Building an equity millipede | Page 174 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Attachments: Building an equity millipede
Exit Attachments

Building an equity millipede

  • #3,461
  • Nov 6, 2010 5:22am Nov 6, 2010 5:22am
Quoting deepblue44
Thanks traderray, excellent stuff for this newb. I've been following this thread vigilantly from the start and is a godsend for a rook like me trying to sift through the unending noise of failure to find something I can finally point my compass at and know if I stay the course I will arrive, conviction was never an issue, just direction.

What Graeme has done here is nothing short of a small miracle. Words truly cant express my gratitude. I know the sentiment is shared by many and has been thoroughly covered but I would be remiss not to personally...
I really like to use the FB in confluence with something else.
I use it as any other candlepattern though for example pinbar or fb at a strong resistance or support level will according to me increase the chances of success.
As an example if the 4h trend is up and on 1h its a retrace to support and a FB is forming i generally see that as a strong buy signal and it's very rarely i dont get to atleast BE!

//joakim
The universe seems neither benign nor hostile, merely indifferent.
  • #3,462
  • Edited 6:50am Nov 6, 2010 6:33am | Edited 6:50am
Quoting acim
Couldn't agree more on your kind words for Graeme's Herculean effort here.
Indeed, as a perhaps interesting statistic, Graeme posted over 500 images explaining things (524 to be accurate) since the start of the thread.

Can you imagine yourself saving a screenshot, opening it with an editor, thinking what the best way to explain things to the reader would be, drawing lines, circling accurately areas of interest, adding comments and then uploading to imageshack and then linking in the forum ? ....524 times ?

Kindest Regards,

Cam
  • #3,463
  • Nov 6, 2010 8:20am Nov 6, 2010 8:20am
Quoting traderray
Also if you enter a code 'Comment' when taking a position you can detail why you entered the trade, e.g. TP A = Trading Plan 'A', GN xxx = 'Good news for Ccy, PB H1, H&S, TL BO etc. etc and do further analysis on this field
Just to clarify - I am referring to the 'Comment' field on the order entry form.
  • #3,464
  • Edited 11:35am Nov 6, 2010 8:38am | Edited 11:35am
Quoting deepblue44
How is everyone fairing with the Flying Buddhas? I've decided to work on that exclusively, for now, to make it my "one thing" in conjunction with the 3x20 excercises. Does anyone have any additional insight as to optimal Flying Buddhas? I.E. futher from the 5ema, with or against the current trend, wick size, relation to surrounding candles etc etc.

One thing you might look at is the candle volume on TFs 1 hour and below - most MT4 platforms have this facility,( right click in chart and select 'Volumes' - the actual figure appears in the info line at bottom of the screen when mouse pointer is over relevant candle, although it does not reflect the market 100% - only the brokers trades) - I would tend to ignore any candle generated on low volume, i.e. not enter a trade at this point.
  • #3,465
  • Nov 6, 2010 11:33am Nov 6, 2010 11:33am
what about submit a battleplan for the coming week of the different pairs?
I try starting with EURUSD then can continue with EURGBP, AUDUSD... What do u think about? Is anybody else available for the other pairs?

If Graeme agree (infinity thanks for this thread and your efforts) and has the time to give his comments and tips, it's welcome.

Regards

EURUSD

Analysis
Price retraced into the pennant bounds leaving a long wick. Not a good signal for buyers even if this is a bullish pennant.

Scenario A (preferred)
Price breaks definitely the pennant

Scenario B
Further price retracement testing low bound of the pennant

Hindsight
Bullish

Plan

Warning areas to stack long positions:

  1. bouncing from last week open in the 1.3970 – 1.4000 area
  2. bouncing from last week low wick in the 1.3870 – 1.3900 area
  3. after above bouncing, coming back to the open of the week
  4. breaking last week 50% retracement level in the 1.4070 area

Attached Image
  • #3,466
  • Nov 6, 2010 12:14pm Nov 6, 2010 12:14pm
Quoting wolfan71
what about submit a battleplan for the coming week of the different pairs?
Hello wolfan,

The intention is to keep the thread as clean as possible. Makes it easier to follow Graeme's lessons, so can you please not post your battleplans, at times there are over 100 people following the thread, what if all posted their thoughts ?

Thank you,

Cam
  • #3,467
  • Nov 6, 2010 12:51pm Nov 6, 2010 12:51pm
Quoting cameron1st
Hello wolfan,

The intention is to keep the thread as clean as possible. Makes it easier to follow Graeme's lessons, so can you please not post your battleplans, at times there are over 100 people following the thread, what if all posted their thoughts ?

Thank you,

Cam
No problem obviously.
just my thought that's the time to pass from theory to practice.
  • #3,468
  • Nov 6, 2010 1:33pm Nov 6, 2010 1:33pm
I've been following this thread for a while now..
Its been just an eye opening experience which is not that easy to find in this forum or anywhere..
I do very appreciate the effort Graeme spent here..
Maybe that would be asking too much but i remember some pages ago Graeme mentioned about putting everything together in a pdf file or something..Has there anything like that been made so far...
Thanks for the great work again..
  • #3,469
  • Nov 6, 2010 1:47pm Nov 6, 2010 1:47pm
Quoting traderray
One thing you might look at is the candle volume on TFs 1 hour and below - most MT4 platforms have this facility,( right click in chart and select 'Volumes' - the actual figure appears in the info line at bottom of the screen when mouse pointer is over relevant candle, although it does not reflect the market 100% - only the brokers trades) - I would tend to ignore any candle generated on low volume, i.e. not enter a trade at this point.
Will do Trader, thank you.
  • #3,470
  • Nov 6, 2010 3:04pm Nov 6, 2010 3:04pm
Quoting nomask
I've been following this thread for a while now..
Its been just an eye opening experience which is not that easy to find in this forum or anywhere..
I do very appreciate the effort Graeme spent here..
Maybe that would be asking too much but i remember some pages ago Graeme mentioned about putting everything together in a pdf file or something..Has there anything like that been made so far...
Thanks for the great work again..
Someone has gone to the trouble of creating PDF's of just Graemes posts. They have been revising it as Graeme has continued contributing. Do a search for PDF's in this thread and you will find them
  • #3,471
  • Nov 6, 2010 3:10pm Nov 6, 2010 3:10pm
Quoting hubbahubba
Someone has gone to the trouble of creating PDF's of just Graemes posts. They have been revising it as Graeme has continued contributing. Do a search for PDF's in this thread and you will find them
No i did find couple since i've read the entire thread but none of them was recently made..So i was wondering if anybody here on something new with the latest posts of Graeme..
  • #3,472
  • Nov 6, 2010 6:59pm Nov 6, 2010 6:59pm
Quoting wolfan71
No problem obviously.
just my thought that's the time to pass from theory to practice.
The practice is best done on the market, rather than on the forum

Kindest Regards,

Cam
  • #3,473
  • Nov 6, 2010 8:01pm Nov 6, 2010 8:01pm
Quoting cameron1st
The practice is best done on the market, rather than on the forum

Kindest Regards,

Cam

Success consists of going from failure to failure without loss of enthusiam
  • #3,474
  • Nov 7, 2010 5:54am Nov 7, 2010 5:54am
Quoting pipEASY
Good question.


Imagine everything I do now on intraweek exactly the same as higher timeframe of weekly/monthly. Whereas stop losses/losses on intraweek means small pips which most traders seem to stomach whileas stop losses/losses on higher timeframe is larger which most traders cannot comprehend.

However, once you find that you can trade profitably on smaller scale you will naturally evolve to trade on the larger scale as this means much bigger rewards but less number of wins than intraweek.

Sincerely,

Graeme
Dear Graeme,

I want to bring up another clarification on StopLoss subject. I know, this StopLoss issue is already being discussed extensively.

On the bold sentence, you are mentioning bigger SL for longer time frame and a smaller SL for shorter TF

My understanding, however, is the kind of PA setups you pickup is very similar and on lower timeframes irrespective of the target. Therefore, the size of SL should remain fairly the same isn't it?

Again, I am assuming you would enter the trade ultimately at 5 min / 15 min candle razor sharp irrespective of the target expected.

However, however, when you shoot for longer Time frame profits, you tend to loose lots of such positions on BEs while they would have given profit on a shorter TF goal. (This is what you mentioned on the second para)

To summarize, there is no change in the SL size due to time frame; however you loose more soldiers on BEs while shooting for longer duration.


Am I right? Appreciate your feedback.

Warm Regards,
TradeStar
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #3,475
  • Edited 7:52am Nov 7, 2010 7:17am | Edited 7:52am
Hi TradeStar,

Hope this helps: Graeme mentioned in the past sometimes he enters the daily charts when he doesn't have time to enter manually, and then obviously he would use a larger SL.

Edit: there are quite a number of posts on the subject, but check this one out: http://www.forexfactory.com/showpost...&postcount=109

Kindest Regards,

Cam
  • #3,476
  • Nov 7, 2010 7:59am Nov 7, 2010 7:59am
Quoting wolfan71
what about submit a battleplan for the coming week of the different pairs?
I try starting with EURUSD then can continue with EURGBP, AUDUSD... What do u think about? Is anybody else available for the other pairs?

If Graeme agree (infinity thanks for this thread and your efforts) and has the time to give his comments and tips, it's welcome.

Regards

EURUSD

Analysis
Price retraced into the pennant bounds leaving a long wick. Not a good signal for buyers even if this is a bullish pennant.

Scenario A (preferred)
Price breaks...
I would wait for the e/u to clearly get out of its many weeks side ways hovering. Looks like the Aussie and the JPY crosses are ready for some run up.
Patience is magic
  • #3,477
  • Nov 7, 2010 11:20am Nov 7, 2010 11:20am
Quoting wolfan71
what about submit a battleplan for the coming week of the different pairs?
I try starting with EURUSD then can continue with EURGBP, AUDUSD... What do u think about? Is anybody else available for the other pairs?

If Graeme agree (infinity thanks for this thread and your efforts) and has the time to give his comments and tips, it's welcome.

Regards

EURUSD

Analysis
Price retraced into the pennant bounds leaving a long wick. Not a good signal for buyers even if this is a bullish pennant.

Scenario A (preferred)
Price breaks...

I like your idea man..
  • #3,478
  • Nov 7, 2010 12:50pm Nov 7, 2010 12:50pm
Quoting cameron1st
Hi TradeStar,

Hope this helps: Graeme mentioned in the past sometimes he enters the daily charts when he doesn't have time to enter manually, and then obviously he would use a larger SL.

Edit: there are quite a number of posts on the subject, but check this one out: http://www.forexfactory.com/showpost...&postcount=109

Kindest Regards,

Cam
That's a good post to read. I personally do not follow exactly Graemes entry methods and candle interpretations because his style is not necessarily my style. He does have some good ideas in general and I try follow those.

For higher time frame you pretty much have to have larger stop and if you are following proper money management that means a smaller position. Graeme appears to have a large account and since his positions are such a small percentage of his account he does not have to worry about it like most of us do. That's my impression anyways. So for everything he says and does we have to be careful in our interpretation so that we are using proper money management if we are trying to mimic what he does.

For example, when stacking positions. If each position were risking 2% of your account and you are stacking maybe 10 positions a day with 2 or 3 of them turning into losses you could experience a severe drawdown quite quickly. When I am stacking I only risk 0.25% to 0.5% of my account per position. Graeme doesn't talk about that part of it so much because for him he is probably always much less than 0.25% or he already has many positions in play accumulating much more daily than he is losing daily. Most of us don't have that luxury.
  • #3,479
  • Nov 7, 2010 3:32pm Nov 7, 2010 3:32pm
Good morning, all

Apogies for the delay in replying to your private messages. I had many things to catch up in the last few days. Im trying to spread my attention to few things and one of them includes the contributions on this thread.

I hope traders have studied my price interpretation that I have posted in the last few pages.

Without good price interpretation you wont be able to make near short forecast. Price interpretation is not correct all the time but enough times for you to take advatange of and create profit.

Some of the questions I receve is, what do I exactly do? Why isnt there an exact trading strategy within this thread?

Im certain that I have provided enough encouragement and insight into this matter for the reader to formulate their own 'exact' trading system whilst I have provided most of the ideas on trading approach.

A professional trader can create profit with any strategy, method within his hands. Because he/she knows that the vital requirements for profitable trading is universally/generically the same.

1. Participation
2. Low risk entry
3. Growth

This morning, I would like to touch base on one of the most requested questions I have received;

'Graeme, I dont have enough time to trade on 5min TF or any of the lower. Could you advise any tips on higher timeframe'

Im sure there are many traders who has work committments with their trading.

So let us think together.

First question.

"What type of candle do you prefer?"

Have you ever considered this question? Not many has. I have mentioned few times in this thread that Im very interested in candles (on any timeframe) that open and charges forward without any retrace. If you have not thought about this, it is time to think.

Let us look at eur/usd daily chart

http://img526.imageshack.us/img526/6125/aa1ws.jpg

I have highlighted candles that has little or no retrace and then moves towards the direction of ema crossover.

As you can see, most (not all) candles that does move forward without any retrace also has higher probability of survival for the longer term. And this happens on any timeframe; monthly, weekly, 4hr and so on.

Let us view few more examples on weekly

http://img210.imageshack.us/img210/6707/aa1p.jpg

Once again, I have marked candles that moves forward without (or little) retrace towards the direction of ema crossover.

And this happens on any timeframe.

If you havent thought about this, it is time to as this is one of the tools on my belt.

The smart readers will now jump up and ask, 'Graeme, I have already thought of that but how do we know in advance that the next candle will be a good bold one?'

I dont know. However you can use money/position management to extrace profit if it does work. And for that to happen, you will need to participate on a low risk entry.

I have mentioned few pages ago that I know my statistics very well and that one of the methods I currently use is risking 10 pips for potential 1000 pips on eur/usd. And if you think carefully you will know how I do it here.

Continuing on..
  • #3,480
  • Nov 7, 2010 3:41pm Nov 7, 2010 3:41pm
Hello Graeme,

Thank you very much for writing about trading the longer timeframes. I'm one of those with a full time job, so not that much time for intraday trading.

Kindest Regards,

Cam
3 traders viewing now