Building an equity millipede

Great for you. I have using carry trade since Nov and realised that carry pairs are typically much more challenging to execute and hold grounds due to the fluctuations.

Regards,
Judy

Thank you Graeme for a fantastic thread. I am new to trading and have learnt
many things from this thread. The effort you put in to this thread is astounding and is really appreciated. I wish you well in the future.

I don't write very often, just now I write to say thanks to graeme, I have learned a lot reading this thread.

To jaded cynics like myself it is wonderful to see someone of great ability and talent who is also a genuinely very kind and helpful person acting from the most altruistic of motives. Graeme deserves a big thankyou for the quality and quantity of treasure in his thread as do the key disciples in the thread for encouraging him to continue.

Hi Graeme, hi friends!

This trade I took yesterday afternoon. My SL is at be+5. So far I have not found the courage to add on another contract, yet the crude oil contract looks quite bullish as of late. can that be what is often referred to as FEAR? Now I wonder if I still can. Any suggestion/idea?

Muntu

Hi Muntu,

I fully appreciate how you feel with regards to stacking, I also have the same fear, but hopefully with practice will get past that. Graeme discusses stacking methods around post 835, hopefully, this may be of use to you.

Although I arrived a year late, I have recieved so much from this tread. I would like to request that if someone has the time & stamina to start a related thread, teaching Graeme's methods, please advise. In my experience on this forum, the two contributers whom have taught the most valuable info. have been Graeme & Peter Crowns, and both hold to the idea of holding a portion of you trades to their long term maturity.
If there is already in existance such a similar tread, Please advise. Does anyone know Graeme's full name (If he should write the book he has mentioned, I'd like a copy to leave for my grandchildren).
Thank you
gmcc

I hope someone does revive this thread.

For what it's worth, it seems that the method in Nomask's thread, "Trading Major Lines", is largely based on Graeme's teachings. I have learned a lot (and gained some profit) from Nomask's charts found both here and on his thread. There are a lot of similiarities, but Nomask uses fibs for entries and stacks a lot less than Graeme does.

I'd buy copies of Graeme's book for everyone close to me should it come to fruition. I hope he is well wherever he is.

multi-year extremes are one such an occurrence and we have this now. This may be an opportunity for the followers of this method (and amazing thread) to get some legs growing.

Hello Dazzdude and the cot followers !
Different markets have different positions, even in the currencies, let alone commodities, rates, metals and energies. Can you please elaborate on which markets do you see at extremes right now ?

Thanks

According to my hindsight, my weekly pick for week of 4/25 is GBP/USD.
This is due to the bullish engulfing weekly candle breaking through resistance at 1.6360. As expected , the signal is not perfect according to Graeme`s favorite weekly signal guidelines-- also there are 2 other factors to consider next week-
1. London closed both mon. and fri.
2. the weekly 200 SMA at 1.6680 or so could be significant.

anyway, whatever trades you choose for next week, may they be profitable ones!

Hi,

This thread has shown me that profitable trading is possible with the right mindset, and disciplined approach.

I have been interested in trading (futures/commodities) for years, but could never get past the random or gambling aspects of trading, mainly because the trading methods pushed commercially all focus on lots of trades daily, and using lagging indicators, and no actual thinking!

Once it became clear the naked trading was the way to go, and that trying to predict the future with yesterday's indicators bordered on madness, then the light shone through. Probably better to use tarot cards!

Thanks again Graeme, forever indebted to you.

Hope you are well and relaxed and enjoying your success.

Regards

harry99

Thank you very much Graeme.

Hi Jeda, thanks for the direction!
At last I add a contract today, at 112.95. I hope my stop is not hit overnight. If US crude goes above 113.50, I believe the run will be long. Any way I am happy I could stay in a trade that yielded 200+ pips without moving my SL, thank Sir Graeme.

Whilst I am having excellent results overall following Graeme`s advice one persistent issue for me has been the difficulty of razor-sharp entries at London open (or about an hour before and after).
Of course occasionally (maybe 20% of the time) I am able to perfectly catch a very strong wave at this time which immediately goes strongly into profit-- however more often I am chopped and whipsawed by the major volatility. Thanks to using very tight stop losses if I am knocked out of the trade I am only losing around 4 or 5 pips on average however I am toying with the idea of just not trading these hours. Does anyone have any advice on this?

Hello gssintokyo,

You could use the 15m charts as the smallest timeframe, instead of the 5m one (this would imply a bit larger SL than just 4-5 pips), also if you are located in Japan, you can take advantage of the lower volatility of the Asian session to add your positions.

Kindest Regards,

Cam

Hi Cam,
Thanks for your reply. I believe your advice is good as the asian session has only 1-2 volatile mornings a week (where there are loads of long wicks on the 5 min.charts and the PA is whipsawing viciously) on average on the pairs I trade as opposed to almost every london session being very volatile even on the longer timeframe.
If I might ask you a question: have you been using the 15 minute charts for sharp, pin-point entries along with the key points of Graeme`s teaching? If so, how is it working out for you?

best regards,
greg

Hello Greg

I actually don't go lower than 1 hour charts (meaning less trades, but also less losses than on the 5m charts). Many on this thread think that Graeme taught us to use the 5m charts all the time and for everything... but it's not exactly so. The fact is that some pairs can't even be traded on the 5m charts (because of the volatility, or because of the spread).

Kindest Regards,

Cam

Good evening, all

Thank you for the continued interest and the private messages. I will get around in the next few days to reply to all of them.

Preparation for the book is truly on its way to keep the schedule as promised.

For those who have read the last few pages of this thread, I have started trading eur/usd with many of the traders since the week just before Christmas 2010.

It is now almost 5 months and it interests me to see the outcome.

Just by following a very very simple rule,

"buy when price closes above the open price of previous down candle"
"sell when price closes below the open price of previous up candle"

Keeping this rule (which have been preached many many times in this thread) the project started in dec 2010 when eur/usd was clearly DOWN trend. Please see below chart.

eur/usd weekly

http://img838.imageshack.us/img838/4338/34114589.jpg

Hence, the first week into the project has been profitable for all the traders following. Cheers was passed around and messages of gratitude overflowed my inbox.

What was interesting happened immediately thereafter.

eur/usd weekly

http://img849.imageshack.us/img849/8661/45093090.jpg

A huge UP movement followed the week after closing all traders positions. I watched the reaction of participating traders and was disheartened to see that such 'surprise' swayed many of the traders.

Anguish, disbelief, stress.

After all that was explained by myself over the many many posts I still witnessed the lack of self-belief amongst the many.

However, for the rare few traders who did adhere to the plan by sticking to the aforementioned rule is now witnessing what they planned to witness at the start of the project.

eur/usd weekly

http://img845.imageshack.us/img845/4599/98146702.jpg

The clear up movement is self-explanatory and evident in the weekly chart. It has now moved almost 2000 pips.

Now the question for me to ask everyone is..

Are you still in the game.?

If not, you failed, but most importantly, I have failed to pass on my knowledge to something very simple and easy.

Keeping the aforementioned rule only..

There has been copius number of low-risk entries in the last 3 months by adhering to the same rule in any timeframe.

Today, I want to mention a special trader who lost over 3000 pips in the first 2 weeks into this project only to now reap over 18 positions at more than 12000 unrealized pips into profit. This trader has already closed few of his trades to settle his -3000 pip loss before and few miscellaneous losses thereafter. All debt has been cleared and he is now looking at free pips in his perspective.

He is now looking at adding almost 20% into his trading account and plans to trade more pairs with the same approach.

In a nutshell, he placed trades on 1hr and 4hr charts only. He takes the direction from weekly chart using the same rule. Zooms into lower timeframe and waits until price closes above the open price of previous down candle and opens a trade with no stop loss.

He checks back in few hours and only closes the position out if price closes below the open price of previous up candle. He claims to have lost a further 1500 pip in the process of building his current positions but once he saw the potential of his trading approach it didnt bother him as he knew he will be able to settle his losses. Well, the total debt has now been settled.

There are no hidden secrets or lost art of pip extraction.

You do not need an uber intelligence or a set of high tech indicators/experts. Dont forget there has been profitable traders before the age of computers. Take a moment to think about how they might have traded.

Dont fret over placing the perfect stop loss or take profit as you will never ever be skillful enough to forecast the movement of price. What you thought to have predicted is just random luck shining at you for once.

What you can upskill is patience and perserverance.

Think logically.

LOGICALLY.

Here it is again:

To trade profitably:

You only need.:

1. Direction of the higher timeframe.

To determine direction, you can use ema crossover or aforementioned rule or 200ema. Direction is just UP or DOWN to give you a hindsight. Setting the profit taking grounds.

2. Low risk entry at a lower timeframe.

You can use aforementioned rule, ema crossover, rsi. Whatever indicator or method you use, the secret to using indicator is that YOU ARE INTERESTED IN WHAT THE OTHER MASS TRADERS ARE LOOKING AT. You are NOT using indicators so that the indicators tells you when to trade. You are looking at indicators to SEE what the other mass traders are looking at. Most of the time (<90%) mass traders will have different thoughts and views of the current movement.

In that rare 10% of the time, mass traders will arrive at an unified decision in terms of direction. This will always lead to a compelling momentum. Dont forget this.

Taking trades on the lower timeframe but aiming at profits of the higher timeframe itself encodes excellent R:R into your trading approach. That is it for R:R.

3. The patience and the belief to hold on.

If the market is prepared to move 2000 pips for you and you take profit at 200 and pop open a bottle of Krug is very sad. What is worse is that traders are fixated at 200 pip take profits and not the 2000 pip movement itself... and never to realize what they are doing wrong....

Every pair in forex moves thousands of pips in a given year.

And yet, most traders are fixated in finding the next 20 to 40 pip profit.

Why is that....?

Aiming at 20 to 40 pip is almost luck.

Taking huge chunks out of the larger movement of the year is professional.

Whats important to note is that taking large chunks out of main movement of the year is logical and sensible.

Preparing to lose 1 to win back 10.

My thoughts and wishes are with everyone.

Sincerely,

Graeme

Hello Graeme,
Its great to see you again.And I'm hoping to read more from you..
and about your post,I mentioned so many times that your teachings best in ff I ever found..I have no doubt that this method is "the most profitable and best" one to me.

I failed......

NO, I DIDN'T FAIL. I HAVE JUST FOUND OUT WHAT WORKS HENCEFORTH.

Thank you, pipEASY.