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Building an equity millipede

  • #4,561
  • Jun 19, 2011 1:17am Jun 19, 2011 1:17am
Quoting MidKnight
Hi Hans,

All you say above sounds great when reading the thread. Clearly it is not that simple though otherwise there would not be so few people having great success with the method.

I've been attempting this approach since this threads inception and some problems I have encountered are:
- Prime entries not occurring when I am at the computer screen, either due to the prime entries happening outside of my timezone or simply not at the screens at the right time.
- Over-trading when using the 5min timeframe
- Taking too many small losses from...
Hi Midknight,
I have also experienced all the challenges you list above and agree that it is not all simple to implement Graeme´s method consistently (although I was helped by a very good strong trend in my favorite pair when I started using the method which has kept me using it).
The key advice from Graeme which i have followed which has worked for me in results and confidence is practicing for months every day the demo 5 min. 20/20 entries whilst still trading on higher timeframes on my live account -- I think this long-term practice is difficult for people who are trying to make a living from trading as they hate to "miss an opportunity".. could I ask if you have done this entry practice for a few months?
  • #4,562
  • Jun 19, 2011 4:03am Jun 19, 2011 4:03am
  •  hansnl
  • | Joined May 2007 | Status: don't get shot trade small lots | 83 Posts
Quoting MidKnight
Hi Hans,


In summary, I have had success applying the core principles of participating regularly, add to your winners, and trading with the main trend. But I have not had any success implementing the details of these principles; such as entry approaches, BE trade management, or adding to winner approaches.

With kind regards,
MK
Hi MK and GS,
thanks for your response, of cause I simplify the approach, but that's the way I like to look at a plan/project/problem just bring it back to the bare bone structure.
Also my knowledge of proper English is very basic what is a kind of barrier to explain myself clearly.

I didn't do the 3x20 exercise training yet, I just recovering from 2 years of intra day trading on the 5 and 1 min chart's.
I followed Jacko for a year , that learns you to be patience 'let market come to you'
I studied Andrew's Pitchfork ( that's why I'm still using diagonal S&R lines )
And that all I use atm,S&R lines and S&R lines.

when I spot a nice setup coming up I put an acoustic alarm on, or when I'm out I just pickup the trade with a 50 or 100 SL.
The acoustic alarm is a ocean-steamer horn linked to my stereo no way you sleep trough that!

But time will tell of this method will bring me consistently profit.

I will keep you informed on my progress.

kind regards to all the die-hards still reading this tread.

Hans..
  • #4,563
  • Edited 6:18am Jun 19, 2011 5:59am | Edited 6:18am
Quoting gssintokyo
Hi Midknight,
...
The key advice from Graeme which i have followed which has worked for me in results and confidence is practicing for months every day the demo 5 min. 20/20 entries whilst still trading on higher timeframes on my live account -- I think this long-term practice is difficult for people who are trying to make a living from trading as they hate to "miss an opportunity".. could I ask if you have done this entry practice for a few months?
Hello gssintokyo,

No I have not done that specific exercise, but before coming to FX about a year and a half ago, I was successfully scalping both the Hang Seng and Nikkei 225 Futures for near 2 years with an entry chart of 1min or 20 second chart during high volatility like we had back in 2008. I only bring this up because while it is not the same, I have thousands of hours of screen time on small timeframes as I have been full-time trading since OCT 2004. I find small timeframes very hard in Forex because I had gotten used to using market internals and reading bid/ask trade order flow to time my entries. All that is not available with Forex. Yes the futures could be used for some instruments, but I feel the volume is not evenly distributed throughout the day to use much other than just the Euro futures for an approach similar to what I was doing before. Just in case you were wondering why I am not still trading Asian stock index futures, it is simply because how I was sclaping them was easiest in high volatility. Once the volatility collapsed I struggled greatly and started a search for an approach that was less dependent on moderate to high intraday volatility. I wanted something more suited to a swing trade or higher approach.

All my best,
MK
  • #4,564
  • Jun 19, 2011 10:28am Jun 19, 2011 10:28am
Hi MK,
firstly you have a lot more trading experience than me and I have no experience of the Hang Seng or Nikkei 225 so I cannot comment on that.
secondly I can only say what has worked (or not)for me -- when I first started the 20/20 exercise I was only getting about 30% of my trades to the 20 pip TP , after several months I am now at around 50% and when I get to 2-3 months back-to-back above 60% I will stop the exercise as it does take up several hours a day 4-5 days a week(though I find it fun and interesting too). Clearly this is a long way from Graeme`s 80% hit rate but we can`t all be as good as Pipeasy, can we?

I feel that all the hours I have spent on these 5 min. exercises , watching the screen and taking a lot of notes has helped me with timing when trading real money and helped me to avoid a few mistakes I was unconsciously repeating over and over again.

To stop over-trading when under-skilled, I limit myself to 2 live 5 minute time-frame trades a day -although I take other live trades based on the higher timeframes - but when I feel sufficiently upskilled would like to try a few more than that.

Quoting MidKnight
Hello gssintokyo,

No I have not done that specific exercise, but before coming to FX about a year and a half ago, I was successfully scalping both the Hang Seng and Nikkei 225 Futures for near 2 years with an entry chart of 1min or 20 second chart during high volatility like we had back in 2008. I only bring this up because while it is not the same, I have thousands of hours of screen time on small timeframes as I have been full-time trading since OCT 2004. I find small timeframes very hard in Forex because I had gotten used to using market internals...
  • #4,565
  • Edited 7:02pm Jun 19, 2011 6:21pm | Edited 7:02pm
Thanks Graeme, keep on PippingEasy.


..............................................................................Bearish Bat
..../\/\........................................................./\/\
../.......\..............................&.............../........\
/.....Bullish Bat......................................../




Harmonics & Fractals Still all appicable as ever, Choose your entries, just use Binoculars for a change, not the magnifying Glass. Hence the Shift From Fx Trader to Fx Investor.

Thanks to you too Olu, might not have been here this early save for your post. Sharing is always best.

Bless!
  • #4,566
  • Jun 21, 2011 3:54am Jun 21, 2011 3:54am
Quoting cameron1st
Indeed, as a perhaps interesting statistic, Graeme posted over 500 images explaining things (524 to be accurate) since the start of the thread.

Can you imagine yourself saving a screenshot, opening it with an editor, thinking what the best way to explain things to the reader would be, drawing lines, circling accurately areas of interest, adding comments and then uploading to imageshack and then linking in the forum ? ....524 times ?

Kindest Regards,

Cam
Hello Cam,

I was re-reading this thread and I came-a-cross above post by you. It is simply unimaginable, up to 6th Nov 2010 Graeme posted over 500 charts. How many after that? how much time he spent with charts and posts?.

He does all this for free.


I don't have words to thank him. God bless you Graeme. Hope you have recovered from your health issue.

Cam, thank you for above stats.
-happyTrading, maaj-
  • #4,567
  • Edited 10:24pm Jun 21, 2011 5:41am | Edited 10:24pm
  • #4,568
  • Jun 21, 2011 8:29am Jun 21, 2011 8:29am
Quoting EmeraldEyes
The only difference is bullish is green and bearish is red.
I did feel yesterday..., was one of the best trading days...

The Lord Jesus has blessed me with the miracle of this thread.

Initially, I was daunted by the share volume ahead, over 305 pages and on the weekend past, only able to go through 50+. A little sad, PM'd Greame seeking to find if there was like a summary in 20 or so points that could make any one apply and Grow their equty millipede (to their trading method).

I was determined to find a way. Not that I am lazy and don't want to read, spent most of the weekend on that.

I realized that Growing the Millipede is like getting the liscence to drive, after long practicing.

IMHO if you have a consistent appreciation of making trade entries {buy or Sell}, on any pair or number of pairs for that matter, then you can grow your millipede BUT the shift is required.

We need to move from short term "% per day" metality to "per Quarter" even "per year" vision. that injects the needed doses of realism....

A great start, is reading the pages up to the first 50 or 60 Posts by Greamme.

Sounds like a lOtt??, read the first forum page (about 8 printed pages) of this thread, then jump/return to post #47. Read and re-read (that post) until that scenario has sunken in. Make your own notes, always thinking of how you can apply your proven method of making entries. By the third read, you should get the escence of the "How", in the growth of your Equity Millipede.

Apply that to the method of trade placement you had before. My suggestion use non-swap accounts that allows you to go down to 0.01 lots with Full Hedging. Enter all trades on that until you make your two first groups. lateron deceide howyou willpulloff yor profits. It is a busines so wemUST pay ourselves. Besides the money is the Brokersuntil you have converted in back to "real assets". One of the lessons Learned from 2008 to Now, Lehman borothers, Nothern Rock,...etc.

The Millipede just needs you to participate (in the market) as Gremme said, make the(your) best attempts of low risk entries, then let the market deceide. In truth, no one knows where the next pip will lie, and profit is always jyst to the right edge of the Screen.

Soo!! help me Lord, to learn to Flip the Script. Letting the market Cut My losses While Running up my profits via the stronger legs of My New found Equity machine/Millipede. Will see you all in a years time.

By the way... Does any one know how to contact Tonkar from post #3912. He might have been onto something with his research on finding the optimal placement of the hard stop whilebuilding the Millipede. Where he stoped seemed to be favouring Wider stops. The logic for the millipede he started is worth continuing IMHO. Pehaps our programmes could chip in.

Perhaps we can sumarise the Mmillipede Ggrowth as a management utility to govern our various trading systems. Seems it might even work on a coin toss. My $0.00, in Jesus' Name.

Bless you with many God zilla groups.

Thank you Greame {AKA pipEasy} it is always best to share, you have demonstarated such.


Bless!!
  • #4,569
  • Jun 21, 2011 8:54am Jun 21, 2011 8:54am
I was pointing out that both 'bats' were the same pattern. Red bat should be inverted.

I demo'd this mindset from Feb-Apr and it's still growing. Currently @ 300% increase.

Pathagatual, how are separating your long pairs & short pairs?

My stop placement has whipsaw'd me out of trades. A bigger stop is needed for a position to mature, or keepin it tighter & use a reentry like PipEasy stated.
  • #4,570
  • Jun 21, 2011 9:07am Jun 21, 2011 9:07am
Quoting EmeraldEyes
I was pointing out that both 'bats' were the same pattern. Red bat should be inverted.

I demo'd this mindset from Feb-Apr and it's still growing. Currently @ 300% increase.

Pathagatual, how are separating your long pairs & short pairs?

My stop placement has whipsaw'd me out of trades. A bigger stop is needed for a position to mature, or keepin it tighter & use a reentry like PipEasy stated.
Hello EmeraldEyes,

thanks, you are so right, I missed the point you made. The correct, Bullish is an elogated "M" while the bearish is an elongated "W".

Thanks. Just imagine applying the Millipede to Animal Harmonics?? IMHO one needs only Focus on the Bat and on the C to D leg of the XABCD.

I'll Correct it as soon as I can. Had to jurry-Rig the character set here was a challenge in the representation.

Bless!
  • #4,571
  • Jun 21, 2011 9:45am Jun 21, 2011 9:45am
Quoting EmeraldEyes
I demo'd this mindset from Feb-Apr and it's still growing. Currently @ 300% increase.

Pathagatual, how are separating your long pairs & short pairs?

My stop placement has whipsaw'd me out of trades. A bigger stop is needed for a position to mature, or keepin it tighter & use a reentry like PipEasy stated.
Hello Again Emeraldeyes
Good to know that you are groeing your equity unappologetically

I have been doing various aspects of this mindset over the last year or so, but not in one coheasive front as this. There was always something "missing" Almost like trading via ABCD Fibs, then Discovering Harmonics. In fact that is a most appropriate anology.

I have come across this thread only last Friday. Immeadiately the gaps in the wall were filled. It is like recognising Diamond among stones.

So I am indeed in transition and making the shifts. So I can stick arround and learn from you and others who have been ractitioners for years+

So I have just started building My Groups. Hope to be done by September, then I can preoceed. I used to trade even on m1 charts with the use of EA's. So now you understand the Paradigm shift required required to go daily to weekly and a year+ horizon.

But, when you have almost been ther a number of times, it is time to act on the le$$ons learned & put it all togather

I will not be able to comment on the Long/Shot hairs now, but how about sharing your experience/Concearns
and see if others more suited can add value.

Bless!
  • #4,572
  • Jun 21, 2011 11:26am Jun 21, 2011 11:26am
Glad to see some excitement from a fellow trader.... I got to say this while I am here just for a few minutes.... pause this emotion and force yourself to be humble and nimble. It is this strong excitement (emotion) that leads to a quick disappointment (felt by many of our initial traders) when we saw 300-500 pips position die at breakeven. Fine tune your mindset NOW before you get too deep into this approach and embark on this journey.

Just my 2 pips as not many of us have the stomach to see their profitable trades die at BE. Part of any strategy, approach or trading philosophy is to tweak your mindset to adjust to what it has to offer before you become too rigid in your thought process.

Vee

EDIT - It's easier said than done :-

Quoting pathumracled
Hello Again Emeraldeyes
Good to know that you are groeing your equity unappologetically

I have been doing various aspects of this mindset over the last year or so, but not in one coheasive front as this. There was always something "missing" Almost like trading via ABCD Fibs, then Discovering Harmonics. In fact that is a most appropriate anology.

I have come across this thread only last Friday. Immeadiately the gaps in the wall were filled. It is like recognising Diamond among stones.

So I am indeed...
Staying in my lane...
  • #4,573
  • Edited 2:13pm Jun 21, 2011 2:03pm | Edited 2:13pm
Quoting VEEFX
Glad to see some excitement from a fellow trader.... I got to say this while I am here just for a few minutes.... pause this emotion and force yourself to be humble and nimble. It is this strong excitement (emotion) that leads to a quick disappointment (felt by many of our initial traders) when we saw 300-500 pips position die at breakeven. Fine tune your mindset NOW before you get too deep into this approach and embark on this journey.

Just my 2 pips as not many of us have the stomach to see their profitable trades die at BE. Part of any strategy,...
Thanks for the reminder...VeeFx

I'll need periodic rality checks like this "per quarter" (3-4 mths) to get through the year {July 21st 2011} so please provide this suppot, will you? The real strength in this approach is a practicable & real-Live way of implementing the addage, cut your Losses and let your Profits run. Formerly I had nearly perfected the reverse

The question missing for me was always to where?... Answer!: To where the market allows. Just as Greame mentioned with entries, they have to be hoaned; so too, exits on the long runners. He has given clues on this and I might add, Harmonic Turning points are excellent at signifying Reversals (as opposed to retracements).

All in all, no one knows where the next Pip will go and so we have to protect ourselves.... to BE + {your decision Pips} perhaps? The caution is accepted, fully!!

We also have to apply ALL our prior experiences in trading to make it.

Recall it (Equity Millipede) is a Liscence(tool) to Drive..., via your/my prior abilities, to the destination of "Sustained Profitability" through our investments in the ForEx.

Bless!!
  • #4,574
  • Jun 21, 2011 3:51pm Jun 21, 2011 3:51pm
perhaps one more post for today....

for those hung up and getting discouraged by the 20x3 exercise as someone mentioned a few posts (or pages) ago, I faced the same hurdle last year. it requires 1000+ hours of screen time to fine tune your focal interpretation to get just 3 successful trades on a consistent manner. It messed with my mindset too as the last thing I want is to become more miserable compared to my current job starring at my laptop all day watching binary price action.

The disadvantage of that exercise (imho) is that it forces you to think like a trader where as Millipede approach is more for long term investor which fits well with my mindset.

Anyone curious why Graeme focused so much on upskilling the entries? It's sole purpose (again imho!) is purely to keep the drawdown under control as most of us are undercapitalized in the work of FX trading with unreasonable expectations to make millions trading microlots.

Slowly as the thread progressed, Graeme made us all realize that how you enter is not important (setups, patterns etc) as 'when' you enter... i.e. levels where price 'needs' to break away.

His simple and common sense approach to market (buy when price closes above the open of previous down candle and vice versa) is in itself a robust strategy as proven by some recent successful traders, especially if you couple it with MTF analysis.

There is no need for 'cut your losses...' by using stop loss orders for Market Makers to take advantage of. If you have to use SL, using it at a higher TF than the TF of your entry is a more logical approach. This should keep the level of frustration in check, make fewer trades and have a defined 'strategy' to take profits as well.

I think I have said enough....

- Vee
Staying in my lane...
  • #4,575
  • Jun 21, 2011 4:24pm Jun 21, 2011 4:24pm
Well said Veefx , I cant agree more .The bigger picture is what it is all about . Give your trades plenty of room and dont feed the brokers.

Cheers
  • #4,576
  • Jun 21, 2011 4:44pm Jun 21, 2011 4:44pm
Quoting oztrader
Well said Veefx , I cant agree more .The bigger picture is what it is all about . Give your trades plenty of room and dont feed the brokers.

Cheers
hey oz and vee,
i agree with what you are trying to get accross, but i somewhat disagree with the statement to give your trades room to breath, for me, if my trades need more room than i would give any of them to survive, i must accept they where not placed in the correct place in the first place, you know what i mean?
the best trades are those that are with momentum, and dont look back, those trades dont need breathing room. i have found for myself that if i slip into the mindset of i will give my trades more room, i end up loosing more, because how much room is enough, annd where do you stop!!

i am in no way having a go at anyone, i just wanted to express my thoughts on how i go about it, i find i do better being more ridgid in my approach. but hey thats just me, and everyone has to find what works for them.

cheers
geoff
  • #4,577
  • Jun 21, 2011 10:11pm Jun 21, 2011 10:11pm
Hey Vee,

I have studied this tread several times over the last few months with the intention to integrated Graeme's trading approach in my trading. There are a few questions that I hope you can answer for me. I note you have been following Graeme's teaching and you have focused quite deeply on the Flying Buddha when it was first introduced. My questions is How do you find trading the pure Flying Buddha's approach as practised by Marion compare to trading the 'total' approach as detailed by Graeme in this entire tread? What are the pros and cons of trading the two different approaches? Are you currently focussing on Marion's 4hr Flying Buddha strategy or Graeme's 'total' approach which also include Flying Buddha, wicks intrepretation, momentum breakout, hindsight, anticipation, inception, and so on?

Hope you understand my question and can share your experience. I am really very keen to know your experience if you had traded them. Thanks Vee for all your previous postings. I have learned very, very much not only from Graeme's teaching, but also from yours and so many peoples postings. For all the above, I am truly grateful and appreciative. Thanks!

Warm regards,
ooops
  • #4,578
  • Jun 21, 2011 10:33pm Jun 21, 2011 10:33pm
Hi Geoffrod,

I respect your opinion.

Please continue to share your thoughts and experiences.

- Vee


Quoting geoffrod
hey oz and vee,
i agree with what you are trying to get accross, ....
Staying in my lane...
  • #4,579
  • Jun 22, 2011 2:27am Jun 22, 2011 2:27am
Quoting pathumracled
Hello Again Emeraldeyes
Good to know that you are groeing your equity unappologetically

I have been doing various aspects of this mindset over the last year or so, but not in one coheasive front as this. There was always something "missing" Almost like trading via ABCD Fibs, then Discovering Harmonics. In fact that is a most appropriate anology.

I have come across this thread only last Friday. Immeadiately the gaps in the wall were filled. It is like recognising Diamond among stones.

So I am indeed in...
Thanks! I'm fine with sharing some demo results Be careful not to overtrade. My first week of live trading (this method) saw too much volatility on my equity balance for my liking.

Me personally.. I select my pairs on the weekends by looking at Weekly & Daily charts, sorting the pairs by best uptrends and best downtrends, then trading only those during the week in the intended direction. The most important factor for me though is that this way of trading fits ME.. my risk tolerance.. & screen time needed. Currently using PriceAlerts.com for txt alerts.
  • #4,580
  • Jun 22, 2011 2:33am Jun 22, 2011 2:33am
Quoting geoffrod
hey oz and vee,
i agree with what you are trying to get accross, but i somewhat disagree with the statement to give your trades room to breath, for me, if my trades need more room than i would give any of them to survive, i must accept they where not placed in the correct place in the first place, you know what i mean?
the best trades are those that are with momentum, and dont look back, those trades dont need breathing room. i have found for myself that if i slip into the mindset of i will give my trades more room, i end up loosing more, because...
Agreed, tight stops and momentum (participation) toward intended direction is what Graeme has been teaching and best suits this.
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