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Building an equity millipede

  • #481
  • Aug 2, 2010 1:10am Aug 2, 2010 1:10am
Quoting pipEASY
Thank you for kind remarks

Perhaps for the sake of better learning I should ask questions.

I will show how each traders focal interpretation is different however the result will be same.

Since each traders focal interpretation is different, forum systems do not work to everyone's expectation.

I would like everyone to copy paste below chart and highlight what 'you' think is range and breakouts. And where you would participate. It doesnt matter right or wrong as I will show you in forex there is no right or wrong unless you...

hi graemae,

may i join your excercise?


thanks
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  • #482
  • Aug 2, 2010 1:20am Aug 2, 2010 1:20am
Here be mine graeme.

lines denote, range boundries
arrows denote participation

cheers
geoff
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  • #483
  • Aug 2, 2010 1:40am Aug 2, 2010 1:40am
Quoting Chorlton
Graeme,

In the absence of being able to post charts, can I ask how you would prepare for a trade entry when presented with a ranging period on the chart?

Would you (a) wait for price to break-out of the range and then take the trade, especially if it was in the direction of the bigger trend, or (b) could you place a Buy & Sell order (OCO) at either extreme of the ranging period and allow the Mrkt to fill you in real-time, which might be useful when away from your screen, although I would guess that there is more risk associated with it due to...
Hello Chorlton

Good question.

I never pre-define my entires/interpretation to anything or anywhere particular. This will confuse some, but you will find same success by just focusing on what is happening on the screen at that moment. You could be looking at higher timeframe or lower timeframe. Or you could be looking at trendline break on 5min chart. There is no such thing as one thing is better than other. ITS ALL RELATIVE. You can do either one of them and come out through a different door but as you travel on and go through more doors, as long as you stay within course (trend) everyone still arrives at the final door of profits as long as they let the positions grow.

Professional traders do not have inside bars, trendlines, s/r breaks, bollinger expansion, pivot breakouts and the rest to determine their future/present actions. They see something move, they enter, if it does work, they try add more but when the magic disappears they shrug and move on.

They just dooooo things in a sensible and realistic approach.

I could do breakouts, range, inside bar, trendline break, s/r, double top, bottom top as long as i do not try too many times on one single day on one single pair of currency.

I just keep going through doors not knowing where the market will take me but I know some doors are special doors and I would only know by keep going through doors. Special doors cannot be found with your indicator, it just happens. You look back 2 months ago and notice that door was a special door and you didnt even know then. Can everyone please read this twice for me?

Keep your drawdowns down, perfect your entries, and hold onto your hard earned postiions.

Sincerely,

Graeme
  • #484
  • Aug 2, 2010 2:08am Aug 2, 2010 2:08am
pipEASY,

Thank you for your response to the charts. Attached is the reasoning behind not taking any Longs on the charts.



Quoting pipEASY
Correct. Nice simple with plenty of space.

You respected the breakout and the flow afterwards.

You entered from .00 on counter trade down. Good.

May I ask where you would be taking buy positions?

Im asking this qusetion cause you have 'spaced out' your focal interpretation nicely. How do you know the middle correction of 100-300 pips was not the start of something new? But, Im confident to say that if that small correction was start of something new (or another range), you would have sent out a scout to test it out most...
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  • #485
  • Aug 2, 2010 2:09am Aug 2, 2010 2:09am
Quoting harihebat
hi graemae,

may i join your excercise?


thanks
Good.

Nicely spaced out focal interpretation. Good.

You prefer to use trendline breaks instead range breaks. Good.

I hope all readers see that there is more than one way to make profit. You went through a different door to the other traders but you still end up same at the end with minimal drawdown and similar profit.

You have spaced out your buy positions so you still cover a possible trend change. Good.

Nice, simple, sensible, spaced out focal interpretation.

When you prod and sniff like this on higher timeframe and know that trend is coming soon I know you will apply same sensilbe approach on lower timeframe with same spaced out interpretation and add positions with minimal drawdown.

Good. Good.

Sincerely,

Graeme
  • #486
  • Aug 2, 2010 2:13am Aug 2, 2010 2:13am
Quoting geoffrod
Here be mine graeme.

lines denote, range boundries
arrows denote participation

cheers
geoff
Good.

Nice, simple, spaced out interpretation. Covering both buy and sell sensibly.

You acknowledge range and then follow the flow.

You also see areas of range clearly and anticipate movement after.

Good. Good.

Sincerely,

Graeme
  • #487
  • Aug 2, 2010 2:18am Aug 2, 2010 2:18am
Quoting pipEASY
Hello Chorlton

Good question.

I never pre-define my entires/interpretation to anything or anywhere particular. This will confuse some, but you will find same success by just focusing on what is happening on the screen at that moment. You could be looking at higher timeframe or lower timeframe. Or you could be looking at trendline break on 5min chart. There is no such thing as one thing is better than other. ITS ALL RELATIVE. You can do either one of them and come out through a different door but as you travel...
Hi Graeme,

Thanks for the detailed reply....
  • #488
  • Edited 2:39am Aug 2, 2010 2:27am | Edited 2:39am
Quoting brucech
pipEASY,

Thank you for your response to the charts. Attached is the reasoning behind not taking any Longs on the charts.
You prefer biased market sentiment of downtrend on this chart. You are correct however you will need to be quicker to action when there is a change in trend. And this 'might' perhaps evolve into a bad trading habit as you try anticipate the next big movement. Must keep it under control and never overexpose yourself to the market.

You would have made the most profit/growth from all the participants as you preferred the downtrend to continue and your sensible position stacking. My concern is what happens when market changes trend. I know you will be sensible to 'quickly' change your trading approach.

Other participants made somewhat smaller profits and slightly more drawdown by taking buy positions as well. I choose to do this cause you may be taking the prom queen home this time but market changes without notice or regard.

However, I can see that you will be capable of such changes in the condition. Just for your learning sake, try taking 1 or 2 buy positions on corrections. It could be a loss unfortunately, but it also could be BE or the very bottom of a new uptrend. Definitely worth the efforts.

My next chart after this will have a trend change. Hope to see you contribute more.

Sincerely,

Graeme
  • #489
  • Aug 2, 2010 5:16am Aug 2, 2010 5:16am
Hello Graeme,

Here is my attempt at your chart exercise......

Be interested in your comments...

Thanks..
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  • #490
  • Edited 6:07am Aug 2, 2010 5:48am | Edited 6:07am
Quoting Chorlton
Hello Graeme,

Here is my attempt at your chart exercise......

Be interested in your comments...

Thanks..
Good.

There is nothing wrong with any of the traders personal interpretation. Everyone's interpretation is more or less looking at capturing long term growth, which is fantastic.

However, i would have definitely caught that correction uptrend of 1.26 to 1.31 of 500pips. I could have caught that by:

1. Sending out a scout on 4hr timeframe, entering at .00 and just testing it out.
2. or, notice the correction and move into 1hr timeframe and use my razor sharp entries to move into it.

I could do 1 or 2 and I just doooo it whichever comes first into monitor.

It does not effect me at all if I use 100, 200 pips to test out a possible new trend. I will gladly pay this price anytime everytime to have the first step on the new trend before anyone else. This also ensures that my profits are much larger than most traders who standby and wait for confirmation of trend.

May I say that once you confirmed the new trend it has already moved 500 pips? What if the total of new trend is only 1000 pips? You would only have space of 500 pips to stack positions. If I started at 100 pips into the new trend I would have much more than you and my profit/growth would be much larger cause of the extra exposure and extra time of growth. One of the important reason I try to cover both sides of direction.

If the retracement at 1.26 was start of new uptrend (which nobody can predict) there is unfortuantely only 2 traders here who was ready for it. And they were looking pass the loss of -100 or smaller but they now know for a fact that they were wrong FOR NOW ONLY.

I have traded that chart live and im glad to see that there are traders who took similar paths to me.

I remember taking a very small profit on that 1.26 correction. About 200 pips or so and I diversified keeping few of the larger legs just incase it was start of new uptrend but it died quickly once downtrend resumed.

Can everyone see that:

1. Spacing out entries spreads out the risk/reward?
2. Can you see the purpose of sending out scouts in higher timeframe?
3. Can you see the importance of sniffing/prodding/scouting the intended markets movement in the higher timeframe? Cause this would be inside information to your lower timeframe trading.
4. Can you see that we have used no indicators?
5. Can you see that we have only used 2 of the following: trendline, s/r, .00 lines?
7. Did you know that this is almost naked trading which all the pros seems to be talking about?
8. Did you know you have stopped your bleeding and stunned your drawdown?
9. Did you know everyone here has successfully made profit for last 3 months by taking less than 10-15 trades? Quiet big profits as well. At least 1000+ pips
10. Can you still see that you make profit with nothing, no knowledge, and just following?

Can you see/feel all this?

Well done all and I wish more people would post their chart as there is no right or wrong door.

We are going to do 1 or 2 more charts like above and then try some forward live testing. Until then could all new readers please post their answers to the above chart?

Sincerely,

Graeme
  • #491
  • Aug 2, 2010 6:12am Aug 2, 2010 6:12am
To: pillager, guess 121, wonko, fiftylots, someone, willf, andrew_n, coobin, geoffrey62, mojazz, scalpz, takeEAZY and all others who have pmed me before.

Gentlemen, im sure you are here to learn, and im willing to contribute. There is no way to learn but to get your hands dirty.

May i please request your charts at least on the next coming one?

Its not compulsory but it might be an enlightment to you to use an editing software to physically draw in s/r and notice something that you know you looked at before but did not 'feel' it before.

Sincerely,

Graeme
  • #492
  • Aug 2, 2010 6:19am Aug 2, 2010 6:19am
Quoting pipEASY
To: pillager, guess 121, wonko, fiftylots, someone, willf, andrew_n, coobin, scalpz, takeEAZY and all others who have pmed me before.

Gentlemen, im sure you are here to learn, and im willing to contribute. There is no way to learn but to get your hands dirty.

May i please request your charts at least on the next coming one?

Its not compulsory but it might be an enlightment to you to use an editing software to physically draw in s/r and notice something that you know you looked at before but did not 'feel' it before.

Sincerely,

Graeme...
What? Now we ggotta do homework?

If you use this indicator it will draw S/R automatically
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File Type: mq4 Support_and_Resistance.mq4   2 KB | 839 downloads
  • #493
  • Aug 2, 2010 6:23am Aug 2, 2010 6:23am
Quoting willf
What? Now we ggotta do homework?

If you use this indicator it will draw S/R automatically
Good evening, willf



That indicator shows too much. Can all readers please compare the chart showing the indicator and what we drew manually? This is important.

I will use less than half of what that indicator is telling me.

Indicators are one of the main reason traders are attempting too many entries on one single session or day. You need to space out your entries.

Can you see that the average trader would be more confused?

We should be using personal interpretation as our indicator.

Thank you for bringing this up but could everyone please delete all indicators 'if possible'

Sincerely,

Graeme
  • #494
  • Aug 2, 2010 6:37am Aug 2, 2010 6:37am
Good evening, all

Thank you for your continued support.

Hope everyone is learning something they can use to personal advantage in the markets.

Just wish to say on the side, after contributing just one month now, I notice how much 'we' are accustomed to things telling us what to do.

If 'A' happens then do 'AA'
If 'B' happens then do 'BB'

Everyone wishes there were steps/flow charts in forex where all they had to do is go around the chart and choose answers that are pre-defined and lead us to profits.

This is an ultimate failure. If you are here at this forum for answers you will be going around in circles for a very long time. If you are here in this forum for an enlightment/insight into trading, then I encourage you on.

I understand that it is a basic human trait to prefer being told what to do as this is how we are nurtured by our mothers when we were young.

Then Im telling you with all earnesty,

"Look. See. Feel. Follow."

Sincerely,

Graeme
  • #495
  • Aug 2, 2010 6:39am Aug 2, 2010 6:39am
Quoting pipEASY
Good.

There is nothing wrong with any of the traders personal interpretation. Everyone's interpretation is more or less looking at capturing long term growth, which is fantastic.

However, i would have definitely caught that correction uptrend of 1.26 to 1.31 of 500pips. I could have caught that by:

1. Sending out a scout on 4hr timeframe, entering at .00 and just testing it out.
2. or, notice the correction and move into 1hr timeframe and use my razor sharp entries to move into it.

I could do 1 or 2 and I just doooo...

Hi Graeme,

Regarding the move from 1.26 to 1.30-1.31, the reason I didn't mark it as a possible BUY is because IMO there was nothing that clearly suggested a retrace. From 1.26 price went sideways for a few days followed by a gap up. By this stage, I felt my risk was too high to enter at around 1.285, as the best location to place my SL would have been just under this new support at 1.26.

Can I ask what was your reasoning for entering at 1.26? What was unfolding could have easily been a temporary pause before recommencing the downward trend.

I understand the concept of sending out soldiers but if one is to send them out at any sign of a possible change in trend then IMO the overall quality of the entries will go down resulting in more losses.

Whats confusing me is that on one hand we need to be selective with our entries so as to reduce drawdown and preserve captial yet on the otherhand it seems to be encouraged that we keep testing the landscape by taking (which at times) seems like risky trades.

Please don't take this as a criticism in anyway. Its just that I'm a little confused and would welcome some advice...

Thanks,
Chorlton
  • #496
  • Aug 2, 2010 7:02am Aug 2, 2010 7:02am
Quoting Chorlton
Hi Graeme,

Regarding the move from 1.26 to 1.30-1.31, the reason I didn't mark it as a possible BUY is because IMO there was nothing that clearly suggested a retrace. From 1.26 price went sideways for a few days followed by a gap up. By this stage, I felt my risk was too high to enter at around 1.285, as the best location to place my SL would have been just under this new support at 1.26.

Can I ask what was your reasoning for entering at 1.26? What was unfolding could have easily been a temporary pause before recommencing the downward trend....
Good evening,

Very good question. Yes, it is difficult to express something and there is also another meaning within.

In my personal focal interpretation, I saw a stall in 1.26, I dont understand how traders know that this temporary stall was 'temporary'. How?

2 participants claimed that they were 'expecting' this stall and waiting for downtrend to resume. How do you 'expect' in forex.

Please allow me to give you a dose of reality.

Traders used word 'expect' cause you saw what happened after as this was backtesting. As if they had it planned according to their own forecasting ability. Im sorry I cant do this.

If that scenario was live trading and a trader saw that stall at 1.26 and just waited for the downtrend to resume which happened at 1.31. Most wouldnt know what to believe while it was going up. Is it up? down? Another stall at 1.31? Another 300 pip range perhaps?

And what happens if the 1.26 uptrend went to 1.31, stalled and went up as new uptrend? You expected that yes?

Everyone neesd to admit right now they cannot expect things to happen in forex to their 'expectations.'

Yes, selective in entries but also covering both sides of the direction. You do not need to have a position right at 1.26. But if I saw the correction at 1.26, I would at least place a buy position just to respect the market.

If I missed it, no problem, I missed it.
If I arrived late, no problem, I missed it.

If I see it happening now, I take it.
I dont wait for it
I dont expect it

This is what I mean by selective entries and spreading your entries. Dont glue your attention to the charts. No need to.

Good questions indeed.

Sincerely,

Graeme
  • #497
  • Aug 2, 2010 7:04am Aug 2, 2010 7:04am
My messy attempt follows:

green line s/r
yellow arrows sell
pink arrows buy

I am a little confused by trying to coordinate .00 entries with higher highs-lower lows and s/r.

Thanks for the exercise. Not as intuitive for me as it should be.
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  • #498
  • Aug 2, 2010 7:09am Aug 2, 2010 7:09am
Quoting pipEASY
To: pillager, guess 121, wonko, fiftylots, someone, willf, andrew_n, coobin, geoffrey62, mojazz, scalpz, takeEAZY and all others who have pmed me before.

Gentlemen, im sure you are here to learn, and im willing to contribute. There is no way to learn but to get your hands dirty.

May i please request your charts at least on the next coming one?

Its not compulsory but it might be an enlightment to you to use an editing software to physically draw in s/r and notice something that you know you looked at before but did not 'feel' it before....
Yep, workin on our "homework". Has takin a bit to get a copy of the chart I can edit. Quite a learning curve. Never realised I would have to select a different file type to save it as. Now have a bitmap version & added a few lines via paint shop, so making progress, but way pass bed time.
Very interesting to see others takes on trade spots.
Will be posting my chart#1 a bit later (in my Tues, opps there already ).
I'm sure we all learn a bit more through seeing others views of the same data, when its explained so logically. Really good stuff - everybody.

cheers scalpz
Target 2 : Stoploss in the green
  • #499
  • Aug 2, 2010 7:16am Aug 2, 2010 7:16am
Quoting pipEASY
To: pillager, guess 121, wonko, fiftylots, someone, willf, andrew_n, coobin, geoffrey62, mojazz, scalpz, takeEAZY and all others who have pmed me before.

Gentlemen, im sure you are here to learn, and im willing to contribute. There is no way to learn but to get your hands dirty.

May i please request your charts at least on the next coming one?

Its not compulsory but it might be an enlightment to you to use an editing software to physically draw in s/r and notice something that you know you looked at before but did not 'feel' it before....
Hi Graeme,

here is my chart as a part of the exercise. I must confess that I have used Ichimoku to draw my entries. I really don't consider ichimoku to be an indicator but rather a bunch of moving averages. Also you need to interpret a lot and take your own decision when you are using it. Besides, I am comfortable with it. If I am not following this methodology, my subconcious mind would have copied some of the techniques used by other posters.

Again, you are doing an outstanding job and continue to amaze me day after day. I don't post much. But you shall always find me in the thread viewers' list.

Thanks,

Pillager.


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  • #500
  • Aug 2, 2010 7:17am Aug 2, 2010 7:17am
Hi there,

Here you have my chart, trying to mark trend lines and some S&R (I feel more comfortable with trend lines). My criteria to buy and sell was going through .00 after trendlines breakouts.

Regards,
Behr.
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