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Building an equity millipede

  • #381
  • Jul 26, 2010 9:18pm Jul 26, 2010 9:18pm
Quoting xman
@PipEasy

As I can see on yours example chart, you dit not folow all rules, am I right?

1. If the price is coming down from last .00, then enter 2 sell positions, 1 position at take profit 100 pips and other position has no take profit. Both positions to have stop loss -100 pips. If price reverses from your entry you lose -200pips but then enter another x2 lots of buy positions since price is coming up from .00
2. You let it run. After 100 pips, 1 position will close by taking +100 pips, and the other remaining position...

Good morning, xman

I looked at my charts and there is one or two that I have circled that shouldnt be there. You are correct about the small error however the rules above is firm.

If price moves from 135.000 to 134.000, then we enter 2 sell positions
If price moves from 134.000 to 135.000, then we enter 2 buy positions

If, price moved from 135.000 to 134.500 and then straight up to 136.000, then we enter 2 buy positions at 136.000. But then, if price goes to 136.500 but then down to 135.000, then we would enter 2 sell positions at 135.000.

As you can see you will face large drawdowns if price ranges between the range of 200 pips. It happens often but there will be much more wins.

The most important thing to do is let these surviving positions grow and then diversify for a profit.

This entry system is just getting you started at creating stacks of positions but it is a sensible entry system.

Sincerely,

Graeme
  • #382
  • Jul 26, 2010 9:23pm Jul 26, 2010 9:23pm
Quoting StoragePro
Before you all go bonkers and pollute your chart with lines every 100 pips, (100 pips is ONE CENT on the EU) there are two things to keep in mind - first, if you draw enough lines on your chart, price will react at some of them.

Second - not every 00 is important. In fact, for some pairs, 00 is rather unimportant, but 20 and 80 are more so.

Take a look at every 000 and 500 first and go from there. When they line up with previous Support and Resistance, then you have a location that is full of meaning. Why do these areas mean more? Because a...
Good morning, storagepro

Thank you for your contribution.

I be more inclined to agree with what you say. However for the sake of the learners I have shown them how an entry from simple .00 and controlling the positions risk/growth can lead to large growth/profits in the long run.

What you state is correct, about hedge fund managers, buy/sell on dips with main trend, round numbers at 1.40, 1.80 and so on but lets not forget we are here to show the learners just the first step into their own thinking capacity.

You post will lead into more confusion than clarity, unfortunately.

Sincerely,

Graeme
  • #383
  • Jul 26, 2010 9:26pm Jul 26, 2010 9:26pm
Quoting pip_daddy
It's up to you but I trust round numbers (ie. 100 pip lines) more than I do trendlines and fib lines and just about anything else. Of course it's best if there is confluence of several indicators but round numbers are a big part of that for a lot of traders. Just sayin.
Good morning, pip_daddy

Entering from .00 should be just the first step of how you participate into the market. You can grow your insights from this. Dont stop your learning by just doing .00 entry. However you can still see profit on the long term but would be somewhat pre-defined profits as the entries are also pre-defined.

If you backtest .00 entry on a main trend that lasted longer than 6months you will see large growth.

Im showing our traders that participation (anyhow, even .00 entries) can create growth on your capital from the main trend.

Sincerely,

Graeme
  • #384
  • Jul 26, 2010 9:46pm Jul 26, 2010 9:46pm
Good morning, all

Just before I go out for the day.

I reviewed all my posts for the last 2-3 pages.

Please do not forget that the whole idea of introducing .00 entries is to get all traders started somewhere. Majority of traders are asking for entry method but it is something that grows with your intuition.

I still request and recommend that everyone continues with x3 20 take profit exercise however the .00 entries will get you started.

Try demo on 3 pairs of currency with .00 entries. You will be very busy at entering buy stop/sell stop non-stop. If you find it too much you can also increase your entries to every 200 pips than 100 pips. Reward/Risk is similar.

Let surviving positions grow for few weeks and try your first diversification on the demo.

It will be part of everyone's enlightment and you will be pleased with the result.

You will be pleased to see that a sloppy entry like this can also create large growth on your capital if you allow the time for the positions to grow on main trend.

To all your success,

Sincerely,

Graeme
  • #385
  • Jul 27, 2010 12:14am Jul 27, 2010 12:14am
Quoting willf
Here's a handy indicator...
thanks Sir. first time i've seen this one.

here's another one. a Sweet spots variation. plots round numbers too, but only on the right side of the chart to reduce clutter.
read this & this



to pipEASY,
appreciate your lengthy, detailed posts, Sir
Keep it up!
  • #386
  • Jul 27, 2010 1:07am Jul 27, 2010 1:07am
I have to agree, every position I've opened all week has gone either positive then Sl hit or just flat out negative. Extremely hard style of trading unless you use large stops to let it "breath" But I'm still tying to figure it out.
Quoting ozziedave
Hi Marion,

Actually I do understand what Pipeasy is doing I just think it's a bit more difficult to implement than most people think. I'm just trying to point out some of the issues and mental challenges you may face when trying to implement this style of trading. For example, on my daily EURUSD chart it would not matter what time frame you entered on the up move you still would be taken out of your positions on the retraces, as I have pointed out several area where this would have happened in this current up move. There are only 2 areas that...
  • #387
  • Jul 27, 2010 1:21am Jul 27, 2010 1:21am
Quoting pipEASY
Good evening, Saintsurfer

Im glad you find entering at .00 pleasing in your focal interpretation.

Im glad you did some backtest but there is more to be revealed.

Entering 2 positions and closing 1 positions @ 100pip and leaving the remaining position @ -100 SL is a mini diversification itself that allows the remaining leg a 'bigger breathing space' to breakeven. If this remaining leg is closed out later on, you would have pocketed both +100pip on first position and then whatever you closed on 2nd position. Many professionals use this method...
How did you highlight all the 00 numbers?
  • #388
  • Jul 27, 2010 1:39am Jul 27, 2010 1:39am
Quoting tommbstone
I have to agree, every position I've opened all week has gone either positive then Sl hit or just flat out negative. Extremely hard style of trading unless you use large stops to let it "breath" But I'm still tying to figure it out.
Good afternoon, tommbstone

I can see that you are at your first step.

Can you handle another 3-4 weeks of the above?

Sincerely,

Graeme
  • #389
  • Edited 2:16am Jul 27, 2010 1:49am | Edited 2:16am
Good afternoon, all

Here are my current stats again so all traders could base their expectancy (this is from post 250),

Currently (from last 2 years):

181 positions still alive and working
4000+ positions in the last 2 years
That is roughly 40 positions per week, or 8 per day

80% breakeven
16% taken profit during one of the diversification (short/medium growth)
4% still growing on long term

This 4% makes me my most profit.

4% of 4000+ entries? Less than 200... (and thats from 2 years)
Statiscally speaking 1.7 positions per week make it to be long term
That is, 1.7 positions out of 40 positions every week

Current weekly growth (not calculated on daily basis) based on last few months of growth:

Adding almost 7000 pips of unrealized profit per week
All my positions are 2 standard lots, $20usd per pip

Is it worth the trouble..? I must say most definitely.

Sincerely,

Graeme
  • #390
  • Jul 27, 2010 2:18am Jul 27, 2010 2:18am
thanks for taking the time Graeme, I hope lots of traders have read this thread.This is GOLD

Kindest regards
  • #391
  • Jul 27, 2010 2:24am Jul 27, 2010 2:24am
Quoting oztrader
thanks for taking the time Graeme, I hope lots of traders have read this thread.This is GOLD

Kindest regards

Good afternoon, oztrader

My pleasure.

Sincerely,

Graeme
  • #392
  • Jul 27, 2010 2:25am Jul 27, 2010 2:25am
I find your thread most helpful/satisfactory to my quest for profitable forex trading. It quenches my thirst for knowledge/understanding the way to finally see the light at the end of the tunnel.
Thank you for your brilliant presentation and enduring patience in letting us understand your way of seeing things from a businessman's perspective.
Your profit post cemented my understanding and resolve to start the 6 months challenge and trade live with a 0.01 position initially.

Thank you!

More power to you.
MariaRJP
  • #393
  • Jul 27, 2010 4:12am Jul 27, 2010 4:12am
Reading through abit of the thread. Looks promising, thanks for the time you take to share PipEASY.

Have summaried and compiled most of your posts till this page.

Hope it's useful for you and also the rest.

I use macros to a certain extent also. My views are quite in line with Razorjack's who's a gd mate of mine who trades using pure macros also.His thread's here, though I think it's dead now.

See if you find anything useful in it. =)

http://www.forexfactory.com/showthread.php?p=3381762

--
I primarily swing trade now (ie: I'm finding it more profitable and it caters to my OCD) and haven't found economic conditions too great for position trading, but the nature of my work also requires a macro overview and I enjoy thinking about the big picture.

Allow me to educate myself along the lines of your train of thought. Hopefully I can contribute something useful to your thread. =)

Catch you guys in abit
Cyrus

Edit:
Ah. An infinite yield proponent! =)
Attached File(s)
File Type: zip pipEASY.zip   136 KB | 3,322 downloads
One Mind, Any Market
  • #394
  • Jul 27, 2010 8:30am Jul 27, 2010 8:30am
Quoting pipEASY
Currently (from last 2 years):

181 positions still alive and working
4000+ positions in the last 2 years
That is roughly 40 positions per week, or 8 per day

80% breakeven
16% taken profit during one of the diversification (short/medium growth)
4% still growing on long term
Well, that does add up to 100%. Where are all the small losses you discussed previously?
  • #395
  • Jul 27, 2010 1:13pm Jul 27, 2010 1:13pm
Quoting tommbstone
I have to agree, every position I've opened all week has gone either positive then Sl hit or just flat out negative. Extremely hard style of trading unless you use large stops to let it "breath" But I'm still tying to figure it out.
The market has been kind if wierd the past few weeks. It will probably be like that till September as it's typical in Summer trading. Especially August when trading volume goes way down. So don't let it discourage you.
  • #396
  • Jul 27, 2010 6:51pm Jul 27, 2010 6:51pm
There you go... train starts a-rolling - "first leg established" that survived more than one day...

;-)))
  • #397
  • Jul 27, 2010 7:02pm Jul 27, 2010 7:02pm
Just thought I'd share this chart and some of the things I look for when determining trend and trend strength. Here is the EURUSD daily chart. We are in an uptrend the last two months since about 4th June. As you can see there are 3 significant pullbacks in the up trend. Take a look at number 1 and number 2 pullback and compare it to the number 3 pullback. Do you notice anything different about the pullbacks and subsequent break outs to resume the trend?

Note that on pullback 1 and 2 it only takes 1 or 2 candles to break the top of the pullback and resume the trend direction. Now look at pullback 3. It has taken 5 candles to break above a 2 candle pullback. This is typically a sign that the trend is getting weaker and we may be reaching a swing top and reversal.
Attached Image (click to enlarge)
Click to Enlarge Name: eur long trend 28.7.10 t3.gif Size: 19 KB
  • #398
  • Edited 11:12pm Jul 27, 2010 10:22pm | Edited 11:12pm
Just put some numbers into Oanda interest calculator. If I am trading standard units the interest payments on keeping some of these positions open for a year or more runs into the thousands of dollars. Depending on which pair and whether it is long or short some will pay you interest but the sides that charge interest are usually a lot more. That would suck to fork out a few grand in interest only to have the position stopped out at BE.

You would actually have to be a bit careful with this because some sides of some pairs could get kind of expensive.

For example if you sold 5 standard units ($500,000) EUR/USD and held the position opened for a year with no Buy positions on that pair it would cost you about $5500 USD in interest. If you also happened to buy 5 standard units you would only make about $900 in interest for a net loss of $4600. If you wanted to truly ensure you were at BE no matter what on this pair on long term sell positions you would actually have to set your SL at approx +10pips for every month the position is held open.

Of course with these amounts surviving over a year or more it would be hard not to make much more than this in profit.

Try it yourselves. Note that for interest type you put "trade" and for 1 standard unit you put 100,000 in the "number of units held". 1 year is approx. 6200 trading hours (not including weekends)
http://fxtrade.oanda.com/tools/fxcal...est_calculator
  • #399
  • Jul 28, 2010 12:27am Jul 28, 2010 12:27am
Quoting pipEASY
Good afternoon, all

Here are my current stats again so all traders could base their expectancy (this is from post 250),

Currently (from last 2 years):

181 positions still alive and working
4000+ positions in the last 2 years
That is roughly 40 positions per week, or 8 per day

80% breakeven
16% taken profit during one of the diversification (short/medium growth)
4% still growing on long term

This 4% makes me my most profit.

4% of 4000+ entries? Less than 200... (and thats from 2 years)
Statiscally speaking 1.7 positions per week make...
Graeme,
Will you adpot me? I have no real dad anyways to teach me about life fishing and trading. LOL
  • #400
  • Jul 28, 2010 1:26am Jul 28, 2010 1:26am
Quoting zznbrm
Well, that does add up to 100%. Where are all the small losses you discussed previously?
Good afternoon, zznbrm

Good observation but slightly off.

If you think about it, im talking about net profit here. All losses are accounted and settled within the numerous diversification during growth of the positions. All remaining legs are completely free as the cost and risk are all settled.

Every diversification will replace and add my trade capital and clears my scoreboard to zero.

Sincerely,

Graeme
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