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Jacko's Forex House of Pleasure and Pain

  • #7,401
  • May 3, 2009 2:59am May 3, 2009 2:59am
Quoting artov
I am not a member of Jacko's group yet but I am planning to become one soon. I have been in e-mail contact with him and asked him some questions to which he has replied quickly and honestly.

I see that Jacko uses a 100 pip TSL. I see many of you have your own way of managing the SL, I was wondering are there people in here who trade it exactly the way Jacko does (100 TSL)?

For those of you having your own way of managing the SL, have you experienced any significant gains compared to Jacko's 100 pip TSL?

Also what is the AH (Anti-Hedging) strategy...
I put my SL where he says it is going to go and then watch what happens when it is getting close. But I trade up and down based on what he says the Euro is going to do. He has a knack of being able to say where the Euro is heading with an unusual degree of accuracy. I have been stacking up the green in a BIG way on his calls.

The AH stategy is on the first page.
You got to read all of the first page, man. And then go to page six and read his results.
  • #7,402
  • Edited 7:14am May 3, 2009 3:58am | Edited 7:14am
results pertaining to 2006...and as far as I know,he's been trading 200 standard lots for some time now, thus those number are...antiquated ...also remember he tends to be a very conservative - and patient - trader...if he doesn't like the setup 100% he rarely takes it (and he only trades EUR USD) giving him a very very strong win/loss ratio - and for the losses he then applies (if conditions allow) the AH strategy which not only can eliminate the loss but often bring another gain...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,403
  • May 3, 2009 3:25pm May 3, 2009 3:25pm
this has been asked a zillion times elsewhere on FF - but I'm curious which brokers Jacko Group Members are trading with and why?
  • #7,404
  • May 3, 2009 4:02pm May 3, 2009 4:02pm
Quoting artov

Also what is the AH (Anti-Hedging) strategy you guys are talking about?

Thanks.
I've had a hard time finding it, too.

It's straightforward:

1.
enter trade at 1.3000 expecting it to go to 1.3100. You put a SL at 1.2900

2.
market goes to 1.2900 triggering your 100pip SL

3.
possibility A - market continues to 1.2870 but then turns around past 1.2900 and beyond. No AH trade is triggered. You simply lost out on this trade.

3.
possibility B - market continues to drop another 50pips past your original SL and goes to 1.2800 and beyond. That's your Anti-Hedging (AH) trigger, at 1.2850 in this example.

4.
you enter an AH trade at 1.2850 as market moves back up, expecting it to go at least to 1.2900 (the original SL) and probably beyond.

5.
possibility A - market goes to 1.2950 and you gained back your original loss. Now you decide with a new fresh consideration if this is a trade to stay in or get out of.

If I got anything wrong, please correct me.


From what I can tell though, a 50pip SL seems more popular - its based on your capital base really and your contract size. Money Management (MM) kicks in. Most FF members consider 2-3% risk appropriate - I've read Jacko say he is comfortable with 5%. If you have $100,000 in your account, this means:

1.
3% = $3,000 risk. Your SL should kick in once your capital base shrinks by $3,000.

2.
Check your leverage. Let's say it's 100:1. You buy 1 lot, costing you $1,000 but giving you a currency exposure of $100,000 (100:1 ratio).

3.
Each 1pip movement now represents a $100 difference in your capital base. If your trade moves 30pips against you, You've now lost $3,000, or 3% of your account size of $100,000.


Now if you run the same calculation with something much smaller, you quickly will recognize that forex rags-to-riches isn't quite as swift as it may appear at first blush.

Personally, I believe the leverage aspect is the one single misconception that brings down newbie traders. "Hey! I spend $1,000 and suddenly I'm $3,000 in the hole. Oopsie! What's happening?"

The same misconception causes newbie traders to over-leverage: "Wow! I can buy $10,000,000 worth of currency with only $100,000! I'm buying 50 lots right now!" And 4 seconds later you look at gaining $5,000 and think this is easy money, then you blink again and it moved 20 pips against you and your broker says: Game over, your $100,000 are gone".
  • #7,405
  • May 3, 2009 4:19pm May 3, 2009 4:19pm
Quoting artov
Also what is the AH (Anti-Hedging) strategy you guys are talking about?
Hi, artov.

I see a few people have answered your question already. Please just review this post:

http://www.forexfactory.com/showpost.php?p=1425762&postcount=5

Read it over and over again until you have it memorized because there is no one greater to explain the AH strategy than the man who created it because I notice some of the explanations given are not quite right.

Just play it safe and read post #5 of this thread. As fxtrader29 has said before, it's a fantastic strategy that is proven to recoup losses quickly and increase profits dramatically.
  • #7,406
  • May 3, 2009 5:23pm May 3, 2009 5:23pm
Quoting digitil
3.
possibility B - market continues to drop another 50pips past your original SL and goes to 1.2800 and beyond. That's your Anti-Hedging (AH) trigger, at 1.2850 in this example.
In my view if price hits your stop and goes beyond 50-100 pips, only then AH setup is triggerred. Less than 50 or more than 100 would not trigger it. Can others pls confirm/refute this?
Quoting digitil
4.
you enter an AH trade at 1.2850 as market moves back up, expecting it to go at least to 1.2900 (the original SL) and probably beyond.
In my view, AH should re-open the lost position exactly where your intial stop was (in this example 1.2900). Can others pls confirm/refute this?
  • #7,407
  • May 3, 2009 5:30pm May 3, 2009 5:30pm
ah is triggered once price moves 50 pips beyond your sl - correct you reenter exactly where you were stopped out...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,408
  • May 3, 2009 5:32pm May 3, 2009 5:32pm
Nice one, Thanks for that Malcolmb.

Cheers,


Quoting malcolmb14
I am not a poster on this thread .

I am a volume trader I use VSA .

There is very high volume on Goldman after an uptrust , this seems to be the 1st sign of distribution . I bought a little FAZ when i saw this.

also this news

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJrpK_5OglGI&refer=home

why would this be on the wires if everything really was ok . ??? seems odd to me.

and this

Goldman Sachs earlier this month reported $1.81 billion in first-quarter profit (http://www.bloomberg.com/apps/quote?ticker=GS%3AUS),...
"If it bleeds ... we can kill it"
  • #7,409
  • May 3, 2009 5:34pm May 3, 2009 5:34pm
Hi all,

I am pinning everything I have on E/U going to at least, 1.3290.

Can anyone confirm?

Cheers!
Attached Image
  • #7,410
  • May 3, 2009 6:02pm May 3, 2009 6:02pm
Jacko,
I have read through the thread but don't remember coming across where you have discussed adding positions. You place 200 contract orders, but do you continue to add positions and how often do you add?
I apologize if this has been discussed somewhere and if it has please just direct me to the post.

Thanks.
  • #7,411
  • May 3, 2009 6:53pm May 3, 2009 6:53pm
Quoting coscorp
ah is triggered once price moves 50 pips beyond your sl - correct you reenter exactly where you were stopped out...
coscorp - 50 pips beyond may mean 500 (or 1000 more pips) as well. Is there a filter on the upper limit? Or as long as the underlying trend is good, you can re-open position with AH.
  • #7,412
  • May 3, 2009 7:42pm May 3, 2009 7:42pm
Digitil, fxrader29, hans and chicky, thanks for answering.

I read the 1st page a long time ago but I might have cheated and skipped that AH post or I simply forgot.

Digitil, a question regarding your first point. There we have a TSL of 100 pips and a TP of 100 pips. What I have understand is that Jacko doesn't use a TP, only the TSL, is that correct?

If you place a TP, does Jacko give his opinion where price might be heading or do you determine it yourself?
  • #7,413
  • May 3, 2009 8:24pm May 3, 2009 8:24pm
ive adopted TP of the percentage of my position at certain pip levels leaving the remaining 50% to be taken out for TSL... thats the only area i guess u could tinker with this system, but try and keep some on the table to 'run' with the TSL...

my question is regarding the TSL funnily enough....

if you've got a setup with ncie PA, trend line etc etc but a sensible SL would be roughly 150pips behind do you still keep it at 100pips SL, cos you may be exited out of a trade even though analysis is right and turns around after SL is hit, but within the 150pip SL. Or do you still keep it as 100 TSL and just collect the pips back when AH is triggered...
Grabbing the bull by the horns!
  • #7,414
  • May 3, 2009 9:08pm May 3, 2009 9:08pm
Quoting whitegoodman
ive adopted TP of the percentage of my position at certain pip levels leaving the remaining 50% to be taken out for TSL... thats the only area i guess u could tinker with this system, but try and keep some on the table to 'run' with the TSL...

my question is regarding the TSL funnily enough....

if you've got a setup with ncie PA, trend line etc etc but a sensible SL would be roughly 150pips behind do you still keep it at 100pips SL, cos you may be exited out of a trade even though analysis is right and turns around after SL is hit, but within...
Just my input on your question, if you think it will go past your TSL why dont you just wait a little bit and get a better entry? Just from my experience with the system when you pick them right they go and when you pick it wrong its wrong. However you look for the AH when your wrong and it tends to pick up your mistake. Just on the possibility that your entry was wrong from the begining you are risking 50% more to prove that your right
  • #7,415
  • May 3, 2009 10:29pm May 3, 2009 10:29pm
Quoting kodflakes
why dont you just wait a little bit and get a better entry?
done!
Grabbing the bull by the horns!
  • #7,416
  • May 3, 2009 10:31pm May 3, 2009 10:31pm
Hi Jacko, I have some doubts:

1). How would I know when to use 50/100 pips stop loss? Does the same stop loss apply to different time frames?

2). Is the stop loss for Anti Hedging the same as the prior trade?

3). If I am stopped out on Anti Hedging, do i reenter the trade again?

4). If I am not wrong, a good method works on all pairs and all timeframes. Am I right to say this method also works on all pairs but with better results on EUR pairs?

5). I saw you mentioned 1.2800, 1.2900, 1.3000, etc. ("hundreds" and "thousands") as round numbers. Why do I see 1.2850 ("tens") being talked about here?
  • #7,417
  • May 3, 2009 11:00pm May 3, 2009 11:00pm
[quote=anskaven;2710628]Hi Jacko, I have some doubts:

1). yes all time frames

2). TSL is the same

3). no

4). dont know. EURUSD just is an easier read on trend, better liquidity, spread etc

5). 50's and 100's are the main psych numbers
Grabbing the bull by the horns!
  • #7,418
  • May 4, 2009 4:11am May 4, 2009 4:11am
Quoting Homer
coscorp - 50 pips beyond may mean 500 (or 1000 more pips) as well. Is there a filter on the upper limit? Or as long as the underlying trend is good, you can re-open position with AH.
well...if price moves 500 pips or more beyond then I wouldn't be worrying about the AH trade anymore as obviously we would be trading in a different market situation....
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,419
  • May 4, 2009 4:53am May 4, 2009 4:53am
[quote=whitegoodman;2710655]
Quoting anskaven
Hi Jacko, I have some doubts:

1). yes all time frames

2). TSL is the same

3). no

4). dont know. EURUSD just is an easier read on trend, better liquidity, spread etc

5). 50's and 100's are the main psych numbers
Hi whitegoodman

Good answers.

.
Jacko
  • #7,420
  • May 4, 2009 4:54am May 4, 2009 4:54am
Quoting coscorp
well...if price moves 500 pips or more beyond then I wouldn't be worrying about the AH trade anymore as obviously we would be trading in a different market situation....
Hi coscorp

Good answer

.
Jacko
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