Building an equity millipede

Graeme, I cannot express succintly the paradigm shift which you have imposed on my trading in the last few weeks. I managed to stumble across your thread from its inception, and I am pleasantly surprised that among all the noise here at Forex Factory, I have found a thread worth its weight in gold to peruse.

Your long-term view with regard to holding positions, as well as the lack of emphasis you place on exits and entries is simply refreshing, for as you say, once you have that one thing, we shall meet at the final door of profits.

To take full advantage of your tutelage, I found it necessary to register, to ask some questions to clear a few doubts.

 

1. With regard to money management, is it safe to assume that we no longer have to worry about position sizes being a fixed fractional percentage of our account - we use fixed lot sizes instead?
2. Also, over the years, I imagine our account equity will increase according to infinite yield as you have presented - at what point do we look to increase our fixed lot size?
3. Does leverage play a significant role in this trading mindset? If so, would lower levels be more advisable than higher levels?
4. I am thinking of trying this out on a $5,000 account, using lot sizes of 0.10 Standard Lots; $1/pip. Does this sound ideal?

I am simply intrigued by the equity explosion one's account can benefit from through the simple concept of stacking! I always had an inkling that it was the right way to go, but just a handful of positions placed at the right point in time where the Price Action does not retrace to, can yield wonderful profits! I believe this will be my 'one' thing - like Marion; "Joe"

That being said, I must humbly submit that I actually prefer the .00 entry method which you have presented earlier on, as opposed to the Flying Buddha and Volatility Breakout methods. I believe my focal interpretation is much clearer with it; it will allow me to space out my entries healthily; and it will allow for me to go with the flow of the market - both long and short - as the market dictates, without a fixed mental hindsight beforehand. However instead of only adding one position at a suitable .00 breach, I will then zoom into the 5M timeframe, and stack further positions, to maximize any potential movement! Coupled with the low risk present on the 5M timeframe, I see it as a very viable method for going forward!

Once again, I would just like to thank you for donating generously of your time, and ignore the naysayers.

Any input from other traders would also be appreciated.

Regards,
xXTrizzleXx

Woah, I have actually missed the initial post from Marion , good spot Starvin4Pips. Hope 'Joe' will stick around our merry group

Got to say wish this demo was real at moment e/j never stopped dropping all day.

Morning All,
Welcome to Marion!! I had 5 attempts yesterday to go long on UJ. 3 attempts on initial breakout Sydney am. Then 2 attempts around the 50% retrace of the weekly. My net loss is 53 pips. This is lower than the recommended average but higher than I would like. My last attempt skewed the average somewhat as I had to leave a hard stop loss and get some sleep. The currency is slowing down and I will look now for a retrace to the end of last weeks wick. Hope we get to hear more from Marion about her trading.
Kind Regards,
Ben

@ leggo:

If Graeme referred to "her" as Joe, I'd surmise that Marion is a he not a she

@ Everyone else:

If I had the ability to get 500:1 leverage, and decided to open 0.10 Standard Lots, it would cost me $20 margin, correct?

If I were only able to get 100:1 leverage, and decided to open 0.10 Standard Lots, it would cost me $100 margin, correct?

If so, is there a catch? Or should I take advantage of the higher leverage, considering they are both offered by the same broker?

Thanks in advance,
xXTrizzleXx

Good morning, all

Apologies if I seem too quiet however I would like all traders to think on their own.

Im reading all the emails and private messages and have printed out all of them. There are currently 30+ participants.

It is good to see all participants have sensible realistic expectation of the next 2 weeks that has the poential for alot of profit.

There are few things I would need to say as part of learning.

1. It has now been 1 day after hindsight. Look at the daily candle just formed. Is it part of your hindsight??

2. Where is price now to your hindsight?? Is it part of your anticipation?

3. Please only stack when the price in your favour. The worst case scenario when prive reverses is perhaps the loss of last 1 or 2 positions and rest BE (unless there is a volatile sharp price spike).

4. For now, I suggest keeping things very simple and only trade with the hindsight.

For everyone's reference, I chose gbp/aud as my project this week. Hindsight is DOWN


http://img833.imageshack.us/img833/4162/ff1.png

The above chart was before market open this week.

http://img705.imageshack.us/img705/1506/aa1s.png

http://img825.imageshack.us/img825/5306/aa1d.png

So what do you think might happen now with higher probability? Yes, price is now against my hindsight so I will walk away from computer until its over.

http://img824.imageshack.us/img824/1378/aa1z.png


**EDIT: will return to post correct chart of yesterday not last week ***

Sincerely,

Graeme

Alpari per chance Trizzle? As I have the same option with them, well they have over a dozen leveraging options actually.

pipEASY,

I read the reply of marion/joe regarding the FBs. One thing that struck me was that you had mentioned marion/joe had been trading this technique for 5 yrs, almost exclusively. marion/joe mentioned it was you who came up with the FB and, I assume, the methodology. However, you stated you have only been trading for 2 yrs. I was wondering if you could explain the discrepancy?

Now, I am not here to cause trouble, as I have learned from the thread. But, when I see things like this it gets in my head and I just have to ask.

Thanks

Just fyi in case people are unaware (as I was up until a few hours ago). It was a bank holiday in Britain Monday (Aug 30). So Mondays action was likely quite muted.

We have a volatility breakout with EURUSD taking place at the moment. Short position taken at 2653, 5 pips below support.

EURUSD.
Sell limit placed at 50% of large down candle candlefor my first stack after breakout entry. Breakout entry now moved to BE.

Previous to this trade I was on a long when it bounced off support but ws eventually taken out for -10

Second sell position at 2644 now moved to BE. Looking to stack again on break of support. But looking for tight entry so will enter on retrace.



Edit - second sell position taken out for BE on the retrace.

Edit 2 - Remaining sell positon taken out for BE

Good observation, boz5

Marion was my business aide for many years. I wasnt aware that he was trading forex until one evening.

Before I met him, he was already an established successful trader on his own with 50% fib method only. My suggestion of price irregularity of flying buddhas that had him combine both elements of 50% fib and FB.

He made the connection between flying buddhas and 50% fib whilst I only suggested the price irregularity of FBs.

The last 2-3 years of his trading career has been solely on the new found arrangements of 50% fib and FBs only. Before our collaboration he was already successful in using just price action at 50% fib of every 4hr candle.

Hope this clears any confusion and apologies.

Sincerely,

Graeme

Hi Marion,
Sorry for referring to you as "her" how embarrassing! I wonder if you could share
with us how you overcome the emotional hurdles of many losses in a row. I imagine you must of found it hard at first.
Regards,
Ben

I think we would still love to call you Joe

Welcome to the group!

TradeStar

I think its a good spot to enter long (84.32) with 10 pips risk max, now given the retracement level and the hindsight

TradeStar

Any one still following the eurjpy long analysis? I have been stopped out of two positions long positions so far using the 4hr TF. That's the nature of the beast.

happy piping

AB

FB at this level did not hold. Apologies if I have mislead anyone.

Thanks
TS

Hey T.S.,
I had another attempt this morning after double wick bounce and fb on 4hr. I think next level of interest will be 84.00 then last weeks low. We are heading towards the business end of things now!!!!!!
Ben

No appologies necessary. We are all trying to position ourselves for entry into these tricky pairs. Have a look at the eur/jpy 4h chart and there is about 4 failed FB's in a row and she is still dropping.

AB