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Building an equity millipede

  • #661
  • Aug 8, 2010 2:07am Aug 8, 2010 2:07am
Thanks for sharing your trade idea around 00 numbers it looks very promising
I just had a look at the EURUSD on the 4 hr from 1.2000 until now 1.3275
a nice uptrend. It looks like the maths would stack up there also as per your system
The only thing I did notice is around major round numbers like 1.2500 and 1.3000 the price would pull back 250 pips and get quite choppy before resuming the trend again .
Didnt do the maths on the shorts and longs in that zone to see how it panned out but the rest of it was a no brainer some good pips to be made
  • #662
  • Aug 8, 2010 6:06am Aug 8, 2010 6:06am
Quoting Minka
Great post! Lets just do it
Just Do It, yes, just do it
  • #663
  • Aug 8, 2010 8:42am Aug 8, 2010 8:42am
Quoting ozziedave
I would like to make a suggestion. Can someone with some skills using PDF make another PDF file of the thread including the last 20 or so pages and post it.

I suggest this because there is always the possibility that Graeme or the admin people may choose to delete the thread and all of this great information would be lost. I've seen this happen many times on the forum.

Again, just my suggestion.

I have just compiled another pdf up to page 44 of all of pipeasy's posts. I seem to be having difficulty uploading it to mediafire from my home computer. I will upload it at work tomorrow.
  • #664
  • Aug 8, 2010 9:03am Aug 8, 2010 9:03am
Quoting flyer415
I have just compiled another pdf up to page 44 of all of pipeasy's posts. I seem to be having difficulty uploading it to mediafire from my home computer. I will upload it at work tomorrow.
thank you so much. looking forward to it

greatly appreciated

tookey
  • #665
  • Aug 8, 2010 11:40am Aug 8, 2010 11:40am
Interesting method.

I am so used to % position sizing for trade size.

What would be proper or structured way to calculate position sizing say account size of 10K or 35K or 50K... etc using the millipede method. I am curious about Pipeasy using 2lots for each entry.. i meant on what basis and how is it calculated ?

Hope someone more knowledgeable would shed some light.
  • #666
  • Aug 8, 2010 12:04pm Aug 8, 2010 12:04pm
Quoting songbo
Interesting method.

I am so used to % position sizing for trade size.

What would be proper or structured way to calculate position sizing say account size of 10K or 35K or 50K... etc using the millipede method. I am curious about Pipeasy using 2lots for each entry.. i meant on what basis and how is it calculated ?

Hope someone more knowledgeable would shed some light.
Some use a fixed lot size across all currencies because it's easy and save working out any calculations but in my opinion you should take time to work out your exposure because it will save you money in a worse case scenario.

On EURUSD with a 10k balance 1% risk using a 50 pip stop would be 0.20 lots but on EURGBP you could have to lower your lot size to 0.12 to maintain a 1% risk.

Here's a good site to calculate it quickly http://www.earnforex.com/position-size-calculator
  • #667
  • Edited 12:20pm Aug 8, 2010 12:09pm | Edited 12:20pm
Quoting songbo
Interesting method.

I am so used to % position sizing for trade size.

What would be proper or structured way to calculate position sizing say account size of 10K or 35K or 50K... etc using the millipede method. I am curious about Pipeasy using 2lots for each entry.. i meant on what basis and how is it calculated ?

Hope someone more knowledgeable would shed some light.
On the basis he has a ton of capital. For us mere mortals it's probably best to stick with standard money management rules. I use 0.5% per trade. That way I could do 2 or 3 more on the same day if there are lot's of good entries and still be under 2% of my money at risk. Although right now I don't like the indecision in the forex market so I am just sticking with one position at a time. As soon as it moves beyond the next s/r I move my SL to BE and start looking for another entry. And so on and so forth. In a trending market you can build up some serious growth over a few days.

But, as Graeme said, the hard part is dealing with days/weeks of chop where you are constantly getting stopped out with no positions taking hold. I think we are sort of in that type of market right now. Although (again as Graeme said) you can never know so the only thing to do is keep trying to establish positions and let the market decide for you.
  • #668
  • Aug 8, 2010 12:27pm Aug 8, 2010 12:27pm
Quoting pip_daddy
On the basis he has a ton of capital....
Hi Pip_Daddy,

I am not doubting Pipeasy. Just wondering how he calculated 2lots and not 3lots or 7lots... etc.

Just wondering if below will work out.

Account size: 10K
Broker Leverage: 1:100
Max leverage available: 10K x 100 = 1 million = 100 mini lots

If we use 0.5%, we can consider 0.5 mini lot per entry
OR
If we use 1%, we can consider 1 mini lot per entry
  • #669
  • Edited 3:20pm Aug 8, 2010 1:01pm | Edited 3:20pm
Quoting songbo
Hi Pip_Daddy,

I am not doubting Pipeasy. Just wondering how he calculated 2lots and not 3lots or 7lots... etc.

Just wondering if below will work out.

Account size: 10K
Broker Leverage: 1:100
Max leverage available: 10K x 100 = 1 million = 100 mini lots

If we use 0.5%, we can consider 0.5 mini lot per entry
OR
If we use 1%, we can consider 1 mini lot per entry
That was just an example of what I do. It may not be what works best for you. Maybe you feel very confident and want to risk more and don't feel it affects your judgement. Maybe you get all nervous and sweaty and can only make good decisions at something even less than 0.5% per trade?! Psychology is arguably more important than money management but both are very important.

There are different ways to look at the math too. If my account size is $10K and I only want to risk 0.5% I know that I can only risk $50 per trade. So I adjust my SL and lot size accordingly. The 'SL vs lot size' varies each and every trade. It needs to satisfy 2 requirements. Survivability of the entry (for me I pretty much only use s/r areas), and be within my 0.5% risk limit. Obviously trades that allow a tighter SL are more favorable but there will be fewer of them.

Other people may feel better doing it some other way that works better for them. There are lot's of different ways to do it.

One of the things I love about this system is that I can risk relatively small amounts per entry while at the same time building up very large groups. Over time you can potentially have a lot of your leveraged capital in the market working very hard for you at zero risk. As long as you keep trying to add positions (or as Graeme calls it, "participating") the market will decide over time how many pips it will give you for the effort.
  • #670
  • Aug 8, 2010 5:12pm Aug 8, 2010 5:12pm
Quoting pip_daddy
The 'SL vs lot size' varies each and every trade. It needs to satisfy 2 requirements. Survivability of the entry (for me I pretty much only use s/r areas), and be within my 0.5% risk limit. Obviously trades that allow a tighter SL are more favorable but there will be fewer of them.
Yup. One just has to remember the relationship: Stop Loss * Pip Value = Risked Amount. Pip Value is a function of lot size. If you want to risk the same amount, but need to adjust for higher stop loss, then your pip value (and therefore lot size) needs to be decreased so that relationship is always intact.
  • #671
  • Aug 8, 2010 7:48pm Aug 8, 2010 7:48pm
Quoting songbo
Hi Pip_Daddy,

I am not doubting Pipeasy. Just wondering how he calculated 2lots and not 3lots or 7lots... etc.

Just wondering if below will work out.

Account size: 10K
Broker Leverage: 1:100
Max leverage available: 10K x 100 = 1 million = 100 mini lots

If we use 0.5%, we can consider 0.5 mini lot per entry
OR
If we use 1%, we can consider 1 mini lot per entry
I think somewhere in the post Graeme says for a USD 5000 account ... 0.1 lot is ok. But please verify this again.

Btw ... 0.5% per trade is not so small if u are trading 12 currencies .... assuming all trade got burned ... you lose 6% of the account .. make sure the entry system is very-very reliable ...

I'm using 0.5% per trade.
  • #672
  • Aug 8, 2010 8:21pm Aug 8, 2010 8:21pm
Quoting luqmanz
I think somewhere in the post Graeme says for a USD 5000 account ... 0.1 lot is ok. But please verify this again.

Btw ... 0.5% per trade is not so small if u are trading 12 currencies .... assuming all trade got burned ... you lose 6% of the account .. make sure the entry system is very-very reliable ...

I'm using 0.5% per trade.
It does not matter how many currencies. All your trades should be at BE so if they all got stopped you lose nothing. However, as I said, while you are waiting for new entries to move far enough to allow your SL to BE you should have no more than 4 (2%). Again, that's just what I do. It's not the only way or the best way. Graeme suggested a few other ways of entry such as the 2 trades with one a TP @ +100.
  • #673
  • Aug 8, 2010 9:21pm Aug 8, 2010 9:21pm
Quoting pip_daddy
That was just an example of what I do....
After sometime ... we will have legions of soldiers working hard for free ...
  • #674
  • Aug 8, 2010 9:23pm Aug 8, 2010 9:23pm
Quoting luqmanz
After sometime ... we will have legions of soldiers working hard for free ...
God your sentence was motivating... made me drool...

tookey
  • #675
  • Aug 9, 2010 6:53am Aug 9, 2010 6:53am
Just my two cents, prices accumulation break out like penant or flag are good opportunities for entry.

Especially on high time frame, they tend to provide enough momentum for secured entry.

It is quite easy to spot one or two per week.

I think Graeme mentioned it also. They are my favorites since very long time but i used to close my trades far too early before I was lucky enough to find this thread.
the market is not random but anything can happen.
  • #676
  • Aug 9, 2010 7:54am Aug 9, 2010 7:54am
Is Graeme gonna be back in this forum? I've been silently following this thread which at last I catch up 'til the end of it. Only to be disappointed that look like he left.
  • #677
  • Aug 9, 2010 8:19am Aug 9, 2010 8:19am
Here is the updated pdf that i promised.

It goes to page 44 and includes only Graeme's (pipeasy) posts including the charts.


http://www.mediafire.com/file/6uhub3wvuu2pku7/Building an equity millipede page 44.pdf
  • #678
  • Aug 9, 2010 9:17am Aug 9, 2010 9:17am
Quoting flyer415
Here is the updated pdf that i promised.

It goes to page 44 and includes only Graeme's (pipeasy) posts including the charts.


http://www.mediafire.com/file/6uhub3wvuu2pku7/Building an equity millipede page 44.pdf

Great effort!

Thank you. I hate to see this thread dwindle away but at least we have the pdf.

I dont know about you guys but i have read this thread 4 times and everytime i read it i manage to notice something new in graeme's posts. i can also notice how hard it was for him to jump around answering every question thrown at him. it really did effect his intended flow of teaching.

thank you again for pdf.

tookey
  • #679
  • Aug 9, 2010 9:23am Aug 9, 2010 9:23am
Quoting flyer415
Here is the updated pdf that i promised.

It goes to page 44 and includes only Graeme's (pipeasy) posts including the charts.


http://www.mediafire.com/file/6uhub3wvuu2pku7/Building an equity millipede page 44.pdf

Thanks flyer415,

Appreciate the effort you put into this pdf.

We can all read and re-read Graeme's posts to glean all that we can and share insights. Hopefully.
  • #680
  • Aug 9, 2010 9:28am Aug 9, 2010 9:28am
Quoting flyer415
Here is the updated pdf that i promised.

It goes to page 44 and includes only Graeme's (pipeasy) posts including the charts.


http://www.mediafire.com/file/6uhub3wvuu2pku7/Building an equity millipede page 44.pdf
Thank you flyer415 for pdf. Nice looking material for studying.

And also want greatly to thank Graeme for his efforts to our profits.
If we start to aply Graeme's method from now on, it will feed us, our children, and our grandchildren.
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