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Building an equity millipede

  • #2,221
  • Sep 10, 2010 12:11am Sep 10, 2010 12:11am
Quoting kcravey
For those of you struggling with entries I've attached a chart to show how I do most of my entries.

Here is tonite's GBP/USD 5 min chart using the Flying Buddha indicator posted earlier in this thread....
Don't you have to have a FB on H4, D1 or W1 before you start to drill down to M5 for entries?
  • #2,222
  • Sep 10, 2010 12:12am Sep 10, 2010 12:12am
Quoting pip_daddy
If you have a bunch of positions stacked really close I could see it happening but if you space them out like you should be I don't see any problems with slippage and weekend gaps. They could just as easily go in your favor too so if you have a bunch of legs in both directions it's gonna even out that way. And in the overall scheme a sudden move 50 or 100 pips against any one position or group of positions should not be a problem when you may have 10 or 20 legs with thousands of pips profit.
I agree... in the larger scheme of things when one is successful and have multiple pairs with 1000+ pips in profit. At that phase, you really don't care about weekend gaps etc.

BUT...

when you are starting out and trying to build your long term positions

OR

When you try and introduce a second pair in your portfolio

OR

When you have strong correlated pairs in your portfolio, it WILL have a significant dent on your floating profits. % wise, it may not be a big deal as we are focussed on long term position but still it is a momentary loss of serious $$$ that could make a experienced trader reconsider his options.

I am convinced that this strategy will have a smooth realized equity curve due to tight entries but I am struggling to convince myself that the unrealized/floating equity curve will be equally smooth unless I see a side-by- side comparison or run a what-if model on a mock portfolio.
Staying in my lane...
  • #2,223
  • Sep 10, 2010 12:15am Sep 10, 2010 12:15am
Quoting tjfxtrader
Don't you have to have a FB on H4, D1 or W1 before you start to drill down to M5 for entries?
From what I understand, FB on Weekly along with a FB on D1 or H4 or H1 TF is just fine to take an entry on M5 TF.
Staying in my lane...
  • #2,224
  • Sep 10, 2010 12:19am Sep 10, 2010 12:19am
Quoting tjfxtrader
I looked for "Flying Buddha" and found it. Thanks johnsund.

The D1 and W1 flying buddha are supporting my 106 long entry.

http://i52.tinypic.com/339leev.jpg
This is not the Multi-pair FB dashboard at the bottom of the screen that John had :-
Staying in my lane...
  • #2,225
  • Sep 10, 2010 12:22am Sep 10, 2010 12:22am
Quoting pip_daddy
A month is not a very long time for a system like this. As Graeme said, one of the challenges is going weeks and weeks of constantly getting stopped out and watching your capital trickle away with nothing to show for it.....
Yeah and when Graeme said that, it was in my vision that this would only apply if the hindsight was wrong or was generally choppy market. I have picked short EUR/CHF which has not been sideways and there have been decent sized swings lower. I am unable to take my prime trade ideas with a 10-15 pip stop as is recommended. The irony is that widening my stop for prime trade ideas (not stacking entriel) to the structure of the 4H chart rather than the 5M chart would see me sitting like a fat cat on a big mound of pips. But instead I'm down 169 pips for the week....

The market well reward me eventually, but if trading is ones only source of income - "eventually" may be too far away for me to stay solvent. This is an aspect that any full-time trader needs to realize and accept.

I'm well aware that the stock market typically is low volume for the month of August, but I've never seen anything printed to say that about FX. In fact, I doubt such data exists due to the decentralized of interbank.

My best wishes,
MK
  • #2,226
  • Sep 10, 2010 12:24am Sep 10, 2010 12:24am
Quoting geoffrod
Hey Vee,
be very very careful about brining that name back up in this thread, i would hate to see those who hold the power here get all upset with it and bin this great thread.

cheers
Geoff
Thanks Geoff... I just edited my post... you might want to edit your post to remove the details from my post
Staying in my lane...
  • #2,227
  • Sep 10, 2010 12:26am Sep 10, 2010 12:26am
Quoting tjfxtrader
What made you consider another system or method?
Volatility decline. Scalping was super easy for about 1.5 years during the whole subprime thing. I was doing this mainly on the Nikkei 225 and Hang Seng futures. Once volatility started to significantly contract, it was becoming clear that I needed a change / adapt my trading to something with a somewhat longer term focus.

With kind regards,
MK
  • #2,228
  • Sep 10, 2010 12:33am Sep 10, 2010 12:33am
Quoting VEEFX
This is not the Multi-pair FB dashboard at the bottom of the screen that John had :-
It is the single pair version appearing on the top right.
  • #2,229
  • Sep 10, 2010 12:33am Sep 10, 2010 12:33am
Quoting MidKnight
Volatility decline. Scalping was super easy for about 1.5 years during the whole subprime thing. I was doing this mainly on the Nikkei 225 and Hang Seng futures. Once volatility started to significantly contract, it was becoming clear that I needed a change / adapt my trading to something with a somewhat longer term focus.

With kind regards,
MK
Thanks for explaining, MK.
  • #2,230
  • Edited 12:44am Sep 10, 2010 12:37am | Edited 12:44am
Quoting VEEFX
EDIT: Took advice and removed the link and contents of this post. Just google "Flying Buddha indicator"
Just try posts;
1081 for indi care of paul 73 uk
1131 for the indi (now v2) care of SwingMan
1132 for the ea care of paul 73 uk
1159 for the dashboard v1 care of SwingMan
1193 for the dashboard v2 care of SwingMan

cheers scalpz
Target 2 : Stoploss in the green
  • #2,231
  • Sep 10, 2010 12:48am Sep 10, 2010 12:48am
Quoting tjfxtrader
The EURJPY came close to its yearly low but didn't break it. A 23% fibonacci retrace would occur at 112.36 and a 38% retrace at 116.47. My entry at 106 would have some huge legs at either of those levels. From this point on it is just a matter of time.

http://i56.tinypic.com/108bb55.gif
I feel it may break with the current price not getting up or even to 107.00 before coming back down. fingers crossed.
making green pips large and red pips small this is my goal.
  • #2,232
  • Sep 10, 2010 12:52am Sep 10, 2010 12:52am
Quoting scalpz
Just try posts;
1081 for indi care of paul 73 uk
1131 for the indi (now v2) care of SwingMan
1132 for the ea care of paul 73 uk
1159 for the dashboard v1 care of SwingMan
1193 for the dashboard v2 care of SwingMan

cheers scalpz
How do you go to a specific post number? I see how to go to a page number.
  • #2,233
  • Sep 10, 2010 1:03am Sep 10, 2010 1:03am
something happening soon?
Attached Image (click to enlarge)
Click to Enlarge Name: $EURJPY (60 Min) _ $GBPJPY (60 Min) 10_09_2010.jpg Size: 167 KB
making green pips large and red pips small this is my goal.
  • #2,234
  • Edited 1:27am Sep 10, 2010 1:14am | Edited 1:27am
Quoting tjfxtrader
How do you go to a specific post number? I see how to go to a page number.
Mmmm, 15 posts per page, 1131/15 = 75.4 so go to page 76.

Sorry I only had the post numbers saved with the files so I can track where they come from later.

Or put cursor over any post number, rightclick & copy shortcut, paste in your browser top line & edit the last number bit.

cheers scalpz
Target 2 : Stoploss in the green
  • #2,235
  • Sep 10, 2010 1:18am Sep 10, 2010 1:18am
Here ia another pair to watch. If today ends as an FB this would be a pair to watch next week. Been in a nice up channel for awhile and it's coming up on a strong resistance level.
Attached Image (click to enlarge)
Click to Enlarge Name: audusd daily fb 10.09.10.gif Size: 29 KB
  • #2,236
  • Sep 10, 2010 1:18am Sep 10, 2010 1:18am
Midknight - "The market well reward me eventually, but if trading is ones only source of income - "eventually" may be too far away for me to stay solvent. This is an aspect that any full-time trader needs to realize and accept."

I 100% agree with you Midknight, and this is an issue that seems to be brought up by many people and will casue them issues when struggling to run positions. The inevitable unrealised PL drawdowns will invariably cause them to panic, sell out positions too early and hence create bad habits that are not conducive to this type of trading, which is more suited to building a longer term type pool of money. A friend who has traded for a long time sees this issue as one of its greatest hurdles.

Easy answer for me is if you can do it mentally - split the trading capital and trade both.

(also I am slightly confused at all the crash scenarios for FX.... are you trading USDEUR or EURUSD? and can some one name a major currency that has gapped one way 10-25% like the share market has overnight?)
  • #2,237
  • Sep 10, 2010 1:21am Sep 10, 2010 1:21am
couldn't take all the trades by the book but close enough to get the feel of this strategy.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: SnapShot008 2010-09-09.jpg Size: 261 KB
Click to Enlarge Name: SnapShot009 2010-09-09.jpg Size: 265 KB
Click to Enlarge Name: SnapShot010 2010-09-09.jpg Size: 248 KB
Staying in my lane...
  • #2,238
  • Edited 2:47am Sep 10, 2010 1:35am | Edited 2:47am
Here is a trade I just entered. Nice breakout to the down side. Let's see if it carries into the London session or is it just a head fake???

Short lived breakout...out at BE. Big time head fake.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd 1hr vol bo 10.09.10.gif Size: 41 KB
  • #2,239
  • Sep 10, 2010 1:35am Sep 10, 2010 1:35am
Quoting ozziedave
Here ia another pair to watch. If today ends as an FB this would be a pair to watch next week. Been in a nice up channel for awhile and it's coming up on a strong resistance level.
Yes ! the same on NZD/USD
  • #2,240
  • Sep 10, 2010 1:40am Sep 10, 2010 1:40am
Quoting tjfxtrader
Don't you have to have a FB on H4, D1 or W1 before you start to drill down to M5 for entries?
nah, he says to find your "main thing" that works, FB is just one of the ways that he trades and the only way "Joe"/Marion trades. The FB is only 40-60% successful. I've found the mva's (for me) are about 98% accurate.

Graeme also uses 000 entries, penant breakouts, opening of daily candle, etc... Whatever works for you to get in - use that and practice HOLDING for 24 pips at first, then longer as you see the potential in holding for days/weeks/months.

My hindsight for the week on GBP/USD is down - so I was showing you my "main thing" for down entries for the night on the 5 minute chart, hoping it might help those that are having problems with serious draw downs.
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