Building an equity millipede | Page 73 | 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

  • #1,441
  • Aug 26, 2010 12:04pm Aug 26, 2010 12:04pm
hi,

just on page 15 of this thread and peeked at the last page and
happy to see you still around.
thanks for all the sharing of your method.
and also for the one who dropped the link on kreslik, so i
followed to here. :-)
i already realized that this was the way, although profitable at
shorter holdings. but when i did not closed the short on EU around 1.50
a couple of months ago it would still be alive.
made some calculations if i just had been adding every 100 pips down
(far from optimal trading into a position) i would have made a killing
and more then quadrupled the base.

grtz from the land of beer & chocolats (and some comics)

Bob

Quoting pipEASY
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...
  • #1,442
  • Aug 26, 2010 1:15pm Aug 26, 2010 1:15pm
Dear pipEASY,

Now that I have taken additional time to go through your posts, I have a better understanding of your trading strategy which, I am happy to realize, is quite similar to what I have been trying to do myself, although with different tools and a different approach to position management.

This is your thread, so I won't expand on how I do things my own way, except maybe to say that I am a firm believer in fractal theory when it comes to charts and this mainly drives my trading style.

To me, there is little to no visual difference between low and high timeframe charts except the absolute value of the length of each candle: market patterns are universal, irrespective of the selected timeframe. The difference lies in the size of potential retracements and therefore potential losses in terms of absolute pips.

I believe the key difference between our approaches is the way we treat our "soliders", which itself stems from the signals that get us into a position, even though the global philosophy is the same.

Allow me to explain this in more details...

I personally find it challenging to use a 5mn chart to take positions which could eventually transform into weekly/monthly positions. However, one needs a short timeframe chart to select the best possible entry point and minimize potential losses. The way I addressed this issue is that I treat a "5mn soldier" as a "second-class private"as long as I don't get a confirmatory signal on a higher timeframe (eg. 1h) and, until this happens, I don't promote this soldier to sergeant (ie. increase my position) and then look at this position on a 1-hour signal basis. Therefore, I find myself with an army that comprises privates as well as captains and generals, but a private does not get the same treatment as a general, i.e. I trade privates based on, say, 5mn signals, which allows me to make also profits on those if they don't get promoted (eg., pass the 1h signal test). But, even though a private may not pass the sergeant test, he generally dies giving me a profit...

I realize that gives me a payout profile which is very different from yours and you must certainly command a higher profit in the long term. However, my approach allows me to have a more relaxed trading as I don't necessarily expect a binary outcome from my trades, i.e. BE or fortune.

Your thoughts and feedback would be most appreciated.
Sincerely,
Darko
  • #1,443
  • Aug 26, 2010 2:58pm Aug 26, 2010 2:58pm
I just stepped in here and I was rather shocked to discover that, of all the people "following" this thread, only a handlful have actually pointed out the blatant inconcistencies in "Graeme"'s posts, not only amongst posts he was making last winter, but even in this very thread.

There are bits of useful info , but the vast majority of it consists of resurgitated generalities of the type "follow the trend" accompanied by "after the fact" 'trades'.

There have, however, been a few people , such as Triphop and a few others, who seem to have sensed that something is quite amiss with Graeme's 'method', his supposedly old and rich trader friend 'Joe' who wishes to remain anonymous but is occasionally willing to part with bits of his wisdom for the benefit of readers of this thread, though of course he will only speak through 'Graeme'. Though of course they have been silenced and buried under posts of eager reverants and followers.

People never learn, do they. Such is their thirst to follow every 'Graeme' and every 'Jacko' who appears here dressed in a self-made cloak of success and millions made through trading and 'long practice' (what serious trader would consider two years of live trading long practice?).

There are threads in these forums that already contain everything that people need in terms of acting on price, trends etc, such as this guy Strat's thread. I suggest that people read those instead. They don't describe anything that traders haven't already been using for many years, but there isn't anything 'new' about trading. But they will help you understand the few simple methods used by all traders, even very long term, position traders like me who mostly trade on fundies.

Read this thread as well, and any other. But do so with a critical, even cynical, eye.

You have been warned.

Regards,
P
  • #1,444
  • Aug 26, 2010 3:18pm Aug 26, 2010 3:18pm
you sound a lot like me, a loser

Quoting pr0spero
Read this thread as well, and any other. But do so with a critical, even cynical, eye.

You have been warned.

Regards,
P
  • #1,445
  • Aug 26, 2010 4:09pm Aug 26, 2010 4:09pm
Quoting charvo
you sound a lot like me, a loser
He sounds like a pretty sharp guy to me.

At the very least it appears he has bothered to go through post histories and do a little research. Something very advisable in a place like this.
  • #1,446
  • Aug 26, 2010 4:12pm Aug 26, 2010 4:12pm
Quoting pr0spero
I just stepped in here and I was rather shocked to discover that, of all the people "following" this thread, only a handlful have actually pointed out the blatant inconcistencies in "Graeme"'s posts, not only amongst posts he was making last winter, but even in this very thread.

There are bits of useful info , but the vast majority of it consists of resurgitated generalities of the type "follow the trend" accompanied by "after the fact"...
Hi Prospero

I find your post very insulting to Graeme who already said he is genuinely here to help and for no financial gain. How dare you put him in the same category as the alleged scammer Jacko? If Graeme were to start charging for private mentorng like Jacko, then we will and can decide for ourselves his real intentions.
I think you owe him an apology for your ojectional post. A lot of us are learning heaps here thanks to Graeme. I do not find his posts inconsistent as you claimed.
Now run along now and do your policing elsewhere !

Goodbye
  • #1,447
  • Aug 26, 2010 4:23pm Aug 26, 2010 4:23pm
Quoting pr0spero
I just stepped in here and I was rather shocked to discover that, of all the people "following" this thread, only a handlful have actually pointed out the blatant inconcistencies in "Graeme"'s posts, not only amongst posts he was making last winter, but even in this very thread.

There are bits of useful info , but the vast majority of it consists of resurgitated generalities of the type "follow the trend" accompanied by "after the fact" 'trades'.
Graeme i am silent watcher of this thread... i just have small suggestion to u and i have seen these things many threads..if u want to make a credibility just put your blotter once here no matter which one and take ur IDs out ..will keep these people quite ...

Again humbly just a suggestion

V
  • #1,448
  • Aug 26, 2010 4:49pm Aug 26, 2010 4:49pm
Quoting pr0spero
I just stepped in here and I was rather shocked to discover that.......

You have been warned.

Regards,
P
There are always one or two in every crowd but don't let them ruin your party!!!
  • #1,449
  • Aug 26, 2010 4:51pm Aug 26, 2010 4:51pm
Quoting pr0spero
I just stepped in here and I was rather shocked to discover that, of all the people "following" this thread, only a handlful have actually pointed out the blatant inconcistencies in "Graeme"'s posts, not only amongst posts he was making last winter, but even in this very thread.

There are bits of useful info , but the vast majority of it consists of resurgitated generalities of the type "follow the trend" accompanied by "after the fact"...
Hi P,
I dont understand what you or anyone has to gain from such a post. Firstly you are insulting Graeme who has spent weeks preparing this thread. Secondly you are insulting the readers, do you really think readers of this thread need you to point out inconsistency's? Maybe we already see them but realise that Graeme is pushing us in several directions and trying to get us to work it out for ourselves! Do you really have that much concern about the integrity of this thread? If you really wanted to be constructive you could put a question to Graeme for the benefit of the forum instead of making sweeping generalisations. I have no doubt that you are a successful trader, I also have no doubt that the existence of this thread has no bearing whatsoever on your trading or your life.
Live and let live my friend.
Regards,
Ben
  • #1,450
  • Edited 5:47pm Aug 26, 2010 5:12pm | Edited 5:47pm
Good morning, all

Thank you for the posts.

It is true that there is a possibility that im a fraud. A fraud with alot of time to invest in a thread that will reward me with fancy v's that alot of traders cherish more than their actual trading wellbeing.

Everyone has the freedom to express their opinions and in a sense I appreciate the feedback received. It made me reflect on my actions and my motive and made me wonder for a moment why I spend hours per day answering questions on private messages and now email as well. If its the attention I was seeking it is now certainly overwhelming to take any pleasure from.

May I request all readers to hold back from replying to the negative posts as there is no need to and focus on the important matters on hand which is the upcoming weekend.

Im confident that I have contributed positively to a number of traders and I know that there will be good results from this weekend which will authenticate the knowledge I have passed on but most importantly the traders own confirmation of their own abilities.

This is how I plan to authenticate.

I do not need to blog or post my current profit statement. It only makes me look just like one of them and for what purpose is such action required when I can prove to all through the success of others?

Lets move on.

Sincerely,

Graeme
  • #1,451
  • Aug 26, 2010 5:39pm Aug 26, 2010 5:39pm
Im planning to spend a considerable amount of time/posts to connect everything today/tomorrow before the weekend project and then explain the project in further detail.

It will answer most of the questions that are currently circulating.

For the willing learners, may I request that you read my yesterday posts of interpreting price action and then take it one step further and open any chart and try apply what I have shown to the choice of your own pair of currency and any timeframe.

You will notice a definite similarity/occurence that happens over and over again in the markets.

Its amazing how much hindsight is gained from watching price closing above/below to any s/r line you have drawn to your own personal discretion. Interpreting price action is very simple and straight forward and only requires a few key patterns/candlestick/wicks to be effectively taken advantage of in trading profitably.

If you are wondering how a project that runs 2 weeks will prove a trader to be profitable in the long run? Even though market is neutral and universal there are set repetition of generalized actions that occur in cycles. A professional trader knows this cycle very well and can apply the same principal he uses over and over in the same manner in any pair of currency and on any timeframe.

From the feedback received overnight, I assure you from the 400+ posts I have done in this thread, Im really only talking about key 5/6 topics. Unfortunately I had to stretch out my explanation and sometimes slightly step on different grounds to retrace and gather all readers to the same level of understanding before proceeding on forward together.

I cannot express how important this weekend will be to most as it will signal a final ending to my endeavour and also the final confirmation to the successful traders who make it.

My interest lies within your success and I look forward to our collaboration.

Edit: Will return in few hours as Im still preparing.

Sincerely,

Graeme
  • #1,452
  • Aug 26, 2010 5:41pm Aug 26, 2010 5:41pm
Good Morning Graeme and everyone. Looking forward to a prosperous day!
  • #1,453
  • Aug 26, 2010 6:11pm Aug 26, 2010 6:11pm
Graeme

thank you! i learned so much its crazy. best class i took in investing haha
  • #1,454
  • Aug 26, 2010 6:20pm Aug 26, 2010 6:20pm
LOL, the few posts from the negative people.
I gained zero from there posts only "i'am self proclaimed successful you are all fools this is a fraud"
I am no fool And i dont follow anything that doesnt seem to make sense to me.
contribute constructively or add some evidence to your accusations.
I will be responsible for any decisions i take based on the information so kindly and clearly represented in this thread.
And I'am 100% sure none of us will trade exactly the same no matter how clearly we are taught.
All i see hear is "I will teach if you will learn end of"
I got taught to drive a car.the instructor couldnt guarantee i would not crash after i past my test.
no one forcing us to read.
no one forcing graeme to post.
thankyou graeme I will always appreciate what you have chose to share.
making green pips large and red pips small this is my goal.
  • #1,455
  • Aug 26, 2010 6:33pm Aug 26, 2010 6:33pm
Quoting pipEASY
Good morning, all

Thank you for the posts.

It is true that there is a possibility that im a fraud. A fraud with alot of time to invest in a thread that will reward me with fancy v's that alot of traders cherish more than their actual trading wellbeing.

Everyone has the freedom to express their opinions and in a sense I appreciate the feedback received. It made me reflect on my actions and my motive and made me wonder for a moment why I spend hours per day answering questions on private messages and now email as well. If its the attention...
Hi Graeme,

I have been one of the 'invisible' lurkers of this thread like many since you started this thread and felt the need to come out in the open and acknowledge your genuineness and authentic desire to help fellow traders. I rarely post on public forums (in fact, this is my 3rd post on the world wide web since I became a member here at FF back in 2006).

I applaud your willingness to give fellow traders 'assignments' instead of having them blindly following a strategy. To me, whether or not you are successful is absolutely irrelevant. There are millions of strategies available for free on forums and it is up to the individual trader to explore what's works best for them. All along, you have made us 'think' which has been a terrific journey for me as I can now connect my own trading experiences (doing this since 1998 with moderate success). I will be participating in this weekend's experiment and have begun to look for a broker that allows hedging in demo. My experience with hedging/nedging has not been positive in the past but you throw some fresh perspective worth exploring.

My biggest challenge is keeping a smooth equity curve on my portfolio. If you could, may I ask a couple of questions...

(1) How do you manage 'net' currency exposure in your account? After having 100s of open positions in so many pairs, I think it is crucial to keep a close track of your net exposure (which is different from exposure in individual currency pairs) and strike a good balance between (EUR, GBP), (USD, JPY, CHF) and (CAD/AUD/NZD) to minimize adverse impact on your floating profits on risk aversion days or unforeseen political events. I know you don't care much about correlation among pairs so curious to see your thoughts on this important aspect of managing risk. I am curious about trading around news releases also.

(2) I understand how you keep your account equity (realized profits) smooth and growing but we haven't discussed how smooth your curve pertaining to large floating unrealized profit is? Wondering what technique (if any) do you follow to conduct 'what-if' scenarios to assess drawdown on your floating profits. I think this is a critical aspect as one needs to be prepared to quickly liquidate long standing legs/pairs that drastically affect a particular currency.

(3) We haven't discussed much on cash flow management. Long term goal for most traders are to go full time and this is an important aspect for folks to understand and the effect it would have on a long term strategy like this one. Could you please shed some light on this?

(4) I personally cannot imagine getting stuck with just one broker for 'life' with huge amounts of floating profits and be solely at their mercy. Wondering if there is any service available in the forex world to allow a very large account with large number of open positions to 'move' to a different broker/bank WITHOUT liquidating your open positions (similar to the Automated Customer Account Transfer Service (ACATS) service for Stocks/Equities trading account?

Keep up the good work with your valuable teachings.

- Vee
Staying in my lane...
  • #1,456
  • Aug 26, 2010 6:47pm Aug 26, 2010 6:47pm
Here is my take on the EUR right now.

Look at 1 hr chart. Find the wicks high and low. Mark them off with a rectangle. Now go to 5M chart. We have been in a ranging market for the past 12 hours or so. It may be a wise decision to wait until price breaks out of the range with a momentum candle.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd 1hr wick example 27.08.10.gif Size: 34 KB
Click to Enlarge Name: gbpusd 5m wick example 27.08.10.gif Size: 33 KB
  • #1,457
  • Aug 26, 2010 6:48pm Aug 26, 2010 6:48pm
Hi guys,

US regulated brokers do not allow hedging any more. Is there a Non-MT4 UK/Australia/Swiss based reputable broker (preferable ECN with under $5K to open a US$ based account) that has a simple "Move Stop to Break-Even' feature?

Thanks

- Vee
Staying in my lane...
  • #1,458
  • Aug 26, 2010 7:07pm Aug 26, 2010 7:07pm
While US brokers do not allow hedging, many US brokers do allow sub accounts (Oanda, Interactive Brokers to name a couple). What I do is have one account as my long only trades and a sub account as my short only trades. I hope this helps anyone using a US account....

With kind regards,
MK
  • #1,459
  • Aug 26, 2010 7:15pm Aug 26, 2010 7:15pm
Quoting MidKnight
While US brokers do not allow hedging, many US brokers do allow sub accounts (Oanda, Interactive Brokers to name a couple). What I do is have one account as my long only trades and a sub account as my short only trades. I hope this helps anyone using a US account....

With kind regards,
MK
Thanks MidKnight for your response. I have accounts with both Oanda, IBKR (and FXCM/US,IBFX in the distant past). Money management becomes quite tedious with transferring money from one sub-account to another. With the combination of hedging and large floating profits, this strategy could allow us to go a bit more aggressive on the leverage (although not recommended).
Staying in my lane...
  • #1,460
  • Aug 26, 2010 8:03pm Aug 26, 2010 8:03pm
Quote
While US brokers do not allow hedging, many US brokers do allow sub accounts (Oanda, Interactive Brokers to name a couple). What I do is have one account as my long only trades and a sub account as my short only trades. I hope this helps anyone using a US account....

With kind regards,
MK

Ditto. Very easy to do with Oanda. And with Oanda's granularity, it's easy to trade a la Graeme with even as little $100.00.
5 traders viewing now