Building an equity millipede | Page 212 | 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

  • #4,221
  • Feb 10, 2011 3:03am Feb 10, 2011 3:03am
Quoting VEEFX
Thanks nomask. I will summarize my experience once my stacking episode comes to closure. I found selecting monthly 'area' or battle zone (even if it is a 100+pip range) helped me with my M5 entries. Surprisingly about 80+% of my entries were moving into 2+pip profit with a minute or two and before close of M5 candle. Not sure if it's because of strong Monthly resistance or was it because I was not setting SL in my entries. I think it might be lack of SL levels. Further trade statistics is required to come to any concrete conclusion imo.
It did work out very well for you! Congrat!
Kind Regards zol
  • #4,222
  • Feb 10, 2011 3:10am Feb 10, 2011 3:10am
Quoting VEEFX
Thanks nomask. I will summarize my experience once my stacking episode comes to closure. I found selecting monthly 'area' or battle zone (even if it is a 100+pip range) helped me with my M5 entries. Surprisingly about 80+% of my entries were moving into 2+pip profit with a minute or two and before close of M5 candle. Not sure if it's because of strong Monthly resistance or was it because I was not setting SL in my entries. I think it might be lack of SL levels. Further trade statistics is required to come to any concrete conclusion imo.
just thought of this... it could be that my focal interpretation is geared towards bounce off/touchdowns as it was one of my successful setups in my pre-Graeme trading life.... just like Marion goes only short, I think I am biased more towards bounce offs in short direction

Final Update as I head to bed: Scorecard is balanced with all SL moved to BE, all realized loss recovered, minor profit added to account equity. This leg is a free ride from this point onwards. Time will tell if this becomes my first millipede towards infinite yield !
Attached Image (click to enlarge)
Click to Enlarge Name: Snap4.jpg Size: 105 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Snap5.jpg Size: 152 KB


Questions/comments are welcome as this is a collective learning effort.
Staying in my lane...
  • #4,223
  • Edited 3:37am Feb 10, 2011 3:23am | Edited 3:37am
Quoting VEEFX
just thought of this... it could be that my focal interpretation is geared towards bounce off/touchdowns as it was one of my successful setups in my pre-Graeme trading life.... just like Marion goes only short, I think I am biased more towards bounce offs in short direction

Final Update as I head to bed: Scorecard is balanced with all SL moved to BE, all realized loss recovered, minor profit added to account equity....
OMG... I just did an statement export into excel to count my golden pips. As of this moment, I have 876 pips in floating profit just from this stacking episode that began since monday! Not boasting but I had no idea until now as I did focussed purely on price action and did not care about the number of positions or my floating profits. Perhaps a good thing to do to keep your emotions under control :-

p.s. I just added 2 more position while typing this post. Sheer power of stacking !!!!!!!

EDIT: damn it... I should not have counted my floating pips. Now I am tempted to close half my positions
EDIT2: I see a stall at Daily Open on H1. Per Graeme, I think it should be ok to close some more recent positions and build account balance. I have decided not to close any more trades for tonight and wait for NY open.
Attached Image (click to enlarge)
Click to Enlarge Name: Snap6.jpg Size: 120 KB
Staying in my lane...
  • #4,224
  • Feb 10, 2011 3:34am Feb 10, 2011 3:34am
Quoting VEEFX


OMG... I just did an statement export into excel to count my golden pips....
[/b]
welcome to the biggest hurdle..
  • #4,225
  • Feb 10, 2011 4:12am Feb 10, 2011 4:12am
Quoting VEEFX


OMG... I just did an statement export into excel to count my golden pips....

Hello VEEFX,

Nice trade..congrats. You done well.

Nomask,

Thanks for your charts and explanations..enjoyed it too.
-happyTrading, maaj-
  • #4,226
  • Feb 10, 2011 9:00am Feb 10, 2011 9:00am
Quoting maaj
Hello VEEFX,

Nice trade..congrats. You done well.

Nomask,

Thanks for your charts and explanations..enjoyed it too.
Thanks and good morning everyone. Just woke up with a pleasant surprise to see my unrealized profits explode to 1372 pips from 876 pips in just a matter of few hours. true power of stacking !

Remaining 3 stops moved to BE and stacking resumes with first entry @ 1.3598
Attached Image (click to enlarge)
Click to Enlarge Name: Snap11.jpg Size: 150 KB


PS If any single reader has a problem with my commentary, please pm me and I will stop my posts. This still remains a learning exercise to explore the powers of this trading philosophy and minimize it's weakness and challenges.
Staying in my lane...
  • #4,227
  • Edited 9:41am Feb 10, 2011 9:22am | Edited 9:41am
Quoting VEEFX
Thanks and good morning everyone....
It just dawned on me.... depending on price action, I am looking for opportunities to go long soon in order to 'protect' my large unrealized loss instead of a second mini-diversification. thoughts?

EDIT: I found a place to look for long opportunities. Price is approaching weekly open level @ 1.3575. Anticipating price to go in range mode but keeping an eye also on new release as it might break out the current mini stall.
Staying in my lane...
  • #4,228
  • Feb 10, 2011 9:46am Feb 10, 2011 9:46am
Current price interpretation:
Attached Image (click to enlarge)
Click to Enlarge Name: Snap13.jpg Size: 80 KB
Staying in my lane...
  • #4,229
  • Feb 10, 2011 10:44am Feb 10, 2011 10:44am
Martingale Strategy??
Attached Image (click to enlarge)
Click to Enlarge Name: Snap14.jpg Size: 52 KB
Staying in my lane...
  • #4,230
  • Feb 10, 2011 11:09am Feb 10, 2011 11:09am
Hi all,

This is my very first diversification and trading in both directions. Wondering if anyone on this thread has arrived at this stage following Graeme's method. Just took my first long probe and mentally, my head is starting to hurt a little in regards to which direction to focus on. Trying hard to blindly follow price interpretation and not focus on direction but it is hard! I guess I am getting ahead of myself and need to slow down a little. I am trying hard not to publish/focus on my unrealized pip count as that is helping me keep my emotions in check.

Attached Image (click to enlarge)
Click to Enlarge Name: Snap17.jpg Size: 139 KB
Staying in my lane...
  • #4,231
  • Feb 10, 2011 12:31pm Feb 10, 2011 12:31pm
Quoting nomask
continuing of my last post....
thats what i posted while ago
http://www.screencast.com/users/noma...c-19d0e22cf5cf
so does this make me super duper analyser?
(I wish it did) but no i was just lucky with my hindsight and price did not have to follow my expectation..eventhough its currently playing as per my hindsight no guarantee it won't go against me after this point...
about Vee's shorts yesterday...Although they turned out profitable by now but this is how things were in my eyes at the...
Thanks nomask for your continued analysis. I value your analysis very much and agree that I jumped in too early with my entries based on the strong conviction I had with my hindsight. You might notice my first few probes were half in size just to test the waters but I should not be doing that. Keeping fixed position size has a huge benefit for long term success per Graeme.

Got a question regarding aggressive stacking that Graeme has repeatedly mentioned in his posts (i.e. when price moves to our intended direction). I got a strong opinion from Graeme that professionals squeeze every pip out of a volatile breakout to recover their losses by past probes and add to their capital (just like Joe does although I think stacking on M5 is a bit over the top for me). That's probably the only way to stay ahead in the game and keep drawdowns to a minimum imo. May I ask, if you do not stack, how do you keep track of your realized losses from failed entries? Just curious if you enter with the "predefined" r:r as I don't see any other way to manage positions in the long term.
Staying in my lane...
  • #4,232
  • Feb 10, 2011 12:57pm Feb 10, 2011 12:57pm
Hello Vee

Yes I trade both directions often, but not on the 5 min, infact I hardly trade the 5 min, I guess each to their own, even on higher TF's it can be difficult on which direction to focus, my question to you is what is your hindsight?

to Quote Graeme "I cannot predict any 'intraday' movements especially the next 50-70 pips of movement. Certainly not from indicators and not in my focal/thinking
capacity. Also I consider myself a bigger person (in a non-egotistical way) than to be sitting in my leatherbound chair and pondering where my
next 50 pip opportunity is. My intentions are different and it is important why.
As long as I enter the market and participate, I could be either buying or selling on the same currency pair. I let the market decide my actions.
My job is to enter at minimal risk and let the market show me its intentions. Entering the market is something everyone needs to practice on. It is
a quest that you must complete."
My chart on EUR/AUD my primary Focus is short but I have had probes long and banked profit.
Currently 1.3870 confirms change of trend and my focus so until then I will trade and look for entries both directions.
Good luck in your trading.
Attached Image (click to enlarge)
Click to Enlarge Name: euraud.gif Size: 19 KB
  • #4,233
  • Feb 10, 2011 1:16pm Feb 10, 2011 1:16pm
Quoting RED-Dragon
Hello Vee

Yes I trade both directions often, but not on the 5 min, infact I hardly trade the 5 min, I guess each to their own, even on higher TF's it can be difficult on which direction to focus, my question to you is what is your hindsight?

to Quote Graeme "I cannot predict any 'intraday' movements especially the next 50-70 pips of movement. Certainly not from indicators and not in my focal/thinking
capacity. Also I consider myself a bigger person (in a non-egotistical way) than to be sitting in my leatherbound chair and pondering where...
Good point RedDragon. I agree, it does not make sense to trade both directions on M5 TF. My thought process (atleast I strive for!) is to find a 'area' on higher TF that aligns with my hindsight. Once that area is reached, start stacking on M5, build positions, diversify some, balance the scorecard and move on.

Now moving on also means looking for retracements (to protect the unrealized profits that have worked so far). Process stays the same imo.... find an 'area' on higher TF to go against your hindsight as step1. Next, once that area is touched, start counter-hindsight stacking episode to catch minor retrace or overall trend continuation. Unless we 'continuously' participate and see which legs are staying alive and which are dying off the ladder, we would never know.

For now, I got rid of my long entries I took on M5 and continue my focal interpretation by staying Short. Downside being, I let my few recent trades go to negative 30-50 pips instead of closing out. I have the luxury for letting few trades go into bigger negative territory as I have build a large unrealized pool of pips working for me. So there is definitely a emotional advantage to keep building up (and protecting) our unrealized pip pool. I hope I am able to articulate my thoughts across :-(

P.S. There is absolutely no better feeling to see EXPLOSIVE growth with legs in unrealized profit. Knowing that it is a risk-free ride from here on is quite a relaxed feeling to strive for.
Staying in my lane...
  • #4,234
  • Feb 10, 2011 1:34pm Feb 10, 2011 1:34pm
Veefx,

I didn't pay much attention to trading in both directions cause I'm in the States and don't have enough to form to fully funded separate accounts yet. I do remember him saying to let them sit for a little and see what happens. One of the big things I've gotten from this is how to determine when to long and short.


"Look for buys when price closes above open of the previous down candle

Look for sells when price closes below open of the previous up candle"

I copied that to my trading plan from somewhere in this thread and use this to determine if I'm going to start to look for long or short for stacking purposes.

Just another thought, like I said, I'm far from a guru, but it's what is working for me
A woman drove me to drink, and I forgot to thank her
  • #4,235
  • Edited 6:33pm Feb 10, 2011 3:41pm | Edited 6:33pm
Quoting simpleguy
Veefx,

I didn't pay much attention to trading in both directions cause I'm in the States and don't have enough to form to fully funded separate accounts yet. I do remember him saying to let them sit for a little and see what happens. One of the big things I've gotten from this is how to determine when to long and short.


"Look for buys when price closes above open of the previous down candle

Look for sells when price closes below open of the previous up candle"

I copied that to my trading plan from somewhere in this thread and use...
Indeed simpleguy. Just following this simple rule kept me out of trouble in closing more recent trade upon mini reversals. But I also feel compelled to add a word of caution here. It is a generalized rule and not to be used as a 'predefined' rule. I find it extremely powerful when used in conjunction with S/R, slope of wick interpretation, double/triple wick bounce, angle/spaced emas etc.
Staying in my lane...
  • #4,236
  • Feb 10, 2011 5:19pm Feb 10, 2011 5:19pm
Quoting VEEFX
Indeed... just following this simple rule kept me out of trouble in closing more recent trade upon mini reversals. but I also feel compelled to add a word of caution here.... it is a pretty good generalized rule and not to be used as a predefined rule. I find it extremely powerful when used in conjunction with S/R, slope of wick interpretation, double/triple wick bounce, angle/spaced emas etc.
Hey Vee, out of interest when you diversify and replenish your account, do you cover just your losses for establishing this particular pair (EU in this case) or just loss more generally (all pairs)?

Cheers
SJB
  • #4,237
  • Feb 10, 2011 6:13pm Feb 10, 2011 6:13pm
Quoting Sjb944
Hey Vee, out of interest when you diversify and replenish your account, do you cover just your losses for establishing this particular pair (EU in this case) or just loss more generally (all pairs)?

Cheers
SJB
As per the diversification rules, only realized loss incurred to build this particular leg should be covered.

This prompted me to reevaluate my stats since Sunday open and I still have -209 pips in realized loss to recover from this 'millipede'. So technically, it's not completely a risk-free ride for me until I close some open positions to recover this realized loss.

Attached xls should bring clarity on how I track open and closed trades.

Unrealized Open Trade Log:
Total Trades: 30
in Loss:-56.6 Pips
in profit: 1,226.0 Pips
Net Floating pips:1,169.4 Pips
Average Loss/Trade: -1.9 Pips
Average Win/Trade:40.9 Pips

Realized Closed Trade Log:
Total Trades: 26
in Loss:-261.6 Pips
in profit: 52.4 Pips
Net Realized pips:-209 Pips (for balanced leg/scorecard, this should be as close to ZERO as possible!)
Average Loss/Trade: -10 Pips
Average Win/Trade: 2 Pips

Hope this helps.

Attached File(s)
File Type: xls EURUSD-Statement.xls   46 KB | 665 downloads
Staying in my lane...
  • #4,238
  • Feb 10, 2011 8:22pm Feb 10, 2011 8:22pm
Quoting VEEFX
As per the diversification rules, only realized loss incurred to build this particular leg should be covered.

This prompted me to reevaluate my stats since Sunday open and I still have -209 pips in realized loss to recover from this 'millipede'....
Thanks mate, that is helpful.

I guess when it comes to diversification, it's all about tolerance levels again. Arguably though given we've got this leg going on the basis of the weekly TF, then diversification should also be done on this time frame? Although I can see the real benefit, emotionally and practically, of closing enough legs to cover realized losses and riding a free trade.

Yet to find my tolerance level, everything in its time.
Cheers
SJB


Cheers
SJB
  • #4,239
  • Feb 10, 2011 10:27pm Feb 10, 2011 10:27pm
Looks like we are soon going to have another volatility breakout downward. Daily support is being tested for some time now with no clear bounce off 1.3579.

Attached Image (click to enlarge)
Click to Enlarge Name: Snap24.jpg Size: 65 KB


EDIT: Forgot to mention... this daily support is also last week's close. For those who missed the downtrend, it might be a good time to start probing with low risk entries on weekly TF as last two weeks could be turning into a decent Flying Buddah. My stacking will resume aggressively if this level is broken.
Staying in my lane...
  • #4,240
  • Feb 11, 2011 12:15pm Feb 11, 2011 12:15pm
Quoting VEEFX
Looks like we are soon going to have another volatility breakout downward. Daily support is being tested for some time now with no clear bounce off 1.3579.

Attachment

EDIT: Forgot to mention... this daily support is also last week's close. For those who missed the downtrend, it might be a good time to start probing with low risk entries on weekly TF as last two weeks could be turning into a decent Flying Buddah. My stacking will resume aggressively if this level is broken.

Good call Vee, nice little run down. Hope you got a few in.
5 traders viewing now