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  • #1,801
  • Aug 31, 2010 5:27pm Aug 31, 2010 5:27pm
Hi Everyone,
Here are my stats for first 2 days.

12 Trades

9 Losses

3 B.E.

Average loss per position = 6.6 pips

Net Loss = 80 pips.

My biggest emotional hurdle is closing out of positions as soon as I know they have not gone to plan. I could have got at least half of the above to b.e. This would reduce my draw down by around 30 pips. Something to work on.
Regards,
Ben
  • #1,802
  • Aug 31, 2010 5:31pm Aug 31, 2010 5:31pm
Quoting pipEASY
Apologies, I had to step in.

Absolutely.

Absolutely.

Kindest Regards,

Graeme
Thank you very much for the acknowledgment. I really respect what you are doing.

Michael
  • #1,803
  • Aug 31, 2010 5:33pm Aug 31, 2010 5:33pm
Good morning, all

This may be the last post before I allow more space for the traders to continue on.

Does everyone remember the random number game we played in earlier part of the thread?

You do not need to be present at every given opportunity.

This is a very important sentence with alot of meaning..

"Trade what you see, when you see it"

It is that simple. And this will help you avoid most/all of the range periods. Yes, you will miss out few golden opportunities but is this the only one.?

If you run out of ammo then what use is your gun?

I applaud at all the participants and its great to see all traders taking the project seriously but it will become better/faster/clearer.

The purpose of the project:

It now gives each trader: what to expect in profit, a clear defined goal, knowing when to trade and when not to. And above all risking very small for potential very large profits. A true professional traders mindset.

Please continue on.

Sincerely,

Graeme
  • #1,804
  • Edited 6:46pm Aug 31, 2010 5:55pm | Edited 6:46pm
I was planning to write this post some time this weekend but I will address it now.

It is great pleasure (without any cynical intent) to see traders on the project struggling.

This is your first emotional hurdle and I would like everyone to feel the complete extent of it for your future benefits.

A trader may look at his stats now and say

"Graeme. What in the world is going on??? I had 15 entries and total loss of 150 pips. Average loss per position is 10 pips. Its not working"

"Ok. Jim.."

Soon when the inevitable does happen.

"Graeme. 4 positions lasted 2 weeks of profiting. Average profit per position is 350 pips making my gross profit 1400. And this was from my 3rd attempt on the project. I lost 150 pip each project and now Im up net 950 pips. I started with $2000 usd and now sitting on $2950, a 50% increase (slightly lower)."

Trust me when I say im not the least surprised...

And I hope the above trader closes out just the smaller 3 legs and keep the largest one for something more spectacular.

Sincerely,

Graeme
  • #1,805
  • Aug 31, 2010 6:27pm Aug 31, 2010 6:27pm
Just replying to a question on private message

I receive instant alerts to my cellphone which helps me with my trading immensely.

There are 2 things you need. smtp server and VPS server.

I have used the same company for almost 2 years with no problem at all.

For smtp server:

I use www.authsmtp.com and pay $40 USD annually for 2000 emails a month.

For VPS server:

I use www.vpsland.com and pay $24.99 USD per month for the value deal. When I signed up 2 years ago the deal was slightly different but it is better priced now. The lite deal @ $19.99 USD per month is more than enough if you dont use multiple trading platforms and eas.

For phone, I use blackebrry bold 8800.

Im not sure about Iphone but blackberry has true push email. Which means there is no lag to when I receive new emails on my phone.

Smtp will send the email from mt4 to my blackberry email address which is [email protected] which arrives instantly on my phone with less than a second delay. This is important and you need true push email capabilities on your phone. I used samsung phone before which had a lag of anything from 5min to 15minutes for the email to arrive on my phone and alert me. Check if you can organise a true push alert on your phone.

There are few bad reviews of vpsland.com however I had very good experience so far for the last 2 years. This is only my personal experience and Im not affiliated with either of the companies.

You do not need to click on the hyperlinks above but simply type in the address in your web browser if you believe that I am affiliated with either of the companies.

The benefit of having vps server is that you can run your mt4 24/7 so you dont need to leave your computer on at home all day. Also you can place price alerts on all the pairs that has your interest and once price reaches the point of interest it will shoot an email to my phone so I can start walking to my computer at home to trade. I do daily shutdowns when I wake up.

Sincerely,

Graeme
  • #1,806
  • Aug 31, 2010 6:29pm Aug 31, 2010 6:29pm
My first two days of action:

3 Trades

2 Losses - 50 pips (avg. 25 pips per position)

1 Still alive (long from 106.63)

My hindsight was long because of the weekly flying buddha pin bar reversal candle. This one has been tough. Could have had better entries probably from the 1H or 15min charts. This is a great learning experience.

AB
  • #1,807
  • Aug 31, 2010 6:46pm Aug 31, 2010 6:46pm
Quoting pipEASY
Just replying to a question on private message

I receive instant alerts to my cellphone which helps me with my trading immensely.

There are 2 things you need. smtp server and VPS server.

I have used the same company for almost 2 years with no problem at all.

For smtp server:

I use www.authsmtp.com and pay $40 USD annually for 2000 emails a month.

For VPS server:

I use www.vpsland.com and pay $24.99 USD per month for the value deal. When...
Thanks for all your posts today Graeme. Wondering if you could address one challenge I am facing with trading 5M FB with candlesticks. Not factoring spreads in the TA/PA tend to skew my results. Based on the charting software, Candles can form based on bid, ask or midpoint. My current demo is set to BID price by default. Just curious if you have a preference between Bid or Ask on your chart candlestick setting. Perhaps I am thinking too detail on this and it really doesn't matter in the broad scheme of things (long term results).
Staying in my lane...
  • #1,808
  • Aug 31, 2010 6:56pm Aug 31, 2010 6:56pm
Quoting VEEFX
Thanks for all your posts today Graeme. Wondering if you could address one challenge I am facing with trading 5M FB with candlesticks. Not factoring spreads in the TA/PA tend to skew my results. Based on the charting software, Candles can form based on bid, ask or midpoint. My current demo is set to BID price by default. Just curious if you have a preference between Bid or Ask on your chart candlestick setting. Perhaps I am thinking too detail on this and it really doesn't matter in the broad scheme of things (long term results).
Good question, veefx

Hope you dont take any offence at a such short answer but its all relevant.

Yes, in the broader scheme of things it doesnt matter.

Price, market is all universal and neutral.

Everything works yet everything doesnt work.

and if everything is all relative, I can say the above sentence backwards and it still applies.

Sincerely,

Graeme
  • #1,809
  • Aug 31, 2010 7:53pm Aug 31, 2010 7:53pm
I seem to be struggling getting entries on my pair which is EURJPY. I work during the London and early New York sessions so I miss most of the volatility of the market. So far 5 entries, 2 BE, 2 small profit to cover SL and 1 open position.

This truly is an excersise in patience.
  • #1,810
  • Aug 31, 2010 8:36pm Aug 31, 2010 8:36pm
This assignment made me realize I need to make an excel spreadsheet to better manage adds lol. Would be tough to manage so many positions on multiple pairs all at once. Wish my broker did LIFO.
  • #1,811
  • Aug 31, 2010 9:10pm Aug 31, 2010 9:10pm
In regards to what all traders are currently experiencing.

Would you like to know the emotional hurdle after this one?

It is worse than you can expect.

First emotional is:

holding your anticipation and minimizing your drawdown and keeping your beliefs intact.

You will get over this when you experience a weekly hindsight that will work to your favour. It is inevitable that it will happen as the probability is on your side. Remember casinos do not make money from every gambler immediately. They have designed the game so on the long term they are the only winners by shifting the probability of winning towards the casino. This is what we do in trading. We are the casino and we require the patience and the bank to sustain the short term fluctuations.

Second emotional is:

holding onto your winning position and not closing out too soon.

Second emotional hurdle is a complete different feeling. Finally you have positions that are growing and they suddenly start to decrease in size. What will you do?

I didnt have as much first emotional hurdle as I base many of my principals and beliefs in statistics with the long term vision. I wasnt in a rush as I did not look at trading as a means of financial freedom per se.

Base your beliefs with statistics to cement your intent.

I can assure you, 5-20 attempts (on different times) is required before a 5min entry will grow for 2 weeks.

15pips average loss per position x 20 attempts = -300 pips

Worried? Why?

That is only a dip on your equity curve before a volatile breakout upwards. Then another small dip before another woosh! breakout.

Once you start collecting enough data on your trades you will definitely see that you are always making new higher-lows and the equity curve will never come below the previous dip as long as you keep your beliefs/method/trading/habit consistent.

I will guarantee this.

Sincerely,

Graeme
  • #1,812
  • Aug 31, 2010 9:24pm Aug 31, 2010 9:24pm
Quoting mjaymay
Dinopips and fguru,

You are welcome and thanks for the acknowledgment. The main point that I feel is important to recognize is the difference between techniques and principles. We are drawn to techniques because they give us the impression that things can be the same all of the time. But things are not always the same. They are alive so we need to understand their nature in order to be able to follow them. If you understand the principles you can then create the technique that is appropriate for that moment.

We can see that when someone asked...
Good Morning All.

Thanks for a lovely post Michael.

TradeStar
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,813
  • Aug 31, 2010 9:30pm Aug 31, 2010 9:30pm
I have been a reader of ForexFactory for years! I don't post much if at all on forums. This thread is the best thread I have read.

Anyways, I'm so impressed, I'm incorporating the methodology to my trading. I started Sunday, Aug 22nd. So far I have traded a full week and a half and here are my results. Not nessicarily flattering and a lot of room for improvement. Besides notj too bad considering the mistakes I made. Just proves you can mess up pretty bad and not be too bad off with solid methodology behind you.

The only reason I'm posting is to possibly help others. I think this is the real-deal and if you can get your head around the statistics of this the long-term advantage is huge.

Starting balance of $2000 usd live account. I'm trading 1k lot size so about $0.10 usd per pip.

I am categorizing my trades by week:

Week1 Stats(as of Friday end of week):
Total Trades: 47
BreakEven Trades: 17
Loss Trades: 26
Win Trades: 2
Size of open trades: 2000 (2 1k lots)
Open Trades End of Week: 2
Cost of all losing trades: (-796) pips
Pips Gain from winning trades: +200
Net Profit/Loss Pips(so far with 2 open trades): (-596)
Realized Profit/Loss: $(-62)
Open Trades P/L Pips: +105
Average pips loss per losing trade: (-30.6)


Week2 Stats(as of Tuesday, Aug 31, 10:10 PM ET):
Total Trades: 12
BreakEven Trades: 1
Loss Trades: 6
Win Trades: 1
Size of open trades: 5000 (5 trades)
Open trades all NOW: 5
Cost of all losing trades: (-70) pips
Pips Gain from winning trades: +208
Net Profit/Loss Pips: +138
Open Trades P/L Pips: +525
Average pips loss per losing trade: (-11.6)

As you can see I'm going for less trades and smaller losses. So far I'm accomplishing both goals. I have 5 trades all in profit..some by over +200pips. Hopefully they run for weeks, months, years. I'm not used to holding trades this long. It is very rare to have trades over +100pips in profit. I do now!

KR
  • #1,814
  • Aug 31, 2010 9:32pm Aug 31, 2010 9:32pm
Thank you Graeme, your posts about emotions are really helping me...us.. to understand what's going on inside.
  • #1,815
  • Aug 31, 2010 9:36pm Aug 31, 2010 9:36pm
Graeme,

It's amazing to see you have answered even before I was typing my question

Inability to hold on to a winning position seems to be a big emotional hurdle for me, especially when you see the hard earned pips evaporating in front of your eyes.

In fact, getting a good entry seems to be relatively easy.

Other challenge is, if you take opposite positions too soon, you seem to loose both sides. Is it just me?

Warmest Regards,
TradeStar
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,816
  • Aug 31, 2010 9:48pm Aug 31, 2010 9:48pm
Quoting pipEASY
Good question, veefx

Hope you dont take any offence at a such short answer but its all relevant.

Yes, in the broader scheme of things it doesnt matter.

Price, market is all universal and neutral.

Everything works yet everything doesnt work.

and if everything is all relative, I can say the above sentence backwards and it still applies.

Sincerely,

Graeme
Thanks Graeme. Appreciate your response. It makes sense.
Staying in my lane...
  • #1,817
  • Aug 31, 2010 10:07pm Aug 31, 2010 10:07pm
Quoting qwerty00
This assignment made me realize I need to make an excel spreadsheet to better manage adds lol. Would be tough to manage so many positions on multiple pairs all at once. Wish my broker did LIFO.
Everyone should have a excel spreadsheet with all their current and past positions. It disciplines you to slow down and analyze your historical performance and prevent binge trading. I use one for my real trading accounts as my broker (IBKR) really sucks with averaging out positions in their base trading station. Unfortunately, I won't be able to share it (before anyone asks for it !) as it is overly convoluted with real time feeds from all my multi-asset multi-broker trading accounts. It is also a constant 'work in progress' with new features being added to keep track of performance by strategy. I strongly suggest start building one now. Soon it will get VERY confusing how each of your hindsight (and counter-hindsight) performed. It is very crucial to have all that data handy if you plan to focus on long term position investing such as this.... just my 2cents

-Vee
Staying in my lane...
  • #1,818
  • Aug 31, 2010 10:12pm Aug 31, 2010 10:12pm
Quoting ozziedave
I seem to be struggling getting entries on my pair which is EURJPY. I work during the London and early New York sessions so I miss most of the volatility of the market. So far 5 entries, 2 BE, 2 small profit to cover SL and 1 open position.

This truly is an excersise in patience.
There are several Asian open strategies (Tokyo open, HK open, 23-00 gmt straddle methods listed on this forum that you could try. Not sure how profitable they are though but volatility breakouts do happen during open sessions.
Staying in my lane...
  • #1,819
  • Aug 31, 2010 10:28pm Aug 31, 2010 10:28pm
Quoting VEEFX
Anticipation on 1H candle: Placed buy order on 106.62 which is 50% retrace on H1 candle as well as Pivot Support(WS1) on Weekly. Let's see how this 'anticipation' works out for me :-
E/J Update: my earlier limit order on WS1 kicked off on a good start... 58 pips in profit and stop moved to BE+4. Plan to resume stacking only after a break above 109.20 resistance (and close above last week's open). Also contemplating moving my Stop to BE+50 to recover portion of my drawdown.

I am open to suggestions from everyone if this is a good BE strategy to recover some of your lost pips. To me it is imperative that I have enough soldiers to survive next 2 weeks of hindsight with my 2% 'defense budget'.... or else my soldiers are going to battle without wearing armors(tighter SLs) which will cause extreme emotional frustration.

Regards,

- Vee
Attached Image (click to enlarge)
Click to Enlarge Name: PipEasy-EURJPY- 2010-08-31 update1.jpg Size: 220 KB
Staying in my lane...
  • #1,820
  • Aug 31, 2010 10:56pm Aug 31, 2010 10:56pm
Quoting KeelRisk
I have been a reader of ForexFactory for years! I don't post much if at all on forums. This thread is the best thread I have read.

Anyways, I'm so impressed, I'm incorporating the methodology to my trading. I started Sunday, Aug 22nd. So far I have traded a full week and a half and here are my results. Not nessicarily flattering and a lot of room for improvement. Besides notj too bad considering the mistakes I made. Just proves you can mess up pretty bad and not be too bad off with solid methodology behind you.

The only reason I'm posting...
Welcome to this thread KR. I am not too much of a public forum person myself. This thread has completely changed my perspective on trading. Glad to see someone implement this style of trading in a real account. May I propose you break down your trade statistics by each pair (i.e. if you choose to continue sharing your performance and wisdom in this thread)
Staying in my lane...
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