Super Carry Trade Trading System

So you currently have 2 orders and the current market price is above average? If so, time to close all and start again.

That's what I thought but then you close the positions every time there is a small retraction (in my example above -27 pips from the last limit order).

That's one way it happens; there are many different scenarios that happen. For instance, let's say you open right now again, and the market goes up and up, you won't close at all, you'll just let the limits and take profits do their thing.

Ok last question :-) .... when you close, do you leave your (old) limit orders in place or do you start laying 10pip limits all over again from your new starting position?

I am inclined to leave them open and fill the space between the old limit and the new position with new limits

I leave them open and fill the space between the old limit and the new position with new limits (time is precious ).

Do any of the EAs follow Dreamliner's rules on the 1st page? If so, would someone be so kind to say which one it is? Thanks!

Hayseed is coding an EA with all of the original rules from Dreamliner, but is adding some twists too. That hasn't been posted yet. The EA that is posted implements the rules for the system that Dreamliner derived his system from. There is a link back to a discussion group on OANDA posted on the first page as well which will lead you to a lengthy discussion about that systems rules.

I learned a lesson today with the huge rise in GBP/JPY. When you put in your buy stop orders, set them to expire in 1 month, rather than a shorter time frame. Fortunately I had done that and was able to take profit all the way from 209.00 to 212.00. Had I set the orders to expire in 48 hours I would not have had the profit orders trigger. Sometimes the market jumps like this and it is best to have the orders in place in case it does. (I'm right now at 132.67% profit per year, if things continue as they are. Of course this number will go up as the balance, and therefore units, increase).

I note that the interest (swap) rate is positive for GBP/YEN on the Long side. However the current daily and weekly trends appear to be on the short side.
Does the dreamliner system take the long term trend into account?

Thanks

DrZ

Dreamliner, I have followed this thread since you started it.

You have not changed your original rules, right?

YES. It is all in the thread.

Thanks dreamliner, that's almost the same I do for my carry trading. But thanks for your adaptions!

I've just added this to my grid trading thread there at Oanda. My starting balance is €10,000, so I use 188 units currently. This is a strategy which works only at Oanda due to the low position sizes...

Regards - Xaron

Thus, if the Trend on GBP/YEN is short, but the positive swap is Long, which way to you trade? Go long (expecting a drop) to get positive swaps? Or go short expecting to make more in capgains than you pay in swaps? This is particularly important using dreamliners chosen pair (gbp/yen). Any assistance will be appreciated.


DrZ

Always long, interest positive only.

Regards - Xaron

I see you out there Hayseed. Any news on the EA ?

Thanks
Mombone

hey mombone..... hopefully shortly..... ran aground in something i was trying to code so backed off for a day to clear my head.....

something is amiss and i can't put my finger on it.....

just adding the buystop orders to timefreedoms ea is a snap..... but the complete ea is yet undone.....

we also will need to clarify dreamliners first post rule (6) a tad bit further..... h

Let me give #6 a try here, and Dreamliner can tell me if I've got it wrong.

You are in a downtrend and have some number of open positions creating an average entry price. You also have a (large) number of buy stop orders between your last entry, going all the way up in 10 pip increments, to the last one you placed with your initial entry. Price has been trending down, but now reverses and begins heading back to your Average price. Along the way, it crosses the price of your last entry, and you begin to collect the 10 pip buy stops, each of them closing at a 10 pip profit as price advances. At some point, price advances to and actually crosses the Average price. At that point, you should:

1. Open a new base position ... AND...
2. Close all open and pending orders ... AND ...
3. Establish a new grid of buy stop orders with 10 pip TP from the confirmed entry price of your new base position.

That is my understanding. In a fast moving market I can see where things could get a bit dicey getting all of that work done as price is speeding on up. There is a chance for a few oddly filled orders, but I don't think it is so much to concern ourselves with. Anything stranded would just factor into a new Average position, and will eventually fill in a quieter market.

Given this understanding I can only think of a couple of questions/issues. First is, what is the best order to accomplish the above 3 steps (again, I'm guessing that in the long run it won't make a huge difference). Second is, since we know we will want to delete the grid above the Average price for the multiple positions, why don't we do that anytime we adjust the Average position buy purchasing a newer Average Down position? Say, after making the purchase, determine the actual average price of all your open positions, and delete any grid buy stop orders greater than 10 pips above the average price (So if the market is moving fast, and you have a standing grid order at 2 pips above the Average price, we would keep that one alive until we've finished establishing the new grid price). Then when the new buy stop grid is established, if that one remaining buy stop position hasn't triggered yet, the EA will go back and remove it.

I know this is really in the weeds stuff. I've done some programming though, and I know it might help Hayseed see something he might be missing if I can get enough of that detail in.

Hayseed, dude! Did you find your missing Right Closing Brackett? What a PAIN. You are an angel for doing this EA. I have an idea what you are up against, and I really appreciate you taking the time to work on this. May you be rewarded 1000 fold!

No! Trends are not taken into account, because even in long down trends you will notice retracements, and these retracements are where our buy stops give us profits. I have been profitable since starting this system, and GBP/JPY has been in a considerable downtrend since I started.

Hi Scott!

No, the original rules are all the same. I just added that when we place buy stops we should make them valid for as long as possible (1 month at Oanda).

I don't think smjones and I are disagreeing here, we are simply saying that we enter the market at any time, does not matter what direction it is headed. That is one of the beauties of this system is that we do not have to be forecasters (gamblers), nor do we have to own a crystal ball.