Building an equity millipede | Page 30 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Thegman's Journal (Equity Millipede Concept) 102 replies

Trading an Equity Millipede 23 replies

Equity millipede & Flying Buddha trading journal 9 replies

Build an Equity Millipede with the filtered Flying Buddha 171 replies

Application Development - Journal of Building an equity millipede 14 replies

Attachments: Building an equity millipede
Exit Attachments

Building an equity millipede

  • #581
  • Aug 4, 2010 10:06am Aug 4, 2010 10:06am
We have talked a lot about past.
What about present now?

Dilip
  • #582
  • Aug 4, 2010 10:09am Aug 4, 2010 10:09am
Quoting fugly
Graeme a big thanks for posts #576 and #578, it helps tremendously. If I may ask --- so when u enter the first trade of the day you find there's no momentum you immediately exit and then look at another pair? Or will you look for an entry again later in the day for the same pair? Reason I ask is some days just seem very hard for example 16th Jun on GU.

Could you advice what entries you would have made on that day for the GU? The yellow line on the chart was the asian open. Whenever price used to get above the yellow line and appear to breakout...
Good evening, fugly

Thank you for good question.

I do trade the 5min timeframe but not as regularly. With smaller the timeframe, I still apply same focal interpretation but Im more hesitant to enter unless I see something good.

With 5 minute chart or anything lower you are looking for momentum (greater participation of other traders to push your entry into profit). This is represented by momentum after a long bodied candle. Sometimes long bodied candle is ignored by rest of the market, its something we have no control.

This is what I would have done most likely on 5min chart.

http://img833.imageshack.us/img833/2924/50591755.png

This is my 5min focal interpretation. It is slightly different to higher timeframe and I base most 5min entries on momentum as I need other trades to help push my positions.

I know there is now alot of information on this thread and I hope im giving you enough information for all readers to piece the puzzle together in one big understanding.
  • #583
  • Aug 4, 2010 10:11am Aug 4, 2010 10:11am
Quoting agapetos
Hi,
I have been reading your posts (still not all of them, only 5 pages) and it sounded really simple (as you said) and in the same time a lot of profit, less stress (compared to intraday trading) and more time to spend with my family and on my job. So I decided to back test this method:
I used EUR/USD daily chart with a reference to a weekly chart. I started from 2001.01.01. and ended up with 2003.12.31. That is three years total, what is enough to say if the system is profitable or not (i presume). I entered only once per day when I saw a good...
Good evening, David

Thank you for sharing that information.

Im sure you have put in alot of effort to get the final hard number.

I encourage you on.

All the best with your trading.

Sincerely,

Graeme
  • #584
  • Aug 4, 2010 10:20am Aug 4, 2010 10:20am
Agree with above. cherry picked charts and 20/20 hindsight are great.
But live/demo is a new ball game.
My damn bug has no legs as they keep dieing with the 30pip stop.
I can assure you that this is a very tearful frustrating way to trade as Pipeasy says. Looking at the usdchf one would think,"just sell at every 00 line" but it does not work (FOR ME) unless I open up the stop to a gut wrenching SL level.

Pipeasy is correct- this is the best way to trade and I'm learning a boatload and playing with higher TF now like I used to back in the day of trading Meats and Metals. I love the look and smoothness of the Daily chart and Pipeasy has brought me home. So for that I thank him. Now I just need to get my entry's to live.
I've been scalping to long.
Its like driving my Samaria with 44 inch tires for so many years I got lazy, last weekend I dusted off my jeep with 33's and had to re-learn how to drive it on the rocks. So What I mean is instead of taking 5-10 pips out 3 times a day I have to actually work on an entry that will survive many days or months and I'm finding that extremely easy to say but difficult to do.
Maybe I'm just dumb.
Lets see some live entry's and where they end up. A journal of sorts.
  • #585
  • Aug 4, 2010 10:45am Aug 4, 2010 10:45am
Quoting tommbstone
Agree with above. cherry picked charts and 20/20 hindsight are great.
But live/demo is a new ball game.
My damn bug has no legs as they keep dieing with the 30pip stop.
I can assure you that this is a very tearful frustrating way to trade as Pipeasy says. Looking at the usdchf one would think,"just sell at every 00 line" but it does not work (FOR ME) unless I open up the stop to a gut wrenching SL level.

Pipeasy is correct- this is the best way to trade and I'm learning a boatload and playing with higher TF now like I used to back in...
Good evening, tommbstone

Thank you for sharing. Last 3 weeks on usd/chf is range and im sure many other traders has lost money or extremely frustrated. I still look at this chart but I have moved on with other pairs that are trending currently. I suggest that you move away something like this for now.

Sincerely,

Graeme
  • #586
  • Aug 4, 2010 11:00am Aug 4, 2010 11:00am
Hi Graeme,

A pair of questions:

1.- I see from your charts and your explanations that you enter the market when there is a price pattern that shows the price is going to "breakout" a TL or similar. But when the price is trending after the breakout, do you still open positions every X pips (like every .00)?

2.- About the amount of money that you need to start with the system. On short term trading you can start with let's say, $5000, and if everything goes fine you can increase your leverage from 0.1lot to 0.2, 0.3, 0.4 etc...

But with this method you need to start with the right lot size from the scratch because if you change the lot size, your old legs, that are the big ones, will be less valuable than the new ones and this will be bad for the performance of the whole system.

If this is correct, then you would need to start with a fair amount of money if you want to make a living with this system. What do you think?

Regards,
Fernando.
  • #587
  • Aug 4, 2010 11:16am Aug 4, 2010 11:16am
Quoting pipEASY
Good evening, tommbstone

Thank you for sharing. Last 3 weeks on usd/chf is range and im sure many other traders has lost money or extremely frustrated. I still look at this chart but I have moved on with other pairs that are trending currently. I suggest that you move away something like this for now.

Sincerely,

Graeme
I must say a very big congrates to you. I have for the past few years, after reading alot on Infinite Yield and the power of long tails, been grinding out the emotional battles that usually stop positions from maturing past the norm. Your thread has been a welcome relief and very insightful (and comforting). Whilst I am still yet to achieve a major "leg" in my trading journey I have seen a much easier transition in my daily trades.

I will admit that I have been on the sidelines for a bit lately. Unfortunatly personal issues with family and technology havent given me as much fortune to trade however after reading your thread over the past 2 days I know that what I have been trying to achieve is possible. It is actually funny looking back as some shorts on the EUR and GBP USD crosses and seeing how 'short' I cut alot of my profits, but that is all to learning.

I look forward to continued reading. It is a habit of mine to re-read things that get my attention. Funnily enough I am reading Atlas Shrugged for the second time and it is amazing how some parts make more sense now compared to the first time I read it.

Well best to you and others who are seeking longer tails

RT
  • #588
  • Aug 4, 2010 2:21pm Aug 4, 2010 2:21pm
Quoting pipEASY
Good evening, fugly

Thank you for good question.

I do trade the 5min timeframe but not as regularly. With smaller the timeframe, I still apply same focal interpretation but Im more hesitant to enter unless I see something good.

With 5 minute chart or anything lower you are looking for momentum (greater participation of other traders to push your entry into profit). This is represented by momentum after a long bodied candle. Sometimes long bodied candle is ignored by rest of the market, its something we have no control.

This is what I would...
thks once again Graeme, now i know exactly how i should be looking at things.
  • #589
  • Aug 4, 2010 4:06pm Aug 4, 2010 4:06pm
I managed to catch up to this thread and I have to say I'm not just learning from Graeme.

I definitely wasn't creative enough to figure out how to apply Dr. Van Tharp's position sizing methodology of scaling into the market with the trend.

Graeme I have to say this methodology is very elegant and something that I'm already trying to implement.

Its funny because my entries have deteriorated since starting to experiment with indicators. Interestingly enough I'm trying to build on the perspective I had when I initially started looking at charts naked. Its amazing that I disregarded naked charting for such a long time because I thought there has to be more sophistication.

Since Monday I've managed:

EUR/USD
Taken 1:1 profit of +100 on 1 lot
Currently at +70 on remaining 1 lot

GBP/USD
Taken 1:1 profit of +100 on 1 lot
Currently at +130 on remaining 1 lot

USD/CHF
Taken 1:1 profit of +100 on 1 lot
Currently at +100 on remaining 1 lot

In addition I have accumulated -80 pips at 2 lots from bad trades because of dumb decisions which I hope to minimize going forward.


I really appreciate the interactive nature of this thread. Perhaps there will be more homework but I understand if you're looking to reduce your involvement with this thread.

Sincerely,

Marko
  • #590
  • Aug 4, 2010 4:18pm Aug 4, 2010 4:18pm
thank you very much for your thread, PIPEASY ... without doubt the best I've seen in ForexFactory
I do not speak English

Please could you tell me where closed positions that go with the trend? use trailing sl?

I read the thread as I could (not English) but not understood as closed ... for example in the attached image ... when they would come out?

thanks friend.
Attached Image (click to enlarge)
Click to Enlarge Name: jcl-------gbp-usd....d1-h4 (h4).....pipeasy.gif Size: 103 KB
  • #591
  • Aug 4, 2010 4:34pm Aug 4, 2010 4:34pm
My question is for other US traders (or anyone that might have a view on this). Does anyone have an opinion on trading this methodology in the US due to time issues? It often seems much of the range is done by early morning eastern time. I guess what I am wondering is whether this is a viable methodology from the US if only the NY session is traded?

Thanks
  • #592
  • Aug 4, 2010 6:26pm Aug 4, 2010 6:26pm
Quoting boz5
My question is for other US traders (or anyone that might have a view on this). Does anyone have an opinion on trading this methodology in the US due to time issues? It often seems much of the range is done by early morning eastern time. I guess what I am wondering is whether this is a viable methodology from the US if only the NY session is traded?

Thanks
IMHO it doesn't matter much when you are trading daily candles. You want trades to last over days and hopefully weeks, not just minutes or hours.
  • #593
  • Aug 4, 2010 6:40pm Aug 4, 2010 6:40pm
Hi Pip_Daddy
May i ask you which broker are you using for live micro account for hedging?
I am from Toronto ,Canada .I am looking to change the broker so that i can practise this wonderful system on live micro account.
Bhupinder
  • #594
  • Aug 4, 2010 9:39pm Aug 4, 2010 9:39pm
Been reading this for a few days ... this is one of the best material I ever read for a long time. I'm practicing this strategy.
  • #595
  • Aug 4, 2010 11:52pm Aug 4, 2010 11:52pm
Hi Graham, been reading this thread all week and it's great stuff. In regards to entering at 00's, I was thinking it maybe a good idea to place your buy/sell order 10 or 15 pips after the 00 and wait for price to break through, since price often bounces off the 00 and reverses, due to orderflow at the area.
  • #596
  • Aug 5, 2010 12:06am Aug 5, 2010 12:06am
Hi Graeme,

Early in the week I entered a GBPUSD long trade at 1.5720 and price went up nicely from there. When price got to what appeared to be the top at 1.5962 and suddenly reversed with a strong bearish candle I exited at 1.5870. I exited due to the strong bearish candle and what I believed to be the top of Elloitt Wave 5. Now here is where I struggle to hold onto positions. Because I've been trading for a few years and have been exposed to many different trading systems/methodologies I tend to use some of the tools from my previous systems to judge entries and exits. The good and bad is I sometimes will get really good entries, the bad is I will liquidate positions when I see the slightest bit of pressure in the reverse direction. In this case I let my limited Elliot Wave knowledge take me out of what appears to be a good long entry even though we had a pullback of 100 pips or so.

Do you have any advise to more experienced traders struggling with holding on to positions and letting them go back to BE? I'm finding it mentally difficult to let a position go from +250 pips back to BE.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp long 04.8.10.gif Size: 22 KB
  • #597
  • Edited 1:35am Aug 5, 2010 1:09am | Edited 1:35am
Quoting ozziedave
Hi Graeme,

Early in the week I entered a GBPUSD long trade at 1.5720 and price went up nicely from there. When price got to what appeared to be the top at 1.5962 and suddenly reversed with a strong bearish candle I exited at 1.5870. I exited due to the strong bearish candle and what I believed to be the top of Elloitt Wave 5. Now here is where I struggle to hold onto positions. Because I've been trading for a few years and have been exposed to many different trading systems/methodologies I tend to use some of the tools from my previous systems...
Ozzie,

I know your question is directed at Graeme and as a novice to Forex I'm not sure whether I can offer any good advice but I thought I'd add my 2cents.

Given that you have (to some degree) conditioned yourself to a previous methodology have you considered using an actual mechanical TS to take away the discretionary element (at least in the short-term)?

You could potentially have two exits until you feel comfortable in exiting as per Graeme's strategy. One exit which is based on discretion as you are currently doing now, and one which is based on a very loose TS, which should avoid a lot of whipsaws and allow you to capture for a longer term trend?

PS. Another idea might be that when you feel you should exit a position then rather than actually exit it, you could instead open a trade in the opposite direction to neutrally gear yourself against this current open position. If the overall trend then continued in the original direction you could close this 2nd position and leave the existing one running, and you would only lose those pips created by the 2nd position.

Chorlton
  • #598
  • Aug 5, 2010 1:49am Aug 5, 2010 1:49am
Thank you Graeme for your efforts.

I'm practicing the 20/20 trading as advised.
And I have to come to notice that ..

a short below both daily close and daily pivot level
and
a long above both daily close and daily pivot level

are good low-risk entries (mere 20-50 pips SL on EU).

I hope I'm making a correct observation.
  • #599
  • Aug 5, 2010 2:23am Aug 5, 2010 2:23am
Hi Graeme.

Thanks for your hard work to show everyone your trading method.
May i suggest something?
You base your trades on high timeframes, but in lower timeframes we also have trends, flats, breakouts etc. So maybe instead of homework on history charts where everyone can place trades like a pro traders we can practice full cicle of trading on lower timeframe live. For example during next week we can trade 1 hour chart and discuss all possible entries, moments of diversification etc.
What do you think about this?
  • #600
  • Aug 5, 2010 8:05am Aug 5, 2010 8:05am
Quoting pip_daddy
IMHO it doesn't matter much when you are trading daily candles. You want trades to last over weeks and hopefully even months, not minutes or hours.
pip_daddy,

Thanks for the reply. I understand what you are saying, but part of the premise of the methodology is to get in close to the open. That was kind of what I was getting at. Any US traders trading this and, if so, what times do you trade?

Thanks
1 trader viewing now