Building an equity millipede | Page 230 | 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

  • #4,581
  • Edited 12:47pm Jun 22, 2011 8:10am | Edited 12:47pm
Quoting VEEFX
...
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.
...
Hi Vee, Geoff, All,

Nice to see some good posts from you guys. Excellent indeed.

If I am to add a few words from my experiences, I would say that having a plan and following it is the most important, but when I say a plan, not one of those things on 100 pages, just a simple if-then.

For example: Let's say I am interested to trade 50% of the previous Daily candle. I would think in advance:

- if price reaches 50% of the previous Daily candle, ONLY then
- if on the 1h chart I would get any weakness, like a pinbar, dojis etc then I would be looking to go short, with SL above the hourly candle that triggered my setup... like if it was a pinbar the SL would go 2-3 pips + spread above the pinbar
- if however on the 1h chart the 50% Daily level is broken with momentum, then I would wait for a retrace to try to enter at a better price (if no retracement, I would not take the trade)

The above is just a fictive scenario, but I think that visualising in advance what you are about to do helps you settle your thoughts. If you think that's stupid, remember how many times you lost money on entries because you got emotional, thinking you were missing the train

Kindest Regards,

Cam
  • #4,582
  • Jun 22, 2011 9:38am Jun 22, 2011 9:38am
Quoting EmeraldEyes
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...
Good EmeraldEyes!

This mirrors the approach I had in mind so it is hereby supported. Your encouraging manor is most appreciated.

Bless!
  • #4,583
  • Jun 22, 2011 11:39am Jun 22, 2011 11:39am
Quoting cameron1st
For example: Let's say I am interested to trade 50% of the previous Daily candle. I would think in advance:

- if price reaches 50% of the previous Daily candle, ONLY then
- if on the 1h chart I would get any weakness, like...
Nail on the head

Quoting pathumracled
Good EmeraldEyes!

This mirrors the approach I had in mind so it is hereby supported. Your encouraging manor is most appreciated.

Bless!
Thanks man. As to not divert the thread, could you PM me with what approach you had in mind before? I like to hear all ideas
  • #4,584
  • Jun 22, 2011 12:00pm Jun 22, 2011 12:00pm
Excellent suggestion Cam.... and hopefully that plan translates in to "buy when price is going up and sell when it is going down"

Quoting cameron1st
Hi Vee, Geoff, All,

Nice to see some good posts from your guys. Excellent indeed.

If I am to add a few words from my experiences, I would say that having a plan and following it is the most important, but when I say a plan, not one of those things on 100 pages, just a simple if-then.

For example: Let's say I am interested to trade 50% of the previous Daily candle. I would think in advance:

- if price reaches 50% of the previous Daily candle, ONLY then
- if on the 1h chart I would get any weakness,...
Staying in my lane...
  • #4,585
  • Jun 22, 2011 12:20pm Jun 22, 2011 12:20pm
Quoting EmeraldEyes
Agreed, tight stops and momentum (participation) toward intended direction is what Graeme has been teaching and best suits this.
'tight stops'.... Perhaps further clarification is required. Deciding 'when' to trade will/should/must result in "tight stop loss level" coupled with momentum of course. If you put a tight stop loss i.e 10 pips away, you will get a LOT of looses created by market sweeps. Please read into how the banks and various tiers 1/2/3 and market structures within the global interbank system work. How volatility and liquidity is created by market sweeps at key S/R levels to accommodate LARGE $500M+ hedging orders by Toyotas and the likes of multi-national corporations for their hedging purposes.

One must wonder why there is a often spike up/down the next candle after a flying buddah. I bet lot of traders are putting their SL orders on the tip of wicks of FBs to get sweeped. Please keep in mind that we cannot see the FX order flow like we do in a structured (futures) market. That is a huge disadvantage in retail FX. For those who ask about Flying buddah, I use it to gauge market sentiment and order flows 'pivot' between buyers and sellers. This helps create a directional bias but that's all there is to it. I don't consider it for entry/setup due to it success rate. I could be a powerful 'tool' if you factor other confluences within your trading parameters (whatever those might be).

Hope this helps.

Vee
Staying in my lane...
  • #4,586
  • Jun 22, 2011 12:51pm Jun 22, 2011 12:51pm
Quoting VEEFX
'tight stops'.... Perhaps further clarification is required. Deciding 'when' to trade will/should/must result in "tight stop loss level" coupled with momentum of course. If you put a tight stop loss i.e 10 pips away, you will get a LOT of looses created by market sweeps. Please read into how the banks and various tiers 1/2/3 and market structures within the global interbank system work. How volatility and liquidity is created by market sweeps at key S/R levels to accommodate LARGE $500M+ hedging orders by Toyotas and the likes of multi-national...
Sure, no problem. A tight stop loss placement has been developed over time with respect to price levels where orders/stops are most likely to be. If I'm wrong, I lose 10-15 pips and have the chance to reenter bc price will most likely overshoot that stop level if it does break. All stops are purely discretionary though. Meaning I get the level off my chart then type it in. The 'tight stops' are always traded on the 5M chart after higher timeframe confirmation of course.

Recent example; Round number trade. Short @ 1.3600. Stop @ 1.3612.
http://i54.tinypic.com/x4f02u.jpg
  • #4,587
  • Jun 22, 2011 5:54pm Jun 22, 2011 5:54pm
Quoting VEEFX
'tight stops'.... Please read into how the banks and various tiers 1/2/3 and market structures within the global interbank system work. How volatility and liquidity is created by market sweeps at key S/R levels to accommodate LARGE $500M+ hedging orders by Toyotas and the likes of multi-national corporations for their hedging purposes.
This is what I've been thinking about for some time - can you point me to where I can read more about this?

Thanks,

Karel
  • #4,588
  • Jun 22, 2011 7:46pm Jun 22, 2011 7:46pm
For those who ask about Flying buddah, I use it to gauge market sentiment and order flows 'pivot' between buyers and sellers. This helps create a directional bias but that's all there is to it. I don't consider it for entry/setup due to it success rate. I could be a powerful 'tool' if you factor other confluences within your trading parameters (whatever those might be).

Hope this helps.

Vee[/quote]


Hey Vee,

Thanks for answering my question. Very much appreciated. It helps!

Warmest regards,
ooops
  • #4,589
  • Jun 22, 2011 9:25pm Jun 22, 2011 9:25pm
A summarized pdf file of this thread would be really helpful..Thank you..
  • #4,590
  • Jun 22, 2011 9:41pm Jun 22, 2011 9:41pm
Seven, There are any number of PDF's embedded in this thread.
I gaurantee that within ten minutes you'd find one or two if you would only care to look.

Cheers, R
  • #4,591
  • Jun 22, 2011 10:02pm Jun 22, 2011 10:02pm
Quoting Reverb
Seven, There are any number of PDF's embedded in this thread.
I gaurantee that within ten minutes you'd find one or two if you would only care to look.

Cheers, R
Thanks for the great HELP!!!...
I was looking for something that "summarizes" the thread and not ANY kind of pdf..
  • #4,592
  • Jun 22, 2011 10:20pm Jun 22, 2011 10:20pm
There's been many updated PDFs of PipEasy's posts within the thread.

You have to start reading from the beginning though.
  • #4,593
  • Jun 23, 2011 12:29pm Jun 23, 2011 12:29pm
Quoting VEEFX
'tight stops'.... Perhaps further clarification is required. Deciding 'when' to trade will/should/must result in "tight stop loss level" coupled with momentum of course. If you put a tight stop loss i.e 10 pips away, you will get a LOT of looses created by market sweeps. Please read into how the banks and various tiers 1/2/3 and market structures within the global interbank system work. How volatility and liquidity is created by market sweeps at key S/R levels to accommodate LARGE $500M+ hedging orders by Toyotas and the likes of multi-national...
-Hi Veefx,
You have obviously thought deeply about Graeme`s theories and have put some of them at the least into practice for at least a year. From reading your posts, my impression is that you are at least following the core general idea of Graeme`s of taking a long-term view and keeping your winners for a long time--could I ask how this is going for you in these volatile days?

best regards,
greg
  • #4,594
  • Edited Jun 24, 2011 1:39am Jun 23, 2011 11:16pm | Edited Jun 24, 2011 1:39am
Hi Greg,

I will try and find some time to respond this weekend...just wanted to say this. I am not a follower of Graeme or anyone for that mattter. I am certainly a strong believer of his aproach to trading with an investor's mindset as it fits well with my background in trading stocks (I was a 'buy and hold' value investor). I am still learning and applying his teachings ever since I got involved in this thread (my first and probably my last participation in the craziness of online forums if i may add).

What Graeme has given us is a 'blueprint' to a successful trading approach. It is not a footprint although there are so many painstaking examples and charts provided by Graeme to help us along the way. One could devise a thousand ways to tweak his approach into a trading plan that fits one's lifestyle, risk tolerance, mentality/mindset etc. It requires short term pain for long term gains. It requires an investor's mindset instead of a trader's mindset of making a quick buck or two on a daily/weekly basis. It also requires you not to loose sleep over unrealized profits as Graeme does not even consider unrealized profits as 'his' own money until it is realized. I feel new readers focus too much on profitable trades hitting BE and miss the underlying ingredients to gain membership into the top 5% club of successful traders. In my opinion, it is consistent profits with low risk entries that cause minimum drawdown and smooth equity curve.

For past couple of years, I am on a quest to find a strategy to minimize drawdowns and gain 50%plus confidence that the trade will go my way. I am convinced this thread meets what I am looking for. But my journey still continues to define my own trading goals for myself.

I have to say this though.... I find it quite hard for a u.s. based trader with so many regulations (FIFO, no hedging in same account to name a few). To briefly answer your question, I have found some success in demo and a small live account but still working on confidence to commit serious dollars and go full time.

BTW.... Android rocks!!!!! (just bought a new 4G smartphone... it is amazing!)

EDIT: I did take some longer term positions in my primary live account with IB. I posted some live trades a while back that I took last year, one of which is still in the running.

[/QUOTE=gssintokyo;4720928]-Hi Veefx,
You have obviously thought deeply about Graeme`s theories and have put some of them at the least into practice for at least a year. From reading your posts, my impression is that you are at least following the core general idea of Graeme`s of taking a long-term view and keeping your winners for a long time--could I ask how this is going for you in these volatile days?

best regards,
greg[/quote]
Staying in my lane...
  • #4,595
  • Jun 24, 2011 11:36am Jun 24, 2011 11:36am
Quoting VEEFX
Hi Greg,

I will try and find some time to respond this weekend...just wanted to say this. I am not a follower of Graeme or anyone for that mattter. I am certainly a strong believer of his aproach to trading with an investor's mindset as it fits well with my background in trading stocks (I was a 'buy and hold' value investor). I am still learning and applying his teachings ever since I got involved in this thread (my first and probably my last participation in the craziness of online forums if i may add).

What Graeme has given us is a 'blueprint'...
[/quote]


Like others have said here, I'd highly suggest Nomask's Trading Major Lines thread for something else to look at during your journey that goes along with this method.

I am still trying to work it all out. Graeme (or Nomask's) strategy is really hard to do with the way the market has been. I don't know about what you guys think, but it seems the weekly hindsight is changing with every passing week. I really want to succeed at this. I've never wanted something so badly in my life. I really think that once the Eurozone thing gets figured out and the market knows which direction to take, that we will see a lot of profits from these methods.

The emotional toll of seeing these positions die week in and week out is almost too much to bear. I don't think I have a choice but to fund a second account to hedge the way Graeme describes. The US restrictions really suck. I am honestly disturbed that the US government cannot trust us with our own money. This is coming from a government body that spends money more irresponsibly than a 19 year old with a handful of student Visas, but I digress.

The good news (because we all need some good news): With the help of this thread, the 20:20 game, and Nomask's spin on things, my entry to BE hit-rate is extremely high. I think it's only a matter of time before the stars align and I end up at the "final door of profits".

Happy pips, all.


Best,

Jason
  • #4,596
  • Jun 24, 2011 11:59am Jun 24, 2011 11:59am
Hi Jason,
I think most people agree that there are plenty of week when it is really tough to make good pips in FX using Graeme`s method (or any other trend-following method)-if you`ve got good entry skills then at least you`re participating without losing much and you`re `in the game`, ready for the next mega-trend which could happen at any time.
Hang in there!

br,
greg

Like others have said here, I'd highly suggest Nomask's Trading Major Lines thread for something else to look at during your journey that goes along with this method.

I am still trying to work it all out. Graeme (or Nomask's) strategy is really hard to do with the way the market has been. I don't know about what you guys think, but it seems the weekly hindsight is changing with every passing week. I really want to succeed at this. I've never wanted something so badly in my life. I really think that once the Eurozone thing gets figured out and the market knows which direction to take, that we will see a lot of profits from these methods.

The emotional toll of seeing these positions die week in and week out is almost too much to bear. I don't think I have a choice but to fund a second account to hedge the way Graeme describes. The US restrictions really suck. I am honestly disturbed that the US government cannot trust us with our own money. This is coming from a government body that spends money more irresponsibly than a 19 year old with a handful of student Visas, but I digress.

The good news (because we all need some good news): With the help of this thread, the 20:20 game, and Nomask's spin on things, my entry to BE hit-rate is extremely high. I think it's only a matter of time before the stars align and I end up at the "final door of profits".

Happy pips, all.


Best,

Jason[/quote]
  • #4,597
  • Jun 24, 2011 7:12pm Jun 24, 2011 7:12pm
Quoting jasonc1213
...
I don't know about what you guys think, but it seems the weekly hindsight is changing with every passing week.
....
Hello Jason,

Not sure what you mean by that... can you please exemplify with a chart and a few more details ?

Kindest Regards,

Cam
  • #4,598
  • Jun 24, 2011 7:16pm Jun 24, 2011 7:16pm
Haha, such a gentleman to be such a primal brute in the avatar...

Quoting cameron1st
Kindest Regards,

Cam
  • #4,599
  • Jun 26, 2011 11:27pm Jun 26, 2011 11:27pm
Quoting gssintokyo
I am still trying to work it all out. Graeme (or Nomask's) strategy is really hard to do with the way the market has been. I don't know about what you guys think, but it seems the weekly hindsight is changing with every passing week. I really want to succeed at this. I've never wanted something so badly in my life. I really think that once the Eurozone thing gets figured out and the market knows which direction to take, that we will see a lot of profits from these methods.
I'm not sure what you mean either. Look at all your pair's weekly & monthly charts. If following Graeme's method, you should be long Chf against almost everything.. and be WELL in the green.

Hell, just one example; Usd/Chf has been in a 10 year downtrend now. Weekly hindsight is changing with every week? Bulls make money, bears make money, but piigs..

Quote
The emotional toll of seeing these positions die week in and week out is almost too much to bear. I don't think I have a choice but to fund a second account to hedge the way Graeme describes. The US restrictions really suck. I am honestly disturbed that the US government cannot trust us with our own money. This is coming from a government body that spends money more irresponsibly than a 19 year old with a handful of student Visas, but I digress.
You're risking too much if this method provokes any emotion that will effect your trading.

I have 2 US accounts for this strat. One short, one long. Simpleover&done. Dont trade a pair in both directions unless there is a definate change in the long term trend. ie; Monthly bullish outside bar from a downtrender.
  • #4,600
  • Jun 27, 2011 2:54am Jun 27, 2011 2:54am
Quoting EmeraldEyes
ie; Monthly bullish outside bar from a downtrender.
hmm...last Outside Bar on Monthly:

- E/U was over 950 pips
- G/U was over 650 pips
- G/J was over 550 pips

you are letting too much of your hard earned unrealized profits to 'die' if you wait for Monthly engulf (i.e. outside bar) candle to close.

just my 2 cents (no offense intended)

p.s. If I am not mistaken, I don't believe Graeme has mentioned 'waiting' for anything to start a trade in opposite direction. It's all based on price action/interpretation based on your chosen timeframe.
Staying in my lane...
4 traders viewing now