basket comparisons
Vrs
Individual pairs
Vrs
Individual pairs
Twitch Journal - Live Journal 4 replies
Another Trading Journal - Yuhu's Journal 16 replies
Magic Trade Research Journal 110 replies
My Personal journal up 18% in 2 months going to start a journal 8 replies
Hypothetical Research Journal 4 replies
DislikedHi domino,
Been following your thread.... I understand the basic concept of grid trading, but I'm interested in the "why" and "how" did you pick the basket of pairs that you're currently trading...the "why" being are these all interest-positive pairs and/or were they selected because their movements are negatively correlated with one another?Ignored
QuoteDislikedAlmost like a combination of grid trading using a market basket approach? The "how" is when do you include a pair in your basket... i.e. when you first buy/sell a pair, what is the basis for that decision? Is it based on a particular price pattern or some other method? (you mentioned in an earlier post about having a long-term view of the market... but isn't grid trading setup so that you don't need a directional bias?). And when do you remove a losing pair from the basket... or do you allow the pair to drawdown expecting another pair in the basket...
Disliked....the basic raw movement is correlated but the micromovements are not...Ignored
DislikedI believe price action to be psychological based and the only way to read that is in the waves themselves ...Ignored
DislikedI'm not using the grid as the actual edge, I'm using statistically researched price patterns and fundamental patterns.. as market neutral positions will only in the future deal margin calls. So this is not market neutral...Ignored
DislikedThe "basic raw" movement- is this a long-term (i.e. daily or weekly) outlook?Ignored
QuoteDislikedWhat do you mean by drift? Are you refering to random market movement as the market proceeds along its long-term trend?
QuoteDislikedIs this a reference to Elliot analysis?
QuoteDislikedUnderstand. So basically, you're looking for interest rate divergences to select the pairs for the basket, then for each pair you have a directional bias for the grid based on your fundamental and PA analysis...you keep your position sizing small so that you can effectively withstand drawdowns, without significantly impacting your account, and this also allows you to add positions to lower your average cost ...
does this sound about right?
Many thanks for taking the time to answer my questions!
DislikedDomino,
I really do appreciate and want to thank you for taking the time to answer my questions... I'll be intensely studying your posts....
The psychological factors that you mention for entering a position... are these "round numbers", S/R from previous (long-term) waves, etc...?Ignored
QuoteDislikedAlso, if your average cost basis/margin used for any given pair is a small percentage of your NAV, do you need to use a stop?
QuoteDislikedOr can you just wait out a drawdown and continue to add on to positions (up to a certain percentage of risk allotment for the basket) in order to lower your ave cost for the pair and then exit the trade once it moves back into your long-term directional bias?
Dave
DislikedHi
I have also been following your trading with interest.
I am also looking into grid trading but probably on a much more basic level than your self.Ignored
QuoteDislikedI am looking to trade one pair when it is near the long term top (or bottom) of its range.
Trend reversal would be confirmed with LH and LL or vice versa and long term PA
The trades would need to be swap positive.
I would then simply put orders in every 50 or 100 pips with TP of around 100pips depending on daily range.
QuoteDislikedThe idea would be to ride the long term range back most of the way to the other end.
I know its simple but believe given the right pair at the right time this will work with minimal input and stress.
Your opinion and thoughts would be greatly appreciated.
Thankyou
Dislikedfull exit all positions
trading suspended while research how to bring down the volatility I saw and understand what caused the deep drawdown and how to fix it in the future.
account sits at 15.9%Ignored