Attachments: Trend Following Experiment - GBPUSD

Trend Following Experiment - GBPUSD

#21
May 9, 2007 2:56am May 9, 2007 2:56am

cesarnc
Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts

Hey iPlayGames, nice thread...

Here's my question: why have you decided for a 75 pips trailing for Cable? I'm really undecided about the trailing stop level here.

Jacko uses 50 for Euro that seems to work very well. But 50 for Cable I think it is not ok.

However, a 75pips SL will kick you off the market 75 from the toppish, right, when price will bounce and get back.

So I was wondering, wouldn't be better to TP partial at 75 pips profit, thus the SL will be at the B/E level of the original trade. That would ensure a 38 pips profit, better than B/E.

The rest of the positions is left for the ride, in case a surge takes place. What you think?

P.S. I didn't like to polute this strategy with indicators and stuff to define a first level of TP.

#22
May 9, 2007 4:05am May 9, 2007 4:05am

iPlayGames
| Joined Feb 2006 | Status: Trader | 110 Posts

Quoting cesarnc

Disliked

Hey iPlayGames, nice thread...

Here's my question: why have you decided for a 75 pips trailing for Cable? I'm really undecided about the trailing stop level here.

Jacko uses 50 for Euro that seems to work very well. But 50 for Cable I think it is not ok.

However, a 75pips SL will kick you off the market 75 from the toppish, right, when price will bounce and get back.

So I was wondering, wouldn't be better to TP partial at 75 pips profit, thus the SL will be at the B/E level of the original trade. That would ensure a 38 pips profit, better than B/E.

The rest of the positions is left for the ride, in case a surge takes place. What you think?

P.S. I didn't like to polute this strategy with indicators and stuff to define a first level of TP.

Ignored

hello Cesarnc. Jacko has recently got interested in cable, and he uses a 75 points trailing stoploss for cable. I have no idea why 75 points, but if Jacko reckons it's effective for cable, then I believe him, who am I to argue with the guy who has made over a million dollars in one year? so I'm using it as well, for the reason that 75 is big enough to tell me that I'm wrong, and small enough to recover.

I don't know about TPs, as long as I konw, Jacko does not use it. if I use TPs it'll be a big change to Jacko's trend following method. I think it doesn't matter how you determine trends, it doesn't matter much where you put your position on, but it matters a lot where you exit. I'm sticking to Jacko's choice unless I see strong evidence suggesting a better one.

#23
May 9, 2007 4:17am May 9, 2007 4:17am

cesarnc
Joined Nov 2006 | Status: Shoot all the clowns.. Shoot'em all | 14,520 Posts

Quoting iPlayGames

Disliked

hello Cesarnc. Jacko has recently got interested in cable, and he uses a 75 points trailing stoploss for cable. I have no idea why 75 points, but if Jacko reckons it's effective for cable, then I believe him, who am I to argue with the guy who has made over a million dollars in one year? so I'm using it as well, for the reason that 75 is big enough to tell me that I'm wrong, and small enough to recover.

I don't know about TPs, as long as I konw, Jacko does not use it. if I use TPs it'll be a big change to Jacko's trend following method. I think it doesn't matter how you determine trends, it doesn't matter much where you put your position on, but it matters a lot where you exit. I'm sticking to Jacko's choice unless I see strong evidence suggesting a better one.

Ignored

I agree with your view. I guess Jacko picked 75 for Cable due to the higher volatility compared to Euro.

Although I fully respect Jacko's strategy (for its simplicity, as I believe simplicity holds wisdom), there is just ONE POINT in which this strategy do not fit my profile.

Jacko ramps up the volume heavily for Euro, so even if Euro makes 75 pips from the entry and retrace, his 25 pips profit will be large in $.

That's why a slight correction would serve for me better for Cable.

Trailing 75 and TP partial (half, maybe) at 75 from entry, as to guarantee a minimum 38 pips in case it pulls back.

Trading smaller lots compared to Jacko somehow force me to demand profit as soon as it appears, that's my concern.

I'm just giving it a thought here, no way i'm intending to change the strategy. Just discussing a little a possible form of improving this strategy to my (ours?) capital profile.

#24
May 9, 2007 10:12pm May 9, 2007 10:12pm

iPlayGames
| Joined Feb 2006 | Status: Trader | 110 Posts

Quoting iPlayGames

Disliked

order filled @ 1.9900, trailing stop in place ...

Ignored

SL is now @ 1.9921 (75 pips from the latest high since the trade was on);

but I shouldn't have taken this trade, because

1. my 1st & 2nd position were losses, which should have been enough to tell me that I was wrong,
2. I shouldn't have taken those 2 positions at all, I did have weekly and daily trend on my side, but 4hr trend was down at that time. those 2 positions were against market momentum.
3. 4hr trend was still down when I took my 3rd position, although it's in profit now, it's purely luck. I should have waited for either anti-hedging to happen, or 4hr trend conforms to daily and weekly.

I've better understanding of Jacko's method now, and I'll act accordingly.

#25
May 10, 2007 5:08am May 10, 2007 5:08am