capture those fat-tails!! By that I mean that the only way for the position to be exited is if the Mrkt retraces and gives back ALL gains and closes you out at BE. Is that correct?
2) According to your profile you also live in Australia. If that right, when you mention buying at the OPEN, which open are you actually referring to? Apologies for the basic question but Forex is new to me.
3) Again, according to your profile you are using FXCM as your broker. If so, may I ask why you are using Metatrader4 instead of FXCM's own trading Station platform for your trading?
I ask, as according to FXCM's information, some advantages between their own platform and MT4 is that on theirs you can (i) create Mrkt Range orders and (ii) partially close tickets, which I would have thought would be useful additions to a strategy such as yours.
Just interested in your thoughts especially as I'm also going to use FXCM and I need to decide which platform I should learn.
Kind Regards,
Chorlton
Firstly, great Thread. The underlying concept of letting your profits run to such an extent that you can capture those profit "outliners/fat-tails" is something which I also strongly believe in.
However, as I am new to FX, I wonder whether you can answer a couple of questions for me.
1) When you close positions which have made gains (so that you can diversify), (i) what % of them do you close in relation to those that you keep running for the bigger gains, and (ii) how do you decide when to move a particular position to the next group?
For example, do you keep a running total of all the pips you have lost in the process of establishing those current legs and simply close those shorter legs which have accumulated enough pips to offset those losses?
Also, I'm assuming that the "top" group is the one which you will never normally exit, so as to capture those fat-tails!! By that I mean that the only way for the position to be exited is if the Mrkt retraces and gives back ALL gains and closes you out at BE. Is that correct?
2) According to your profile you also live in Australia. If that right, when you mention buying at the OPEN, which open are you actually referring to? Apologies for the basic question but Forex is new to me.
3) Again, according to your profile you are using FXCM as your broker. If so, may I ask why you are using Metatrader4 instead of FXCM's own trading Station platform for your trading?
I ask, as according to FXCM's information, some advantages between their own platform and MT4 is that on theirs you can (i) create Mrkt Range orders and (ii) partially close tickets, which I would have thought would be useful additions to a strategy such as yours.
Just interested in your thoughts especially as I'm also going to use FXCM and I need to decide which platform I should learn.
Kind Regards,
Chorlton