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Building an equity millipede

  • #7,421
  • Oct 1, 2021 1:23am Oct 1, 2021 1:23am
I wanted to continue in this thread as I consider it life-changing information for myself, my trading, investing and business.

Therefore, I opened smallest account possible as per Graeme's recomendation: around 300 USD per 0.01 lot so even newbie traders see that trading can be start with small account. Of course, you won't get rich soon by trading that small amount, but it does not matter. Once you are profitable, you can scale up by opening bigger positions. But do not be in rush. Patience is a virtue. Not only in trading.
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  • #7,422
  • Oct 1, 2021 1:48am Oct 1, 2021 1:48am
I started to trade this way while being at the university. One particular day stays in my mind even after so many years. As a student with not much money I traded usually with 200 EUR account, made some money, withdraw it and trade again with 200 EUR.

On that particular day I have built a decent positions (legs as Graeme liked to call them) on EURUSD. It was up around 3K EUR in equity - huge amount for me at that time. I went for run and when I came back I found all my trades closed at break-even. It was so painful experience for me that I decided to stop trading for a long while and since then I was not a huge fan of building equity and waiting indefinitely, at least not in forex market.

I tried many other approaches but did not find them so profitable and comfortable.

Later on in my life, I started a business that suceeded. Trading became hobby and was not relevant in my income part and still is not. I love it, especially when I open position at very good level and it goes my direction immediately after placing it. Profit that it generates is not that interesting anymore as other activities are more profitable, but the freedom that trading offers is just astonishing.

I became back to trading just as a hobby with no expectation of making a lot as I have more time as I had before. Also I learned so much here by reading your posts and it is the only place where you can discuss trading and its challenges and people really understand you.

Keep riding trends and feel free to make this thread live again.
  • #7,423
  • Oct 1, 2021 3:02am Oct 1, 2021 3:02am
I started to build positions this week on H1 chart. I do not plan to hold it indefinetily, but taking profit on weekly S/R levels. The account has very small balance and is in Czech Korunas (CZK), therefore profit is insignificant and still most trades will just die at BE or in loss. But it does not matter. Once strong trend starts we are going to participate. And of course, we'll take many losses on the way.

In a business, we are paying accountants, advisors, lawyers, salesmen, support people, assistants, managers, and so on. Those are our expenses we have to pay in order to generate profit, and bring value to the client.

In trading, we have to pay the cost of losing trades in order to participate in the market. Do not consider losing trade as a problem or a thing that should be avoided. It is a part of the business. No loss, no profit.

Just be disciplined and do what is important and stop doing everything else. I am not talking only about trading. It applies to any area of your life.
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  • #7,424
  • Oct 4, 2021 3:43am Oct 4, 2021 3:43am
EURJPY could not break through support. Support seemed to be strong enough on weekly so diversification has happened and small profits have been taken in order to grow balance.

Balance grow around 10% and equity is slightly higher than last week.

I found taking profit on supports and resistances on weekly chart makes a huge difference. I tried to follow Graeme's recommendations but in this particular point I could not bear it mentally. I believe Graeme's psychology was very different and holding trades for months and years could work for him. It just does not work for me because I do not like to see my positions dying after hitting XY% return on the account.

However, I have to say that Graeme's way of thinking changed my trading for ever and Im very thankfull to this thread and people who were posting regurarly.
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  • #7,425
  • Oct 4, 2021 4:05am Oct 4, 2021 4:05am
EURUSD is at very interesting level and there might be very good risk to reward ratio. If the position is built and price goes up it could bring hundrends of % return just on this pair.

You can always go down to smaller timeframes and try to catch the move with small risk. That is the beauty of this method.

Keep building your equity.
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  • #7,426
  • Oct 4, 2021 4:50am Oct 4, 2021 4:50am
Do not overtrade

Number one problem when I started to trade this way was overtrading. I thought I could open as many trades as possible just because once I hit a jackpot and it makes my account back and much more. And I was wrong.

I had to learn to trade one setup and stick to it. And only trade when I saw the setup. Today I trade usually 2-3 times per day for about 15min and open new trades if there is a setup or move SL to BE if I find it a good idea. If there is not, I do nothing and close the platform.

I always wanted to make a huge amount fast, but it just does not work. This method that Graeme introduced here is a real power. It should be used with caution.

Do not open trade just because you lie to yourself that your next trade might be a killer and you cant miss it. Just trade what you see on the chart and you become lucky from time to time.

Find very easy setup that works, you can use many threads here in FF that offers very good entry signals, then in a day or so, move SL to BE and wait. Repeat this every day and in about two months you'll discover how easy is to make money.

But I can assure you about one thing. If you keep staring at your platform, you'll think it is difficult and takes too much time and energy. But staring at the chart is a procrastination and does not help you at all.

Learn your entry signal, move SL to BE once profit is let's say 20-30 pip when you come back to the screen in about 4 hours after placing that trade. And keep repeating and taking every signal you find. Some of them you'll miss, it is OK. Just skip that trade and wait for another one. If it hits SL, it is also OK. If you do not move it to BE because you went to see your friends, it is also OK.

Just keep placing your trades when there is a signal.
  • #7,427
  • Oct 4, 2021 11:46am Oct 4, 2021 11:46am
What to do when you do not feel like opening a new trade is a good idea?

I am opening a new trade because I've got a signal to do it. And I do not feel alright opening a trade because price is around local resistance level. I feel like shorting GBPUSD might be a good idea. With relatively tight SL, of course. But I am not doing it. Let me explain why.

I have mastered my setup. It gives me many good trades and sometimes also bad trades. I mean winning and losing trades. I have also checked if that resistance is meaningful on weekly chart. And it is not. So I have ignored it and opened a trade because it is a signal that I know well. There is a chance that trade won't be a profitable and resistance will be strong.

But sometimes we do not feel like doing something. E.g. going to gym, for run, making a presentation, sales pitch or placing a trade. And it is OK. We should know what is good for us and what is not and then make 80% of time decisions that are right. Sometimes we decide to watch Netflix, eat tiramisu for dinner, skip gym and not placing a trade. We should not punish ourselves for this days where we lack discipline, they are part of our lives.

But definitely, we should come back to track and what is right even we don't feel it that way. We might take attention but do what is not comfortable.

Next time I'll tell you my personal story where you can see that making right choices on daily basis make a huge difference.
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  • #7,428
  • Oct 6, 2021 1:59am Oct 6, 2021 1:59am
I look forward to hearing more about your story AdamO.
I too like to target weekly S/R levels for profit taking. I take my hat off to Graham for being able to run a millipede indefinitely but I found it too hard psychologically. Each of us must find what we are comfortable with and base our trading strategies around that.
  • #7,429
  • Oct 6, 2021 6:32am Oct 6, 2021 6:32am
Quoting wombles
I look forward to hearing more about your story AdamO. I too like to target weekly S/R levels for profit taking. I take my hat off to Graham for being able to run a millipede indefinitely but I found it too hard psychologically. Each of us must find what we are comfortable with and base our trading strategies around that.

I agree 100% with you. I decided to start a new thread so we do not spam it here. Feel free to join me there and also write your story, trades and ideas.

https://www.forexfactory.com/thread/...d-ride-a-trend

Thank you
  • #7,430
  • Jun 19, 2022 5:10am Jun 19, 2022 5:10am
Quoting TheRealDeal
{quote} I tried on purpose not to mention about how big boys trade and move the market, because this is advanced stuff and will confuse the new traders here. Unfortunatelly it is a fact and it has a lot to do with the market structure. So imagine you run a hedge fund with 600 mil $. Your clients wish that their orders are executed at the best possible price. They want to buy at bottoms and sell at tops. Let take a buy as example. In order to execute these big buy orders at bottoms you need to have a lot of traders in sell postions at same time to...
How will we reconcile it with algo theory?
"Exchange of hands"
  • #7,431
  • Jul 17, 2022 10:32am Jul 17, 2022 10:32am
This is a gratitude post.

Apparently I need to make few posts before I can start my own thread, and I can't think of better way other than to start where it all really started. I registered on FF back in 2012, although my real fascination with markets, trading and anything moving with price attached to it started two years before.

Graeme gave me almost all of the foundation I am building my trading on. The infinite growth and low risk setups are one of the few fundamental truths I think are the real basis of any profitable endeavour. I am not profitable yet, but at this very moment in life it's just a matter of time.

Though we never met and never spoke, and even if I don't know whether you will ever read this, you are in the small group of people who have shaped my views the most - and for that I want to thank you. Your effort was worthwhile.
  • #7,432
  • Jan 21, 2023 10:34pm Jan 21, 2023 10:34pm
Anyone actively trading this method?
  • #7,433
  • Mar 28, 2023 6:25am Mar 28, 2023 6:25am
I was involved in discussions here over a decade ago and found this strategy to be very useful. Today, I asked ChatGPT to summarize this thread. I was surprised to see that it did. Here it is for anyone coming in fresh:

"Building an Equity Millipede" is a popular thread on the Forex Factory forum started by user pipEasy. The thread focuses on a forex trading strategy that aims to achieve steady, long-term growth with controlled risk. Here's a summary of the main ideas presented in the thread:

Trade with the trend: pipEasy emphasizes the importance of trading in the direction of the dominant trend to increase the probability of successful trades. He suggests using multiple timeframes to identify the overall trend.

Use a simple moving average (SMA): To help determine the trend, pipEasy recommends using a simple moving average, such as the 100-period SMA on the daily chart.

Entry signals: The strategy focuses on pullbacks or retracements within the dominant trend as potential entry points. This is done by looking for price action signals, such as pin bars or engulfing patterns, near significant support or resistance levels.

Position sizing and risk management: pipEasy advises using small position sizes to limit the risk on each trade. He suggests risking no more than 1-2% of the trading account on a single trade and using a stop-loss order to manage risk.

Scaling in and pyramiding: As the trade moves in the trader's favor, the strategy encourages adding to the position (scaling in) to maximize profit potential. This can be done by adding new positions at strategic points or by increasing the size of existing positions (pyramiding).

Exit strategy: pipEasy recommends using a trailing stop to lock in profits and let the trade run as long as possible. This allows for capturing large moves in the market, which can significantly boost overall account growth.

Patience and discipline: The strategy emphasizes the importance of patience and discipline in forex trading. Traders should wait for high-probability setups and resist the temptation to overtrade or chase losing positions.

In summary, the "Building an Equity Millipede" thread by pipEasy on the Forex Factory forum outlines a forex trading strategy that focuses on trading with the trend, using price action signals for entries, and employing sound risk management principles to achieve long-term, steady account growth.
  • #7,434
  • Mar 29, 2023 10:48pm Mar 29, 2023 10:48pm
Quoting doc816
I was involved in discussions here over a decade ago and found this strategy to be very useful. Today, I asked ChatGPT to summarize this thread. I was surprised to see that it did. Here it is for anyone coming in fresh: "Building an Equity Millipede" is a popular thread on the Forex Factory forum started by user pipEasy. The thread focuses on a forex trading strategy that aims to achieve steady, long-term growth with controlled risk. Here's a summary of the main ideas presented in the thread: Trade with the trend: pipEasy emphasizes the importance...
Hi ,
I am actually reading this thread and may I ask you if you are still using this strategy and if not why ?
Best regards.
  • #7,435
  • Mar 30, 2023 9:15am Mar 30, 2023 9:15am
Anybody still holding positions from 2010 in here?
  • #7,436
  • Apr 6, 2023 3:23am Apr 6, 2023 3:23am
Does anyone know what happened to PipEasy?
I have no clue where it's going
  • #7,437
  • Apr 19, 2023 5:01pm Apr 19, 2023 5:01pm
Quoting LifeRider
Does anyone know what happened to PipEasy?
Yes,it is very sad but PipEasy was bitten by a large centipede while he was doing some gardening.The bite itself didn't do much damage, except for the initial excruciating pain,but the subsequent blood poisoning actually killed the poor guy.RIP Pip Easy.
  • #7,438
  • Jan 2, 2024 10:13am Jan 2, 2024 10:13am
Quoting edge540
{quote} Yes,it is very sad but PipEasy was bitten by a large centipede while he was doing some gardening.The bite itself didn't do much damage, except for the initial excruciating pain,but the subsequent blood poisoning actually killed the poor guy.RIP Pip Easy.
Millipede building seems dangerous when a centipede is near .......
Never Ever Give Up!
  • #7,439
  • Edited Aug 6, 2024 11:21am Aug 5, 2024 1:18pm | Edited Aug 6, 2024 11:21am
Hello everyone,

This is the one and only thread I have cherished for years. Every now and then, I go back and revisit parts of it as if it was for the first time. Certain posts by PipEasy and a few other participants are pure gold and get better as I re-read them.

After all these years, I have come to realize that trading strategies are all similar in concept: You either buy or sell to hopefully generate a profit. Period.
The difference lays in the Sizing and Timing of the trades. Everything being relative, there are no absolute "small" and "large" bets and those words should be avoided.

One can easily loose money even when correct about the trend. The opposite is just as true.

The Pudding...

For illustration purposes, I have reset an old real trading account of mine and set the start date to August 1, 2024.
It is publicly accessible through Trade Explorer.

Start date: August 1, 2024
Starting Equity = Starting Balance = $6,346.90
Starting UPL = $0.00

The strategy is based on the approach outlined in this great thread and is very straight forward.
If desired, it can be used without any chart or other so-called indicators: Your trades are the only indicator you will ever need.

Hedging, full or partial, is an important part of this strategy

I choose to call it "Soldiers of Fortune" because the strategy views each trade as a Soldier attached to a specific Combat Unit with a very specific role to play.

More details will follow...
  • #7,440
  • Edited 11:46am Aug 6, 2024 7:43am | Edited 11:46am
It is interesting to note that PipEasy has spent a great deal of time describing The Fractal Theory without ever naming it.

His examples of similar patterns repeating across different timeframes, "zooming in" to take "razor-sharp" entries, "zooming out" to identify the long term trend...are all part of any strategy that uses Fractals for decision making.

The Fractal Theory states that the same patterns repeat across all time frames (this definition can be extended to physical matters outside the trading world.)

PipEasy gave a good example of that: There is no way to tell the timeframe of a chart unless it is explicitly indicated.

And that is the main reason I view my trades as Soldiers:
Some belong to what I call "The Participation" Group, others to "The Long term" Group and, finally, a few are assigned to the "Do-or-Die" Group set to force a market decision on a setup when necessary.
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