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Building an equity millipede

  • #7,261
  • Jul 25, 2017 1:13pm Jul 25, 2017 1:13pm
agreed, using 3 time frames to find entries is part of the old school
they start from highest and go backwards to lowest
entries can be fine tuned in this way
  • #7,262
  • Sep 1, 2017 12:32am Sep 1, 2017 12:32am
My first post - reading this thread over the last two months is what inspired me to post...

The replies made by various members also pointed to other threads and systems which have also educated me in picking up forex trading...

namely:

1) Inside bar trading
2) Use of (E/S)MA channels (with ADX)
3) Heiken Ashii with Ichimoku

Can anyone share what other trading systems (or methods) they have been inspired to create/develop/follow/use as a result of reading the Equity Millipede Philosophy?

Thanks
  • #7,263
  • Sep 1, 2017 1:47am Sep 1, 2017 1:47am
My other system is called "The Anchor." It combines both the Equity Millipede with shorter term trading.

First, we look to establish longer term trades (as outlined in this thread). Ideally fundamentals support the trend as well, so it can trend for months / years. Once we establish a few core positions, these are the "Anchor" positions.

Next, we use a shorter term trading strategy such as range bars:

https://www.forexfactory.com/showthread.php?t=583609

The idea is to use your 'Anchor' positions which are in nice profits to allow you to take larger positions in shorter term trades, with an overall SL at b/e.

Example:
Lets say for EURUSD, you see it basing around Q1 2017 and start to establish long position in anticipation of a week USD. You buy from 1.06xx to 1.08xx. For example, lets say you have a $10,000 act and establish 3 long EU positions at 1:1 leverage at 1.0700. Thus, you have 30,000 units (0.03 lots) long at 1.0700 avg. price. You think it will uptrend for a while, so let the positions bake.

Now lets say its Q3 2017 and price is 1.1200, you are in 500 pips profit so up $1,500 on the $10,000 act. These positions are the "Anchor."

Now, we have our anchor positions averaged at 1.0700 for 0.03 lots with 500 pips profit. If we use the short term system above, and put a 100 pip SL (very conservative), we can then take a larger position of 0.12 lots with a 100 pip SL on both positions, so overall SL is at 0.

The above system is shorter term (10 to 50 pips ). Lets say we take 30 pips profit ... 30 pips x 0.12 lots is $360, so 3.6%. We then exit the larger position, but keep the 'anchor'. Since the shorter term system will have multiple signals (probably several per week), we can make quite a nice % return with 0 risk.

Now, lets say a couple of months later price is 1.1600. We still have the 'anchor' from 1.0700 which is now up $2,700 on the $10,000 act. We get more long signals, but we can now increase the size to 0.24 lots with a 100 pip SL. Again, if we take 30 pip profit, then 30 pips x 0.24 is $720.

You get the idea. Basically establish an anchor, and use it to move overall SL to b/e, and use a shorter term system to trade larger size for smaller pips, but 0 risk.

For the core 'Anchor' position, you need a longer term trailing SL.

Regards,
EZ
  • #7,264
  • Sep 1, 2017 9:35am Sep 1, 2017 9:35am
Quoting ezcurrency
My other system is called "The Anchor." It combines both the Equity Millipede with shorter term trading. First, we look to establish longer term trades (as outlined in this thread). Ideally fundamentals support the trend as well, so it can trend for months / years. Once we establish a few core positions, these are the "Anchor" positions. Next, we use a shorter term trading strategy such as range bars: https://www.forexfactory.com/showthread.php?t=583609 The idea is to use your 'Anchor' positions which are in nice profits to allow you...

I like the name ('Anchor') you have given to your trading style, which has enhanced or expanded upon the millipede.

I would like to ask:

1) Do you incorporate the rollover (interest) costs/profit into your calculation of your overall 0 SL?
2) What happens if your short term trade(s) lose(s), would you look to re-establish more 'anchors' to compensate for that, or keep a running calculation?

Thanks for your insights - I hope you can share more of how the Millipede and the Anchor continue to inspire you as you aim to improve as a trader.
  • #7,265
  • Sep 1, 2017 2:45pm Sep 1, 2017 2:45pm
Quoting WolverineX
{quote} I like the name ('Anchor') you have given to your trading style, which has enhanced or expanded upon the millipede. I would like to ask: 1) Do you incorporate the rollover (interest) costs/profit into your calculation of your overall 0 SL? 2) What happens if your short term trade(s) lose(s), would you look to re-establish more 'anchors' to compensate for that, or keep a running calculation? Thanks for your insights - I hope you can share more of how the Millipede and the Anchor continue to inspire you as you aim to improve as a trader.
1) No
2) If overall SL hit, then I would re-establish the anchor.

I will see if I can post some examples. I have some EU shorts with avg. price of 1.19589 currently up 91 pips, and UJ long with avg price 109.08 up 117 pips. Looking at recent price action, the USD looks like it could strengthen. Ex: Jobs report today weak, and USD fell but quickly recovered. That shows underlying USD strength.

Now that I have EU and UJ anchors, I'll want and see if positions go my way in the coming weeks, then these will be the anchors for shorter term trades as highlighted in my post.

EZ
  • #7,266
  • Sep 4, 2017 10:22am Sep 4, 2017 10:22am
Quoting ezcurrency
{quote} 1) No 2) If overall SL hit, then I would re-establish the anchor. I will see if I can post some examples. I have some EU shorts with avg. price of 1.19589 currently up 91 pips, and UJ long with avg price 109.08 up 117 pips. Looking at recent price action, the USD looks like it could strengthen. Ex: Jobs report today weak, and USD fell but quickly recovered. That shows underlying USD strength. Now that I have EU and UJ anchors, I'll want and see if positions go my way in the coming weeks, then these will be the anchors for shorter term trades...
Good to know that you can establish anchors for both long and short term trades.

In your view, which of the many techniques regarding market entry in the thread do you find yourself gravitating towards the most? There are definitely some in there which triggered a lot frustration among some readers...


Thanks again and more profits to you.
  • #7,267
  • Sep 4, 2017 11:06pm Sep 4, 2017 11:06pm
Wolverine,

I think the best market entries are where SL are being run and people are exiting for a loss. You can tell before hand where SL are usually set. Just think objectively "if I were long here, what level below would I put my SL." Usually its below recent support or recent lows. You notice many times price spikes down to run longs SL, then reverses up.

Same type of thinking for short SL.

Ex: look at EURUSD. Its been in a nice uptrend for a while. If you look at longer term (monthly) charts of EU, its in a downtrend. I am looking to get short because I think USD strength will re-appear. If you see on 8/2, it hit 1.19, then consolidated for the next month. 8/25 it ran SL above that high, and kept running for a few days till 8/29 which looked like a reversal day (closed off of the highs). I was watching price action, so shorted some that day at nice entries. SL at b/e on those.

I just longed some NZDCHF as its near some support and getting hammered due to risk off (N. Korea). Its a nice carry trade as it has the highest interest rate differential. I am probably a bit early long (0.6853), but will add long every 300 to 500 pips lower and scale in if it falls more.

These are my core anchor positions for now: EU short (SL at b/e), UJ long (SL at b/e), and NCHF long (1st scale in entry).

EZ
  • #7,268
  • Sep 8, 2017 12:23pm Sep 8, 2017 12:23pm
Quoting ezcurrency
Wolverine, I think the best market entries are where SL are being run and people are exiting for a loss. You can tell before hand where SL are usually set. Just think objectively "if I were long here, what level below would I put my SL."
Wow, very insightful - never really thought of that, and it really does force me to think about the bigger daily/weekly/monthly picture...


Quoting ezcurrency
I just longed some NZDCHF as its near some support and getting hammered due to risk off (N. Korea). Its a nice carry trade as it has the highest interest rate differential. I am probably a bit early long (0.6853), but will add long every 300 to 500 pips lower and scale in if it falls more. These are my core anchor positions for now: EU short (SL at b/e), UJ long (SL at b/e), and NCHF long (1st scale in entry). EZ
I went long on NZDCHF too but still looks there is still some downside risk...

Still haven't got the hang of starting some 'legs' yet, I guess I'm too risk averse (having been burned by recent N Korean news early in the morning as well as over the weekend) and prefer to take profits on positions ahead of the weekend... nevertheless will be looking to next week to look out for more opportunities.

Thanks again
  • #7,269
  • Sep 8, 2017 1:30pm Sep 8, 2017 1:30pm
I just got stopped out the other day on EU shorts and UJ longs (but I set SL to b/e), so no loss. I re-established the legs at a better price, with SL beyond recent highs for EU and lows for UJ. I still think USD is going to rally from here for a decent rally (maybe even test recent highs in the coming year). If you look at longer term charts, there is resistance for EU here (look at monthly charts).

Regards,
EZ
  • #7,270
  • Sep 18, 2017 3:06pm Sep 18, 2017 3:06pm
Quoting Clivethien
Hi, I personally enjoyed the success of this method. I rode through the huge trend during Euro commencement of QE as well as Greek exit crisis; vs the consistently strong NFP data by US, which prompted the Fed to talk about rate hiking. I remember I get onboard the train around EURUSD 1.27 and rode to 1.05. I actually built a lot of legs aggresively (a method introduced by Fezmar called tsunami method, try look for his profile). From there my account growth almost 20 fold. I owe this to Graeme but am not able to reach him anymore. However, as Graeme...
What kind of entry method do you use?

Regards,
SO
  • #7,271
  • Sep 29, 2017 5:16am Sep 29, 2017 5:16am
Quoting VEEFX
Knock! Knock! Anyone still struggling with 3x20TP exercise? Here's my "Limited Time Offer" for one week only... What if I were to give you entry on M5 timeframe and let you chose whet...
Hi Veefx. Several times I started such trading challenge and failed every time due to not choosing the right time or price.

I like your proposal and want to participate. Also, I suggest creating a Telegram channel to post the trades so anyone can read but no post messages.
  • #7,272
  • Oct 2, 2017 9:44am Oct 2, 2017 9:44am
Hi everyone, im new to forex factory but not to this community and thread. ive been lurking for about 6 months taking in Graeme's philosophies.

Anyway, i have a question regarding his 3 x 20 experiment (where you place trades for 6 months based on the open price of the day).

Can i use any open of market? He mentions London or Asia, but can i use NY for example?

And 2nd, am i supposed to place these trades after some time has passed to see where the market is moving in general? I mean if im supposed to place the trade right at open, then the open price is essentially going to be the same as where im looking to enter. So i wouldnt know if i want to go long or short

and lastly, i know that we're supposed to keep placing trades until we get 3 successful ones no matter how many it takes (ive noticed so far that this method has a really low success rate). Am i supposed to take trades on pairs that i placed a trade that failed earlier in the day? for example, i went long on EU/USD and the trade eventually hit stop.. can i later go long or short on EU/USD or should i ignore that pair for the rest of the day?

thanks to those of you who read and respond to this. your feedback is appreciated
  • #7,273
  • Oct 17, 2017 11:30am Oct 17, 2017 11:30am
Anybody tell me what happened to pipEASY and if he ended up writing his book? Sorry been away for a few years just catching up.
  • #7,274
  • Oct 20, 2017 1:40pm Oct 20, 2017 1:40pm
Quoting ezcurrency
My other system is called "The Anchor." It combines both the Equity Millipede with shorter term trading. First, we look to establish longer term trades (as outlined in this thread). Ideally fundamentals support the trend as well, so it can trend for months / years. Once we establish a few core positions, these are the "Anchor" positions. Next, we use a shorter term trading strategy such as range bars: https://www.forexfactory.com/showthread.php?t=583609 The idea is to use your 'Anchor' positions which are in nice profits to allow you...
500pips of 0.03 is $150 not $1500 and 30pips of 0.12 is 36$ not $360. Good plans though
  • #7,275
  • Nov 25, 2017 8:35am Nov 25, 2017 8:35am
My first post here,

I have read the first 40 pages of this thread,

I would like to find out if any traders are using this method/system from 2010 and had any success in trading?

What are the pros and cons trading this method/system from those traders that traded this method/system?

What is the reason for those traders leaving this method/system if were trading it?

I am trading it on a real account for about a month which is not enough time to come up with a conclusion. Although I am in a very tiny unrealized profit and Cannot say long term if I would still be in the game or not.

My entries are slightly more aggressive over 5 pairs and 2 accounts due to hedging.


Any input would be highly appreciated.
  • #7,276
  • Dec 2, 2017 3:14am Dec 2, 2017 3:14am
Quoting Jcctrader
My first post here, I have read the first 40 pages of this thread, I would like to find out if any traders are using this method/system from 2010 and had any success in trading? What are the pros and cons trading this method/system from those traders that traded this method/system? What is the reason for those traders leaving this method/system if were trading it? I am trading it on a real account for about a month which is not enough time to come up with a conclusion. Although I am in a very tiny unrealized profit and Cannot say long term if I...
It can be quite frustrating to build positions. If not done carefully it can be death by 1000 cuts. I still use the ideas to this day. It is not so much a system as a MM concept. Good luck.
If you are good at something, never do it for free--Joker
  • #7,277
  • Dec 2, 2017 7:05am Dec 2, 2017 7:05am
Thank you jmn5611

Highly appreciated, it is very difficult to get the legs up and running. My positions either hits BE or i would take a loss. I dont keep my SL too close as in most cases it hits my stop loss and reverses in the direction of my initial trade.Neither do I keep it too large as the drawdowns are quite big.The basic idea is superb but you need to hone your skills for entries. A ranging market is also my biggest losses (cuts)...However I do have a few legs 350 pips + but i think its too small to call it a leg.
  • #7,278
  • Dec 2, 2017 12:19pm Dec 2, 2017 12:19pm
Quoting pipEASY
Im very happy to see that alot of traders are truly thinking as professional traders. What this means is that you have finally admitted defeat that you cannot predict the direction of the price. The only thing you can ever do is enter and follow.
I don’t agree that this “system” is just a form of “money management”. It is a complete change of perspective! And probably not just a “system”, but sort of “school of trading” more valuable than the ones you would pay for a subscription. including exercises, techniques and psychology...

JCL, congratulations. Your legs are 350 pips now. Who knows what they’ll be in three months...? You are “in”, and this is the only thing interesting for a “professional trader”.

My two cents and a tribute to Graeme. After years of lurking, admiring, and trying to become better, I cannot keep being silent on this. Even seven years later...
πάντα δοκιμάζετε τὸ καλὸν κατέχετε
  • #7,279
  • Dec 2, 2017 1:49pm Dec 2, 2017 1:49pm
this method works only with patience, nothing more its more pshicology than technically, who can withstand with toushand of cut and BE? Like or not Price will often back to your entry taking out your position by SL Or BE. that is the hardest part. Diversification of profit and Knowing the probable high low / max-min of the year is vital.
  • #7,280
  • Dec 3, 2017 1:29pm Dec 3, 2017 1:29pm
Quoting jmn5611
{quote} It can be quite frustrating to build positions. If not done carefully it can be death by 1000 cuts. I still use the ideas to this day. It is not so much a system as a MM concept. Good luck.
Would you be so kind in sharing these ideas with us?
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