Personal Journal of The Fist Method

This is a personal journal of my fist method. More specifically, this is the documentation of the perils of I have faced since doing MM with the fist.

Again, as with pretty much all my journals, I am not taking questions, I'm not even going to respond, so don't bother PM'ing me asking what method I use.

I want to list the problems, and solutions and comments to them, and get on with my trading life...

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And yet.. it is utterly amazing that I get 8~10 PM's a day about it. I'm not sure which part of "don't bother PM'ing me asking what method I use" is so difficult to understand, but I guess English is a difficult language.

So I'm gonna answer the question here. No, I invented the system so you aren't going to find any info on it.

Yes it works, please look at the weekly screenshots of P/L below.

Yes it is for sale, $200K starting offer.

No, I am not joking about the price tag, You can buy a Mercedes Benz or Porsche for that price, but NEITHER of them shows a 9000+ pip ROI per week.. So I think it is rather cheap, I might be raising that price tag...

Is it the Holy Grail? If I said yes, does that change your life any?

You don't believe me? That's fine, leave me alone.

In VT Trader, you are either viewing Bid, or viewing Ask, but not both.

So yesterday, when I slapped down 2 SL's, it never hit on the chart, but I guess I was viewing THE WRONG CHART. This makes for a ridiculous dilemma..

I lost some 800+ pips instead of being up +1600 pips for today. Bastards! All of them!

So note to self..

When you are BUYING, view the BID chart.

When you are SELLING, view the ASK chart.

MM has been a pain in the rear. The final choice to use a Safe MM, has lead to all sorts of headached I didn't anticipate.

Should I base it on purely worst case scenerio, or what's in the piggy bank, or equity carry-over?


I've ruled out equity carry-over, as that's too scary.

Not including open position profits seemed like a smart choice too.

So either based on full SL deductions, or based on cash in bank.

So far, I have decided to do cash in bank, but I might have to do SL deducations and count even open winning positions as SL tanks...

This has added about 5 minutes to my trading time, which I find to be ridiculous..

1. Establish Math Definition of Trend ~ Check!
2. Establish Math Definition of Trendline ~ Check!
3. Test pretty much every theory I can get my hands on ~ Check!
4. Design a system that requires no indicators ~ Check!
5. Design a system that requires less than 5 minutes a day ~ Check!
6. The system requires only checking once per day ~ Check!
7. The system must be market-agnostic ~ Check!
8. The system must have a > .5 expectancy ~ Check!
9. The MM used must be able to produce >22% per month ~ Check!
10. The MM system must take no more than 2 minutes ~ Not so good..
11. Make a ridiculous amount of $$ and disappear ~ Getting there...

So I'm gonna have to reread all the stuff on MM again, and see if there is a much simpler system for MM than what I am doing now, with the spreadsheets etc..

Listening to the Mary Buffet Book about Buffetology for the 10th time this week..

I had a breakthrough that solved quite a bit of my problems all in one!

I had a pyramiding problem, but I think I've solved it by doing nothing!

Problem: If you don't base your kelly on Equity, and base on piggy bank, you don't account for unrealized profits, nor unrealized losses..

Solution: But if you do base it on the piggy bank, your realized losses are accounted for, but your open positions either Profit or loss aren't accounted for.

Why it's a solution: What this does is so strange! That means, the position size diminishes with accumulated realized losses! This means a naturalized reduction in pyramid with accumulated losses that are reflected in real time decisions, while open positions get a deferred.

This then brings about a curious phenomenon, that means open positions are left to fend for themselves, and new positions then are based on accumulation realized profits and losses.

I check once a day, and I use to check twice, but I am experimenting to see if checking in the morning my time at the open of NY is more profitable or checking at night. It seems easier to check in the morning, but we'll see. Easy doesn't matter, profitability does.

I have simulated it, I have done quite a bit with it, and I know what the math says.. But I think nothing really prepares you for the ridiculous growth that is good MM.. I now have a glimpse of what Larry Williams must have felt like..

That said, I am doing a ridiculous amount of pips and Wednesday just barely ended! I think of the markets don't get a lot of bad news and gives a smooth movement until the close of the week, I "might" see a 10,000+ pip week, which has got to be the holy grail of holy grails.... I drool with anticipation of the screenshot..

My system has continued to buy at the price points that have made me wince in pain, but I have to admit, it's almost like Christmas everytime I open up the chart. The ridiculous MM though, is really throwing me for a loop. I am wondering if I should reduce it now that I know the ROR point to be around 68.5%, or if I should continue it... I think the final vote will be to continue at least to play out the week...

Even if it's overly aggressive and I have a 10% ROR, I don't care! I WANT to see a screenshot of what 10,000+ pips look like for the week.. I'm gonna make pips the same way mcdonalds makes hamburgers, one pip at a time...

What I need to do is trade through a few big news announcements to see how the fist handles the news.

It seems like the initial 2 trades contain the most danger, after that, pyramiding up seems to lock in more and more. How I deal with it in MM, is something I haven't decided yet.

Well, I tried to pyramid my position today, and the software wouldn't let me.. Seems that even though I have stops in place and have made 50% these 3 days, they are all open positions, so +++ in the equity column, but not in the $$$ column. So it wouldn't let me trade, insufficient funds!!

That means I have more than 19 positions open! At least they pretty much are making $$$..

Gonna lower my kelly then...

Oh so close!

Kelly MM killed it.. I should have more positions but ran out of money.

I didn't do "full boat all open position" analysis before.. which is something I never thought I'd face..

100% budget / 6.67% MM = means only 15 full positions.. even 5%, means 20 positions, 5 more than what I have now..

This is a problem I haven't thought about..

Market turned around.. I guess I'll chase the elusive 10,000+ pips next week..

Oh well.. SOOO CLOSE!!

I've reduced the tracking down to 4 pairs, because of MM...

Because so many have asked, I thought I'd post the P/L from the previous 5 weeks..

5 Weeks ago..

This is a screenshot from my first week of "officially" trading The Fist. There was no MM involved, and so the pip count was a bit thin.. I ended the week at +1713, which was not bad.

I thought I didn't have a screenshot of this week, or couldn't find it, but I found it!!

I however, screwed up 2 entries that week, and so had a -400 pip and a -600 pip respectively in EUR/USD and GBP/USD; which just got my underwear into a tight wad. I should have ended the week with close to +4000 pips, but had a 1000 pip switch as a result of stupidity on my part... Oh well, live and learn..

+2655 pips for the week...

I missed a day of trading for that week, and so the pip'age is a bit thinner than I had liked, but still a good week. This was when I was still pyramiding and had no MM. Ended the week with +3585pips, should have ended it > +4000 pips, but I didn't. Oh well, such is life...

2 Weeks ago, I did everything right for that week, and ended the week with +4310pips. That was when I felt I could take on trading The Fist with MM.

It was a good week overall..

Of course last week I was chasing the elusive 10,000 pip in a week mark; yes yes yes, I know, it's all psychological and it's just an arbitrary number, but still, gotta have a nice round goal to shoot for right?

This week, I switch my MM to a less agressive 5%, down from 6.67%. The broker I use (CMS) let's you trade positions based purely on a percentage of piggy bank, and not based on the (open-equity + profitable SL) formula, which means I'm limited in the number of trades I can make, even if they all show a profit across the board.

I have also reduced my trading from 8 pairs to 4 pairs, simply because my $$$ was spread too thin on 8 pairs, and also because I think E/J and G/J are going to give me unnecessary heart attacks and also they are expensive to put positions on for, because of SL depth.

So I'm only trading USD involved pairs:

EUR/USD
GBP/USD
USD/CHF
USD/JPY

EUR and GBP came out of the gates this week on rough starts, so I didn't put on any trades for them. JPY was the only one being traded, and at the 5% going now, and having started on Tuesday, I estimate I'll probably end the week with only +1000 pips or so. Perhaps even less than that, because I'm trading 4 less pairs... Oh well, such is life. Maximum pippage is not the goal here, maximum pippage for minimum risk is, so I'm ok with that. I want to see how just trading 4 (less wild) pairs stacks up against trading 8 pairs.

But from past records, it seems that Cable has been the best performer anyways, so I don't think I'll lose that much.

So this week is a week of system reset, so I'm looking at next week already as the slightly more official start of the 5% and 4 pairs trading.

6.67% and 8 pairs I thought would have gotten me to 10,000 pips in the week, and I was so close! <sigh> oh well... as MM grows my pot, I think 4 pairs and 5% will still reach 10,000 within the next 3 months...

Wait and see..

WOW!! I'm so excited I'm giggling like a little school girl!

The Fist 2.0!!

Damn, I'm so stupid I didn't see it before!

I've been able to fractalize The Fist even more, so now think I can jump to yet a lower time frame but capitalize on more pips; or go to a higher timeframe but not lose pips.

I'm also now able to accelerate my pip gains I think (at least in theory). Damn! I wish it wasn't 1am, or else I'd work it like a hooker on Hollywood and Vine.

Hmm.. The 10,000pip barrier is going to be broke easily now that I know this. My problem now is MM, will the MM be as portable as The Fist 2.0? If so, we are gold.. If not, I'm not sure what I'm going to do, as there are no books about MM that talks about situations like this..

Time for a few more demo accounts... I might go ahead and compress 1 week's worth of trading down to a day, but maintain the same pip performance.

WOW...

That would mean... 10000 pips a day would now be possible if my MM is good!

This is so insane... I can hardly breath..

I got to use "area under the curve" and "trapezoidal rule" in my writings about the Fist today.. hehehe..

I'm so excited I can't sleep... Gawd I love the smell of napalm in the morning!

Well. the markets weren't helping this week; very little trading, in fact, only ONE position for all but the Yen, and even then, then Yen only had 2 positions.. And GBP didn't even show ANY LOVE to me this week... There wasn't even a GBP trade this week!!

Moved to 5% MM as well so I knew the pippage was going to be low.. Oh well, such is life..

Total of 4 positions this week, +1005 pip..

"After all, tomorrow is another day!" Or something like that...

So many ask me about my "ridiculous returns"... and while I should keep my mouth shut, I've realized I'm just not good at keeping it shut..

So I'm gonna comment on my "ridiculous returns" here.

First, I have no idea what constitutes ridiculous. If you walk down Hollywood Blvd in Los Angeles, you will find people to be dressed in ways I consider "ridiculous". But to them, hey, it's Hollyweird, this is the norm!

There are threads everywhere "1000 to 100K!", " "$200 to 100K in a year!!" etc.. that I guess want "ridiculous returns" as well, yet, for some reason, THEY are encouraged, and I am badmouthed.

Oh.. they are just chasing a dream, like a boy saying he wants to be an astronaut, where as you, you are being just plain ridiculous! Right..

Quite a few people have commented that this thread is locked, and they ASSUME admins have locked it. Far from it, __I__ lock it because this is MY journal and despite the ridiculous amount of requests I make for others to not write in it, it doesn't happen, so I lock it after I write in it.

I post screenshots of my weekly trade results, so I can keep a journal (see, that's why it's my journal and in the journal section... get it?)

I am sick and tired of people telling me that what I get on a weekly basis are "ridiculous" and "impossible". I think those are the same engineers who say that it's impossible for bumblebees to fly. Those who SPECIFICALLY PM me just to tell me how full of it I am.. that special group of you guys, remind me of something.

I read in an IT magazine once, that the most hated person in Silicon Valley was Bill Gates. And RIGHT UNDER THAT SAME SURVEY FROM THE SAME GROUP OF PEOPLE, the picked BILL GATES as the person they'd most want to be. So you want to be the person you hate the most???

The same people I read who send me hate PM's are the same people who want to make ridiculous returns.. It's just sick. Grow up and get a life. Stop being such a whiny baby. I don't PM you, so please don't PM me.

I'd hope I don't have to turn off my PM's because of you morons. I turn off comments on my journals as it is. You are like cockroaches, you infect everything you touch and are difficult to kill, all the while eating garbage and contaminating anything good in the world.

So if you are weak in bed and not so manly, they have little blue pills for that. Go buy some, but please leave me and my "ridiculous returns" alone. No I'm NOT a professional, that's why I can get these returns.

Most professionals aim for 400 pips a month, and that's what they get. I aim for 10,000 pips a WEEK, and that's what I get.. Like they say, each of us get what we want from the market.

What a bad attitude I have.. you say? Yeah, benefits of this being MY journal...