Longs added @ 1.2620
Previous longs @ 1.2440
and 1.2040
Previous longs @ 1.2440
and 1.2040
Thegman's Journal (Equity Millipede Concept) 102 replies
Trading an Equity Millipede 23 replies
Equity millipede & Flying Buddha trading journal 9 replies
Build an Equity Millipede with the filtered Flying Buddha 171 replies
Application Development - Journal of Building an equity millipede 14 replies
DislikedThe most important rule is as follows. Only increase based on your BALANCE and NOT your potential larger EQUITY due to unrealized profits. Once you have enough realized profits that puts your balance to the next level, then you can increase the lots size. YonIgnored
DislikedThis is because its very difficult for us to trade at a lower size than the size we want to trade.
YonIgnored
DislikedIf you like simplicity, then when you reach Level 7 you can just cash out the $1000 and consider $20000 as Level 1 and do:
$20,000 ($10 per pip), $30,000 ($20 per pip), $50,000 ($30 per pip), $80,000 ($50 per pip), $130,000 ($80 per pip), $210,000 ($130 per pip), .....
Cash out $10,000 and start from Level 1 at $200,000 ($100 per pip). Personally I prefer this method of simplicity. YonIgnored
DislikedWell stacking when your previous position is at a loss is a form of averaging down. I'm sure everyone has done it at least once in their trading career to get out at breakeven or small profit.
As for overexposure, I think the concept is subjective by nature. One could have stacked 50 positions to breakeven while another person enter only 1 position without a stoploss. I would say the latter is more guilty of overexposure if he/she used max available leverage and lotsize.
YonIgnored
DislikedI think this is where I differ in opinion. As I have said in my earlier posts, Account Balance and floating Profit/Loss (in MT4 terms) holds no meaningful purpose. I am of the opinion that the most (and only) thing that requires absolute focus to your advantage is the Account Equity...
The sole purpose of Account Balance is (or should be!) to:
- track/reflect 'accounting' of fees, deposits, withdrawals, commissions, swaps etc.
- Risk/Reward/MM/RM if you are an intraday trader calculating % profit/loss targets on a daily/weekly/Monthly basis....Ignored
Dislikedhuh? How do you suggest we "look" for Graeme? Should we file a missing person's report with Sydney PD or what?
If your post was pointing towards me, there is no argument at all....just some thought provoking difference in opinion/approach to help tie a few lose ends.Ignored
Disliked...
The worst case scenario in this instance is that if you lose all your positions at breakeven, then all your unrealized profits are gone. This means you end up with a balance much lower than your initial balance.
Now if you increase lot size due to an increase in equity, you are simply speeding up the process of reducing your balance in 0.
Now we know that the more surviving positions we have, the crazier the fluctuation of our equity. One we start adding positions of greater lot size, the faster the equity will approach 0 if the latter...Ignored
Keep very good records, then you won't need to look at the balances your broker shows. Sure, swap rates and/or commissions will have to be taken into account but we know what these are going to be.
For most traders if they keep looking at their brokers balance it will probably do more harm than good especially if bit built up profits are there. Open profits can of course go higher but also a lot lower and in extreme cases a big profit can be given 100% back.
What would G do in some a circumstance, probably shrug, realise it's part of the game and then get back to trading the market.
What would many here do? Probably -
And all because they followed their broker's running balance too closely....
DislikedWhat would G do in some a circumstance, probably shrug, realise it's part of the game and then get back to trading the market.Ignored
Dislikedquite a few people in this thread are complaining about giving back big profits when trades are stopped out at BE.
but that`s not what G does: G will already be in with a couple of trades the other way.
so if longs are up in profit for say 400 pips and are closed out @ BE, no tears for G, `cos he already will have a few trades short.
those short trades will hedge the diminishing profits on the longs in a way. very smart, but not easy to do if you have no experience.Ignored
Dislikedquite a few people in this thread are complaining about giving back big profits when trades are stopped out at BE.
but that`s not what G does: G will already be in with a couple of trades the other way.
so if longs are up in profit for say 400 pips and are closed out @ BE, no tears for G, `cos he already will have a few trades short.
those short trades will hedge the diminishing profits on the longs in a way. very smart, but not easy to do if you have no experience.Ignored
DislikedI now exactly what you are talking about. The problem I find is determining WHEN do you liquidate/diversify?
If your long position gets stopped out, do you close you short position immediately?
Too often I have established positions both ways with a good profit supposedly locked in only to see them both get stopped out.Ignored