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Zero Net Loss Trading Strategies

  • #21
  • May 22, 2011 12:23am May 22, 2011 12:23am
Quoting oluwadare
If you buy 1lot, you sell 2lots where you ought to place your stop loss. Please praticalise the theory on demo for 1 to 2weeks. Your eyes will OPEN WIDE WHEN YOU DISCOVER THAT YOU CAN TURN LOSS TRADES TO PROFITABLE ONES WITHOUT HASSLES.THE MARKET IS 100% PREDICTABLE.



Money is made by sitting, not trading. Jesse L. Livermore
  • #22
  • May 22, 2011 12:36am May 22, 2011 12:36am
Quoting Andy B
I
I trade with a version of grid trading, and I find it very profitable. But it's not the holy grail. Just because you sell 2 lots when the first lot has hit the stop loss doesn't guarantee that the 2 lots will win. It means that sometimes you will have a 1 lot win, and sometimes a 3 lot loss.
True enough. Another consideration: this will work differently depending on whether or not your broker allows being long and short on the same pair at the same time.

If hedging is allowed and you are long one lot and your sell stop is hit, you will now be long 2 lots and short one.

If hedging is not allowed (US-broker) and you are long 1 lot and your 2 lot sell stop is hit, your long will be cancelled and you will now be short 1 lot and long none. In effect, simple stop and reverse.

Either case would have you net short 1 lot, but the "hedging allowed" scenario gives more flexibility as you can close either long or short whenever is beneficial.

In the case of brokers who allow hedging:
Broker A will use your margin for both long and short positions. If you are long one and short two, you'll be charged margin on three lots.

Broker B will only charge margin against net open positions. For example, long one and short two = short one net open position. Broker B would be the obvious choice for this strategy.

I hope this doesn't sidetrack the thread with the whole hedging/nedging discussion, as there are other threads devoted to that, but it has to be considered when using this strategy.
  • #23
  • May 22, 2011 1:14am May 22, 2011 1:14am
Quoting nbafx
andy can you direct the link on the grid trading. i am new and do not know what is grid trading?
This is a reasonable place to start:

http://www.forexfactory.com/showthread.php?t=99592
  • #24
  • May 22, 2011 5:38am May 22, 2011 5:38am
From RR's mouth
http://www.forexfactory.com/showthre...18#post2155918

On Chicky's point:
1) its double losing every trade until u turn to BE. Our funds is finite. Markets can remain irrational longer than u can remain solvent.

2) Even if it works for the 1st few trades, the lot size would be so small, that the % garnered is not worth it compared to a trend n' swing hybrid system / methodology.

3) Better to take a pre-determined Stop Loss & re-join the trend... if u can detect one.

4) A system / methodology that has wider stop loss (Grade 2-3 edge) can still win in the arena of a mini / big trend.
% risk is already set (or did u?)
Stop loss then must be defined; then only lot size can be calculated automatically.

5) This, every trader on a real acc (not wannabe demo acc) will XPerience firsthand. Expanding triangle patterns can be deceiving.

Thread title is entertaining but not 100% applicable unless one can argue the Ratio of Trend / Swing / Rangebound = 20 : 45 : 35
CCI decipherer
  • #25
  • May 22, 2011 3:22pm May 22, 2011 3:22pm
Thank you guys for ur wonderful contributions. I will soon be back. I can guarantee u that the system is profitable if well understood.

"When the inner eyes are opened, the unseen will be seen and understood"
  • #26
  • May 22, 2011 3:44pm May 22, 2011 3:44pm
Quoting oluwadare
Thank you guys for ur wonderful contributions. I will soon be back. I can guarantee u that the system is profitable if well understood.

"When the inner eyes are opened, the unseen will be seen and understood"
This is a form of martingale. In order to survive you have to start very small (much smaller than 1%). In my opinion it is not worth the time spent to trade with such small lots while still subjecting yourself to risk of ruin. Time = opportunity cost. This may make you small profits slowly, but eventually you will meet the Grim Reaper. Trust me, it sucks to have one months worth of profit disappear in one day.
  • #27
  • May 22, 2011 7:42pm May 22, 2011 7:42pm
What happens in this scenario:
I opened 1 long, market went against me 100 pips, then I opened 2 short. Now the market moved back up to where I bought the very first one.

I am down with 200 pips....
  • #28
  • May 23, 2011 2:28am May 23, 2011 2:28am
This only works when you have much, much money just made a similar EA last week which places a buy and sell order after each other, and every time price is up 10 pips higher, it buys, and ofcourse same applies to sell, every 10 pips more down, it sells.
every time when profit + order swap of all orders is >5 (or what you want) then all orders were closed.
in a back-test (1m) on 2010, there's times that there maybe like 200 order all open!
Also you should take profit every few month's or so, until you reach at least twice your deposited amount, since you cannot suddenly stop.
  • #29
  • May 23, 2011 7:06am May 23, 2011 7:06am
Quoting ido370
This only works when you have much, much money just made a similar EA last week which places a buy and sell order after each other, and every time price is up 10 pips higher, it buys, and ofcourse same applies to sell, every 10 pips more down, it sells.
every time when profit + order swap of all orders is >5 (or what you want) then all orders were closed.
in a back-test (1m) on 2010, there's times that there maybe like 200 order all open!
Also you should take profit every few month's or so, until you reach at least twice your deposited amount,...
Thanks! Quite interesting concept. But it seems like I need unlimited amount of money in my account....
If I have so much money, may be I will just keep averaging down UJ buying at every regular intervals
  • #30
  • May 23, 2011 5:59pm May 23, 2011 5:59pm
Quoting oluwadare
Good-day All,
I want everyone to contribute to this tread and come up with more strategies, because I discovered that some of the theories we were taught in forex are close to not true in real market situation.
PLEASE NOTE THAT WISE MEN DON'T LOSS MONEY IN FOREX


Zero Net Loss Trading Strategy
Based on the Following Assumptions:

1.The market is actually 80% trending and 20% ranging on long and short term.(Oluwadare)
2.Every trade on a timeframe must be supported by the lower and higher timeframe...

i applaude your effort my friend, but this is nothing new.

we all know this - the experienced ones anyway.

been there, done that.

you appear to be a newbie. you will learn the hard way that hedging never works. it might have a psychological advantage, but thats it.

also, the stuff you have quoted above will change as you gain experience.

good luck...
  • #31
  • May 23, 2011 11:10pm May 23, 2011 11:10pm
Quoting PipMaxzz
You said it right....
New biz after 5yrs experience! Lets have more contributors to develop the system better. I don't stress myself trading any longer.The system makes use of grid,diverse hedging with risk management,Timeframe,Leveraging on trend,range,support and resistance.
Don't forget that the only thing that keeps you in the market is sound risk management. I will show you different versions on how to make money without stress, trading and leveraging on the market(not boasting!).Trading will become a game, a winwin game with little mathematic, you will only be interested in profit and not losses because you will literally learn how to walk out of losses.

See you mid June when I am back!


Thank you!
  • #32
  • May 24, 2011 12:54pm May 24, 2011 12:54pm
Oluwadare,

As it seems that you are new to Forex trading, please demo trade your method before going live with it.

I applaud your efforts, yet your method is not sound. Anything even approaching a martingale will eventually fail because you are manipulating a bad method using bad money management. It simply never works.

You will discover this if you keep trading this way.

None of us here are against you, we are only wishing that you would gain some experience trading before posting methods that are not fundamentally sound.

In other words, gain some experience before posting.

Quoting oluwadare
New biz after 5yrs experience! Lets have more contributors to develop the system better. I don't stress myself trading any longer.The system makes use of grid,diverse hedging with risk management,Timeframe,Leveraging on trend,range,support and resistance.
Don't forget that the only thing that keeps you in the market is sound risk management. I will show you different versions on how to make money without stress, trading and leveraging on the market(not boasting!).Trading will become a game, a winwin game with little mathematic, you will only be...
  • #33
  • May 24, 2011 2:25pm May 24, 2011 2:25pm
Quoting Dreamliner
Oluwadare,

As it seems that you are new to Forex trading, please demo trade your method before going live with it.

I applaud your efforts, yet your method is not sound. Anything even approaching a martingale will eventually fail because you are manipulating a bad method using bad money management. It simply never works.

You will discover this if you keep trading this way.

None of us here are against you, we are only wishing that you would gain some experience trading before posting methods that are not fundamentally sound.

In other...

Prof. Dreamliner, don't worry when the time comes I will lecture you.I am busy for now. If I had not traded it successfully, I won't post it and I am still trading it.
I no longer think the way 98% of traders think, I leverage on the market. I don't beg the market before I make money but the market always beg me to take profit.

"Think outside the box". "Gold and Diamonds are from beneath". "Simplified thinking works"

Thanks
  • #34
  • May 24, 2011 2:29pm May 24, 2011 2:29pm
Quoting oluwadare
Prof. Dreamliner, don't worry when the time comes I will lecture you.I am busy for now. If I had not traded it successfully, I won't post it and I am still trading it.
I no longer think the way 98% of traders think, I leverage on the market. I don't beg the market before I make money but the market always beg me to take profit.

"Think outside the box". "Gold and Diamonds are from beneath". "Simplified thinking works"

Thanks
I applaud you not thinking the way 98% of traders think, and I am very happy to have you lecture me, if the lecture is sound and the method is tried and tested.
  • #35
  • May 27, 2011 9:46am May 27, 2011 9:46am
Quoting oluwadare
Good-day All,
I want everyone to contribute to this tread and come up with more strategies, because I discovered that some of the theories we were taught in forex are close to not true in real market situation.
PLEASE NOTE THAT WISE MEN DON'T LOSS MONEY IN FOREX


Zero Net Loss Trading Strategy
Based on the Following Assumptions:

1.The market is actually 80% trending and 20% ranging on long and short term.(Oluwadare)
2.Every trade on a timeframe must be supported by the lower and higher timeframe...


The similies depict your progression once you start using this system.
WT...No charts, no examples, no demo account to view...and you'll be back! Dude, are you the terminator???.
Less is more...
  • #36
  • May 27, 2011 10:36am May 27, 2011 10:36am
Why no more posting on this?
  • #37
  • May 27, 2011 10:40am May 27, 2011 10:40am
Quoting Dreamliner
Why no more posting on this?
Really i think only desperate people would fall for that guy's 'sales pitch'. I know a crook when I see one.
Less is more...
  • #38
  • May 27, 2011 10:44am May 27, 2011 10:44am
I guess I just don't see the benefit of opening a thread on here if you're a crook.

Quoting ajantala
Really i think only desperate people would fall for that guy's 'sales pitch'. I know a crook when I see one.
  • #39
  • May 27, 2011 10:44am May 27, 2011 10:44am
Quoting ajantala
Really i think only desperate people would fall for that guy's 'sales pitch'. I know a crook when I see one.
Give him some time guys! It might work with a very small contract size for sometime. Let's be open to learning from success or failure
  • #40
  • May 27, 2011 10:49am May 27, 2011 10:49am
Quoting PipMaxzz
Give him some time guys! It might work with a very small contract size for sometime. Let's be open to learning from success or failure
I'm happy to give him time, it is just that it appears he has run away. If he was going on vacation he should not have started this thread. Doesn't show good thinking ability to start a thread knowing you won't be able to post anything meaningful to it until back from vacation.
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