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  • #201
  • Edited 7:07pm Jul 20, 2010 6:26pm | Edited 7:07pm
Quoting leggo
Hi Graeme,
I am going to print this thread, bind it and have it by my side whenever I trade.
Not only has your wisdom and advice been a great read, it has also changed my perception of the markets. My only issue is capital. I cannot afford 300 pip 'sloppy entries' at present as it would wipe my capital out. But I feel I can transfer some of your methods into my daily trading until my capital is such that I can take a longer term view. I have also changed my view on T.P. I am constantly looking at my trades to see if they line up with weekly/daily...
Good morning, Ben

Thank you for such a overwhelming feedback.

It has been my pleasure.

May I add, poor entries is the very reason traders face unneccesary drawdowns and losses. It is the area where most traders will fail. Nobody should allow/accept/even consider a 300 pip loss from sloppy entries. That is not the work of a professional trader. Professional traders should be able to whip the fly off his horses ears while on the reins.

The exercise will show your inner traits as a trader. I wouldnt be surprised if people find that they cant even hit x3 20 take profits everyday with ease. It will be a surprise to most.

After 6 months you will be able to hit x3 20 take profits so much easier and clearer. And this will be just the beginning of your accomplished insights.

With that much upskill you will be able to turn $300 or even less into many thousands more with relative ease as you can control/know your real risks from your optimum entry which has stacked odds onto your side by entering at the perfect opportunity given. You will also have complete understanding of market sentiments and can describe in great details. You wont even know how you came that far.

Dont be surprised that you just became a profitable trader.

Thank you again

Sincerely,

Graeme
  • #202
  • Jul 20, 2010 7:09pm Jul 20, 2010 7:09pm
Great thread Graeme. A real breath of fresh air from the multi-coloured, indicator bloated junk that's on FF of late

Have you considered Jacko's anti-hedging technique as perhaps an alternative to diversifying? Looks like it could be well suited to your style of trading.
  • #203
  • Edited 9:28pm Jul 20, 2010 7:41pm | Edited 9:28pm
Quoting willf
Great thread Graeme. A real breath of fresh air from the multi-coloured, indicator bloated junk that's on FF of late

Have you considered Jacko's anti-hedging technique as perhaps an alternative to diversifying? Looks like it could be well suited to your style of trading.
Good morning, Willf

Thank you for your question. A great question.

Im well aware of jacko's anti-hedging; when a position gets stopped out and price moves away by 50pips or more, you would enter a buy/sell limit order on the same price as stopped out. So when the main trend resumes and the price returns it will simply pickup the order on its way. This is a great method and ensures that the trader stays with the main trend. I have no doubts jacko is a skilled trader and I value his contribution in this forum.

However, what if the main trend never comes back? Im aware that main monthly trends that has been ongoing for years will require alot of power to change direction however that doesnt stop the market to go into a correction for the next one year moving against the current main trend for many thousands of pips. Some corrections happen quiet often and can last several weeks. However I agree that eur/usd is prone to such big corrections. Or is this another misguided common myth amongst the traders? Im not sure if he has changed his method to take profit on both directions but the last time I heard he only trades one direction. Please correct me if im wrong.

The only reason I continue opening both buy and sell is to anticipate such changes/corrections because it can happen anytime, anywhere. I dont know what the market will do tomorrow or next month, all i can do is follow.

It doesnt hurt me to enter at a low risk and moving sl to be and letting the market either destroy my position or reward me. I will take any reward market gives through my diversification and keep larger legs for long term growth.

Sincerely,

Graeme
  • #204
  • Jul 20, 2010 8:11pm Jul 20, 2010 8:11pm
Graeme, Thank you for this great thread and it has encouraged me to finally join and post. By far the best thread I have ever read. You have thrown a spanner into my NY open systems though that I have been spreadsheet crunching and trading on for 6 months. Still BE but system number 439 is looking promising at this stage.

I live traded a system a year ago (I live trade all my crazy systems as it is the only way I find their real faults) that worked the GBPJPY Monday break out and tried to hang in there for 500+ pips each time. Worked a few times but very hard to hang in. How you hold for such a long time is extraordinary. But the concept has me totally fascinated.

Locked in a BE on the EURUSD last night whilst reading your thread again - didn't last the night but I will be certainly becoming an apprentice to your teachings sensei. Like you I am fascinated with both buy and sell trading and for 6 months I live traded the NY open with a system of setting OCO trades 42 pips away from open. Great fun but trading the NY times is hard from Aus when one should be sleeping. I call this trading style "the hand of god" as I hope he wakes me at the right time to close the best trades at some ungodly hour! I hope I can learn a lot more from you. Will be printing your teachings out and studying at length. Really great stuff.
Rob
  • #205
  • Edited 8:45pm Jul 20, 2010 8:34pm | Edited 8:45pm
Hi Graeme,

Thanks for the charts. Very nice detail.

Early on in this thread you said that the long term trend was the most important thing and to always trade with the trend. Now it seems you do not emphasize the long term trend so much. In fact all you need to care about is intraday trend when you are taking both sides on daily charts and just let the market decide.

So has your method evolved to largely ignore long term trend now or do you still at least weight your bias from day to day with the long term trend. Taking more trades in that direction until you see clear indication things have changed?

I can see how the entries are the hard part as you said. You are trying to add a lot of positions over time and those entry losses can really add up if you aren't careful. Also, don't you find it even more difficult doing this during the Asian session? I tend to watch the Asian sessions and the first hour of the London session because of my timezone and seems to me there are a lot of fake breakouts during the Asian session only to have things yanked back when London opens up. Seems it would be hard getting in with a tight stop loss before London opens.
  • #206
  • Edited 10:49pm Jul 20, 2010 8:49pm | Edited 10:49pm
Quoting kurokyandoru
Graeme, Thank you for this great thread and it has encouraged me to finally join and post. By far the best thread I have ever read. You have thrown a spanner into my NY open systems though that I have been spreadsheet crunching and trading on for 6 months. Still BE but system number 439 is looking promising at this stage.

I live traded a system a year ago (I live trade all my crazy systems as it is the only way I find their real faults) that worked the GBPJPY Monday break out and tried to hang in there for 500+ pips each time. Worked a few...
Good morning, Rob

Thank you for your contribution and your warm remarks. It makes my efforts worthwhile.

Im well aware of the monday breakout on gbpjpy and the strength behind the method is capturing compelling momentum that starts from monday and charges to friday. Hope its the same method we are both referring to. Even though the concept of capturing good momentum is a good idea, my personal feedback on the entry is that it is leaving too much on chance.

If I know that this week for gbp/jpy will have a strong momentum that starts from monday to friday, this tip off will trigger my interest and I will pay more attention to that currency pair. I could build my edge around this insight. Im usually looking at the strongest trending currency pair of the week or the month.

I usually dont trade US markets because my focus is the survivability of my positions. More often than preferred, the following day retrace will most often be 50% of previous day. That overlaps the price range of u.s market in a sense. I dont prefer to stay awake for us session only to have my positions have greater chance of closing on breakeven. This is not true all the time and trading the u.s session is also fine as many compelling momentum from u.s session will flow into the following day's asian market. You will find similar success.

Im interested in open of the daily candle or around that area. This area has higher chance of a position to survive in the long term. Lets assume the main compelling trend is down. Somedays there is a retrace into the previous days and thats fine with me (even better actually). But I know as soon as this retrace loses strength and its nothing permanent, I will enter as it comes back down towards to open price of the daily candle. Thats why I have many of my positions on the long wicks of gbp/jpy.

Please do not try this yet, it will just come to you from practicing the entries on demo.

It sounds like you have experienced your first emotional hurdle. Some traders cannot watch a position that was +500 pips, close out on breakeven. Must see the bigger picture as we do not need 500 pip legs per se. I treat each leg as my worker and I want all my workers working hard for me.

Sincerely,

Graeme
  • #207
  • Edited 9:57pm Jul 20, 2010 9:02pm | Edited 9:57pm
Quoting pip_daddy
Hi Graeme,

Thanks for the charts. Very nice detail.

Early on in this thread you said that the long term trend was the most important thing and to always trade with the trend. Now it seems you do not emphasize the long term trend so much. In fact all you need to care about is intraday trend when you are taking both sides on daily charts and just let the market decide.

So has your method evolved to largely ignore long term trend now or do you still at least weight your bias from day to day with the long term trend. Taking more trades in that...

Good morning, pip_daddy

Long term trend - very important. Must follow to stack positions. Long term trends that 1+ years creates huge growth for surviving legs. This is my top priority. I prefer legs that are 10000 pips than 1000 pips. The only way to create extremely large payoffs.

Medium trend - Capturing good long term trend also capturing prolonged countertrends. Some corrections can last weeks to months. I will capture this correction that goes against the main trend and add profit into trade balance and hold onto bigger legs just incase this correction is start of a new main monthly trend.

Short trend - Brief corrections against main trend. Anything from days to 4 weeks. Good burst of potential profit.

As we all know long term trend doesnt move in one straight line but rises and dips of waves. Although I want my positions to grow on these 1+ years of trend I also dont mind taking profits on short/medium corrections/countertrends. Perhaps I focused the last few pages too much in taking profits on countertrend. I started off this thread with the importance of long term trend and its power and then flowed through to diversification which captures short/medium trends/countertrends. All part of the intended flow of my explanation.

I do well in any session. Alot of intraday traders needs the greater participation of other traders to be effective as they are basically scratching each others back. I also prefer u.k session as I like piggyback riding on other traders but I also do very well on asian session. However there is pros and cons. During asian session I cant do as much piggyback riding on traders like u.k session but asian session will most likely reach the higher price of the day and u.k will push it down with the main downtrend. Not all the times but enough times.

Some asian session for some currency pair does nothing but some currency pair moves alot. I only watch currency pairs that is trending strongly for the week.

Sincerely,

Graeme
  • #208
  • Edited 2:05am Jul 21, 2010 12:01am | Edited 2:05am
Dear all fellow traders

I had a request asking why the mechanism of my method seem to work so well.

At first I felt disappointed at such request but perhaps there is just too much info in my posts. I know less is more so perhaps the below will help clairfy things on simple terms.

1. I wanted a method than system.
System is based on numbers. Method is based on traders own skill.

2. I wanted long term growth on my capital. More than 15% per annum.
My growth is so much more than 15% and Im very content.

3. Which timeframe?
Longer the better as I can see the potential capital growth of capturing the yearly trends.

4. Countertrend or trend following?
Why only one? I want to make profit on both.

5. How to prevent losses?
Traders ability to enter at optimum opportunity.

6. Required skill?
Only my skill. I will never base any required attributes from a system.

7. Strongest point of your method?
The ability to manage positions to diversify risk and profit on an even distribution. Adding continuous profit into trade balance for a smooth equity curve and yet holding onto potential positions aiming at infinite yield.

8. What happens when market goes into a range?
Any new legs will close on breakeven. Losses are only realized from sloppy entries due to traders lack of better intrepretation.

9. What happens when market changes trend?
Since im entering what market dictates on both buy and sell, Im already positioned for any major changes or minor corrections in the market.

10. Biggest problem with the method?
Required patience. Some days, weeks before optimum areas of trading. Traders own ability to enter market on his/her own accord and have the required insight to know that the position will at least move to breakeven.

11. Main difference between your method and others?
I let the market decide my reward and not a system

12. Anything else to say?
All I ask is traders to practice entries on continuous basis. Everyday for 6 months. There is no other way.
  • #209
  • Jul 21, 2010 2:35am Jul 21, 2010 2:35am
"Open a demo account with 5000USD and leverage 1:100. You can watch the market anytime that suits your trading. Only one rule, enter only sell if the price is below the daily open or enter only buy if the price is above the daily open (of asian or london). Stick to this rule. Enter with 20 pip take profit including spread and 20 pip hard stop loss from entry. You cannot close the position unless you take 20 pip profit or you lose 20 pip loss. Also you cannot overlap your positions. Only one position open at a time. If the price was higher than open but later went below open then you would only enter sell. No entry methods to be used. Just enter blindly but only buy if higher than open price or sell if lower than open price."

Ok maybe I'm not the sharpest knife in the drawer but this is confusing me. Buy if price is above the daily open sell if below? What about today where the EU/US opened at 1.28988 and just shot up like a cannon? Do you just want us to put in buy orders three times where ever when ever we happen to be in front of screen? Or wait for a retrace down then buy? I'm a little lost here. Please don't take this post as a knock. I really want to understand and learn.
I like the longer time framed charts since I have a job and my trading time is limited to the lousy Asian time. Please help me understand this exercise.
  • #210
  • Jul 21, 2010 2:35am Jul 21, 2010 2:35am
Hi Graeme.

I examined all your posts and now I get it!!!!

Today I started building my equity millipede.

I hope I will be faced of a distinct trend at the beginning. I will concentrate on EUR/USD and USD/CHF at the same time. It seems to me that pairs are perfectly complementare with this way of trading.

Many thanks,
Zlatko
  • #211
  • Edited 3:19am Jul 21, 2010 2:55am | Edited 3:19am
Quoting tommbstone
"Open a demo account with 5000USD and leverage 1:100. You can watch the market anytime that suits your trading. Only one rule, enter only sell if the price is below the daily open or enter only buy if the price is above the daily open (of asian or london). Stick to this rule. Enter with 20 pip take profit including spread and 20 pip hard stop loss from entry. You cannot close the position unless you take 20 pip profit or you lose 20 pip loss. Also you cannot overlap your positions. Only one position open at a time. If the price was higher than...
Good evening, tommbstone

Apologies for the lack of clarity.

1. Open a demo, 5000USD @ 1:100 leverage
2. Use 0.1 lot size.
3. Choose any currency pair, timeframe
4. You can do this daily exercise on any session
5. So when you open your platform, look at current price. You can use the open price of the asian market. If this current price is higher than open price then you can only enter buy. If current price is lower than open price you can only sell.
6. You can enter as you wish. No method. Just enter when you think it will make profit.
7. Set take profit of 20 pips and stop loss of 20 pips. Wait until you take profit or your stop loss gets hit.
8. Only one position at a time.
9. Your daily mission is to get x3 20 pip take profit before allowed to turn off platform.
10. Everyday. 6 months please.

Please have a look at post 178. My 2nd chart is back up again.

Sincerely,

Graeme
  • #212
  • Edited 3:39am Jul 21, 2010 2:56am | Edited 3:39am
I agree with Graeme, no one knows what will happened with a market in the future. But we can take a part in events. Sell currency when it falls and buy when it grows. You never know where it will take you. When I studied the charts, I found that the best (for me) entries are based on the previous day's happenings. If we consider the retracements of 1 / 3, 2 / 3 or 3 / 3 they give as possible entry points with relative small SL. If position survive we transfer it to environment of higher tame frame. With this we increase R / R maximaly.

Shortly, very good stuff Graeme give as. Thank you again
  • #213
  • Jul 21, 2010 2:58am Jul 21, 2010 2:58am
Quoting lolek
Hi Graeme.

I examined all your posts and now I get it!!!!

Today I started building my equity millipede.

I hope I will be faced of a distinct trend at the beginning. I will concentrate on EUR/USD and USD/CHF at the same time. It seems to me that pairs are perfectly complementare with this way of trading.

Many thanks,
Zlatko
Good evening, Zlatko

Im very happy to hear you understand. Well done.

All the best with your millipede. I hope you are sincerely ready for the emotional hurdles. I know you will do well.

Yes, more positions on more pairs of currency actually balances out the risk and the reward as well in the long run. It is very beneficial. Very important that you noticed.

Please have a look at post 178. My 2nd chart is back up again.

Sincerely,

Graeme
  • #214
  • Jul 21, 2010 2:58am Jul 21, 2010 2:58am
Hi Graeme,
Good Morning to you.
Looking at GBP/JPY monthly chart, yearly trend is down,but price seems to get strong support at 130.00 level.
Am I right?

Dilip
  • #215
  • Edited 3:48am Jul 21, 2010 3:11am | Edited 3:48am
Quoting lolek
I agree with Graeme, no one knows what will happened with a market in the future. But we can take a part in events. Sell[color=black][font=Arial] currency when it falls and buy when it grows. You never know where it will take you. When I studied the charts, I found that the best entries are based on the previous day's happenings. If we consider the retracements of 1 / 3, 2 / 3 or 3 / 3 they give as possible entry points with relative small SL. If position survive we transfer it to environment of higher tame...
Thank you for the compliment. You are on right track so please dont give up now.

Sincerely,

Graeme
  • #216
  • Jul 21, 2010 3:19am Jul 21, 2010 3:19am
Quoting dlppat
Hi Graeme,
Good Morning to you.
Looking at GBP/JPY monthly chart, yearly trend is down,but price seems to get strong support at 130.00 level.
Am I right?

Dilip
Good evening, dlppat

Great speculation. I keep my personal speculation personal. There is a special reason behind this and I ask for your understanding. I did mention it in my earlier posts.

But, yes 130.000 to 131.157 is support. You should be able to tell that gbp/jpy has stalled since end of may. Price is currently in a range, please look at daily chart. I prefer not to focus on a pair of currency that has stalled on the higher time frame as there are so many other pairs that are trending very strongly at the moment that requires my attention. gbp/jpy is not working out and all your efforts will soon hit breakeven. However, I do glance at gbp/jpy and waiting for a very low risk opportunity to enter. At the moment all the traders are all over the place with this pair. There is no one to piggyback onto.

I request that this is my last speculation and hope you dont get offended at my request.

Thank you for great post.

Sincerely,

Graeme
  • #217
  • Edited 4:23am Jul 21, 2010 3:39am | Edited 4:23am
I would like to show all readers how trend can powerfully make you profit

292 pips of growth every week is not even 5% of my current weekly growth

http://img31.imageshack.us/img31/3671/eurusd1d.png
  • #218
  • Edited 5:16am Jul 21, 2010 4:10am | Edited 5:16am
Good evening all

Please allow the above chart to soak in your thinking process.

I just noticed that Im typing my 150th post. It was possible to come this far due to everyone's contribution. Once again thank you.

Perhaps I should go out with a bang?

I want you to think about this very carefully: Most traders out there when talking about growth, they use set percentage from their capital balance.

When I say growth, I dont mean a set percentage of increase in my capital balance.

Growth of 2% from $1000 capital is $20. Period. Static.
Growth of 2% from 5 positions doesnt work out to be $XXX amount of set dollars. Get it? Growth of 2% from 5 positions works out to be infinity....

I mentioned once before but nobody asked me why. There is a surprise that awaits all positions builders, at the end of the day there are so much more on the table but you wouldnt be bothered asking why.

Onward and upward,

Graeme
  • #219
  • Jul 21, 2010 4:15am Jul 21, 2010 4:15am
I got it Graeme ,and I am most grateful for all your sharing and caring.

All the best to you buddy.
  • #220
  • Jul 21, 2010 5:03am Jul 21, 2010 5:03am
Dear Graeme, one hypothetical question. You are building your millipede for years now. Open positions are worth very very much. Would you close them all and began to build the new millipede? If not too much, why?

Thank you, Zlatko
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