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Pit bull trading strategy by brijon

  • #161
  • Nov 12, 2011 10:01pm Nov 12, 2011 10:01pm
Quoting deankenny21
ok after much review video watching and 2 days thurs and fri of quick testing.

I opened a demo account for $1200

trading at 0.01 lots, i traded from london open to london close

i did the plain and simple straightforward way of closing trades in profit bottom 3 and replacing them as per the videos.
So my balance went up and up, DD was stil there yes, we all know that
But this is how i personally did it, at the end of both days my EQUITY which includes DD was above my days starting balance, so London close i closed everything all the DD and was...
Looks like you have got the point so if you can describe in some detail by using some examples.

Thanks
  • #162
  • Nov 12, 2011 11:11pm Nov 12, 2011 11:11pm
Quoting russ1978
OK Guys after studying the method, still learning but this is how i understand and have been using it.

Open up a hedge, dosnt have to be brians exact pairs just a combination that hedges. 101 pairs for example or yens usd or whatever. You can use from 6-14 etc etc etc.

Place your hege. Allow hour or so for this to soak in. Keep in mind with the trades hedged your dd would be limited to a certain amount, also it would be limited to a certain amount profit. Just think for a second you could leave this on and it would make you money if you waited....
Hi Russ,
Now fulltime trader congrats!!!!
Your post is easy to follow and demonstrates it can be done
  • #163
  • Nov 13, 2011 1:34am Nov 13, 2011 1:34am
Quoting russ1978
............ By noting in your head how long it takes to get back to your feet (slot 1) how powerful the trend / movement is. If the trade comes again in profit I up the trade to 0.04 or above. This proccess is repeated on and on.

Russ - Now full time trader
Hi Russ,

Can you explain why to increase lot size here?
  • #164
  • Nov 13, 2011 1:52am Nov 13, 2011 1:52am
Thanks Brijon and those helping explain.

It's taken a bit of thought and rereading along with the three videos, but I feel I have a reasonable grasp on the concept, and will try it live on Monday with small trades.

I'm still not fully 100% on the drawdown control used, but think I might have it.

Thank you for making me think outside the normal single currency trade.


Peter
Holy Grail part 1. - Cut loses short.
  • #165
  • Nov 13, 2011 2:37am Nov 13, 2011 2:37am
[quote=Stumpy1;5128257]Hi Russ,
Now fulltime trader congrats!!!!
Your post is easy to follow and demonstrates it can be done

Thanks MAte, I post updates from these demos during the week if they help and as i use the method i may have more to add as i have some ideas i want to try also
  • #166
  • Nov 13, 2011 3:05am Nov 13, 2011 3:05am
Sure as the trend is settling you need to bias the takings in the favour of the trend. Also generating some profits. If you keep it all at 0.01 the profits would be very minimal


Quoting kijkij
Hi Russ,

Can you explain why to increase lot size here?
  • #167
  • Nov 13, 2011 3:28am Nov 13, 2011 3:28am
Hi guys, just another newbie here and this is how i understand it.

Open 10 pairs hedge with .01 lot, sort orders as the largest profit is at the bottom.

If the profit is consistent or increasing, open a .04 lot order with respect to the pair at the bottom. Close the original order of that pair.

Wait until the .04 order is at the bottom, then take profit and open a new .01 lot order of the same pair. OR ( Look at chart if the trend is still going strong, let the profit run and then take profit base on your analysis.)
-----------------------------
What to do if the first .04 order goes into negative? Place a new order of another pair that is now on the bottom, and then take profit base on the rule? Do i ignore the first .04 order and just focus on other pairs that drop down to the bottom?
  • #168
  • Nov 13, 2011 5:26am Nov 13, 2011 5:26am
Quoting russ1978
Sure as the trend is settling you need to bias the takings in the favour of the trend. Also generating some profits. If you keep it all at 0.01 the profits would be very minimal
Ok, thanks for your reply.

Some more confusions if you have time to explain. Let I open a hedge with 14 pairs and after some hours I arrange them according to profit and loss. Then I close a trade by taking little profit and open the same trade with same lotsize in same direction, it mean always my open trades will be 14?

As you increase lot size to 0,04, so if you keep increasing the lotsize or first time 0.01, 2nd time 0.04, 3rd time again 0.01, 4rth time again 0.04 and so on....?

If you open a trade with 0.04 and trend changes suddenly, then how you handle that situation?

It will be better if you teach us with complete set of examples.

Thanks
  • #169
  • Nov 13, 2011 5:57am Nov 13, 2011 5:57am
http://www.youtube.com/watch?v=1i4AEpnsk2M
  • #170
  • Nov 13, 2011 7:23am Nov 13, 2011 7:23am
Brijon, you are the Hall of Famer, I'm just your water carrier!

I'm working on the second part of the Word and PDF document, hope to have it done today after church. Thank you again.

P.S. You're on my buddy list now.

Quoting brijon
on page i ive put dreamliners precise great pdf file on there as he translates part 2 ect ot other trades we will put the whole story there

now i reconize some old thread destroyers posting here and if they behave themselves as poitive traders i wont block them

so be warned you thread destroyers


NOW ITS TRUE I ADVISE YOU TO TRADE DEMO DEMO DEMO TILL ONE YOU UNDERSTAND THE RISK IN LIVE TRADING


95 % OF TRADERS LOOSE MONEY TRADING THE FOREX

NEVER TRADE MORE THAN YOU ARE PREPARED TO LOOSE


IN MY OPINION THESE...
  • #171
  • Nov 13, 2011 7:31am Nov 13, 2011 7:31am
Now THAT is clear. Got it. Thank you Paul.

Quoting pah
I think there is a misunderstanding here.

Brian currently advocates that no live trading should be done at all at the moment (whatever system you use) due to the current global financial situation and that people should only use demo accounts in the meantime for practicing their chosen strategies.

In the case of the pit bull trading system outlined here, both the indicator trades and any add on & replacement trades need to be on the same account. This may be your live account, if you wish to risk it, or a demo account if you're just practicing.

The...
  • #172
  • Nov 13, 2011 7:34am Nov 13, 2011 7:34am
Dream liner , about the pdf and the placing of trades which pay interest.
This was mentioned by Brian in some of his video discussions.
He indicateds that on Wednesdays ?? there is some interest paying settlement in the market and one can take advantage of this by taking long or short positions of some currencies at that time.
Sorry that I cannot explain any better ,as I have never done this myself.
Perhaps Brian would like to take over from here........
  • #173
  • Nov 13, 2011 7:57am Nov 13, 2011 7:57am
Quoting puppet
Dream liner , about the pdf and the placing of trades which pay interest.
This was mentioned by Brian in some of his video discussions.
He indicateds that on Wednesdays ?? there is some interest paying settlement in the market and one can take advantage of this by taking long or short positions of some currencies at that time.
Sorry that I cannot explain any better ,as I have never done this myself.
Perhaps Brian would like to take over from here........
//--------------------------------
This refers to intrest pairs such as euraud and audusd this can generate steady income if you are in dd. But this addition is only advised if you have increased your balance by say 100%.

Concept is basicly if your generating dd that is generating negative swap this makes your situation worse. If you have dd and can generate a steady capital from posative itrest pairs can help sofern the blow of dd while you have it. Such a situation would be if you have exposed yourself to too much dd and you cant afford keep putting trades on. But that adition is ontop of the basic method that needs getting to grips with first
  • #174
  • Edited 8:34am Nov 13, 2011 8:15am | Edited 8:34am
I think everyone should be well informed on how interest is being paid if you have many open trades for an extended period of time. Brijon shows that in one of his videos. For example, holding Aud/Usd long would pay something like 96 cents every day on every 10K lot held after a certain time of day depending on your broker. But if you have Aud/Jpy short at the same time held over a period of time, the swap is something like -1.87 for every 10K lot traded. So trading bigger lots can have an impact on how much interest you are earning or paying. On Wednesdays however, the interest is triple. So it may be important to get out of pairs such as Aud/Jpy or Nzd/Jpy because they would be very costly. For those that want more info just do a search for it. Tons of info out there about how interest is paid in FX and I dont feel like writing a book. Looking forward to tonight.

Quoting puppet
Dream liner , about the pdf and the placing of trades which pay interest.
This was mentioned by Brian in some of his video discussions.
He indicateds that on Wednesdays ?? there is some interest paying settlement in the market and one can take advantage of this by taking long or short positions of some currencies at that time.
Sorry that I cannot explain any better ,as I have never done this myself.
Perhaps Brian would like to take over from here........
  • #175
  • Nov 13, 2011 8:18am Nov 13, 2011 8:18am
Thanks Dirty Serb. Excellent explanation on the interest issue.
  • #176
  • Nov 13, 2011 8:44am Nov 13, 2011 8:44am
So I plan to trade this using a small live account I have. I am not a fan of doing anything on a demo account. I am very aware of the risks so no need for further warning. Like I said the account is small and I havent used it in a while so its perfect for testing as it will let me open very small lot sizes. Basically 1 cent per pip. I could let a pair go into DD 1000 pips and still be down only $10 so like I said, not a big deal. I'll open the trades just before or at Asia open and post updates most likely before New York open or after London close.

By the way, thanks to Brijon for introducing the method and to Dreamliner for his continuing effort.
  • #177
  • Nov 13, 2011 9:33am Nov 13, 2011 9:33am
[quote=piksy;5126708]When I read posts like this one I can hardly control myself not to smash monitor to pieces. Your writing shows that you are either forex or FF newbie or both, but in any case you are very unkind. It sounds like you would like to have got served everything on a gold plate.

If you would have done some effort and read Brijon's threads and his posts you would realize tat Brijon is an genius trader and a very honest and generous person, one of the best I have ever met in my life and here on FF. You would also realize that he isn't drunk or sleepy, as you in your post accuse him to be , but that he has some health problems and certain age. So you are not allowed to address to him the way you did.

Hi Piksy

I was thinking the same thing this morning,that people don't appreciate what life is giving them for free and it does not matter who the donor is, we are fast to criticize.
When I heard Brian's voice the first time I realized that this person has a history that affected his communication matter. But by being a fighter although he was wounded, he never gave up.
I feel for Dreamliner too, because he tries to be helpful to everybody BUT what I want to emphasize is that we don't appreciate the free stuff that FF is offering us.
Sorry I am off the topic but thanks Brian and all the other for the help that is being offered - take it or leave it and move on

Regards

John from Durban
  • #178
  • Nov 13, 2011 9:45am Nov 13, 2011 9:45am
Brijon, tnx for showing this trading method.

I believe the technical way of when and how to put on new orders is covered nicely in many posts on this thread and including DreamLiner's docs.

nonetheless, the core of this method (and probably all reliable trading methods) is in keeping a strong hold of the 'losses' part of the equation. you call it Drawdown here, as 'pitbull' is a 'constantly in' method with NO pre-defined stop loss or take profit.

Now, it would be extremely beneficial I think to many (I know it would help me alot) if you could draw a few lines on just how you keep your DD at a certain range and what you do when it goes out of range?

You definitely showed printing money is easy but managing drawdown is a bit trickier to do. well what i'm asking really is how YOU control DD in your day to day trading?

regards,
fundemental
  • #179
  • Nov 13, 2011 10:33am Nov 13, 2011 10:33am
Hey Fun D... I believe Brijon addresses the DD issue in post #137.

"eg 8% max as your account grows raise it 1% for every 2 k growth to max 25%

the maxium target alows you to stop trading 5% below your target"
  • #180
  • Nov 13, 2011 12:28pm Nov 13, 2011 12:28pm
Greetings Brijon,

I've updated the PDF now, adding two additional steps. Can you please check step number 4 and see if "lot size" is correct?

Finally, I'm struggling with understanding how to manage draw-down (again, my fault not yours Brijon); if you could try to tell me in a step-by-step manner how to manage draw-down I will include that in the PDF.

Thank you again my friend. I've enjoyed doing this work because it has helped me to understand your method. I like trading without a chart, just managing profits and drawdown.

I do feel sorry for the people who discount this method and slam it as being "stupid". The amount of profit people are taking are showing it is anything BUT stupid, and may be one of the most inovative methods on Forex Factory.
Attached File(s)
File Type: doc Brijons Pit Bull Trading for Dummies.doc   28 KB | 1,060 downloads
File Type: pdf Brijons Pit Bull Trading for Dummies.pdf   21 KB | 4,937 downloads
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