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Jacko's Forex House of Pleasure and Pain

  • #8,501
  • Jul 13, 2009 5:27pm Jul 13, 2009 5:27pm
Quoting phoenix3
Thanks for your replies. I understand how important MM can be but there has got to be somebody out there who trades with a greater risk factor than 2% and is successful. If you are out there please reply....
.
Is there any turtle out there who has that much confidence in Jacko's system that currently trade with a large risk factor?
I trade greater than 2%. But I am not a novice.
I know other traders in the group trade at greater than 2%. But what does that help you?
If you are a newbie, you would not have the psychological strength of mind to handle when a trade is going against you in the short term, especially if you are trading at 20% risk per trade.
You will panic. you will lose. You will blame Jacko. But it will be YOUR fault.
  • #8,502
  • Jul 13, 2009 5:28pm Jul 13, 2009 5:28pm
The key is to not only manage your risk appropriately, but also to maximize your gains using the markets money. For example, let's assume you have a $100K trading capital and you enter a Euro long position at 1.3900. Your risk on your initial trade is 2%, and your stop based on the current ATR is 100 pips. Your initial lot size will then be 2 standard lots. Let's say for this example that it moves up to 1.3950, then add 1 lot with a 100 pip trailing stop and move your inital stop on your first 2 lots from .3800 to .3850. Now all stops are the same and you simply either continue trailing and adding to your positions until you get stopped out. Now of course this type of position sizing to maximize your gains only works when you trading off of a 4H time frame or higher, as those time frames will many times provide you with 100-200pip moves. Thus you could dip your toe in the water several times and lose with a small 2% risk and then when you finally catch the trend, you really maximize using the markets money. This is the type of money management that is discussed in market wizards and this is how many of the traders who were taught by Richard Dennis and William Eckhart traded....we are nothing more than risk managers, that's all...
  • #8,503
  • Jul 13, 2009 6:36pm Jul 13, 2009 6:36pm
Here you go: http://www.babypips.com/school/dont_lose_your_shirt.html

Make your own conclusion EDIT: Ricky got it already for you, well now you can read it twice.

Quoting phoenix3
I have $2500 in my account and would like to trade one standard lot with this money. Yes, I know its more than a 2% risk but I believe in risk. If Jacko has a 50 pip stop loss and most of his trades are successful then I believe the risk is justified.
If by chance I loses $500 in my first trade with Jacko then my odds are increased that much more with my second trade. With each trade my probability is alot better than losing a trade. Any thoughts????
  • #8,504
  • Jul 13, 2009 8:11pm Jul 13, 2009 8:11pm
Quoting phoenix3
Thanks for your replies. I understand how important MM can be but there has got to be somebody out there who trades with a greater risk factor than 2% and is successful. If you are out there please reply....
...
Is there any turtle out there who has that much confidence in Jacko's system that currently trade with a large risk factor?
Hi phoenix,

I've read in trade books and blogs that the following steps/rules are very important and they have to be implemented in the order they are written here:

1. Try not to lose money (i.e. Money Management, a.k.a. Risk Control),

2. Create a consistent profit even if it's small,

3. Increase your gain.

As you see here, you need to go through step 1 and 2 before arriving in step 3. (That's what the old wise men are saying).

Of course, when I read it, it made so much sense I could explain it to anyone without any problem. I thought I knew it. But.... then came the time of some heated trading (I'm sure most you know what I'm talking about), and I ignored all of this wisdom and in a few trades I wiped out a big portion of my mini account.

NOW I KNOW IT FOR SURE! This time not only that I know it (in my head) but I also remember the pain.

What I'm saying is, no matter how much we will try to explain it to you, as long as this question inside you is still there, it will keep wondering. And you have the choice of listening to what you learned from others or trying it out yourself. Until then it's other people's experience. At that time it will be your own experience. Try and see and let us know what you have found out.
  • #8,505
  • Jul 14, 2009 1:21am Jul 14, 2009 1:21am
Quoting Fulgurator
Hello jamiewhite,

am I undestanding you right? If Jacko gives a target, where he will possibly enter into a short trade, you try to be a buyer until his sell-target is hit or you get his sell-entry-message and for buy-targets vice versa?

Greetings from the comfortable european trading time-zone :-)
Yes, Jacko has above normal abilities to pick turning points
When Jacko gives a target price where he wants to sell, and the Euro is below that price, I buy and ride the price up to the turning point.
When he gives a price where he wants to buy, and the Euro is above that price, I sell and ride the price down to the turning point. It gives me double the number of trades.
It is riding the moves up and down to Jackos calls on turning points. A lot of us in the group are doing it.
  • #8,506
  • Jul 14, 2009 3:14am Jul 14, 2009 3:14am
i do the same,more risky but i dont go all the way to target,like today i closed my long at 14000,in the london open,feel its ranging and a bit of news out today.so took the money off the table.depends which way it goes and i might be in a trade later stress free,finished for the day.this way im in a trade everyday,which is good for me,i will check the price a few times when im in a trade. and thats about it.thank you jacko
student
  • #8,507
  • Jul 14, 2009 5:09am Jul 14, 2009 5:09am
Thank you for sharing your trade-doubling-technique...

I will try it too with smaller sizes if it fits my own idea of the market...

I´am trading very conservative in the moment because I don´t like the ranging markets...
  • #8,508
  • Jul 14, 2009 7:43am Jul 14, 2009 7:43am
Quoting jamiewhite
Yes, Jacko has above normal abilities to pick turning points
When Jacko gives a target price where he wants to sell, and the Euro is below that price, I buy and ride the price up to the turning point.
When he gives a price where he wants to buy, and the Euro is above that price, I sell and ride the price down to the turning point. It gives me double the number of trades.
It is riding the moves up and down to Jackos calls on turning points. A lot of us in the group are doing it.
I am one of jacko's followers who trades both ways too. But I only trade on where jacko says it is going. He has a terrific nose for sniffing out a target price, but I am now starting to get close to his predicting his
targets before he gives them now. I am getting better at this.

http://www.forexfactory.com/showpost.php?p=2696923&postcount=7194
  • #8,509
  • Jul 14, 2009 9:19am Jul 14, 2009 9:19am
Quoting fxtrader29
I am one of jacko's followers who trades both ways too. But I only trade on where jacko says it is going. He has a terrific nose for sniffing out a target price, but I am now starting to get close to his predicting his
targets before he gives them now. I am getting better at this.

http://www.forexfactory.com/showpost.php?p=2696923&postcount=7194
I have a buy at 1.3900 and a sell at 1.4100, so yes I am trading both ways. I am now seeing some of his targets also, which is part of the learning process. Come on NY, push that price to my pending order....
  • #8,510
  • Jul 14, 2009 5:14pm Jul 14, 2009 5:14pm
Hello
I am also Jacko's member.I am still learning.
Are you guys using 100 pips stop loss for both sides (Trailing stop loss or fixed stop loss) ? I am not asking about Jacko's recommendations But Stop loss on trades taken on Jack's thoughts where market is going ?
Bhupinder
  • #8,511
  • Jul 14, 2009 5:50pm Jul 14, 2009 5:50pm
Quoting bhupinder
Hello
I am also Jacko's member.I am still learning.
Are you guys using 100 pips stop loss for both sides (Trailing stop loss or fixed stop loss) ? I am not asking about Jacko's recommendations But Stop loss on trades taken on Jack's thoughts where market is going ?
Bhupinder
I am using his targets as exit spots but I am also scoring lovely profits on some short term intraday trading. If I see 50 to 100 pips of profits on the counter trend trades, I will rip them. But these trades are additional to his basic system
  • #8,512
  • Jul 14, 2009 9:31pm Jul 14, 2009 9:31pm
Hi Jemiewhite
Thanks for your reply.I understand the most of it.
what is your stop loss on countertrend trades where you take 50 to 100 pips profit?
Bhupinder
  • #8,513
  • Jul 15, 2009 2:55pm Jul 15, 2009 2:55pm
Quoting bhupinder
Hi Jemiewhite
Thanks for your reply.I understand the most of it.
what is your stop loss on countertrend trades where you take 50 to 100 pips profit?
Bhupinder
I normally start with 100 pip TSL on counter trend trades, then pull it to 50 when I get into profit of 40 or 50.
  • #8,514
  • Jul 15, 2009 3:00pm Jul 15, 2009 3:00pm
One of the things I'm really jealous about is the fact that while Jacko sleeps, his partner watches the market - occasionally I've seen mention of his partner closing positions while he was asleep.

I'm trying to think of ways how to set up something similar.

One idea is to find a platform or service where I can get an SMS if a certain pip is hit - I'm sure some of you out there use something like this... anyone know something?
  • #8,515
  • Jul 15, 2009 4:05pm Jul 15, 2009 4:05pm
Have you tried sleeping with one eye open ...... works for me lol

I think if you set your stop you should be good as far as risk is concerned.


Quoting digitil
One of the things I'm really jealous about is the fact that while Jacko sleeps, his partner watches the market - occasionally I've seen mention of his partner closing positions while he was asleep.

I'm trying to think of ways how to set up something similar.

One idea is to find a platform or service where I can get an SMS if a certain pip is hit - I'm sure some of you out there use something like this... anyone know something?
  • #8,516
  • Jul 15, 2009 6:58pm Jul 15, 2009 6:58pm
Quoting digitil
...
One idea is to find a platform or service where I can get an SMS if a certain pip is hit - I'm sure some of you out there use something like this... anyone know something?
digitil,

You can use the alert features if you platform has it. (MT4 does). You have to sleep in the same room with your computer though.

I've read in another forum that you can program MT4 to send you an SMS. (I haven't tried that one).

I hope one of these helps.
  • #8,517
  • Jul 15, 2009 9:05pm Jul 15, 2009 9:05pm
Quoting digitil
One of the things I'm really jealous about is the fact that while Jacko sleeps, his partner watches the market - occasionally I've seen mention of his partner closing positions while he was asleep.

I'm trying to think of ways how to set up something similar.

One idea is to find a platform or service where I can get an SMS if a certain pip is hit - I'm sure some of you out there use something like this... anyone know something?
Hey Digitil,

If you need need non-MT4 rate alerts you gotta check this out http://www.alertfx.com. I've been using their (free) service for a couple of months now,and seems to work OK.
  • #8,518
  • Jul 15, 2009 11:19pm Jul 15, 2009 11:19pm
Quoting jamiewhite
Yes, Jacko has above normal abilities to pick turning points
When Jacko gives a target price where he wants to sell, and the Euro is below that price, I buy and ride the price up to the turning point.
When he gives a price where he wants to buy, and the Euro is above that price, I sell and ride the price down to the turning point. It gives me double the number of trades.
It is riding the moves up and down to Jackos calls on turning points. A lot of us in the group are doing it.
Oh, everyone is doing this in the group? And I thought I was the smart one.

One thing I also did was taking a look at the EUR/GBP. When Jacko provides his insights (pronounced experience) on the direction, I usually take a look at the EUR/GBP chart, and sometime you can long or short GBP if chart is at lowest low or highest high or at 50% fib etc. I think there is a strong correlation between Euro and GBP these days but GBP usually rise or falls in a faster rate then its cousin. Maybe it is due to the size of economy? I have not taken a look at the Aus/Nzd yet, but think it may apply too. I made $1,900 once when trading 0.5 lot, not sure how many pips that is since I have a A$ account.

I am not as patient as Jacko when waiting for the opportunity, so I go hunt for some more pips when the trap is set. Jacko has trained us to use the rifle approach and I have learnt from my experience that shotgun approach will not work over the long run (however broker loves you), so it is quality vs quantity.

Another one of those Jacko turtles who is making profits consistently. 20% so far this year in 3.5 months.
  • #8,519
  • Jul 15, 2009 11:33pm Jul 15, 2009 11:33pm
Quoting digitil
One of the things I'm really jealous about is the fact that while Jacko sleeps, his partner watches the market - occasionally I've seen mention of his partner closing positions while he was asleep.

I'm trying to think of ways how to set up something similar.

One idea is to find a platform or service where I can get an SMS if a certain pip is hit - I'm sure some of you out there use something like this... anyone know something?
As Jacko pointed out before, move to HK(or GMT +8 or +9 area, Japan, China, Western Australia) is probably the easiest solution since you get to trade all three markets during normal human sleep cycles (for example between 11pm- 6am).
  • #8,520
  • Edited Jul 16, 2009 12:17am Jul 15, 2009 11:41pm | Edited Jul 16, 2009 12:17am
Quoting phoenix3
I have $2500 in my account and would like to trade one standard lot with this money. Yes, I know its more than a 2% risk but I believe in risk. If Jacko has a 50 pip stop loss and most of his trades are successful then I believe the risk is justified.
If by chance I loses $500 in my first trade with Jacko then my odds are increased that much more with my second trade. With each trade my probability is alot better than losing a trade. Any thoughts????
I started with $5000 and doubled it in less than a month (trading a lot more aggressively than Jacko), ie use 5%-7% risk per trade. If you follow Jacko's trade from his blog, the past two months he has experienced more pain than pleasure, but one thing never changed, it never bothered him when he got stopped out. He shrugs it off and move onto the next one, and the market actually does not have memories.

I was lucky enough that by widening my range, those stopped trades by Jacko all turned into profitable ones.

But more importantly for me is that I have learnt to trade like a pro. I knows that I can not win every time so only lose the battle but try to win the war.

I learnt this not only from Jacko but also many other people on this forum. I think mental health is probably the number one secret to winning in FX.

Let's do the math, $2500 account trade one lot, so you are leveraging 40 times.

I think you are better off playing online poker with fake money.

I trade 0.5 lots with $5000(sometime I do have draw-downs but I do not sweat it) and I also have a reserve of $10k sitting on the side just in case I screw up or market wanted to mess with me.
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